My settlement agreement says “without prejudice” – what does that mean? This means that the draft agreement is “off the mark” and cannot be presented to a court as evidence of a confession against one of the parties. The legal concept “without prejudice” is based on the principle that it is useful for the parties to speak freely when trying to reach an agreement. If they know that everything they say in these discussions cannot be used as evidence against them, then it allows the parties to be more open. Transaction agreements are non-binding unless the worker receives independent legal advice on the terms and effects of the agreement. One situation in which you might consider using a transaction contract could be, for example, an employee not doing well and neither party wants to go through a lengthy capacity process and employers and workers are prepared to terminate employment quickly under agreed financial terms. Most employers (and their lawyers) use standard billing agreements designed to be “unit-friendly.” If there are certain claims that are obviously more likely to be applicable in your circumstances, they are sometimes mentioned separately in the agreement. They are sometimes referred to as “special claims.” Unfair dismissal is the most common, but if you resigned in the context of a health problem, discrimination on the basis of disability would also be a special right. HR Tip: Before proposing a billing contract, check the employee`s registration to see if there are any potential problems that could cause complications. For example, have they filed complaints about a subject that could amount to discrimination or possible whistleblowing as an informant? For a transaction agreement to be valid, you must have “independent legal advice” from an “independent advisor.” Your advisor may be a lawyer or union worker or a worker in a counselling centre, such as a citizens` advice office, if he or she has been certified in charge of the council by the union or referral centre. In all cases, the advisor must have insurance covering all rights arising from the employee`s orientation.