The agreement should also specify that if your former employer is asked to speak orally about you or fill out a box form about you, the information they provide to you is no less favourable than the agreed wording. A transaction agreement is essentially a way for you and your employer to “separate” you on certain agreed terms. Depending on the terms, you waive your right (or waive your right to assert your rights against your employer). Settlement agreements can also be used to terminate your employment relationship and to settle an ongoing right that you assert in a court or labour court. My transaction agreement says “without prejudice” – what does that mean? Some likely incentives for an employee are: they should be offered more than they are owed under their contract and the law; their reference may be agreed; an announcement of their departure may be agreed; and/or they may be protected by other conditions (e.g. B that the company cannot make derogatory comments about them and that the agreement must remain confidential). If the worker has already brought an action against his or her employer or former employer, agreeing to a settlement agreement with terms acceptable to him would mean less time, energy and legal fees. Be realistic, but don`t be afraid to ask for what you want, especially when it`s not just about money. For example, employers will sometimes provide a written apology as part of a settlement agreement. . .