It is important to note that “prejudice-free” protection only applies if disclosure is a genuine attempt to resolve an existing dispute, and this will not be the case in many discussions with transaction agreements, as the dispute may not have yet arisered or has not been addressed by the worker. To fill this gap, amendments were made in 2013 to the Employment Rights Act 1996 (“ERA”) to allow for “protected discussions” in pre-comparison negotiations. The amendments introduced by the new Section 111A of the ERDF in 1996 mean that employers are now able to avoid the end of their employment with workers, without fear of this being revealed in the labour court. Transaction agreements are often used to resolve termination disputes. However, this is not always the reason and they are often used for the comfort of an employer with whom a worker may not have asserted a particular legal right and where there is no dispute as such, but there is an agreed exit and an employer wishes to close the risk of future litigation. In a situation of redundancy. B the process of consultation can be complex and tedious, especially in the case of major redundancies. It is therefore customary for employers to offer extended packages to the workers concerned when they are able to do so, in exchange for workers who sign a settlement contract. In addition, where a worker has accepted voluntary redundancies with an expanded package, signing a transaction contract will generally be a condition of the voluntary offer. This will be particularly important if a full and fair consultation process does not take place or is not shortened for any reason. While dismissals may be legitimate and reasonable in all circumstances, a transaction agreement may result in a person not yet attempting to assert a right if, for example, he or she changes his or her mind. In addition to establishing agreed terms with respect to the financial amounts payable, transaction agreements generally set out agreed terms of assets, confidentiality, confirmation of any current restrictive agreement and, in some cases, a reference so that they can be commercially useful. After a very competitive negotiation process, it may be easy to overlook elements of the agreement when developing the transaction agreement, but it is important to carefully review your settlement agreement before signing it to ensure that all items have been identified.