Employment Termination - Employment Contract Settlement

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Colleen

Member
26 May 2014
1
0
1
Hello all
My services were recently terminated by the company I worked for. With this termination package (I worked for the company for a combined 30 years overseas and in Australia), I was offered a separation package. Through my lawyers we negotiated a better package and I signed and dated the agreed offer in my lawyers office on Friday 16th May. A clause of the package states, and I quote, "The Settlement Sum will be paid within 7 days of the date of this deed". I phoned the company representative today as the money has not been paid. She advised that the money will only be paid in 7 days once the company director has signed the separation deed and that will only happen on Thursday with the money paid over on Friday. This in effect means that they are only settling 14 days after date of the deed. No where in the document is reference made to signature. Shall I go back to my lawyer? It is a costly exercise that I wish to avoid if I can.
 

Paul Cott

Well-Known Member
LawTap Verified
26 May 2014
305
95
789
Ballarat, Victoria
Hello all
My services were recently terminated by the company I worked for. With this termination package (I worked for the company for a combined 30 years overseas and in Australia), I was offered a separation package. Through my lawyers we negotiated a better package and I signed and dated the agreed offer in my lawyers office on Friday 16th May. A clause of the package states, and I quote, "The Settlement Sum will be paid within 7 days of the date of this deed". I phoned the company representative today as the money has not been paid. She advised that the money will only be paid in 7 days once the company director has signed the separation deed and that will only happen on Thursday with the money paid over on Friday. This in effect means that they are only settling 14 days after date of the deed. No where in the document is reference made to signature. Shall I go back to my lawyer? It is a costly exercise that I wish to avoid if I can.

It is usual that the settlement sum is not paid until being fully signed i.e. Signed by both or all parties to the Deed. Perhaps the exact wording wasn't clear enough as to what 7 days of the date of this Deed exactly means. It perhaps should have been clearer. Often the Deed says payment of the sum is payable upon full execution or something similar to that.
 
  • Like
Reactions: Worldly1 and John R

Worldly1

Well-Known Member
25 April 2014
137
29
454
Australia
Hi Colleen,
I don't think its worth going back to your lawyer unless your former employer don't pay by that 14th day.
Put the date in your calendar (also note - does it say business days or just calendar days? so for eg, 16th May + 14 calendar days = 30th May) and check your specified account for your money.
If you haven't received the money by that date, get your lawyer to firmly follow up for you.