When a settlement agreement is drafted in general terms, its scope is not limited to the sole original point of contention. The employee may not claim at a later stage for indemnification of potential rights.

Published on : 18/03/2019 18 mars Mars 2019

Sometimes, upon the termination of the contract, the employer and the employee are led to sign a settlement agreement in which the parties waive any action, whether current or future, of any nature whatsoever, related to the employment contract, its performance or its termination. In return, the employee receives a specific allowance paid by the employer. The drafting of the settlement agreement is very important because it makes it possible to very largely hinder any subsequent claim for compensation from the employee, regardless of its purpose. Thus, the French Supreme Court (Cour de Cassation) recalled this principle in a case where the employee dismissed for economic reasons claimed compensation for breaches of the obligation of redeployment or obligation to rehire. The Court rejects his request: because of very general wording of the agreement, the employee had renounced without limitation to any action resulting from the execution or termination of the contract.

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