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ARTICLE · 20 DECEMBER 2016

But I changed my mind... — When a verbal settlement agreement is binding

Parties must make it clear in a negotiation if they do not intend to make a concluded bargain until they sign a deed.

AustraliaEmployment and HR

It is important for lawyers and their clients to understand at what point a binding agreement is reached in a negotiation, as the Fair Work Commission will hold parties to a verbal settlement agreement.

This was recently reinforced by the commission, when it refused to allow an applicant to renege on a verbal settlement agreement reached at an unfair dismissal conciliation conference

Verbal agreement to settle

In Csontos v QT Hotels & Resorts Pty Ltd [2016] FWC 3632, Mr Csontos had made an unfair dismissal application after he was dismissed by QT Hotels & Resorts Pty Ltd (QT) after just over six months of employment as a chef.

The commission conducted a conciliation conference in line with its usual dispute resolution processes. The parties attended via telephone and neither was legally represented, although Mr Csontos was assisted by an interpreter.

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