9. The reference regulatory regime requires companies to update a reference when new information becomes available within six years of the departure of a worker from the company. Check the wording of your transaction agreement to make sure your agreements do not pretend to prevent you from meeting your regulatory obligations. The potential reduction in the ability to negotiate comparisons with employees will likely increase the number of disciplinary procedures (and potentially layoffs) that an HR team must conduct. These agreements are generally referred to as compromise agreements (and more recently transaction agreements). 6. Review your employment contracts and individual contracts. Contracts for all those who are involved in the SMCR may need to be changed. Consider changing your previous contracts for new employees or partners who are likely to be captured within the plan. In any transaction agreement, companies may use the following alternative language or formulations, which have much the same meaning: the new rules will pose significant difficulties for institutions that employ people involved in conduct that could lead to investigations.
Where employers and workers have generally attempted to enter into settlement agreements to avoid aeration of dirty laundry instead of disciplinary procedures, the new rules prevent employers and workers from entering into an agreement that would limit the employer`s ability to disclose the information required under the reference regulations. It will therefore be difficult to include the agreed references in a conciliation agreement. A company must include in any transaction agreement with a worker a term stating that nothing in such an agreement prevents a worker from making a protected advertisement. The rules of SM-CR do not mean that these agreements cannot be used at all, but they will have to be carefully considered if a consultant is involved and there are consequences of misconduct. Banks and insurers must ensure by March 7, 2017 that they have adequate systems and controls to comply with the new rules. They will be in effect since March of last year with the general provisions of the SMCR and the SIMR, and much of the updated corporate guidelines and procedures regarding references, verification of how terms of reference are stated in transaction agreements, and assurance that staff have received adequate training to manage the new regime and obtain the necessary support from legal and compliance teams should be considered a “business as usual” as part of the implementation of SMCR/SIMR.