Warranty Clause

[Harmonica]

Most settlement agreements with employers contain a clause that asks the employee to give an assurance that they have not done anything that would allow the employer to dismiss them them without having to pay the compensation agreed upon in the settlement agreement.

If an employer finds out after having paid the compensation that the employee had done things that would have allowed them to dismiss them, what can the employer realistically do about it?

In my experience the vast majority of employers offer to settle because they are trying to keep their business out of the public domain and do not want the bad publicity of having to go to court. But has anyone ever heard of an employer actually taking an employee to court for breach of such a clause after having discovered that the employee had not been honest and did comit an act of misconduct that would have allowed them to dismiss them?

[leclerc]

Re: Warranty Clause

There is a classic case in the US this year in which a kid bragged on facebook about a settlement his father had made to the firm and as a result the firm refused to compensate the father....