The court rejected the defendant`s intuitive argument that the non-denigration freelife clause was not applicable because it was too vague to say exactly what the parties had agreed to – the question “What is “disappearance” and how do you do it?” Unfortunately, the court had no problem telling the accused what the word meant and how he did it. He saw no further than the Oxford English Dictionary: Many non-disappearing clauses will identify a specific penalty for an offence, such as the return of the money that was paid to you as part of the transaction. A non-disappearance or reputational clause prevents individuals from taking actions that have a negative impact on an organization, its reputation, its products, services, management or your staff. They are found in virtually all transaction agreements and about a quarter of executive employment contracts. A few examples briefly describe the prescribed actions; others draw up a list of thesaurus of prohibited actions. Disparage is a lower standard than defamation. While defamation requires someone to say something wrong and harmful, denigration can also capture something that is true, but is always harmful. There are exceptions that a non-disappearing agreement cannot take into account. According to Cheddie, an agreement cannot prevent anyone from asserting a right to worker`s compensation or from receiving benefits due to injury or illness.
You can`t stop an employee from saying negative things to a government agency that`s conducting an investigation, Elkins says. For example, if the Equal Employment Commission reviews a discrimination claim or if an organization such as the FDA or EPO reviews your company`s practices, you can speak freely to that agency. Even if there are limits, it is important that, as soon as you accept a no-disappear clause, you ensure that it is not contrary to that agreement. When a clause is breached, a decision maker often has the power to apply the disparin clause and grant the other party recourse for the offence. But there have recently been other significant challenges for non-disappearance agreements. Where possible, workers should consider seeking legal advice before accepting a disparage clause or taking action that they fear will violate an existing clause. Perhaps an employment law specialist can help you negotiate another language for a non-disappearing settlement or help you avoid an involuntary infraction. “If I have to pay her severance pay, I want to make sure she doesn`t walk around me or my business,” is not an unusual plea from an employer who separates from a difficult employee.