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When we hired a new employee we forgot to make him sign an NDA.
Employment Courts will look behind any labels provided within an agreement, and will look at the reality of the situation.
Background If an employment contract is terminated following dismissal with immediate effect or by mutual agreement, the employee is not entitled to unemployment allowance payments.
Where dismissal is with immediate effect, the termination of the contract is a consequence of the employee's misconduct.
Employers and employees may be tempted to sidestep the legal requirements arising from the end of the employment relationship by opting not for dismissal with immediate effect or termination by mutual agreement, but instead for dismissal with notice, immediately followed by a settlement agreement.
At first glance, this approach appears to have advantages for both sides.