Do I need someone else to sign off on my settlement deal?
Quick Summary
Yes, you must wait for the Commission to review your agreement. Under the Canadian Human Rights Act, your settlement regarding your disability complaint must be sent to the Commission for their official approval or rejection before it is finalized.
The situation
I am currently living in Canada and have been dealing with a difficult situation regarding my former employer. About four months ago, back in January, I filed a formal complaint because I felt I was treated unfairly due to my disability. Since then, my employer's representative has been in contact with me to try and resolve things without a full hearing. We finally reached an agreement yesterday afternoon. They have offered me a pay cheque for $12,000 to cover my lost wages and a written apology as part of our settlement. I am quite happy with this amount and I have already told them that I accept the terms. However, I am a bit confused about the next steps in the programme. I thought that once we both agreed on the money and the apology, it was officially finished and I would just receive the funds. Do I have to wait for the Commission to look over our agreement and give it their official stamp of approval before it becomes a binding deal, or can we just sign the papers and be done with it?
Detailed Analysis
Because your situation involves a formal complaint regarding unfair treatment due to a disability, your settlement is governed by the Canadian Human Rights Act. Even though you and your former employer have already agreed to the $12,000 payment and the written apology, the process is not finished.
According to the law, "When, at any stage after the filing of a complaint and before the commencement of a hearing... a settlement is agreed on by the parties, the terms of the settlement shall be referred to the Commission for approval or rejection"[1]. This means that once you and your employer have reached an agreement, the terms must be sent to the Commission so they can review them. The Commission has the power to either approve or reject what you have negotiated[1].
Once the Commission makes a decision, they will "certify and notify the parties"[1]. This certification is the official step that confirms whether your deal is valid. If the Commission approves the terms, the settlement can eventually be turned into a formal order of the Federal Court if it needs to be enforced later[1].
In short, you cannot simply sign the papers and consider the matter closed; the Commission acts as a necessary third party in this specific legal process to review the terms of your agreement.
Statutory Citations
Legal Citation: Canadian Human Rights Act § R.S.C., 1985, c. H-6, s. 48 — Referral of a settlement to Commission
"When, at any stage after the filing of a complaint and before the commencement of a hearing... a settlement is agreed on by the parties, the terms of the settlement shall be referred to the Commission for approval or rejection."View Official Legislation →
Legal Citation: Canadian Human Rights Act § R.S.C., 1985, c. H-6, s. 48 — Referral of a settlement to Commission
"If the Commission approves or rejects the terms of a settlement referred to in subsection (1), it shall so certify and notify the parties."View Official Legislation →
Important Legal Disclaimer
General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.
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