Case study · Settlement deeds

Told his job was redundant, he signed an 8-page deal on the spot

Claim dismissed: the agreement bindsFair Work Commission · 8 July 2025
A man in a hi-vis vest signs a thick agreement in an office above a factory floor while two managers watch.

Ran Zheng had been Factory Director at UA Holdings since 1 September 2018, running the day-to-day operations of its production facility. On 4 March 2025 he met the general manager and the HR director and was told his job was being made redundant. In that same meeting he signed an eight-page 'Redundancy Agreement', which offered a more favourable package: severance pay and a golden handshake on top of his accrued entitlements.

The document worked like a deed of release. He released the company from all claims about his employment, his contract and its ending, and acknowledged he had had the opportunity to get legal advice and signed voluntarily. Two days later he emailed, saying the agreement was invalid because the figures were wrong, and asked to renegotiate. He then lodged an unfair dismissal claim.

Mr Zheng said he had been caught off guard and was in a 'trance' or state of shock. He said English is not his first language, he had no real chance to get legal advice, and he assumed a 'Redundancy Agreement' dealt only with his redundancy. The Commission accepted he was likely taken by surprise. But he did not ask for time, did not challenge the document that day, and kept the money he was paid. He later reviewed it at home with his wife.

The Commission found the agreement was binding and covered his dismissal; the company's later corrections only increased his payment. Whether he signed under duress or without real understanding was a question for a court, not the Commission, and he had never asked a court to set the agreement aside. His claim was dismissed.

What it means for you

You do not have to sign anything in the meeting where you are told your job is going; ask for time, take the document away and get advice. Once it is signed and the money is kept, the Commission is likely to treat your claims as settled.

A published decision of the Fair Work Commission, retold in plain English. Lawcaptain did not act in this case. Every outcome depends on its own facts. General information, not legal advice about your situation.

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