We routinely assist senior employees across a broad range of sectors in resolving employment disputes and negotiating an exit from their employment.
This work takes many forms but our approach is often different to many other law firms. Some people think that raising a grievance is the prelude to an exit but we take the view that this inflames rather than resolves matters. It will also entail considerable legal fees and does it really further your case? It’s aggravation and process for your employer and it may be that avoiding the unnecessary process is attractive to them too.
Grievances only really matter if you are thinking about taking a claim to the Employment Tribunal, because they form the basis of your case and the way you behave pre-issue of the claim can impact compensation. They also matter if your employer will only engage in negotiations once the internal processes have been concluded. In all other cases we prefer to fast-track to negotiations and engage your employer. By the time you are thinking about an exit any number of things may have happened at work to lead you to believe the situation is not capable of resolution. Your employer is likely in the same place. Cutting through the noise and starting the discussion is often the best way forward. It is also the most expedient use of legal costs.
So, if you are thinking of exiting what should you take into consideration? Below is a list of relevant issues which is by no means exhaustive. But if you want to start a negotiation many of these are likely to come into play.
- What is your notice period and will you serve notice or do you prefer to be paid for it?
- Will you be placed on garden leave or do you prefer to be terminated with immediate effect and paid in lieu? It may be easier to find a job from a job meaning garden leave is favoured.
- Have you used your accrued holiday? This must be paid out on exit if not used. Your contract may require you to use it during notice or garden leave.
- What other benefits will you lose? Private health and dental (some policies allow for a period of continuation but this is taxable as a benefit in kind)? Life assurance (death in service).
- What about bonus or other incentives? Should you time the negotiation after the most recent bonus round is paid? Bonuses are notoriously difficult to achieve in exit packages because they are mostly discretionary.
- Shares will be paid out in accordance with scheme rules but it is important for us to understand what you hold to ensure you are not prejudiced in the negotiation.
- Reference is another consideration. There is no obligation to provide a reference so securing one in a package is an important consideration. Note that if you are regulated there will be additional requirements here which we can advise on.
- Company property. You will be required to hand back your laptop, phone and other items but perhaps you’d like to keep some of these. We can negotiate this.
- Telephone number. Some people join a company with their own mobile number which they want to keep post-termination. Your employer will want access to the device to wipe any company data but keeping the number is an option.
Contracts differ widely as do the demands of clients. What is important to one client is trivial to another. We offer a bespoke exit service for senior executives and will provide realistic, honest advice with a legal costs bill that is proportionate to the work delivered. Just because you are a high earner does not mean you will get a bigger bill. At didlaw we are all about radical honesty, impeccable service and delivering value.
