Executive termination

When an employer considers the termination of a director’s or senior executive’s employment a multitude of considerations come into play. For example:

• Can an employer protect itself from claims of unfair and wrongful dismissal?
• What contractual payments would be due to the employee and what likely compensation could be awarded in addition in respect of any unfair dismissal or discrimination claim?
• How best to protect an employer’s business interests on termination (e.g. ensuring that restrictive covenants continue to be enforceable following termination);
• How should the director’s position at Companies House be dealt with?
• If applicable, how should the employer deal with any shares held in the company by the outgoing director or employee?
• Is it permissible or appropriate to hold a without prejudice discussion with the director in order to reach agreement on all the above terms without damaging the employer’s position or exposing the business to a claim for constructive dismissal?
• Should the terms of any agreement reached with the director be recorded in a compromise agreement?

We can assist an employer in providing advice on all the above issues. We can assist in the preparation of correspondence to a director and in negotiations concerning executive severance packages. We can draft compromise agreements and we can assist directors or senior executives in negotiating improved terms of severance when they are faced with dismissal.