It’s always difficult when you are being terminated from your role, whether that’s through redundancy or layoffs, but if you are a senior executive, there are roadblocks that you may come across during the termination process that can cause your redundancy to feel more stressful. In this article we will be discussing the most common problems experienced by senior executives and the solutions to these problems.

 

The Roadblocks to Redundancy Negotiations

Some of the biggest roadblocks senior executives experience in termination negotiations include redundancy settlements, bonuses, and notice periods, so it’s a good idea to prepare a strategy to make sure you get the most out of your negotiations. 

Redundancy Settlements

Redundancy settlements are probably the biggest roadblock to your negotiations. Your manager might be trying to pay you less than you think, or the company may be saying that you won’t get your full redundancy entitlement because they can’t afford it. However, you should make sure that you are still being paid the money you are owed despite being made redundant.

Bonus Negotiations

Bonus negotiations are a key factor in termination of employment, so you need to ask yourself some of the following questions:

• Are you losing any entitlement to receive a bonus as a result of the redundancy?
• Are the terms of the bonus rules being complied with?
• Can you negotiate a pro-rata bonus payment in respect of the period you have worked?
• Can you negotiate a loss of bonus payment as part of the taxable element of the severance package?

These questions are essential when you are negotiating your bonus provisions in your exit agreement.

Notice Periods

Check the length of your notice period in your employment contract/service agreement and consider whether your preference would be to work it, go on garden leave or receive a payment in lieu of notice.  Depending on the state of the job market, going on garden leave may be attractive, as it buys you time to find a new role from within employment and in most cases the period of your restrictive covenants will be run down from the start of your garden leave period rather than your termination date.

 

Preparing A Negotiation Strategy

The best way to prepare a negotiation strategy is to consider whether you have any leverage to negotiate a higher severance package. For example, if the redundancy is a cloak for another reason for dismissal, then this should be factored into your negotiations. Fair dismissal for poor performance involves a much longer termination process than a redundancy exit, during which time you would continue to accrue salary, annual leave, bonus, equity, and benefits. This loss should be factored into a settlement negotiation.

If you experience any of the above treatment during discussions with your employer you should keep a note of any breaches they commit, as this could be used later in a potential claim against your employer.

If a settlement agreement is reached you should ensure that it is provided in writing. One of the legal requirements of settlement agreements is that you receive independent legal advice on the terms. So you need to show your legal adviser the written terms for the agreement to be legally binding.

 

Alternatives to Redundancy

Are you being put at risk of redundancy when there are options or roles available that have not been explored with you? If there are alternative roles available to you, then your employer has a legal obligation to consider you for these roles.

If so, you can challenge your employer by questioning whether redundancy can ever be said to be fair when there are other ways of making the cost savings envisaged that have not been explored. Or, if you feel you play a critical role in the business, question who will be carrying out your functions once you leave and consider whether that can be open to challenge (for example, are your responsibilities being transferred to another member of staff without proper consideration as to whether you would be better suited to carry out that function?)

If your employer isn’t offering you a suitable position despite the fact that there are positions available, you may be able to make an employment law claim for unfair dismissal.

 

How Cavendish Employment Law Limited Can Help You With Termination Negotiations

Your employment lawyer should be an expert in negotiations and severance packages, in order to achieve the best possible severance package. Your employment law solicitor should ensure that any agreement protects your financial, professional, and reputational interests.

At Cavendish Employment Law Limited, we have years of experience in all areas of employment law, including assisting senior executives with termination negotiations. Contact us today to see how we can help you negotiate a fair and just termination settlement.