Senior Executive and Director Severance

All businesses should take appropriate steps to protect their interests when a director or senior executive is leaving the business. As senior executives can be employees, directors, and shareholders, this adds complexity to their exit, and all roles should be considered as part of any exit strategy. It is important to plan the dismissal of a senior executive to minimise disruption to the business, particularly as their exit can be commercially sensitive.

Key Contact: James Leo

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How We Can Help

Navigating senior executive departures requires a strategic approach. We provide comprehensive support throughout the entire process, minimising risks and ensuring a smooth transition for your business.

Our Services:

Exit Strategy Development: We’ll work with you to identify the best approach for terminating the executive’s employment, considering all relevant factors.
Contract Review and Analysis: Our team will meticulously review employment contracts, director agreements, and company policies to determine your options.
Severance Package Negotiation: Benefit from our expertise in negotiating severance packages that are fair and protect your business interests.
Settlement Agreement Drafting: We’ll draft a watertight settlement agreement that formalises all negotiated terms and protects your business.
Post-Termination Restriction Enforcement: Ensure your confidential information and competitive advantage are protected by enforceable post-termination restrictions.
Dispute Resolution and Claims Management: We can guide you through protected negotiations and minimise the risk of costly employment claims.

Understanding the Purpose

The executive, usually an employee, will have employment rights protection. When dismissing an executive, your business is exposed to the risk of employment claims, including unfair dismissal, discrimination, and wrongful dismissal/breach of contract.

The first step in considering the exit of an executive is to identify the reason for dismissal and ensure it is a fair and lawful reason. You can dismiss the executive by following a lawful process.

You also have the option to have a protected/without prejudice conversation with the executive to negotiate a settlement. This can speed up the process. If a settlement is reached, a settlement agreement is prepared where the executive and business mutually agree to the executive’s employment being terminated. The executive gives up the right to issue any employment claims against the business, usually in return for compensation. The settlement agreement can also include terms to protect your confidential information, introduce post-termination restrictive covenants, and ensure the executive will not issue legal proceedings against your business.

If the executive is a statutory director and/or shareholder, you will also need to consider these issues when dismissing them.

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Who We Can Help

Senior executive departures can be challenging for any organisation. We’re here to support businesses of all sizes to navigate these transitions effectively.

We can guide you through the exit strategy and process to minimise disruption to your business and reduce the risk of the executive making an employment claim, which could be time-consuming and costly.

We can support:

Business Owners: Make informed decisions about senior executive departures and protect your company’s interests.
Managers: Ensure a smooth handover of responsibilities and minimise disruption to your team.
HR Professionals: Benefit from our legal expertise to handle complex severance agreements and negotiations.

Trust Us

We combine in-depth experience with a personalised approach to ensure a successful and secure exit for your business.

Trusted Advisors: Our team boasts partners and associate solicitors who have been recognised by Legal 500 for their outstanding employment law skills.
Client-Focused Approach: We understand the complexities of senior executive severance and tailor our services to your specific situation and business goals.
Senior-Level Attention: A dedicated senior solicitor, not a junior, will be assigned to your case, providing strategic guidance and in-depth understanding.
Seamless Collaboration: Your dedicated solicitor will work closely with you, becoming an extension of your team to achieve the best outcome.
Award-Winning Excellence: We’re a Legal 500-recognised law firm with Lexcel accreditation and SRA authorisation.