Termination negotiations are a complex area of employment law, we know how to get them right.
Termination negotiation is the process of discussing and agreeing on the terms and conditions of an employee’s departure from their job. This can take place for a variety of reasons, including redundancy, performance issues, misconduct, or a breakdown in working relations.
UK law sets out certain minimum requirements that employers must meet. For example, employers must give or pay a contractual or statutory period of notice before terminating their employment, and they must pay employees any statutory redundancy pay to which they are entitled.
However, employers and employees are free to negotiate additional terms and conditions, such as a severance package, retention of shares, or agreed reference. This is where termination negotiation comes in.
Termination negotiation can be a complex and challenging process, including whether such negotiations are started under s.111A Employment Rights Act (protected conversation) or under the wider ‘without prejudice’ rule.
The terms and conditions of an employee’s departure are almost always recorded in a settlement agreement, under which the outgoing employee will agree to give up claims against their employer. In settlement agreement negotiations it is crucial that employees receive advice on the value of the claims they are waiving and whether the severance package proposed by their employer is reasonable, considering their particular situation and by benchmarking against other exits in their sector.
A common misconception is that employees need to wait for their employer to start termination negotiations. It’s important that you enter such negotiations with a well-thought-out strategy. Choosing a lawyer who is an expert in termination negotiations can help you achieve the best package possible.
Read our guide to some commonly asked questions about termination negotiations, or contact our team today using the details below.
