1. Review your employment contract thoroughly
Start by revisiting your employment contract. Pay close attention to:
– Notice periods: Are they reasonable? Is there a garden leave clause or payment in lieu of notice?
– Bonus and incentive schemes: Are you still eligible for bonuses or LTIPs if you resign or are terminated?
– Good leaver/bad leaver provisions: Understand how your departure will be categorised and what that means for your entitlements.
If your contract includes discretionary clauses, seek clarity on how they’ve been applied in practice. You may be able to negotiate more favourable terms, especially if your departure is amicable or strategically timed.
2. Understand your restrictive covenants
Most senior contracts include post-termination restrictions, non-compete, non-solicitation, and confidentiality clauses. These can significantly impact your ability to work in the same sector or approach former clients.
Ask yourself:
-How long do the restrictions last?
-Is garden leave offset against the restricted period?
– Are the restrictions enforceable and tailored to your role?
Legal advice can help assess whether these clauses are reasonable and whether they could be challenged or negotiated down.
3. Plan your exit timing carefully
Timing is everything. If your bonus or equity award is linked to a specific event—such as a sale or IPO—consider whether your departure could affect your entitlement. You may be able to negotiate:
– A guaranteed payment if an exit event occurs shortly after your departure
– A warranty that the employer is not aware of any imminent exit event
This is especially relevant if you’re being asked to sign a settlement agreement. Protecting your financial interests should be a priority.
4. Negotiate your settlement agreement wisely
If your exit involves a settlement agreement, ensure it reflects your value and protects your reputation. Key considerations include:
– Financial compensation: Is it fair and reflective of your contributions?
– Tax efficiency: Are payments structured to maximise tax benefits?
– References and announcements: Will your departure be communicated professionally?
– Waivers and warranties: Are you giving up any rights unnecessarily?
A solicitor can help you negotiate terms that safeguard your future career and financial wellbeing.
5. Seek legal advice early
The earlier you seek legal advice, the more options you’ll have. Whether you’re initiating the exit or responding to a proposal, a solicitor can help you:
– Identify leverage points
– Avoid common pitfalls
– Maximise your severance package
– Protect your reputation and future prospects
Executive exits are rarely straightforward. With the right legal strategy, you can leave on your own terms—and with your interests fully protected.
Final thoughts
Leaving a senior role is a pivotal moment. By taking these five legal steps, you’ll be better equipped to navigate the transition with confidence and clarity. If you’re thinking of leaving, don’t wait until the last minute—start planning today.
How can we help?
Ruby Rai is a Senior Associate in our expert Employment Law team, advising on a wide range of employment matters, including TUPE, redundancies, and senior-level exit strategies, drafting policies, procedures, employment contracts and settlement agreements.
If you have any questions about the above subject, please don’t hesitate to contact Ruby or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.
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