Negotiate Exit From Employment
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We are here to empower you to get the best deal possible and resolve any employment situation without litigation.
Welcome to Ricci & Partners, where we specialise in providing expert legal assistance to individuals seeking to negotiate favourable exit packages from their employers. Our experienced lawyers are dedicated to ensuring that you receive the best possible terms during this critical transition.
Leaving your employment, particularly in challenging economic times, can be incredibly daunting, and so many employees will either choose to stick it out or leave when they find alternative employment.
If you are leaving employment because you are ready for a change, then leaving quietly may be the best option. But what happens in situations where you feel you did not want to leave, but are left with no choice as a result of your employer’s or any of your colleague/management conduct or you don’t trust your employer to provide you with a reference? Negotiated exit may be the best option.
What is a Negotiated Exit
A negotiated exit means that instead of resigning from your employment, you, or the solicitor you instruct, approaches your employer to agree mutual terms for your departure from the business. Such conversation would be on a without prejudice basis and confidential. You can approach your employer, on a without prejudice basis at any time and propose exit terms yourself. However negotiating the terms of the exit and of a subsequent settlement agreement can be a daunting prospect for some people, especially where relationship is already difficult.
That is where we can help. We can provide you with the necessary support if you wish to do so yourself, or approach your employer on your behalf.
Expertise in Employment Law
We possess in-depth knowledge of the legal landscape surrounding employment rights and obligations which means that we can always find a solution. So it is important that you speak to a lawyer before you resign from your employment to explore negotiated exit as an option.
Tailored Strategies for Your Situation
Every employment scenario is unique. We take the time to understand your specific employment circumstances, career trajectory, and the nuances of your employment contract. This enables us to formulate a personalised negotiation strategy that aligns with your goals.
Maximising Your Compensation
Our primary objective is to secure the most advantageous exit package for you. Whether you’re negotiating salary continuation, compensation, bonus payouts, restrictive covenants, reference wording or other benefits, we leverage our expertise to maximise your compensation and protect your financial interests.
Frequently Asked Questions
How we can help?
We can approach your employer on your behalf and propose the terms for the termination of your employment. We can also support you in the background, if you prefer to have the conversation with your employer yourself.
Often times, with our support, employees wish to approach their employer first and only if they have no response, or if the employer is not taking them seriously, that we are then instructed to approach the employer directly to propose settlement terms.
What is ‘without prejudice’
A “without prejudice” conversation is a legal term used to describe a type of communication between parties involved in a dispute or potential legal claim. The purpose of these discussions is to encourage open and honest dialogue with the goal of reaching a settlement, without the fear that anything said during the conversation will be used against the speaker in future legal proceedings.
Key characteristics of “without prejudice” conversations include:
Confidentiality: Statements made during without prejudice discussions are considered confidential and cannot be disclosed to the court or other parties in the event that the dispute escalates into litigation.
Legal Protection: The without prejudice rule is designed to promote settlement negotiations by allowing parties to speak freely about their positions, without the risk that these statements will be used as evidence against them in court.
Settlement Discussions: Without prejudice communications often occur in the context of settlement discussions. Parties may explore various options and compromises without the fear that their statements will be later used against them if an agreement is not reached.
Exceptions: It’s important to note that not all conversations labeled as “without prejudice” are automatically protected. For the protection to apply, there must be a genuine attempt to settle a dispute. If there is no dispute or if the communication is not a bona fide attempt to reach a resolution, the without prejudice protection may not apply.
“Without prejudice” discussions are a valuable tool in alternative dispute resolution processes, such as mediation or negotiation, allowing parties to explore solutions without the fear of prejudicing their legal positions. It’s essential to consult with legal professionals to understand the specific implications and requirements of without prejudice communications in your jurisdiction and circumstances.
What if I am not happy with what is being offered?
If you are not happy with what is being proposed, we can approach your employer to negotiate a better deal on your behalf or support you if you prefer to do so yourself.
At Ricci & Partners, we have extensive experience and expertise in negotiating a better deal than initially offered and are know for our tenacity and ability to present your case to your employer in a way that makes settlement the most attractive option for them.
Do I have to sign the agreement?
If parties reach a settlement during without prejudice discussions, the terms of the agreement are typically documented in a formal settlement agreement.
If you sign a settlement agreement you will be precluded from bringing any claim against your employer (usually except for accrued pension rights and latent personal injury claims).
We will review and advise you on the terms and effects of the settlement agreement and will help you negotiate the terms that protect you.
How much will it cost me?
For the settlement agreement to be valid, you will need to be advised on the terms and effects of the settlement agreement.
It is therefore usual to request that your employer contributes towards your legal fees. This will be anywhere between £350 to £1,000 plus VAT. In some instances it may be more, but it will be rare.
If you wish us to negotiate the terms of offer, then the employer’s contribution may not be sufficient. To negotiate an exit from your employer will depend on how co-operative your employer is and the fees may range between £750 – £1,500. Your employer’s contribution would be deducted from the final fees.
It is important to remember that the higher end of the fees is where your employer agrees to settle. This is because if we approach your employer, and your employer is unwilling to settle there would be no point for you to continue instructing us to negotiate an exit. Instead you may choose to instruct us to issue a claim against your employer which would usually be covered under a no win no fee arrangement.
Can I negotiate a better deal?
We are expert negotiators and can negotiate directly with your employer to get you the best deal possible. This is the case even where you have tried to do this previously yourself but had no success.
We can do this on fixed fee, time fee or no win no fee basis. The terms of negotiation do not always relate to money.
We can help negotiate:
- the ex gratia payment and other terms
- your notice terms. For example you may wish to be placed on Garden Leave so that you have a better chance of obtaining new employment
- confidentiality clauses and restrictive covenants
- return of property clauses
- clauses where you give indemnity on tax position
- other terms
How quickly can this be done?
We can usually schedule an initial call/video meeting on the same day.
The time frames in respect of negotiation will depend on how quickly your employer responds, but from our experience the whole process usually can be completed within 2 weeks or so.
What are the advantages of negotiated exit?
A negotiated exit can be an excellent way to resolve a dispute with your employer and move on to new endeavours without suffering a loss.
If you decide to resign from your employment and then claim compensation, it is usually more difficult to negotiate a settlement. This is because you are no longer an employee, and the risk for the employer to ‘get it wrong’ is reduced. Your employer may also prefer to wait and see if you are serious and if you are going to issue a claim.
Legal Fees
Litigate, your legal fees can accumulate very quickly. Even if you are represented on a no win no fee basis, you will have to pay your representative, usually a significant proportion of your winnings (up to 35%).
Reference
Your employer has no legal obligation to provide you with a reference. As such, even if you win your case, your employer will not be obliged to issue you with one. It is therefore usual to agree on the wording of the reference with your employer as part of the term of your settlement agreement. This would oblige your employer to issue a reference with agreed wording when it is requested by your new prospective employer which will make it easier for you to find another employment. You can also include a term that means your employer cannot make bad comments about you that may damage your reputation or your chances of success in obtaining new employment.
Public Judgments
Employment tribunal judgments are public. Therefore when you issue a claim, even if you withdraw it later, there will be a public record of you suing your employer.
Litigation Risk
There is always a litigation risk. Sometimes even the best cases stumble during the hearing. There may be lack of evidence or an uncertain legal point that means that after all the time, costs and effort, no one can guarantee a successful outcome of your case if it proceeds all the way to litigation.
Time
The Tribunals are currently overwhelmed with cases which means that it may take years for you to get your compensation, even if you win your case.
Loss
A lot of the times you will only be entitled to claim for the loss you have suffered. Which means you have to actually suffer the loss in order to claim it (unless you are also bringing a discrimination or a claim where there is a detriment suffered). If you agree a settlement before you have even suffered a loss, if you find a new job immediately after, this will be irrelevant and you will get to keep all the compensation despite the fact that you have never suffered a loss. As such settlement agreements are usually the best option commercially.
Tax
Compensation payments for the loss of employment or injury to feelings can be paid tax free up to £30,000
What should I expect to get?
A lot will depend on the circumstances. The following financial payments would generally be included
Benefits
All your contractual benefits up until the termination of employment. This would include your salary, may include a bonus and commission and other benefits such as health care insurance, death in service benefit, gym membership and others;
Pilon
Payment in lieu of your notice. You can usually choose to be paid in lieu of your notice (which means your employment would terminate immediately) or you can request that your employment terminates in the future, but that you remain on garden leave until such time. We can discuss the pros and cons of either during our appointment, however this payment is normally non negotiable, unless you are subject to gross misconduct proceedings that are well evidenced;
Holiday Pay
If you have accrued any holiday that you did not get a chance to take before the termination of your employment, these should be paid to you in lieu. If you have taken over your allowance, you would usually expect to negotiate that your employer will not be deducting these from your final payment.
Ex Gratia Payment
This payment is normally made in consideration of you entering into this agreement and assuring the employer that you will not bring a claim against them. Ex – gratia payment is to intended to compensate you for the loss of your employment and for any breaches of your statutory rights that you have suffered. Up to £30,000 of this payment is usually tax free;
Redundancy Payment
If you are being made redundant you should also receive your redundancy payment. It may be that your redundancy payment will be included within the ex gratia payment;
Bonus
It is quite usual for the employment contract to contain a clause that deprives you of any bonus if your employment is subject to notice, or it has terminated. As such bonus may form a significant consideration for you when deciding whether to accept a settlement agreement.
Shares
Arrangements in respect of long term incentive plans and shares must be discussed and considered before you enter into a settlement agreement. This is because you may be subject to ‘bad leaver’ or ‘good leaver’ provisions within any share/incentive plan scheme. If you are expected to release those options, you would usually expect to be paid for those under the terms of the settlement agreement.
Confidentiality Consideration
Your employer may also wish to pay you a small sum as consideration for you to agree to keep the terms of the agreement confidential and not to make any derogatory comments about your employer or any of their officers, employees and any other stakeholders.
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Here is how we can help you
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Do you need advice on your employment situation?At Ricci & Partners, we understand the complexities of employment law and the challenges individuals face in the workplace. Our team of experienced employment lawyers is dedicated to providing you with expert legal advice tailored to your unique situation.
With years of experience, we have successfully handled a wide range of employment law cases, from workplace discrimination to contract disputes and have supported our clients in bringing claims against small and large private organisations as well as governmental bodies.
Book your free consultation now to speak to an employment lawyer or call us on 0330 120 1819.
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Are you happy with what your employer proposes?If you have decided that you would like to take an issue further there will be a number of options available to you. You can leave your employment and issue a claim or you can remain employed and sue your employer at the same time. Neither of these options are ideal.
Oftentimes therefore, employees prefer for us to approach their employer and propose, on a without prejudice basis, the terms for the termination of their employment.
Our track record speaks for itself and we are known for being able to present your case in a way that makes settlement a preferred option for your employer. We are tenacious and are often able to negotiate settlements for people who don’t even have two years of service.
To discuss options available for you and the likely settlement that we would be able to obtain, book your free consultation now, or call us now on 0330 120 1819
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Not happy with what your employer is offering?If you are not happy with what your employer proposes, we can help you negotiate a better deal. This may include increasing your ex – gratia payment or any other terms that are currently proposed by your employer. For example, calculating your settlement sums, your employer may not include your bonus or commission, they may propose that you work off your notice, or include unreasonable restrictive covenants and confidentiality clauses. It is always helpful to discuss those issues before we review the agreement.
Book free consultation with employment lawyer now.
