Q&A for C-Suite Executives Starting and Leaving Employment

Miranda Mulligan,  Senior Employment Solicitor at Longmores Solicitors explains the basics that every senior executive needs to know when considering entering or leaving employment .

Is it advisable to have my contract and employment package reviewed before starting a new job?

Yes, it is advisable do so.  There are many provisions within your employment contract or director’s service agreement that will be important to review.  This includes the usual renumeration provisions including bonus provisions and commission arrangements.  However equally importantly, there are other elements which will not be applicable until termination of employment including for example, notice periods, garden leave, and  post-termination restrictive covenants, which should be reviewed.  Post-termination restrictions can restrict you from making your next career move following termination depending on their terms and scope. Such restrictions can include non-compete provisions to prevent you leaving your current employer to join a competitor, in addition to restrictions preventing  dealing with clients or suppliers.  As these restrictions are usually entered into at the start of employment (or as part of a new role/contract following a promotion) many employees do not pay sufficient attention to these terms until they are leaving; if you have signed a contract with enforceable restrictions, these will restrict your career progression upon termination.  It is therefore best to review such terms to understand how they will affect and to negotiate changes if they undermine your career objectives.

Following a restructure my employer has suddenly said that that my role is to be eliminated and my employment terminated by reason of redundancy.  Is there anything I can do about this?

Yes, provided you  have the required period of continuous service. An employer will need to establish that there is a genuine redundancy which exists in relation to your role, i.e. that the role is no longer required and follow a fair selection and consultation process (allowing you to challenge the redundancy rationale) before making any decisions to remove the role from the structure.  If there is any indication that selection is for an unfair or discriminatory reason such as age, then you would potentially be able to bring claims against your employer. However, an employee must first go through the internal redundancy consultation process and raise their concerns through that mechanism, including any appeal..

Are there any upcoming changes that I should be aware of?

Yes, employment law will undergo some fundamental changes in the next year or so with  the Employment Rights Bill which is currently passing through parliament.  The Bill will include changes to basic employment law rights including extending protection against unfair dismissal so that it applies from day one of employment (currently requiring 2 year’s continuous service in  most cases) subject to a probationary period yet to be determined; this important change  will substantially increase the  protection for employees starting new roles and require fair process from Day 1 of employment.

If you have any questions on the above, please contact Miranda Mulligan to discuss any queries. We also offer a contract review service for senior executives considering a change of role.

Find out more about our Employment Law Packages, Employment Law Health Check, HR and Employment Law Training and the Longmores Employer Assistance Package (LEAP) with optional insurance to protect you against the costs of employment tribunals, legal fees, settlements and financial awards in the event of a dispute.

Please note, the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.