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Termination and settlement agreements

Sometimes businesses need to part company with employees and manage their exit by way of settlement discussions.  Common reasons for termination include:

  • Persistent underperformance
  • Poor attitude or behaviour that does not fit the culture of the business
  • Restructuring of the business
  • Redundancy

Whilst formal termination processes do of course exist, we believe that it is preferable to achieve an amicable departure if possible and discuss an exit package as an alternative.  Ideally we encourage clients to avoid recourse to a Tribunal, as this will tend to reduce management distraction, time commitment and cost.

Our team of experienced, specialist employment lawyers can advise you on the risks of opening settlement discussions based on an understanding of the background and the likely response of the employee. 

Our advice will be clear and concise so that you can make an informed decision as to how to maximise the commercial advantage to your business of reaching a settlement agreement. Well-managed settlement negotiations can serve to defuse the most difficult issues swiftly and effectively, reducing organisational risk, cost and loss of management time.

Where the employee’s exit is to be final, we can advise on issues such as commercial confidentiality, non-disclosure and non-compete clauses to be covered by the settlement agreement.  Where there is a desire to maintain an ongoing relationship by way of a consultancy arrangement for example, we can help you to build this into the settlement negotiations.

Our specialist team of employment lawyers have considerable experience in helping business clients with issues including:

  • Drafting disciplinary rules and procedures tailored for your business
  • The implementation and application of these procedures
  • Redundancy procedures
  • Performance management procedures and possible associated issues such as avoidance of claims for discrimination
  • Negotiating and preparing Settlement Agreements.


Examples of our work:

Defending a large pharmaceutical business against constructive dismissal allegations obtaining an out of court settlement which included undertakings relating to potential breach of restrictive covenants. 

Achieving an amicable departure on the retirement of a garden centre CEO, enabling ongoing consultancy work combined with complex bonus arrangements.

Dismissal of four directors for gross misconduct and breach of statutory duties, resulting in a seven- figure claim against them.


Related Services:

Contracts, policies and handbooks  Disputes, grievances and disciplinary procedures 

Restrictive covenants  Restructuring and redundancy  TUPE and business sales 

Tribunal representation  

Richard Gvero

Joint Senior Partner, Head of Commercial and Head of Employment

Richard is an extremely good lawyer to deal with – he is practical and efficient and nothing is too much trouble for him.
  • Chambers and Partners UK Directory 2017
  • About: Richard Gvero
Richard brings a deep knowledge and experience of employment and commercial disputes to bear for his clients with a clear focus on outcomes.
  • Executive Chairman, technology service provider
  • About: Richard Gvero
I have worked with Richard on a number of occasions relating to employment situations. He is always responsive and will make himself available at short notice whenever he can. I have continually found his advice and recommendations to be sound, pragmatic, practical and extremely helpful.
  • Business owner, management consultancy
  • About: Richard Gvero
Richard has been fabulous at dealing with HR issues. I recommend him most highly.
  • Headteacher, independent school
  • About: Richard Gvero