This page brings together the questions we are most frequently asked so you can start to understand your options.
If you are being asked to leave, facing a difficult situation at work, or negotiating a settlement agreement, getting early advice almost always leads to a better outcome.
Questions About Executive Exits
Yes. Senior executives can be asked to leave for commercial or strategic reasons entirely unrelated to misconduct or performance. Employers typically propose a “no-fault exit” or negotiated departure. You are not obliged to accept the first offer, and you should take advice at this point to explore your options and assess the offer.
A no-fault exit is a mutually negotiated departure on agreed terms, usually where one or both sides feel the relationship is no longer working. It is extremely common at senior levels and, if handled properly, can protect your finances, reputation, and future career.
Yes — and ideally before you say anything at all. Once you respond, you set the tone for the negotiation. Early advice helps you protect your compensation, shares, LTIPs, bonuses, notice pay and reputation and avoids inadvertently weakening your position.
These are often the most valuable parts of an executive package, and they require careful attention. Each scheme has its own rules, but many executives secure significantly better outcomes through negotiation. We review the plan documentation as part of our initial advice.
Performance processes can sometimes be used as a precursor to an exit rather than a genuine attempt to address underperformance. If that is your situation, you may have strong grounds to challenge the process, or to negotiate a departure on substantially better terms than the employer initially has in mind.
Straightforward negotiations can conclude in one to three weeks. More complex situations — involving LTIPs, share schemes, or disputed claims — take longer. Good advice from the outset is the single most important factor in achieving a good outcome efficiently.
In our experience, no. We take a private, constructive approach that protects your position without escalating matters unnecessarily. Employers at senior level are accustomed to dealing with legally-represented executives, and it is generally understood that you will take advice.
Settlement Agreement Questions
A settlement agreement is a legally binding contract used to end your employment on agreed terms and to resolve any potential legal claims you may have against your employer. In exchange for an agreed financial package and other terms, you agree not to bring those claims. It must be signed by both parties and, to be legally valid, you are required to have received independent legal advice.
No. You are never obliged to sign a settlement agreement. You can negotiate the terms, request amendments, or decline entirely. The legal advice requirement exists precisely to ensure you understand what you are agreeing to.
There is no fixed formula. The package typically reflects your notice entitlement, any unpaid or disputed bonus, LTIP and share awards, and the risk to the employer of you bringing legal claims. We regularly negotiate significantly improved offers — particularly where the employer has something to lose, such as an arguable dismissal, an unvested LTIP, or a discrimination element.
The key is identifying your legal leverage early. That might be an arguable unfair dismissal, a discrimination element, a contractual bonus that was withheld, or unvested equity the employer has discretion to release. We also negotiate confidentiality, reference wording, and the terms of any public announcement. Our job is to make sure you leave with the best possible outcome across all of those areas.
In the great majority of cases, yes — at least in part. Employers almost always offer a contribution to your legal costs, and in more complex negotiations they often cover fees in full. We will always be transparent with you about fees before we begin.
You can challenge it. We will advise you on the strength of your position and whether a better outcome is realistically achievable, so that you can make an informed decision about how to proceed.
To an extent, yes. Directors have additional rights and duties under the Companies Act and their service agreement, which interact with their employment rights in ways that require careful handling. There is also often more at stake in terms of equity, carried interest and reputation. We advise senior executives and directors regularly and understand the issues.
Your post-termination restrictions — such as non-compete and non-solicitation clauses — can be negotiated, reduced, or varied as part of a settlement agreement. However, if they are not formally varied, they remain binding and enforceable (assuming they were properly drafted in the first place). This is an area where early advice is particularly valuable, as restrictions are much easier to negotiate before the agreement is signed.
Yes, and this is an area of law that has changed recently. Since the Employment Rights Act 2025, any term in a settlement agreement that purports to prevent you from discussing allegations of workplace discrimination, harassment, or sexual harassment — or your employer’s response to those allegations — is void and unenforceable. In addition, from October 2025, settlement agreements cannot prevent victims of crime from reporting relevant conduct to the police or other specified authorities. Confidentiality clauses in other contexts remain valid and can still be negotiated, but their scope is now more limited.
Note: If your situation involves allegations of discrimination or harassment, please tell us at the outset so we can advise you on what can and cannot be agreed.
Board-Level and Director-Specific Questions
Under the Companies Act 2006, shareholders can remove a director by ordinary resolution with special notice, regardless of any service agreement. However, removal in that way does not override your contractual rights — including your right to notice pay and any other entitlements under your service agreement. In practice, most board-level departures are negotiated rather than forced.
As a director, you have both duties (to act in the company’s interests, avoid conflicts, exercise independent judgment) and protections (including against unfair or wrongful dismissal in your capacity as an employee). The interaction between your directorship and your employment is an important part of any exit negotiation.
A breakdown in trust is one of the most common triggers for a board-level exit. Even if the relationship has broken down irreparably, you retain your full legal rights as an employee and director. The manner of a breakdown — including whether you were treated fairly, whether concerns were raised, and how any process was handled — can all be relevant to the strength of your negotiating position.
This depends entirely on the rules of your specific scheme. Many schemes give the board discretion over leavers, and whether you are treated as a “good leaver” or “bad leaver” can have very significant financial consequences. We review your plan documentation and advise on how to approach this, including whether there are grounds to challenge a bad leaver determination.
Yes, always. The company’s lawyers act for the company, not for you. Their interests and yours are not the same. You need independent advice that focuses entirely on your position.
Discrimination, Whistleblowing and Culture Concerns
Discrimination at work can arise from a protected characteristic — including age, sex, race, disability, sexual orientation, religion or belief, and pregnancy or maternity. It can take many forms, including direct less favourable treatment, indirect policies that disadvantage a group, or victimisation. If you think you are being treated differently because of who you are, take advice. Even if your situation is not clear-cut, a discrimination element can significantly strengthen your negotiating position on exit.
This depends on the nature of the concerns you raised. If you made a “protected disclosure” under whistleblowing law — meaning you disclosed information that you reasonably believed showed wrongdoing or a risk of wrongdoing in the public interest — you have protection from dismissal and detriment. However, simply complaining about how you have been treated personally is unlikely to qualify, and the legal tests are quite strict. If you have raised concerns, tell us what you said and to whom, and we can advise whether you are likely to be protected.
Important update (April 2026): From 6 April 2026, disclosures relating to sexual harassment in the workplace will qualify as protected disclosures under whistleblowing legislation. If you have raised concerns about sexual harassment, you may now have stronger protection than previously.
You are a whistleblower if you make a “qualifying disclosure” — that is, you disclose information showing (or that you reasonably believe shows) one or more of the following: a criminal offence, a breach of a legal obligation, a miscarriage of justice, a health and safety risk, environmental damage, or a deliberate concealment of any of the above. There must also be a public interest element. From April 2026, disclosures about sexual harassment in the workplace are also covered. We can advise you quickly on whether your situation is likely to qualify.
Keep contemporaneous notes of specific incidents that concern you, including dates, what was said, and who was present. Take advice at an early stage — the earlier, the better. Depending on your situation, we may advise you to lodge a formal grievance, which can both protect your legal position and trigger an obligation on the employer to investigate.
This is an area where the law has recently strengthened. Being disadvantaged on your return from maternity leave, or because of a pregnancy-related illness or disability, may amount to discrimination and/or a breach of your statutory rights. Under changes introduced by the Employment Rights Act 2025, protection against dismissal during and following maternity leave now covers dismissal for any reason during the protected period, not just dismissal connected to the pregnancy or maternity itself. If you are in this situation, please take advice as soon as possible.
Reputation, Confidentiality and Your Future Career
Confidentiality provisions in settlement agreements are generally mutual — meaning your employer is also bound — and can be negotiated as part of your overall package. However, as noted above, confidentiality terms cannot lawfully prevent you from discussing allegations of discrimination or harassment, and they cannot prevent you from reporting criminal conduct to the authorities. Within those limits, well-drafted confidentiality terms can provide meaningful protection for both sides.
References can be agreed as part of a settlement, both in terms of what is said and who provides it. Many executives negotiate an “agreed reference” that is attached to the settlement agreement itself, giving certainty about what any future employer will be told.
Yes, and this is often an important part of a senior exit. You can negotiate both internal announcements (to colleagues and the board) and any external communications. Getting the wording right protects your reputation and sets the tone for your next role.
About Averta Employment Lawyers
Averta Employment Lawyers is a specialist firm focusing on senior executives, directors, and professionals. Our partners, associates and consultants are experienced negotiators from national firms, recognised in the Legal 500 and Chambers rankings.
Our approach is practical, clear, and focused on securing the best outcome for you. We understand that situations involving your career and livelihood can be stressful, and we aim to give you clear advice and a realistic view of your options as quickly as possible.
When to Get in Touch
Contact us if you are being asked to leave, are on a performance plan, are concerned about discrimination or your treatment more generally, have raised concerns at work, or simply need clarity before responding to HR.
All discussions are confidential.