For many people, leaving a job happens through a mutual agreement with their employer. This allows both sides to formally end the working relationship—often with a termination package outlined in a settlement agreement—without needing to go through an employment tribunal.
Whether it’s the employer or the employee who starts the process, there are plenty of reasons someone might decide to move on. That said, negotiating a settlement is usually a much better option than going down the litigation route for everyone involved. Here are a few tips to help if you’re navigating an exit.
What Is Negotiation In An Exit?
Exit negotiations are final, high-stakes discussions that determine your company’s future. Both sides must agree, but the stakes are high—you could be handing over your startup or stepping away entirely. The outcome impacts financial terms, your legacy, brand continuity, and your future involvement.
Hold On A Moment
If your employer has started discussing a possible exit with you, it’s natural to feel shocked and upset. However, don’t burn any bridges just yet. Stay calm and consider what’s being proposed with a clear head, focusing on your best interests. Take your time to think it over and don’t hesitate to ask for time to consider your position. Ideally, your employer will agree to paid leave during negotiations.
Don’t feel pressured into agreeing to anything on the spot. If your employer presents a draft settlement agreement, it can be helpful as it outlines the termination package. But never feel obligated to agree immediately. Take any documents away to review them thoroughly.
If your employer sets a deadline for your response, remember it’s not binding. If you need more time to seek advice or talk to your family, let them know.
Know Your Legal Rights But Avoid Making Hasty Threats Of Litigation.
Understanding your legal rights can give you some confidence when it comes to negotiating. If your position isn’t strong, it’s better to know that upfront. You can’t really decide if the termination package being offered is fair until you know what legal claims you might have against your employer. That said, avoid making empty threats like “I’ll see you in court”—it could backfire and hurt future negotiations.
Seek Expert Guidance
Getting professional legal advice early on can be a smart move and might save you money in the long run. A lawyer can give you an unbiased view of where you stand and could help you secure a better deal from your employer. If needed, they can even handle a negotiated exit for you, which can take a lot of the stress off your shoulders. Also, when your employer knows you have legal support, they might be more open to improving the termination package and wrapping things up faster.
Dig Out The Paperwork
To assess if your termination package is fair, you need to understand the rights outlined in your employment contract and related documents. Review your paperwork to know what you’re entitled to.
For instance, what is your notice period? If your employer offers payment in lieu, does your contract specify basic pay only, or should other benefits also be included?
Remember, terms and conditions may also be detailed in the staff handbook or other documents, so check all relevant materials.
Always Request To See The Data
If your employer hasn’t given you a draft settlement agreement or a written breakdown of the proposed termination package, make sure to ask for one. If you’re discussing your exit face-to-face, take notes during the meetings and get any verbal proposals confirmed in writing afterward. This will help avoid misunderstandings and make it easier to get advice later if needed.
Protect The Value Of Your Pensions And Share Options – Don’t Take Unnecessary Risks
Pensions and share options are some of the best perks we can get as employees. But how you leave your job can impact what you’re entitled to. For instance, if you’re considered a “good leaver,” you might still be able to cash in on your share options, and some pension schemes offer extra benefits if you’re made redundant after a certain age or leave due to health reasons. That’s why it’s so important to be clear with your employer about the reason for your departure.
