What does it mean?
The term ‘exit package’ is used to describe the terms under which someone agrees to leave their job.
Typically, an employer who is willing to agree an exit package with you will want you to enter into a legally binding Settlement Agreement waiving your right to take any future legal action against them.
What are advantages?
A good exit package can protect your professional reputation, provide you with a financial cushion while you look for new employment, guarantee a good reference and avoid the uncertainty of litigation.
If you are offered an exit package you are not under any obligation to accept it. If the terms are reasonable and the compensation offered is in line with what you might reasonably expect to recover through litigation, it is always worth sensible consideration.
How much money can I ask for?
The financial value of your exit package will be determined by a number of factors. These include:
- what you are entitled to under your contract
- the strength of any legal claims you might have against your employer
- how much your employer wants you to leave
- relations between the parties
Naturally, you will want as much money as possible. The greater the value of your contractual pay and benefits (notice, holidays, any bonus or commission, shares and options, pension, private healthcare etc) the greater the likely value of any exit package. There are no hard and fast rules – what is fair and reasonable in one case may not be fair in another. Ultimately, it will come down to how well your exit package negotiation skills are.
Our lawyers regularly negotiate exit packages for clients, securing excellent terms. We undertake this work across all sectors but have particular expertise in the banking, legal, finance and media industries.
If you want advice about a potential exit package or exit package negotiations you can telephone our employment team direct on 020 7653 3222 or email us firstname.lastname@example.org.