How to negotiate an exit package - Paul Doran Law

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How to negotiate an exit package

How to negotiate an exit packageHow to negotiate an exit package

When your employer makes you a financial offer to resolve a grievance or as part of your exit package, you don’t have to accept the first deal they suggest – you can negotiate until you agree the best arrangement between you.

This is called a settlement agreement. As it’s a legal document, you have to take independent legal advice before you sign – that’s where we come in.

With Paul Doran Law, you’ll always know where you stand. For an affordable fixed fee, we can write a letter to your employer proposing an exit package or help you to prepare a grievance. 

Points to note

Tips about negotiation

Negotiating an exit package is a skill. Here are some top tips to help:

What do you want to achieve?

If you’re still employed, you might like to keep your job but work different hours or in a different department. You could ask to move to a different role. Or perhaps you’d like to carry on working there for a defined period while you’re job-hunting.

If you’re on the point of resigning due to ill-treatment, ask us about timing, how to negotiate your exit package and what you might get. For example, your exit package should be enough to cover the time it will take you to get another job, any loss of earnings, your pension and other benefits.

We will:

A good exit package will usually include compensation, plus a good reference to help you get another job. In return, your employer might want you to sign a non-disclosure agreement and agree not to work for a competitor for a defined period of time.

We’ll let you know how much you can expect, and suggest where there is room to manoeuvre.

If you have already resigned because of how you were treated, you might be able to claim for constructive dismissal, however, this can be hard to prove. There’s more information on this in our page about constructive dismissal.

How to decide

Deciding whether to stay or leave a job is a big decision. You need to consider whether you’ll suffer more work-related stress by staying or leaving. You should also assess the risk of being unemployed. What’s the job market like where you are? If it’s going to be hard for you to find a new job, you might have a stronger negotiating position.

Remember, it’s possible that the problem will be resolved and then you’ll be happy to stay.

Also remember it can be easier to get a new job while you are currently still employed.

Usual process

When there’s a problem at work, the first step is to address it informally – talk to your boss, a mentor, HR department, or trade union rep. We can advise, even at this stage.

If the issue isn’t resolved, you should then put in a formal grievance by following your usual workplace procedure. Again, we can help with this.

If that doesn’t fix things, ask us to write a fixed-fee letter for you.

The next step is to threaten to make a claim in the Employment Tribunal (note that there is a specific time period for claims, so you have to act quickly).

Keep to the facts

If you’ve suffered stress and ill health due to what’s been going on in your workplace:

Explain your personal position:

Detail your contribution to your employer:

What this means to you

There are various situations where you might find yourself negotiating with your employer, such as:

Whatever the reason, it can be difficult and stressful trying to tackle the negotiations alone. People often feel emotional and vulnerable, and can even break down in tears. This is totally understandable, but weakens your negotiating position.

Of course, as an individual, you might only go through this experience once in your lifetime. You might worry that your employer has a big team, loads of expertise, and access to expensive (and possibly aggressive) lawyers. That’s why it can help to trust independent experts (like us). We do this kind of work all the time. We have the skills and knowledge, understand the process, and know the best way of getting you a good outcome.

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