Settlement Agreement Negotiation: Maximising an Exit Package for a Senior Employee

Client Snapshot

Industry: Employment Law
Business Type: Individual (Employee)
Location: UK-based

Profile

The Employment Team maximised an exit package during a Settlement Agreement process for a senior employee facing significant workplace stress and unfair treatment.

The Challenge

Hansells was instructed to advise as the independent legal adviser on a settlement agreement for a senior employee who was being made redundant. However, following a detailed meeting with Senior Associate, Natalie Smith, it became clear that this did not appear to be a genuine redundancy situation.

Instead, the client was involved in a personal dispute with a director who had developed a strong dislike towards him. As a result:

• The client was subjected to bullying behaviour
• The working environment became intolerable
• The client's health suffered, leading to a period of sickness absence

Objectives

The client's priorities were clear:

• Secure adequate financial compensation reflecting the true circumstances
• Retain access to private medical cover, which was critical due to ongoing health issues
• Exit the business with certainty and without escalating matters to tribunal proceedings

Our Approach

• Conducted a thorough review of the settlement agreement and the background to the proposed termination
• Identified key legal risks for the employer arising from bullying, health impact, and the lack of a genuine redundancy
• Advised the client strategically on leverage points and realistic outcomes
• Entered negotiations with the employer's representative in a calm, firm, and commercially focused manner

Work Delivered

• Detailed legal advice on settlement agreements and employment rights
• Strategic negotiation with the employer to reflect the true risk profile
• Amendments to settlement terms to better protect the client's financial and personal interests

Results & Impact

Following negotiation:

• The termination payment was increased by the equivalent of two months' salary
• The client's private medical insurance was extended by three months post-termination
• The client was able to leave employment with improved financial security and continued access to essential healthcare
• The dispute was resolved without the need for formal grievance procedures or tribunal claims

Key Takeaway

Proper scrutiny of settlement agreements – combined with a deeper exploration of the underlying issues – can transform what might otherwise be a tick‑box exercise into a strategically negotiated exit. By identifying the true risks and priorities early, it is often possible to secure a maximised and balanced outcome that meets the client's needs while enabling a clean, mutually beneficial resolution for both parties.

Services Used: Employment Law · Settlement Agreements · Workplace Disputes · Negotiation