High‑Risk Immediate Terminations & Six‑Figure Settlements
Summary
A fast‑growing commercial enterprise with a lean in‑house legal team engaged Kingfisher to terminate three long‑serving senior managers at short notice – accepting significant unfair‑dismissal exposure – and negotiate bespoke six‑figure Settlement Agreements. Over a four‑week mandate, we coached the client on ACAS‑compliant negotiation posture, led complex discussions with departing managers’ advisers, drafted and executed robust settlement documentation, and advised on post‑settlement HR safeguards.
The result: all agreements closed on budget and timeline, tribunal risk eliminated, commercial interests protected, and an ongoing strategic partnership established.
The Challenges
The client elected to dismiss three senior managers immediately, without any prior disciplinary or performance process – accepting clear exposure to unfair‑dismissal claims and six‑figure payouts. Each senior executive demanded bespoke Settlement Agreements to avert potential tribunals, pushing negotiations into protracted stalemates. The departing managers’ legal advisers sought enhanced exit terms that threatened to escalate costs and breach confidentiality.
The client needed to balance strict cost controls against the imperative of securing comprehensive releases, non‑disparagement and non‑compete clauses, all while preserving the organisation’s reputation and sensitive information.
Our Approach
Kingfisher began with multiple strategy calls, coaching the executive team on negotiation posture, acceptable fall‑back positions under the ACAS Code, and the mechanics of our robust settlement framework. We then assumed lead liaison with each manager’s legal representatives, drafting revised settlement terms that neutralised high‑risk clauses – such as over‑broad garden leave, expansive restrictive covenants, and open‑ended non‑disparagement provisions – while ensuring headline exit payments remained within budget.
Our drafting and documentation phase produced bespoke agreement drafts that clearly set out statutory and enhanced payments, tax treatment, and post‑termination obligations. We coordinated the electronic signature process and executed each agreement in strict accordance with best‑practice Policies & Procedures. Finally, we advised on immediate upgrades to the Contracts of Employment for remaining senior staff and recommended refinements to the client’s internal dismissal protocols – reducing future reliance on external counsel.
The Results
Within four weeks, Kingfisher finalised all three Settlement Agreements, eliminating any near‑term threat of tribunal claims. Each exit package was negotiated in line with the client’s forecasted liabilities, avoiding protracted, high‑value disputes. We secured comprehensive releases and enforceable restrictive covenants, safeguarding the client’s commercial interests and confidential information. Following these successful outcomes, the client has retained Kingfisher’s specialist Tribunal Representation and settlement team as their ongoing partner for all future senior‑level exits.