Managed exits

Negotiating an Employee’s Exit

On-going conflict in the workplace is not good for anyone.  If you have a problem employee whom you think is keen to leave but they just won’t go or you want to avoid a drawn-out disciplinary process, consider negotiating an exit package. A managed exit can be the best outcome for everyone as you can all move on, while also satisfying the terms and conditions of both sides. 

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What is an Exit Package or Negotiated Exit?

This is an agreement that the employee will resign in return for payment or benefits.  The agreed terms will be recorded in a ‘Record of Settlement’ document which both parties sign, commonly referred to as a ‘Settlement Agreement'. 

The exit package is confidential and will include your terms and conditions such as the date the employment will end, the employee not being allowed to make disparaging comments about your business and it removes their ability to raise a personal grievance against you anytime in the future.  You can include anything else you need to effectively transition the employee out of your organisation and retain your professional reputation. 

Benefits of good exit management

It's important that exits are handled well by employers.  Some benefits of a well-managed negotiated exit include:

  • The possibility of an ongoing, positive relationship with the employee being exited
  • The exit is cleaner, faster and easier
  • The work environment remains positive by exiting disengaged and ineffective employees in a professional manner
  • Longer-term it's cheaper and less stressful for employers to negotiate an exit package than to keep an unproductive employee on or work through a drawn-out disciplinary process.
  • Other employees can get on with their work without the disruption or pressure of an unproductive colleague.

What's the process for negotiating an exit?

The bossed team strongly recommends contacting us for advice before beginning negotiations. The following steps are the usual steps an employer will follow when negotiating an employee's exit:

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