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Employment

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Director Termination and Severance

Employers often find it difficult when it comes to the removal of a Director as they may also be a shareholder in the company and if the whole process is not handled properly it can damage a business significantly. It may be necessary to discuss a severance package and if this is agreed upon the employment team at Rix & Kay can assist employers in preparing settlement (formerly known as compromise) agreements. When a senior employee leaves a business the employer will need to do everything that they can to protect the business from the departing employee and this may require a severance package to ensure that the business is protected if the existing Director’s Service Contract does not provide adequate protection.

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