Case study: settlement agreement and exit strategy after workplace dispute
Our employment law solicitors advised a company shareholder and director who needed help following a workplace dispute. Associate, Natalie Pring, helped him to negotiate a deal with the company, bringing in expertise from our Corporate + Commercial team.
Our client, Mr H, was a 50% shareholder and director in the company he worked for.
A dispute arose about the way the company should be run, and this situation escalated over a 12-month period. There was no shareholders’ agreement in place. Mr H’s access to company documents and the company bank account was frozen resulting in Mr H negotiating an exit from the company without our involvement, but this proved unsuccessful.
Natalie took into account all elements of Mr H’s case in order to obtain a successful settlement agreement offer.
The deal was heavily negotiated and involved significant drafting of specific clauses, Mr H selling his shares in the company and advice on the terms of the settlement agreement.
Case study | Settlement agreement negotiation
Mr H was offered a sum of money in the settlement agreement in order to waive any employment claims he may have had against the company. However, this matter was more complicated as it involved a shareholding.
Natalie worked closely with our commercial law solicitors to ensure Mr H got a deal that reflected his true involvement in the company. This involved Natalie having a detailed understanding of the issues involved to ensure the documents were drafted to reflect what needed to happen in practice.
Natalie negotiated a deal so that Mr H could continue working in a similar company of his own following the termination of his employment and shareholding, which is often prevented by post-termination restrictions which are signed at the outset of an employment/director relationship.