By accepting a new role in the UK, I shall be treated as a “bad leaver” by my current employer and forfeit significant equity and deferred payments: is there anything that I can do?
It is common in the UK for new employers to “buy out” amounts that an employee would forfeit by leaving their current employer, although there are limits to what some employers can offer (especially those in regulated sectors).
Ultimately, this will be down to the strength of your bargaining position. Where a “buy-out” arrangement is entered into, the payment will typically be paid on or around the commencement of your employment (sometimes in stages) with claw-back provisions attached: these will normally require you to repay all or part of the payment if you leave your new employment or your employment is terminated for cause within a certain period.
Before entering into detailed discussions with a prospective employer on such points, it is worth considering the confidentiality obligations owed to your current employer to ensure that nothing you share with the prospective employer could amount to a breach of those.
For more information or advice, please contact Joe Beeston, Counsel in our Employment team.
Senior Executives: thinking of relocating to the UK?
Considering the employment offer, negotiating the contract and package
- I’ve been offered a new role in the UK: what are the key terms that I should expect to see and which should I try to negotiate?
- Will I be subject to tax on my worldwide income and gains if I become tax resident in the UK?
- I hear that it can be a common practice to have dual employment contracts: one in the UK, and the other abroad. What's this all about?
- I have some existing share options which have vested but I have not yet exercised them? What should I do about them?
- I am a private equity executive with carried interest in a fund I manage. Is there a way to improve my tax position in respect of this carry, or is this prevented by the UK’s new tax rules aimed at private equity?
Please do contact any member of our Sen Ex Advisory Group to suggest a question or to find out more about how we can help.
Senior Executives: thinking of relocating to the UK?
We answer common questions raised at key stages of the relocation process.
