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Tasman McManis
08-02-2012, 03:38 PM
I'm looking at the termination of a long serving (15+ yrs) senior executive. There are some flexibility and performance issues but as usual nothing is documented. There is no evidence of an employment contract and redundancy and redeployments are not options. Can I get some thoughts on what might be a suitable termination package.

09-02-2012, 10:13 AM
I assume as a senior exec they are paid above the unfair dismissal level of remuneration?

In my experience these come down to how well the employee and the company negotiate. 3-6 months pay is not uncommon for a senior exec to be paid as a severance pay as well as any notice in their contract (3 months notice is not uncommon for a senior exec at the level of the Executive leadership team). Some will get the notice paid out on overall package including all the extras, plus all or a portion of their long and short term incentives paid out at target as well.

12 months is getting to the higher end of the scale.

It might just come down to someone sitting the employee down and asking what pay will make this all go away as a starting point.

In nearly every case I've seen the employee 'resigns' and is allowed to leave with their dignity, regardless of how they have performed and why they are being moved on.

Tasman McManis
09-02-2012, 10:17 AM
Thanks Cottoneyes! You are correct in assuming the Exec is paid above the unfair dismissal level of rem.