Employment contracts, service agreements and LLP agreements

Although it should be obvious, many people fail to prepare thoroughly for any potential negotiations about their new employment contract. Just as you’ve prepared for the interview, you would be well advised to undertake some research in advance of negotiations on the offer once it arrives.

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There are a number of strategies and tactics you can use to help you negotiate more favourable, financial and non-financial, contractual terms with a future employer. Contract negotiation is a balancing act, but you are in a much stronger position when entering new employment than you are when leaving. We know how to handle sensitive negotiations, providing you with guidance and tactics that ensure the conversation is positive and results in a win/win for the parties.

While senior executives often focus on remuneration and incentive arrangements, you need to consider not only the terms that have an immediate effect but also those that will become important if there is a dispute or you are leaving – whether by your choice or not. There is far more to employment contract terms than the remuneration clauses, some of the seemingly less important clauses may have significant implications either during or at the end of the working relationship. This is where our employment team can help. We can spot where employer protection clauses such as post-termination restrictive covenant clauses are likely to cause issues down the line.

They stand out for the great way that they collaborate in partnership with clients.

As a director, you will have certain additional fiduciary duties and obligations to your company or LLP. It is vital that you understand your obligations before signing the agreement. Our lawyers will go through the terms with you to ensure that you are clear about what you are signing up to.

While no two employment contracts are the same, our lawyers have extensive expertise derived from advising CEOs, managing directors and board members from FTSE 100 and 250 companies and other blue-chip corporations. Our clients come from a wide range of sectors such as banking and financial services, technology, telecoms, media and the legal, accountancy and medical professions. Our employment team at Penningtons Manches Cooper is familiar with industry-specific terms and conditions and can ensure your contract complies with market norms for your industry.

How we help our clients

Understanding the meaning and implication of your employment contract terms

Reporting on findings and recommended revisions for contract, including LLP, terms

Executive compensation and equity negotiations

Win/win negotiation tactics

They stand out for the great way that they collaborate in partnership with clients.

Fantastically efficient and a delight to work with.

Recent work highlights

Complex employment contract terms for CEO

Negotiating terms for the high-profile appointment of a new CEO of a listed company on an expedited basis, involving complex equity arrangements as well as advice taking into account the corporate governance Combined Code.

Remuneration package for industry leader

Advising a senior executive and leader in their industry on joining a large private equity backed company as CEO, involving complex equity and remuneration arrangements.

Advice on regulatory and fiduciary duties

Advising a senior executive in the financial services sector on their regulatory and fiduciary duties.

Smooth transition for accountancy partner

Acting for a partner of a Big Four accountancy practice in relation to deferred remuneration and confidentiality as he moved companies and securing indemnities as needed from the new employer.

Negotiation to boost a managing partner’s bonus

Providing guidance for a managing partner on unfavourable bonus terms and the best tactics for amicable negotiation. This was followed by a proposal for a rewording of the employment contract.