The twelfth session was an informative and constructive conversation about handling Senior Executive and Founder dismissals, specifically addressing the employment, directorship and equity considerations for exiting international executives, with perspectives from Australia, China, Switzerland and the UK. Some of the key takeaways from the session included:
- Senior Executives and Founders should ensure their protections on termination are included in their contractual documents at the outset of their appointment, as well as upon termination.
- There is no legal distinction between Employees and Senior Executives in Switzerland, where the legislation is generally employer-friendly. However, Senior Executives can claim an extra 6 months of salary in respect of an unfair dismissal.
- Tax is a major consideration and should be contemplated from the outset, as the timing of payments following an exit can be critical.
- In Australia, there is a 6-month compensation cap in respect of unfair dismissal claims. If the Senior Executive is earning above the high income threshold (150,000 AUD), they are precluded from bringing an unfair dismissal claim altogether.
- In China, there is less protection for Senior Executives. However, once non-compete restrictions are imposed, the employee is entitled to compensation equivalent to 30% of their annual salary.
Thank you again to our expert panel of speakers for a superb session:
Joydeep Hor, Managing Partner, People & Culture Strategies (Australia)
Struan Mackenzie, Partner, Buzzacott LLP (UK)
Meriel Schindler, Partner and Head of Employment, Withersworldwide (UK)
Michèle Stutz, Partner, MME Legal (Switzerland)
Cathy Qu, Senior Partner, River Delta Law Firm (China)
Emma Bartlett, Partner, CM Murray LLP (UK) (Chair)
The second International Forum of Senior Executives and Founders (IFSEA) Conference on Risk, Reward and Reputation Management Issues for Senior Executives & Founders was held virtually from Tuesday, 2 February – Tuesday, 16 March 2021. This unique specialist conference ran as a series of virtual international expert panels and two networking events per week, bringing together over 65 leading global experts from 13 countries around the world to discuss issues commonly faced by international Senior Executives and Founders, particularly during these times of global crisis, disruption and opportunity.
View other sessions from the IFSEA 2021 Virtual Conference here.
Find out more about the International Forum of Senior Executive Advisers and become a member here.
