Severance negotiation is a strategic process that often represents the best alternative to lengthy and expensive litigation. This service involves terminating the employment relationship by "mutual agreement," where the employer offers a certain financial package in exchange for the employee waiving their right to sue. Engaging a professional negotiator (lawyer) ensures that parties reach a "Win-Win" outcome: the employer gains legal peace of mind, while the employee receives maximum financial benefit and maintains a good reputation.
What Does the Severance Negotiation Service Cover?
Specialists on Legal.ge act as your advocates at the negotiation table:
- Leverage Analysis: The lawyer assesses how strong the party's position is. For example, if the employer has procedural flaws, this increases the chance of demanding higher compensation.
- Maximizing Compensation Package: Negotiating not only salary but also bonuses, unused leave, stock options, and continuation of health insurance.
- Non-Financial Terms: Agreeing on a positive reference letter, assigning a "resignation" status instead of "dismissal," and protecting reputation.
- Drafting Settlement Agreement: Creating a document that legally binds the parties and precludes future claims.
- Confidentiality Protection: Agreeing on NDA (Non-Disclosure Agreement) terms, which is critical for both parties.
Common Real-World Scenarios
Negotiation is effective in the following cases:
- Executive Departure: When a director or high-level manager is let go due to strategic differences, and the company wants to avoid a public scandal.
- Disputed Dismissal: When the grounds for dismissal are vague, and the employer prefers to pay compensation rather than risk reinstatement in court.
- "Quiet" Separation: When parties want to end the relationship in a way that does not reflect negatively on their professional reputation.
Georgian Legislation and Legal Framework
Termination of employment by mutual agreement is regulated by Article 37, Paragraph 1, Subparagraph "a" of the Labor Code of Georgia. Unlike other grounds, the law does not set a minimum or maximum compensation amount here — it is entirely a matter of the parties' free will (principle of freedom of contract under the Civil Code).
The main legal instrument is the Settlement Agreement. It is crucial that this act clearly states that the employee accepts the amount fully and finally and has no further claims. If this clause is not formulated correctly, the employee can still approach the court even after receiving the money.
Step-by-Step Process with a Specialist
Successful negotiation goes through the following phases:
- Preparation: The lawyer analyzes the contract and factual circumstances.
- First Offer: Drafting the initial demand (from the employee) or offer (from the employer).
- Rounds: Active negotiation, clarifying terms, and seeking compromises.
- Closing: Signing the final document and monitoring the transfer of funds.
Why Choose a Specialist on Legal.ge?
Amidst emotions, parties find it difficult to make rational decisions. An experienced negotiator from Legal.ge acts as a "buffer," removing emotional tension and steering the process into a pragmatic channel. As a result, you save time, nerves, and get a guaranteed result instead of an uncertain court dispute.
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