26 July, 2010
Following reports in the reports in the media today and over the weekend, that BP boss Tony Hayward is to have his employment terminated by BP Forbes Solicitors is reminding employers to ensure employment contracts are kept up to date.
It is reported that Mr Haywood will receive a large compensation payment well into the millions. Whilst this may seem an exorbitant sum, it is a reflection both of the likely salary paid to a Chief Executive in Mr Hayward's position (reportedly in excess of £1,000,000 a year), and his contractual entitlements under his contract of employment.
Jonathan Holden, Employment Law Solicitor said, "The rumoured level of the pay out to Mr Hayward is staggering. However, it is not entirely unexpected. It is likely that in these circumstances, Mr Hayward will have express contractual provisions contained within his contract of employment providing for a lengthy notice period. There may even be a separate provision determining the amount of any payout in the event of termination without notice for what would appear, in these circumstances, to be merely political purposes.
It remains the case that BP must have a fair reason for the dismissal of Mr Hayward, and if they do not then they must negotiate a severance package in order to protect against possible litigation. No doubt this is the process that is ongoing at the moment. "
This should serve as a reminder to all employers to ensure that their contracts of employment for all levels of employees are up to date and sufficient for their purpose, reflecting the seniority and duties of the employee.
For all the assistance in any aspect of employment contracts, please do not hesitate to contact the employment team at Forbes Solicitors, which is the largest Employment team in Lancashire, on 01254 222399.