Also known as a golden handshake. Financial benefits provided to employees (usually senior employees or directors) on leaving their employer. Such clauses run the risk of being held unenforceable as a penalty if they are payable on breach of contract and do not genuinely pre-estimate the loss that an employee may suffer. Approval of such clauses by directors may also fall foul of their fiduciary duty to act in good faith in the best interests of the company. See also Golden hello and Golden handcuffs.
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