The Matter
KIAP Law Firm acted for a client company operating in the international energy commodities trade, providing end-to-end transaction support — from market analysis and procurement through to logistics and final delivery to the end consumer, including ancillary services such as documentary compliance and international freight. The firm's lawyers were instructed to manage the termination of the employment relationship with a senior executive of the company.
Complexity of the Mandate
The company sought to bring the relationship to an end by mutual agreement, with reasonable compensation arrangements and robust protection of confidential information. The executive's remuneration package included variable payments tied to the achievement of performance targets set out in the agreement, which required a precise calculation of the sums due at the point of departure — including a foreign currency component. Further complexity arose from the need to put in place legally binding obligations covering non-disclosure of confidential commercial information, together with non-solicitation covenants in respect of the company's clients and staff. The executive had access to highly sensitive data on pricing, suppliers, and supply chain logistics, which called for particular care in drafting the relevant provisions of the settlement agreement.
The matter was further complicated by tight time constraints: it was critical for the employer to resolve the matter pre-litigation, minimising the risk of an employment dispute and the associated reputational fallout for a company operating in the international energy market.
Approach and Outcome
The KIAP team reviewed the relevant HR documentation and entered into negotiations with the executive. The outcome was a settlement agreement, drafted in the employer's interests, providing for the terms of departure, a full calculation of all sums due — including the variable component of the remuneration — and robust confidentiality and commercial protection clauses. The agreement was concluded without recourse to litigation, allowing for a transparent and efficient termination that safeguarded the company's ongoing operations.
Why This Matters
Structuring senior executive departures: This matter illustrates an effective approach to terminating the employment of executives whose remuneration includes complex variable components linked to commercial performance.
Protecting confidentiality and commercial reputation: The engagement underscores the importance of carefully drafted non-disclosure and commercial protection provisions when departing employees have access to sensitive market and counterparty information.
Team
The client was represented by Partner, Advocate Konstantin Astafiev, Partner, Advocate Julia Paushkina, and Associate Nikita Zabegaev.