Settlement Agreements for Tech and Fintech Employees: Share Options, Vesting and Notice

Tech and fintech pay packages are rarely just salary. Share options, EMI schemes, and equity that vests over several years are often the largest part of what you stand to lose, or keep, when a settlement agreement is on the table — and standard templates frequently don't deal with them properly.

Share options and vesting: the part most people miss

If you hold share options, an EMI (Enterprise Management Incentive) scheme, or other equity, the two questions that matter most are:

• What happens to unvested options on exit? Most option scheme rules distinguish between "good leaver" and "bad leaver" status, and being classified the wrong way in your settlement agreement can mean losing options that would otherwise have vested.
• Is there a window to exercise vested options after you leave? Many schemes impose a short exercise window (often 90 days) after your employment ends — miss it, and vested options can lapse entirely.

A settlement agreement should say explicitly how you're being treated under the scheme rules. If it doesn't, that's a gap worth closing before you sign, not after.

IP and invention clauses

Tech contracts typically include broad intellectual property assignment clauses covering anything you create "in the course of your employment." On exit, it's worth checking whether any side projects, open-source contributions, or ideas you've been developing could be caught by this — particularly if you're leaving to build something of your own.

Notice periods and garden leave in a fast-moving sector

Tech notice periods are often shorter than in banking or professional services, but garden leave and restrictive covenants are increasingly common for senior engineers, product leads and anyone with access to source code, roadmaps or commercially sensitive data. See our guide to restrictive covenant enforceability for what makes these clauses valid, or not, under UK law.

Redundancy in a sector prone to sudden headcount cuts

Tech and fintech redundancies often happen in waves, sometimes with short consultation periods that don't fully meet the legal requirements for a fair redundancy process. If your settlement agreement follows a redundancy announcement, it's worth checking whether the consultation you actually had meets the legal minimum, since that affects how much your claim, and your negotiating position, are really worth.

What to have ready before you take advice

• Your contract of employment and any option or share scheme documentation.
• Vesting schedules and any communications about your leaver status.
• The settlement agreement itself, and any redundancy consultation correspondence.

Advice for Canary Wharf and London tech and fintech staff

Deen & Co Solicitors is based on the 18th floor of 40 Bank Street, Canary Wharf, home to a growing concentration of fintech and technology employers alongside the estate's banks and asset managers. We regularly advise employees on settlement agreements involving share options, vesting and redundancy. In almost every case, your employer pays our fee. Read more about our settlement agreement service, or send us your agreement for a same-day review.