Managing a Workforce in a Regulated Environment

This episode of “Fintech Focus” picks up where our last episode “Growing a Workforce in a Regulated Environment” left off. Part Two delves further into workplace considerations for fintechs, and focuses on how they can manage exits of senior employees and other senior managers. Host Joseph Kamyar is joined once again by financial institutions regulatory partner Sebastian Barling, as well as labor and employment of counsel Helena Derbyshire.
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In this follow-up to episode three’s discussion about growth-stage fintechs navigating workforces in a regulated environment, host Joseph Kamyar is joined by Skadden colleagues Helena Derbyshire and Sebastian Barling for a conversation about how fintechs can manage the exits of senior employees and managers.
Helena and Sebastian cover topics including processes for dismissing employees, requirements for dismissals at regulated firms, and legal considerations regarding post-employment restrictions, such as non-competes.
Top takeaways from this episode
Fair Reasons, Fair Process: After an employee has two years of service, their employer must have a fair reason to dismiss the employee and must follow a fair process.
Managing a Dismissal: Should a dismissal be imminent, the employment contract is the most important place to start when looking at how to manage an exit. Another important consideration is the extent to which the departing employee is key to the business and whether the employer wants to keep the individual out of the market for a period of time.
Post-Employment Restrictions: An employer must carefully tailor any restrictions to the individual employee, and such restrictions must not be longer in duration or wider in scope than is necessary to protect the employer’s legitimate business interest.