Good leaver v Bad leaver

The phrases “good leaver” and “bad leaver” are habitually used to differentiate between the ways in which employment terminates. For example, a good leaver definition often includes situations where an individual is made redundant or is leaving as a result of serious ill-health; it can be extended to include a situation where the individual is leaving but will not join a competitor. A bad leaver definition frequently includes dismissal for conduct or capability/performance reasons or resignation (which may be narrowed to only cover joining a competitor business) or an assertion of constructive dismissal.

If good leaver/bad leaver status is linked to a bonus payment it would normally be the case that a good leaver receives some or all of their bonus and a bad leaver receives none. More sophisticated schemes will provide for a “good leaver” to become a “bad leaver” if they subsequently breach their post termination restrictive covenants.