A description of the circumstances in which a person ceases to be an employee of a company. Good leaver will usually mean leaving employment on grounds of death or disability. Bad leaver will usually mean leaving in circumstances justifying the summary dismissal of the employee. These expressions are most commonly used in the context of the treatment of shares held by managers on a private equity (www.practicallaw.com/A37979) transaction should they subsequently leave and also in the context of earn-outs (www.practicallaw.com/A35012) and employee share schemes. Where either the company gives the employee contractual notice or vice versa often produces debate as to whether these grounds constitute good or bad leaver. One also has to take account of the possibility of redundancy (www.practicallaw.com/A36781) or constructive dismissal being the reason for departure.