But he will still be paid his £31,518.75 monthly basic salary for another year as part of his notice terms.

Haywood is leaving after seven years at the firm and Interserve posting a £94m loss last year after making a £160m provision for exiting its waste business and troubled contracts.

The company confirmed it has also made a “contribution of £7,500 towards legal fees incurred by Tim in connection with his departure.”

Any bonus due to Haywood will be determined by the Interserve remuneration committee in March.

He has been replaced by Mark Whiteling who has now joined the company board.