As an expert HR consultant in Dorset, I'll explain how managing employee exits correctly can prevent costly legal disputes and protect your business.

 

It's easy to assume that once someone walks out the door, your legal responsibilities and risks end there.

 

But the way you handle an employee's departure can still lead to significant financial and reputational damage long after they've gone. A poorly managed exit isn't just an administrative oversight; it's a ticking time bomb for potential legal claims like unfair dismissal, breach of contract, or discrimination.

 

The cost of a bad goodbye

 

It's a stark reminder that the employer's risk doesn't end when employment does. Consider the recent 2024 tribunal case involving Leeds United Football Club. This isn't just about a big football club; it's a real-world example of how process failures during offboarding can hit any business hard, regardless of size.

 

The club's former technical director, Nigel Gibbs, successfully won over £330,000 for unfair dismissal and breach of contract. What went wrong? Mr Gibbs had raised concerns about how the club was run, but communication broke down. Leeds United failed to follow proper dismissal procedures, delayed his final pay, and mishandled key paperwork. The tribunal ruled that this combination of issues amounted to both unfair dismissal and a breach of contract.

 

For an SME, a claim even a fraction of that size could be devastating. It highlights how proper offboarding and meticulous documentation could have prevented a costly and damaging outcome.

 

What proper offboarding looks like

 

Offboarding is far more than just collecting company property or deactivating email accounts. It's about managing the entire exit process in a fair, consistent, and legally safe way. Here’s what you need to know about getting it right:

 

1. Clear communication and documentation

 

When issues arise, formal communication is absolutely essential. Document every conversation, confirm next steps in writing, and keep all decisions recorded. This transparency significantly reduces the risk of claims that someone was unfairly pushed out or treated poorly.

 

2. A structured exit process

 

If the working relationship has to end, manage the exit formally. Hold a clear meeting, confirm the notice period, and set clear terms for final pay, the handover of responsibilities, and any confidentiality or restrictive covenants. This structured approach leaves no room for ambiguity.

 

3. Timely final pay and paperwork

 

Late or incorrect final pay can quickly lead to breach of contract claims. Paying everything owed on time and issuing accurate paperwork demonstrates fairness and professionalism, preventing unnecessary disputes.

 

4. Consistency for all leavers

 

Apply the same standards and processes to every departing employee, regardless of their role or seniority. Inconsistent treatment is a major red flag and significantly increases the risk of unfair dismissal or discrimination claims.

 

5. Professional closure

 

Hold a final meeting to confirm next steps, collect company property, and restate any ongoing obligations like confidentiality. A clean, professional closure helps prevent misunderstandings and future disputes.

 

The lesson for your business

 

The Leeds United case is a powerful demonstration that poor offboarding creates serious legal and financial risk. For small businesses especially, how you handle exits is just as important as how you manage employees while they are with you. A fair, structured, and compliant offboarding process protects your people, your business's reputation, and your finances. It's about doing the right thing, and it protects your bottom line.

 

Ready to strengthen your offboarding process?

 

If you're concerned about your current employee exit procedures or want to ensure you're fully protected, you don't have to do it alone. As an expert outsourced HR consultant in Dorset, I help businesses like yours:

 

  • Review and strengthen existing exit and offboarding processes.

  • Draft compliant offboarding policies and templates.

  • Provide training for managers on handling difficult exits with confidence.

  • Ensure final pay and documentation meet all legal standards.

 

Let's have a confidential conversation about how to turn potential risks into peace of mind. Book a discovery call today, and let's make sure your business is protected from costly employee exit disputes.