Your legal and financial risk doesn't always end when an employee walks out the door. Poor handling of an employee exit can lead to costly legal claims long after employment has finished, impacting your profits and creating unnecessary headaches for your business.
This is where professional HR consultancy services in Leeds can make a significant difference. It's about protecting your business and your team, even as they move on. Let's explore what's really at stake and how you can safeguard your company.
The hidden risks of employee exits
Many employers assume that once someone leaves, their legal risk ends. In reality, a poorly managed offboarding process can open the door to claims for unfair dismissal, breach of contract, or discrimination.
These aren't just theoretical risks; they can translate into significant financial consequences and reputational damage for your business.
A costly lesson from Leeds United
A recent 2024 tribunal case involving Leeds United Football Club serves as a stark reminder of how poor communication and process failures during offboarding can result in major financial repercussions.
Former technical director Nigel Gibbs won over £330,000 for unfair dismissal and breach of contract. The tribunal found that communication broke down after he raised concerns about the club's operations.
Crucially, the football club failed to follow proper dismissal procedures, delayed his final pay, and mishandled key paperwork. This combination of issues was ruled as both unfair dismissal and breach of contract.
This case clearly shows that proper offboarding and meticulous documentation could have prevented such a costly outcome.
What proper offboarding looks like
Offboarding is more than just collecting company property or deactivating email accounts. It's about managing the exit in a fair, consistent, and legally safe way. Here are the practical steps you can take now to reduce risk while supporting your people:
Clear communication and documentation: When issues arise, formal communication is essential. Document all conversations, confirm next steps, and keep decisions in writing. This transparency reduces the risk of claims that someone was pushed out unfairly.
A structured exit process: If a working relationship must end, manage the exit formally. Hold a meeting, confirm notice periods, and set clear terms for final pay, handover, and confidentiality agreements.
Timely final pay and paperwork: Late or incorrect final pay can lead to breach of contract claims. Paying everything owed on time and issuing accurate paperwork demonstrates fairness and professionalism.
Consistency for all leavers: Apply the same standards to every departing employee, regardless of their seniority. Inconsistent treatment significantly increases the risk of unfair dismissal or discrimination claims.
Professional closure: Hold a final meeting to confirm next steps, collect company property, and restate any confidentiality or restrictive covenants. A clean closure helps prevent misunderstandings and future disputes.
The lesson for your business
The Leeds United case demonstrates that poor offboarding can create serious legal and financial risk. For small and medium-sized businesses, how you handle employee exits is just as important as how you manage employees while they're with you.
A fair and structured offboarding process protects your people, your reputation, and your business finances.
How an HR consultant can help
Navigating employee exits can feel complex, especially when you're trying to focus on growing your business. As an independent HR consultant, I work with business owners to bring clarity and consistency to their people practices. I can help you to:
Review and strengthen your existing exit and offboarding processes.
Draft compliant offboarding policies and templates tailored to your business.
Provide training for managers on handling difficult exits with confidence and clarity.
Ensure final pay calculations and documentation meet all legal standards.
If you're concerned about your current offboarding practices or simply want peace of mind that your business is protected, let's have a conversation about what's possible. As your outsourced HR consultant in Leeds, I can help.
Book a confidential call today, and let's discuss how the right approach to employee exits can safeguard your business from future legal and financial challenges.
We cover the whole of England.
Areas we cover near Leeds include:
Doncaster
Beeston
Huddersfield
Bradford
Wakefield
Wetherby
Harrogate
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