Employee Exit Management

Exiting an employee is an unfortunate reality for most organisations. Whether this is driven by poor performance, restructuring, unacceptable conduct or interpersonal dynamics, the situation can be both stressful and complex. The process can also be time-consuming, while presenting a variety of challenging circumstances that can result in claims including unfair dismissal, if handled incorrectly.

Exits usually result from a breakdown in performance or interpersonal relationships, and reaching a mutually agreed (and hopefully amicable) settlement between all parties is usually preferable to pursuing litigation. However, regardless of whether an employee’s exit was initiated by the employer or the individual, they can only be dismissed when there is a fair reason to do so. These include:

• Capability / performance
• Redundancy
• Conduct / misconduct
• Statutory illegality
• Some other substantial reason (SOSR) which is not covered by the four categories above, such as a personality clash between colleagues which cannot be resolved

An individual must have one year and 51 weeks continuous service to be eligible to bring an unfair dismissal claim. However, if dismissing an individual who has been employed for less time, employers must be aware that there is an array of potential claims that the individual may be able to bring, including discrimination, wrongful dismissal, whistleblowing and other deemed automatic unfair dismissal claims.

Therefore, if you’re looking to exit an executive or a member of staff with under two years’ employment, it’s important to carefully consider each scenario on a case-by-case basis. By understanding the various considerations and available options, you can minimise the risk and pain that is often involved in handling these delicate situations.