How a Proper HR Offboarding Process Protects You from Legal Action After Someone Leaves

Many legal claims arise not from what happens during employment, but from what’s missing in the HR offboarding process once someone leaves.

When someone leaves your business, it is easy to think the risk ends there. But if their exit is not handled properly, you could still face a claim after they have gone.

Former employees can take legal action for unfair dismissal, breach of contract or even discrimination if they believe they were treated unfairly during or after their exit.

A case in 2024 showed just how costly that can be.

The Leeds United case

In 2024, former technical director, Nigel Gibbs, won over £330,000 after being unfairly dismissed by Leeds United Football Club.

He had raised concerns about how the club was being run. Instead of managing the situation through a fair and transparent process, communication broke down. The club then failed to follow proper dismissal procedures, delayed final pay and mishandled key paperwork.

The tribunal found that this was both unfair dismissal and breach of contract.

If the offboarding process had been handled correctly, the outcome could have been very different.

What a Proper HR Offboarding Process Looks Like

Offboarding is not just about collecting laptops and shutting down email accounts. A proper HR offboarding process ensures a fair, consistent and legally safe exit for everyone.

Here is how Leeds could have avoided the claim and how you can protect your own

business.

1. Clear communication and documentation

When concerns or tensions arise, formal communication is essential.

Document what has been discussed, agree next steps and confirm decisions in writing. Transparency protects you from claims that someone was pushed out unfairly.

2. A structured exit process

If the working relationship cannot continue, a structured HR-led offboarding process helps you manage the exit professionally and legally.

That means a formal meeting, agreed notice and written confirmation of key terms such as final pay, handover expectations and confidentiality.

3. Timely final pay and paperwork

Delays in salary, holiday pay or notice pay can lead to breach of contract claims. Paying everything owed on time and issuing accurate paperwork shows fairness and professionalism.

4. Consistency for all leavers

A consistent HR offboarding process ensures the same standards apply to everyone, regardless of role or seniority, reducing the risk of discrimination claims. Inconsistent treatment can lead to unfair dismissal or discrimination claims.

5. Professional closure

Hold a final meeting to confirm what happens next, collect company property and clarify post-employment expectations, such as confidentiality or restrictive covenants.

It closes the relationship cleanly and reduces the chance of future disputes.

The lesson for employers

In the end, the Leeds United case came down to one thing: how the exit was handled.

For small businesses, the same principle applies.

When someone leaves, the way you handle that exit matters just as much as how you manage them while they’re employed and that starts with a compliant, structured HR offboarding process.

A fair and professional offboarding process protects your people, your reputation and your bottom line.

If you’re unsure whether your HR offboarding process is putting you at risk, we’re here to help.

We can help to make sure that your offboarding protects you rather than puts you at risk.