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We have a troublesome employee who we’d like to exit the business – what do we need to consider?

Most businesses at some stage come across this difficulty and it can be unnerving to know what to do. Every situation is different, but you should consider as a starting point:

  • How long has the person been employed for? If it is less than 2 years and there are no ‘risk’ factors arising it may be that you can terminate their employment without a claim of unfair dismissal being brought.
  • Does the person have shares in the business or are they critical to the business?
  • What is the root of the problem: is it their performance, conduct, attitude or something else? Watch out for any discriminatory bias or adverse reaction if a person has raised concerns about how the business is run, as these would be significant risk factors.
  • Has the person raised any grievances or are they subject to any internal processes. If so, it may be that you need to complete these before you can consider discussing any ‘exit’.
  • Is this a situation where you can use the ACAS Protected Conversations route or have a without prejudice discussion to offer them a settlement agreement? This is an agreement where the person agrees to leave on particular terms: such as with an agreed announcement, reference, compensation payment. In return they agree to not bring any legal action against the business.

Our specialist team deal with such exits on a daily basis and would be happy to assist.

Do also watch our video clip on exits and settlement agreements :

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