The act of terminating employment is never without risk. Each year some 40,000 tribunal claims are lodged by former employees alleging that they have been unfairly dismissed. The threat of legal action is well known to the HR community who advocate following fair discipline and redundancy procedures. However, an unfair dismissal claim is not necessarily all you have to worry about….

In 2003 a survey conducted by TNS revealed that more than half of UK workers would take revenge if they were unhappy about losing their job with the top threats being:

• Taking company leads (38%) and
• Badmouthing the company (31 %).

Email also featured as a revenge tool with 10% claiming they would sign their former boss up to an ex-rated mailing and another 10% willing to send hate mail directly. 

Coincidently, that same year, David Lennon was sacked from his part time job at the UK insurance company Domestic and General Group. He too sought his revenge by email. However, he didn’t just send one hate mail, instead he deployed a software programme which sent 5 million of them. His action, known as a “denial of service attack” caused the company’s server to crash and losses of £30,000. As some consolation, only last week the former employee was prosecuted under the Computer Misuse Act 1990, in the first successful prosecution of this kind.

As well as highlighting the risks of revenge the TNS research also reveals other potential consequences arising once employment is terminated. For example over half admitted that they would continue to use a company mobile phone and take advantage of other benefits at the company’s expense if they were able to get away with it. Information also proved a popular target with 67% who would take it to help them in their next role.

Although the research is a few years old the threats are just as real today. To minimise the risks it is paramount for employers to have adequate IT security in place but HR must also follow effective exit procedures. The following are some examples of how HR can protect the business when an employee resigns or is dismissed:

• Exit interviews: These can help the company gather useful information about the employment relationship and in particular why individuals leave. If conducted sensitively they can also allow the employee an opportunity to air theirs views, which may diffuse any ill feeling.
• Leavers checklist:  Create a document to use when an employee leaves which lists all company property that may be issued such as mobile phones, laptops, PPE, credit cards, company car, security pass etc. and any access rights to computer programs and other subscription services. Confirm which ones on the list are applicable to the employee and record when the property is returned or access is revoked.
• Notify payroll as soon as possible: Make sure you discontinue pay and terminate benefits on the appropriate date. It can help to include benefits in the leavers’ checklist to ensure that none are overlooked, particularly discretionary ones such as gym membership.  Identify any additional sums to be paid such as outstanding holiday pay, pay in lieu of notice, ex-gratia or redundancy payments.  Ideally confirm to the employee the amounts and how they have been calculated. Explain how they are treated for tax purposes and when you expect the final salary and the P45 to be issued.
• Consider the options: Review the circumstances and assess the risk to the business. Advise managers appropriately on the use of garden leave, pay in lieu of notice, post restrictive covenants and compromise agreements. If you are unsure take legal advice.
• Follow the statutory procedures: Don’t forget that an employee who is dismissed has a right to appeal and an ex-employee can still raise a grievance!