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The £30,000 Exit: What a complex employee departure really costs

There are a few things an SME dreads more than a complex exit. A long-serving employee, a difficult performance or conduct history, grievances in the mix, and enough legal risk that every decision suddenly feels weighty. You know it needs to be handled properly. What’s harder to see is exactly what “properly” will cost you.

A realistic scenario

Imagine an employee with 15 years’ service. They’ve raised grievances or alleged unfair treatment. Their performance and conduct record is patchy, and potential discrimination or whistleblowing risks loom in the background. The objective is a managed, dignified exit under a settlement agreement, but reaching it safely takes real work.

What the legal route typically costs

Handled entirely by a solicitor and billed by the hour, fees in a case like this add up quickly:

  • Initial advice and strategy: £500–£1,500
  • Managing the process — meetings, letters and advice over several weeks: £2,000–£5,000
  • Negotiating the settlement agreement: £500–£2,000
  • Drafting the settlement agreement: £400–£1,000

For a case that settles before a tribunal, the typical total is £3,500–£8,000 + VAT. In our example, given its grievances, history and risk — £4,000–£7,000 + VAT would be unremarkable. If the matter progresses towards a tribunal, you’re looking at £10,000–£30,000+.

Legal fees are only the tip of the iceberg

The solicitor’s invoice is just one line item in the total cost of an exit. Employers also routinely incur:

  • The settlement payment itself is often several months’ salary, depending on the circumstances.
  • A contribution towards the employee’s own legal fees — typically around £500 plus VAT.
  • Management time — the hours your leaders spend consumed by the matter rather than running the business.
  • Recruitment costs if the role needs replacing.

Put together, a single complex departure can quietly become one of the most expensive events of the year.

The HR-led alternative

Here’s the part that’s often overlooked: in most complex cases, a solicitor doesn’t need to run the entire process. Much of the work, including the strategy, meetings, correspondence, and day-to-day management, falls squarely within the remit of an experienced HR practitioner.

An HR-led approach means someone takes ownership of the whole matter: managing the process end to end, keeping it compliant at every step, handling difficult conversations, and instructing a solicitor only when specialist legal advice is genuinely needed, typically for strategic sign-off and settlement drafting. That targeted use of legal time can substantially reduce overall spend compared with handing the entire case to a solicitor from day one.

Not just advice — the case, managed

This is where it’s worth being clear about what you’re buying. A telephone helpline or an HR software subscription will give you guidance, but you’re still the one in the room, writing the letters and carrying the risk. A solicitor will give you expert legal advice on the meter. An HR partner who actively manages the case offers something different again: a named person who knows your business and leads the process from the first meeting to the final signature.

Transparent costs – case handled

Our employment law and employee relations support is often fixed and completely transparent. No hourly metering and no open-ended bill if a case turns contentious. You get the matter led and managed by an experienced practitioner, the risk kept in check, and a number you can budget around with confidence.

When the alternative is a solicitor’s invoice that could range from £4,000 to £30,000+, predictability is highly valuable.

Got a difficult situation on the horizon? Talk to the team at Humber HR People before it escalates. The earlier we’re involved, the more we can protect you.