“How you manage people leaving says as much about your leadership as how you bring them on board.” – Matt Glynn

Staff exits are inevitable. Some will be voluntary - an employee resigns to chase a better offer, change careers, or start their own venture. Others will be involuntary - you make the call because of poor performance, misconduct, redundancy, or a strategic shift.

For startups, every exit matters more than in big corporates. A single departure can strip away critical skills, derail timelines, and even unsettle investor confidence. Worse, if mishandled, exits can trigger legal claims, reputational damage, and culture fallout.

PAA: What is a staff exit in HR?
 A staff exit is the process of ending an employee’s working relationship with the company - whether initiated by the employee (voluntary) or the employer (involuntary).

PAA: Why do startups need to plan for staff exits?
 Because every departure in a small, high-intensity team affects capability, morale, and legal risk far more than in larger organisations.

This is an important stage of the start-up journey because:

◼️Small team impact – Losing even one key person can cause major disruption.

◼️Legal exposure – Involuntary exits can trigger wrongful dismissal or discrimination claims.

◼️Culture shock – Exits can destabilise morale and performance.

◼️IP & confidentiality risk – Departing staff may walk out with valuable know-how.

◼️Investor perception – High turnover can spook potential investors.

PAA: What’s the difference between voluntary and involuntary exits?
Voluntary exits are initiated by the employee; involuntary exits are initiated by the employer.

Legal Implications
- Wrongful dismissal claims
- Breach of contract disputes_ Confidentiality breaches

Founder Relationship Issues
- Distrust if exits are handled poorly or perceived as unfair
- Loss of loyalty from remaining staff

Commercial Implications
- Delayed product timelines
- Customer relationship disruption

Operational Implications
- Sudden knowledge and skill gaps
- Increased workload for remaining team

Biz Valuation Issues
- Investor concerns over retention and team stability

PAA: Can you terminate someone immediately?
Yes, in some cases (e.g., gross misconduct), but due process is still critical to avoid legal fallout.

1. Have a clear exit policy
- Cover both voluntary and involuntary scenarios.
- Include notice periods, final pay, and return of company property.

2. Manage voluntary exits well
- Conduct exit interviews to capture honest feedback.
- Protect relationships - they might become future collaborators or advocates.

3. Handle involuntary exits with precision
- Follow all legal procedures in your jurisdiction.
- Document everything leading up to the decision.

4. Protect business assets
- Ensure return of devices, documents, and keys.
- Revoke access to systems and data immediately upon departure.

5. Manage the team narrative
- Communicate departures appropriately to avoid speculation.
- Reinforce stability and forward momentum.

6. Plan knowledge transfer
- Assign responsibilities before the person leaves.

7. Leverage legal and HR expertise
- Especially for involuntary exits in employee-favourable jurisdictions.

Twitter (Post-Musk Acquisition)
Mass involuntary exits in 2022 - via email and overnight access cuts - sparked lawsuits, regulatory investigations, and global headlines. While swift, the lack of procedural compliance in some jurisdictions created significant legal and reputational cost.

Airbnb – COVID-19 Layoffs Done Right
In 2020, Airbnb laid off 25% of its workforce but won praise for a transparent process, generous severance, extended health coverage, and job placement support. Proof that even painful exits can build goodwill if handled with humanity.

IBM – Age Discrimination Claims
Multiple lawsuits alleged IBM used layoffs to push out older workers. The drawn-out litigation and PR fallout highlight how exit decisions, if poorly framed or documented, can lead to long-term damage.

◼️ Voluntary Resignation – Employee chooses to leave the company.

◼️Involuntary Termination – Employer ends employment (with or without cause).

◼️Constructive Dismissal – Employee resigns due to employer conduct.

◼️Redundancy – Role is no longer required, not based on performance.

PAA: What’s the difference between redundancy and termination?
Redundancy is role-based, termination is person-based (performance or conduct).

Staff exits are inevitable, but how you manage them can either strengthen or damage your business. For startups, every exit carries outsized risk - so approach each one strategically, with a clear plan, airtight compliance, and an eye on protecting both your people and your business.

◼️Exit process planning

◼️Drafting compliant termination letters

◼️Conducting lawful redundancies

◼️Structuring severance packages

◼️Managing voluntary resignations

◼️Exit interviews and feedback analysis

◼️Asset return and access control checklists

◼️Confidentiality and IP protection measures

◼️Dispute resolution and litigation support

◼️Jurisdiction-specific compliance guidance