How to Prevent Costly Mistakes When an Employee Leaves Your UK Business

The employee leaving procedure in the UK refers to the legal and payroll steps employers must follow when an employee resigns, retires, or is terminated. Failing to update payroll records, submit accurate FPS data to HMRC, or issue a P45 correctly can lead to compliance issues, delays in benefits, and financial penalties. One alternative solution is outsourcing payroll to a specialist firm, which ensures accurate filings but lacks broader employment support. A more comprehensive option is using Employer of Record (EOR) services, which manage offboarding, tax filings, and HMRC compliance, ensuring error-free transitions and full legal alignment.