Ok to cut a long story short my dh works in a small town. he is the manager of a shop, likes his job, there is this member of staff who has been there for 10 years and she is not very good at her job and has been costing the company money due to her constant errors, my dh has gone through chats with her, and then as it didn't improve has started disciplimery action, she has now handed in her notice, but has been bad mouthing my dh to all the people in the shop and all the locals which think she is great, she has been telling people my dh has been bullying her, my dh has been with the company for 20 years and is very professional, he can not let this matter go, as he is getting dirty looks from local's and the area is hard to recruit at the best of times not to mention if work gets round that the boss is a so called bully.
He has been very clever in documenting everything, she has been a nightmare to work for and on file has various warning and also letters from staff about how she treats other members of staff.
We are not in a position where we have a bottomless pit of money, but have some savings, where do we stand legally and if we take her to court does she have to pay costs etc etc, we have several people happy to put in writing that she used the word bullying.
Any help would be great.