Contract Of Employment
Did you know that 12 per cent of small businesses do not issue Contract’s of Employment to their staff?
Amazing isn’t it but very true, and an even larger amount (around 32 per cent) of small businesses owners do not update HR policies and procedures on a regular basis and subsequently they do not adhere to changes in employment law. We look even further to hear that 64 per cent of business owners believe they will never be taken to employment tribunal.
Our advice to any small business owner is that you take stock and make some vital changes and make HR high on your list of priorities………………..In the event you do find yourself at an employment tribunal and the employment solicitor representing your employee spots any gaps in your procedures this may result in a great deal of expense for your business, as you are more likely to lose the case.
Employment is an increasingly fast moving and complex area of law. The impact of regular new legislation and developing case law presents a real challenge for employers who want to spend their time focusing on growing their business and developing their people, but often find themselves battling with HR issues and defending claims instead.
Unfortunately the bottom line is that small companies that fail to issue contracts of employment are breaking the law, it’s as simple as that!
If you are a small business owner and you do not have contracts for your staff, then we suggest you most certainly do something about it because you have legal responsibilities and obligations to your staff. HR disputes can only be fought and won if there are watertight HR policies and procedures in place.
So do it, and make sure that procedures are communicated, updated and enforced correctly. Policies should be seen as a communication tool between employer and employee, setting a platform to communicate what you expect from your employees from hours to dress code. Policies also need to form the basis of a relationship, and your employees should agree to the content.
If an employee does have a grievance, then watertight HR policies can help to determine whether procedures were followed. Financial penalties may be large and company reputation may be damaged.