Avoiding employment law issues: A guide for owner managed and small businesses

Employment Law

February 6, 2024

BY

Catherine Wilson

As an employment law solicitor, I am only too aware of some of the pitfalls facing employers across the private sector. Many of these pitfalls can be avoided however with a little planning and care. So what does my inbox tell me?

The first thing for employers to note is that the employment relationship starts even before the contract commences.  Anti-discrimination legislation applies from the start of the recruitment process and certainly includes advertising, instructions to recruiters and, of course, the conduct of interviews and other selection tests.  A reasonable, fair process will provide a defence against claims but more importantly, will get you the best candidate for the role. Time spent preparing a comprehensive role statement and a clear timetable are worthwhile.

The second point is that employees are entitled to receive a written statement of particulars of employment. This is not necessarily the same as a formal contract but equally, it is more than a 5-point email.   They are entitled to receive a statement of employment particulars within two months of starting work.  There are numerous examples available for free on the internet. These are a great starting point however employers need to make sure that the statement is “fit for purpose” and meets the needs of your individual business.  Do not sign up to complex procedures which envisage a panoply of managers and numerous management tiers. These are difficult to understand let alone implement. Simple is generally best.  These are living documents and need to be accessible and understood if they are to be effective.  

Finally employing people means managing people.  Perhaps this is one of the reasons a large number of micro-businesses (74% according to 2022 Government figures) choose not to go down this road and remain one-(wo)man bands?  Equally, the benefits of employment are obvious in terms of development and growth hence why so many employers still choose to continue employing staff.   The need for management may seem self-evident however the personal nature of working relationships within the smaller business environment can make this particularly difficult in practice.  Clear rules on timekeeping, sickness and workplace behaviour from the outset can avoid huge conflicts, and even potential dismissals, further down the line. Similarly, employers can make good use of probation periods and currently the wider two-year qualifying period for unfair dismissal to ensure that the working relationship is as effective as possible.

We are always happy to have an initial discussion – please do get in touch with Catherine Wilson to find out how FMGS can help you.

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