How to avoid common employment law mistakes as an employer
Running a business involves managing a multitude of activities, and employment law compliance can feel like an unwelcome addition to an already busy schedule. In reality, it does not have to be overly complicated.
With the right planning and informed decision-making, operations can be streamlined to minimise legal complications and maintain smooth business performance. Achieving this is well within reach.
Start with clear employment contracts
One common pitfall is failing to include a well-written, comprehensive contract or relying on an outdated template. A contract should serve as a clear playbook. Drafts for each job type should be retained but regularly updated to avoid misunderstandings.
To reduce the risk of disputes, details such as payment terms, job descriptions, working hours and other relevant conditions should be clearly defined and agreed by both parties. If additional guidance is required or uncertainty arises, employment solicitors can ensure that every element of the contract remains legally compliant.
Keep good records
Alongside the established business model, fostering fairness and equality in the workplace can help motivate the team and support the value the business aims to create.
Treat everyone fairly
It is easier said than done, one person may receive more leniency than the other, and one person may receive more strictness than the other. That is how humans behave. Unfair discrimination allows a person to claim discrimination. Make sure that all rules and policies are well communicated and set in place in all scenarios. Make sure that all policies regarding equality and discrimination are active and enforced, and not set aside to gather dust.
Get payroll and hours right from the start
Payroll mistakes can trigger headaches, and there is a legal minimum wage to be followed. Over time, holiday pay and working hours all have legal frameworks with simple payroll audits tackling most issues.
Keep the employee handbook up to date
While documentation is static by nature, it should be reviewed regularly. If the team transitions to a remote or hybrid working model, the employee handbook should be updated to remove ambiguity and clearly outline relevant policies and guidance.
Invest in onboarding and training for compliance
No organisation will benefit from well-crafted policies if there is no staff awareness about them. While onboarding, explain compliance-related policies and the onboarding portal, which includes policies regarding compliance with onboarding procedures.
A quick compliance update every week removes ambiguity and reinforces confidence in compliance requirements.
Handle flexible working requests with heart
Working from home and other flexible arrangements have become popular. Employers are facing intense competition for talent, and employee requests for work from home and travelling are often given at the outset. Organisations need to focus on employee happiness and loyalty, and policies are simple and easy to care for, and will often build that appreciation.
Stay in the know and adapt to changes
The small business owner gets baffled by the constant modification of compliance regulations. One recent example is the increased focus on addressing workplace harassment and enhancing the clarity of employee consultation procedures.
With corroborating evidence from the official Ministry of Justice tribunal statistics, there were over 89,000 employment tribunal claims made in one year, and roughly 33,000 of those were claims regarding discrimination or inequitable treatment concerning payment, disability, race, and gender discrimination.
Make discipline and dismissal fair and clear
There are times when a role isn’t a good fit for an employee. If this happens, gather information, listen to the employee, and document everything. A respectful approach tends to protect a business, demonstrate an employer’s goodwill, and ensure that employees are treated fairly.
Get worker classification right
Legally, a contractor and employee are two very different individuals, with a distinct impact regarding taxation, benefits, and employee privileges, making distinctions imperative. If there is a lack of clarity, refer to the latest instructions to ensure that no “silent” misclassification issues arise.
Conclusion
The policies of employment and compliance should be the very core of a business. If an area of the business is ignored, it creates the impression of a business problem that requires resolution, and with a business that an employee perceives as stable and well-managed, there is ample justification for a long-term investment.
If there are difficulties, the people best qualified to solve the issues should be engaged. Principles of trust and transparency will entice employees to be loyal to the organisation.
The editorial unit
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