Media and Press

Small To Medium Enterprises Baffled By Changes To The Law
Thu 18th Mar 10 - 11:30

By Jennifer Smith, Employment Solicitor, Ralli

More than a quarter of small businesses are "vaguely aware" of their legal obligations, according to recent research commissioned by the Department for Business, Innovation and Skills.

As employment law continues to be the biggest burden facing employers, owners of small and medium-sized businesses can no longer afford to take an informal approach to the running of their firm.

With the recession increasing the likelihood of employment claims against a business, employers need to be more vigilant with their paperwork and keep on top of the latest legislative changes.

Win, lose or draw

A popular misconception made by many businesses is they do not need to draw up contracts of employment or have employment policies in place. Organisations which believe this can land themselves in hot water.

To ensure your employment policies are water-tight, every employer must review employment contracts on a regular basis and keep abreast of changes to case law. If contracts are not checked regularly and amended, an employer may not be compliant with the law. This could potentially result in a claim against the business in an employment tribunal or, in some cases, civil court action.

Unfair dismissal

As the recession took hold and businesses began to cut back on staff, the number of unfair dismissal claims rose. Employers who make redundancies without adhering to fair procedures leave themselves wide open to attack and are forced to fight tribunal claims on the back foot. Even if they can prove a genuine need to make redundancies, they must also show they have acted fairly in selecting those employees they had to let go.

Get it right - employment disputes

The ACAS (Advisory, Conciliation and Arbitration Service)
Code of Practice provides basic practical guidance to employers and employees on how to handle employment disputes in the workplace Although the Code of Practice is not compulsory, employment tribunals will refer to it when addressing questions of fairness, reasonableness and justice.

When dealing with internal grievances, employers should pay attention to every requirement in the Code, which includes arranging meetings, granting postponements and offering rights of appeal where necessary.

Right on time

The Working Time regulations state an employee over the age of 18 must not - unless they consent in writing - work more than an average of 48 hours per week. They must also have a break of 20 minutes if they work more than six hours a day. Any persistent breach of these regulations could mean a claim of constructive unfair dismissal against an employer.

Future-proof

SMEs need to future-proof their businesses and avoid potentially damaging consequences from employment claims by keeping abreast of changes to legislation. However, this can prove difficult when a business is not large enough to support a dedicated HR professional. Solicitors can offer HR advice to businesses providing up-to-date, practical guidance on current employment law and procedure, which could be more cost-effective than using an in-house HR specialist.

For more information, please contact Jennifer Smith, Employment Solicitor at Ralli on 0161 615 0656.