Amanda Chadwick offers some advice on how you can protect and strengthen your business.
‘Amanda, would you write an article that will help small businesses understand and deal with the everyday issues of employment law and avoid a tribunal?” That was how the suggestion went. So here I am, trying to decide the most important tips to share with you and what would be my top 10 list.
To help you understand the way that I interpret employment law and help employers is to tell you the story of how the company I work for was set up. You may have heard of Peninsula Business Services, but you may not know the story behind the company and that it has grown all because the owner had their own tribunal.
Peter Done, our managing director, had an issue with a staff member and sought the help of his solicitor, following every step of their advice. However, just before the tribunal they solicitor advised him to settle. Peter was obviously shocked and asked why. The solicitor replied, “I think we might lose”, and so Peter begrudgingly paid his ex- employee £4k (my average wage then was £4.5k).
A week later Peter received another bill, this time from the solicitor for their fee: the bill totalled just over £4k, Peter felt aggrieved but paid it. During this process a company contacted Peter, saying: “We can teach you a way of doing things differently. We can put things in place that will help you control situations as an employer and also prevent this happening again.”
Peter thought about his recent experience as he signed the second cheque; the cost, the time wasting, his lack of knowledge, and realised that the company who contacted him made sense and that many business owners needed help. He then bought the company and made it his mission to educate and protect employers in employment law.
Today, the firm is still family run and takes over 60,000 calls per week. I have been meeting those business owners for the past 16 years and I believe me when I say I have many more stories to tell.
I also know that when an employer is in trouble, regardless of whether it is to do with employment law or Health & Safety, that they keep their fingers crossed and hope that the legal floor that they have in place is strong enough to defend them, that documents are up-to date and the policies have been followed. You see, at a Tribunal there is a reverse burden of proof – what that means is that the employer has to prove themselves innocent. This is unlike the criminal courts; if I murdered my husband (and it has crossed my mind a few times) the Crown would have to prove it.
So regardless of your business size, it is never too late to put things in place – so let me share with you my top 10 list:
1. Contracts: issuing the correct contract and understanding what role they are used for contracts include full time, part time, worker, volunteer, zero hour, temporary and fixed term.
2. Documents: using the right documents and making sure they are not out of date. Understanding that these are used as defence, from the application form to exit interview forms. Also consider letters and communication here; certain letters are sent out for all sorts of reasons and often have deadlines that you have to abide by.
3. The law: what you should legally include within your contracts/handbooks – quite often a penalty is attached. This includes policies such as disciplinary, grievance, appeal and the most recent pension laws.
4. Legislation changes: keeping up-to-date with changes that also may require you to alter your policies and procedures. Most recent changes here are shared parental leave, antenatal appointments, changes to witnesses at disciplinary and appeal hearings.
5. Trends: what is happening in your business – have you noticed any trends? Things to consider here are mobiles phones, social networking, confidentiality, depression, stress and addiction.
6. Recommended policies: these are policies that show good working practices and include maternity statement, equality, bullying and managing sickness.
7. Cost saving: what policies and procedures should you have in place that will save you money? Consider here things such as sickness, lateness, wastage, deductions and training agreements.
8. Protection: putting policies in place that protect what you have built, including data, clients, intellectual property, inventions, design and even malicious damage.
9. Training: employees need educating too! Where is your proof of this?
10. Employees: they can make or break your business. Understanding your legal requirements for Health & Safety, employee wellbeing, working time regulations, etc.
Finally, my advice is, don’t leave things to chance, make sure what you have is strong enough and helps you with your business rather than holds you back.
• Amanda Chadwick, Employment Law and Health & Safety Presenter, Peninsula Business Services
• Amanda Chadwick will be presenting on the latest HR issues at the 2015 ICPA Conference on 24 September in Daventry. For information and to book your place call us on 0800 074 2896 or email [email protected]
This article is taken from “Accounting Practice” the ICPA quarterly magazine. Dedicated to supporting and promoting the needs of the general practitioner. You can find us at www.icpa.org.uk or email [email protected] or by phone on 0800-074-2896
