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Many SME’s are breaking the Law!

Over the course of April & May I have attended several networking events in order to meet fellow small business owners. It still astonishes me that many of my fellow entrepreneurs though skills and capable in their chosen field are oblivious of the risks they are putting their business in by employing staff and neglecting to furnish them with a written statement of terms and conditions. The majority of responses are merely “We are so small we only have 3 employees so we don’t need contracts”. 

News flash – “Yes you do”! 

Section 1 of the Employment Rights Act 1996 requires all employers to provide employees with a written statement of terms and conditions of employment. This must be done within two months of the beginning of their employment. A written statement can reduce the possibility of any misunderstandings arising later over what terms and conditions were offered at the beginning of the employment. There are several key details which must be included in the T&C’s.   As a small/medium size business you should note that your employee may bring a claim in an employment tribunal for breach of section 1 of the Employment Rights Act 1996 if you have failed to provide them with terms and conditions. A claim can be brought at any time, both during employment or within three months from the date of termination of employment. As such employers beware that just because your employee is currently working for you this does not bar them from bringing a claim against you for such breaches. Where employees have successfully brought a substantive claim they could receive two weeks’ to four weeks’ pay as compensation. Can you afford this due to such a simple error? 

Employers regardless of how small your team is ensure you have clearly defined and fit for purpose written statement of terms and conditions of employment in place for your employees NOW! 

Harries HR offers an HHR in a Box service which will provide you with all your statutory required documents including a comprehensive and up to date employment contract on a flat fee basis. 

Call us now for a quote and sample document! 

 Rue Harries BA, Chartered MCIPD, REC 
 Head of HR Services 
 T: 01206 865464                     
M: 07811962979 

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