Whether you're just starting out or you're already established, you'll no doubt already be aware of the challenges that running an SME business can present. With everything from developing a sound business plan and directing the business towards profitability, you also have to manage people, especially if your vision of growth includes expansion.

If you are looking for growth and expanding your workforce, then understanding employment law is a must, especially given the recent changes that the new Government has introduced. It can be daunting navigating this landscape; however, in the long run it is highly advisable, even if you are a small operation, as falling foul of employment legislation can be extremely costly, both financially and in reputational terms.

Take the guesswork out of implementing compliant HR policies and procedure, talk to the expert team of HR advisors at Croner today. 

Consider outsourcing your HR if ‘In-house' is not a viable option

Running a business inevitably means that your day-to-day is taken up with managing overheads, invoices and maintaining relationships with suppliers and affiliates. 

Hiring an HR professional, especially if you have a small team, probably seems like an unnecessary expense. In this instance outsourcing your HR needs would be a much more viable option. This means you will have all the correct, legally compliant documentation, as well as advice should you encounter issues. 

Remember, getting processes wrong in cases regarding dismissal and redundancy, etc. can easily land your business in hot water, resulting in employment tribunals that can result in monetary and reputational penalties. 

Research your industry for legislative updates and legal compliance

Keeping up to date with your industry not only helps you tap into markets that, till-now, were overlooked. It can help you understand the regulatory landscape when it comes to things like health and safety and new laws and legislation.
Missing new additions to legislation can easily catch a business out, so ensuring you are aware of legislative changes and the dates that they will be implemented is key to staying compliant. Better yet, ensure that your documentation, workplace policies and training are in place well before the changes come into play. 

This way there are no potential gaps that could see your business vulnerable to a potential employment tribunal case.

Ensure that your business is compliant with Labour's Employment Rights Bill

Labour's plan to expand worker's rights is set to be the biggest change to employment law in a generation. Ensuring that your business adapts employee contracts, workplace policy and practices is paramount to staying legally compliant and avoiding getting ensnared in costly legal cases should an employee raise a case to tribunal. 

What are the changes to employment law?

As part of their "Make Work Pay" plan, the Government have put forward 28 individual reforms to employment rights for workers, including:

Day one rights for workers

The new legislation removes the two-year qualifying period that an employee can currently make a claim for unfair dismissal, as well as removing the qualifying periods for statutory parental leave. The bill also repeals the restrictions on paternity leave, after a period of shared parental leave. 

Statutory sick pay will also see the lower earnings threshold removed, as well as the three-day waiting period in order to qualify. 

Changes to flexible working

Flexible working will become a day-one-right, and employers are now mandated to accommodate flexible working requests as is reasonable. 

Under legislation refusal of a flexible working request must state the reason for the refusal and why the employer considered the refusal reasonable. 

Ending fire and rehire  

The Employment Rights Bill puts an end to the practice of fire and rehire via changes to unfair dismissal regulation. Workers now have protections from changing terms and conditions under threat of dismissal. 

Extended probation periods for new starters

Probation periods are due to be extended meaning that employers can carry out proper assessments for employee's suitability, whilst maintaining their day-one-rights.

New rules for zero hours contracts

The bill seeks to level the playing field as far as zero hours contracts, removing one sided flexibility and making a ‘guaranteed hours offer' to workers who qualify. 

There will also be provisions for workers regarding a reasonable notice, changes and cancellation of shifts, with compensation being offered in the event of this. 

Repeal restrictions on trade union recognition and strike action

The new Government's plan undoes the restrictions introduced by their predecessors, as well as introducing electronic balloting, right of access in workplaces for trade unions and requirements for employers to notify employees of their right to join a trade union. 

This update is designed to help improve industrial relations, based on good faith, negotiations and bargaining. 

Protection from harassment

Part of the changes being implemented include a proactive duty for employers to prevent sexual harassment towards their employees. 

This also brings into play employer liability for harassment via third parties as well as now no longer requiring at least two instances of harassment (that the employer is aware of) before being liable. 

A claim of sexual harassment may qualify for protection under whistleblowing legislation.
This is just a small portion of the changes that are set to be introduced within the next few months and the changes aren't set to stop there, with the ‘Next Steps' document outlining further changes in the future. 

With the changes coming thick and fast even a well-equipped HR department will have to review their company documentation thoroughly to ensure compliance under law.

Need advice on the new legislation or outsourcing your HR? 

Talk to the HR experts at Croner and get award-winning HR support for your small business today.

We have over 80 years' experience in helping business owners with their HR, Employment Law and Health and Safety challenges, so we can help your business find the ideal solution to effectively manage HR and ensure compliance with the new legislation before it becomes law.

Sign up with Croner and gain access to a wealth of benefits, talk to our experts on 0800 880 7092.