Hr Myth Busting!

Whether taking on your first employee or starting to scale up, employing staff can be challenging and HR has more than its fair share of myths and misinformation! And with tribunal cases increasing by 64% since the fees were scrapped in July 2017, getting it wrong can be costly.

“Given the ever-changing legislation and case law and the conflicting pressures that many SME business owners face, its no wonder that mistakes happen. Sadly these can easily lead to expensive tribunal cases” says Jayne Hart, Director of The HR Dept.

Jayne Hart further explains “When a business starts up, budget is tight and focus is on delivery, understandably HR practices are not a priority. As it grows, the cracks begin to show as the legal foundations such as employment contracts don’t fit the business and the processes around the people, that maybe worked when it was a tight knit small team are no longer fit for purpose.”

Jayne Hart provides us with a selection of common HR myths that can lead to expensive claims for an SME;

“You can’t make a pregnant employee redundant.”

Yes you can. However it must be a procedurally fair process. Careful though that there is no risk of sex discrimination in the selection process. You also need to be mindful that once a pregnant employee goes on maternity leave, they have extra legal protection by having first option on any available positions that they are qualified to do if placed at risk of redundancy.

“No one can take you to tribunal without two years’ service.”

Now this is a really dangerous one because, yes they can – and for a range of reasons. For example: discrimination, underpayment of wages like the National Living Wage or National Minimum Wage, breach of working-time regulations in terms of holiday pay or a breach of contract.

“I can decide if I want someone to be a.”

Oh no you can’t, as Uber and Pimlico Plumbers are finding out. There are strict rules for deciding the status of people in the business. It is unhelpful that HMRC and employment law rules are different in deciding if someone is an employee, a worker or self-employed.

“You don’t have to give part-time staff the same benefits as full-time staff.”

Part-time staff must suffer no detriment, and so must have the same benefits as full-time staff (or broadly equivalent ones). Many benefits can be pro rata for part-time staff, such as holiday allowance.

“Casual and zero-hour staff do not get holidays.”

All employees and workers accrue statutory holiday from day one. This is 20 days plus bank holidays.

“I can’t contact sick employees.”

As an employer you have a ‘duty of care’ to keep in touch with a sick employee to see how they are doing. This doesn’t mean daily calls and emails as this could lead to a harassment case. Regular contact should not just focus on their return to work, but their well-being, and if any reasonable adjustments can be made to help their return.

“You can fire employees on the spot.”

Well, if they had shot a colleague it would probably fall within a range of reasonable responses. But usually the Acas code for disciplinary and grievance should be followed. “Employees don’t have a contract unless there is something in writing.”

Express terms can be agreed between both the employer and employee in written or verbal communication. So, salary at the interview and pay rise promises at the Christmas party can count!

Time spent sorting out these issues and the cost of defending or settling claims can really destroy a business so ensure that your business is up to date with HR legislation, don’t fall foul of any of these HR Myths.