Don’t hide from the law, firms told

A lack of knowledge of basic employment law means that small business owners are risking being taken to employment tribunals, legal experts claim.

Companies are being urged to go ‘back to basics’ on issues such as hiring and firing, in order to stay within the law and get the best out of staff.

Employment law firm Croner says that enquiries to their business helpline demonstrate the fact that many small employers are ignorant of basic employment principles.

Many, for instance, think they might not have to pay the minimum wage on account of their company’s size; in fact all firms fall under the law.

Other ‘myths’ include the notion that an employee who has worked for a company for less than a year can be dismissed for any reason, and that there is no contract of employment if there’s nothing in writing – both of these assumptions are false.

“While many small business owners often remark on the cost and time involved in complying with complicated 'red tape', it's actually the most basic employment principles that are tripping them up.

“However, most employers are unlikely to flout the law deliberately, and many are probably unaware of the error of their ways.

“That is why we're advising them to consider their employment practices now, rather than make mistakes that could cost them dearly later.”

© Crimson Business Ltd 2006