So, you want to grow your business?

Family businesses have traditionally relied on what previous generations have always done in order to make a well-earned living. However, as the behaviour of the everyday consumer changes so have these once traditional enterprises.

Many have already realised the benefit of technology, with the internet and mobile telecommunications at the heart of business growth.  

However, have you ever thought about that next step? Scaling up? Taking on new employees so you can readily meet the new demands of your customers? What are the key employment law considerations when such growth happens? 

In this article we touch on some of the more pertinent points to consider:

Contracts of Employment

• Family who work for you could still be employees and in that regard there is a legal requirement to provide a written particulars of employment with very specific content.
• There is a right to a pay slip for all workers and for those who work on an hourly paid basis

 payslips must now outline the number of hours worked.

• All workers are entitled to have up to 28 days of paid annual leave (pro-rated for part timers) regardless of whether they are part time, full time or zero hours.

Formality is often forgotten in family set ups however Employment law does not distinguish along these lines. Having contracts in place for family is a good way to set an equal and professional standard for all prospective employees.

Immigration status

• It is a legal obligation to comply with the prevention of illegal working. An employer must check the documentation of every UK based worker to verify that they do in fact have the right to work in the UK. A failure to do this could lead to a fine of up to £20,000 for each illegal worker. From 6 April 2022 new rules will mean that certain documents that prove the right to work in the UK can only be verified online.
• Since July 2021 all new EU, EEA and Swiss employees must now hold a ‘pre-settled status’ ‘settled status’ or valid visa to prove their right to work. For those of you who have existing EU or EEA nationals employed before 30 June 2021 please do not worry as there is no requirement to carry out retrospective checks so long as you checked their valid ID or passport at that time.

Many businesses have often relied on a foreign skills force. However, as your business grows it is important that these rules relating to checks are applied to all workers, not just those from outside the UK. To treat certain nationalities differently could amount to costly claims for race discrimination, even if unintentional.

Handbooks and job descriptions

• Although not a legal obligation, having a clearly set out handbook and job description helps to avoid issues. Within a job description you should set out clearly what is expected from an employee and what his/her role and responsibilities are.
• A handbook can help you set the day to day rules of the business and can contain important provisions like the disciplinary and grievance policies.

I hope the above pointers are helpful in growing your business and allowing it to reach its true potential.  If you would like any further help, be it drafting contracts, handbooks or job descriptions or indeed assistance with any other aspects of employment law, please feel free to contact me and I will be happy to help.

If you would like to receive further advice about your particular situation please contact our team at Ware & Kay on Wetherby 01937 583210, York 01904 716000 or Malton 01653 692247.