Worker Rights ‘Key’ for Growing Firms

Business owners planning to take on their first employees should ensure they consult employment lawyers to make sure they are up to speed with worker rights to prevent running into costly problems. Making the transition from being a one-man band to becoming an employer is a positive move but could be daunting if the right steps are not taken, business adviser Joanne Eccles said.

Cost of Tribunal Claims

Ms Eccles, of the Forum of Private Business, said many business owners are not aware of their obligations and could end up making mistakes which lead to expensive tribunal claims. She said:

“Many new employers do fall victim to the fear that can come when taking on an employee, even if they know it will be a key part of their growth plans. Part of the problem is that many are unsure about their obligations as an employer before even thinking about the interview process. The problem is especially the case for small businesses that do not have the luxury of their own HR staff. Nobody wants to think that what you thought was the perfect hire could result in a costly tribunal case but one in six disputes do, at an average cost of £9,000. Add to this the solicitors’ fees and the time taken out from your business and you are looking at nearer £20,000 in costs, which could be crippling for a small business.”

But Ms Eccles said that being up to speed with employees’ rights and employer obligations is the key to “building your team with confidence”.

Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381 381 or email employment@ibblaw.co.uk.