Small businesses 'open to costly legal claims'


Small businesses 'open to costly legal claims'
Too many small businesses are largely unaware of basic employment law, a leading workplace consultancy has claimed.

Croner said that too many small employers were putting themselves at risk of potentially costly legal claims by failing to follow procedures for employee misconduct, minimum pay and basic employment contracts.

One of the most common "management myths" credited by small businesses was that they were exempt from paying the national minimum wage to their staff due to their size, recently reported by HM Revenues and Customs as one of the top excuses for employers not paying minimum wage.

Employers also often erroneously believed that monthly-paid employees were only entitled to one month's notice, that a contract of employment was only valid when it was in writing and that an employee with less than one year's service could be dismissed for any reason.

Many employers believed that they could sack someone on the spot without following any form of procedure, leaving themselves open to an unfair dismissal claim, said Croner.

Employment manager of the Business Support Line at Croner, Alan Phillips, said: "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."

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure