The value of HR is often underrated and under-valued. Making big mistakes in your HR systems can cost your business big. And ignoring the little things and not rectifying the small mistakes, can snowball into a huge issue.
Running a business often means wearing many hats, encompassing various roles from operations to social media, and whilst it’s common in SME’s, it is important to recognise when you need extra support from specialists. As businesses develop, complexities rise, therefore additional support will mitigate risk and allow businesses to grow.
As many are aware, the new Labour government is rolling out employment legislation that emphasises ’employee protection’. With two-year qualifying periods being replaced by day-one rights, it’s more important than ever to ensure your policies and procedures are up to date. There’s no room for error.
Employment tribunals
There is a consistent pattern of a rise of employment tribunal claims year on year. Take a look below on the specific claims made over the last quarter.
The Ministry of Justice key statistics – October to December 2024
Claims were such as:
- redundancy (failure to inform and consult) — up 50%
- breach of contract — up 10.8%
- unfair dismissal — up 10.4%
- failure to provide a statement of written particulars (an employment contract including information under s.1 Employment Rights Act 1996) — up 5.2%
- discrimination:
- sex — up 12.3%
- race — up 12.6%
- sexual orientation — up 13.3%
- age — up 12.8%.
Real life case study: An office worker has been awarded £50,000 by a tribunal after she was excluded from a ‘free day off’ and her employer failed to send her job adverts while she was on maternity leave.
Real life case study: £15,000 paid in compensation to a former employee for unfair dismissal and discrimination after their employment was terminated following a period of sick leave due to a mental health condition
Real life case study: Employee awarded £17,000. The tribunal found that their redundancy dismissal was unfair and discriminatory on the grounds of pregnancy and maternity.
Employment tribunals and regulatory fines can amount to thousands, severely impacting both your business’s finances and reputation. Compliance is not optional—it’s crucial, and failing to get it right can be an expensive mistake. The increasing number of employment tribunals underlines the serious risks of failing to get it right.
What is the solution?
Invest in a HR partnership that will save you money. Strong HR will not just look at how to improve the employee experience, but will also protect your business. We guarantee by tackling inefficiencies, ensuring compliance, and fostering a strong HR partnership costly pitfalls will be mitigated setting your business up for sustainable success.
McMillan and Associates HR Ltd is the trusted partner you need for all your HR solutions.
We offer both retainer and ad-hoc services that are cost-effective and tailored to suit your business needs. Our extensive range of services includes, but is not limited to, investigations, compliance, procedures, restructuring, training, performance management, coaching, policies, handbooks, and conflict resolution.
Let’s work together – To get in touch about partnering with us, email lucy@mcmillanandassociateshr.com.