SMEs: Don’t risk a hefty fine for falling behind with latest employer regulations
A recent survey of SMEs found that only 37% of small business owners claim to have a good understanding of employment regulations and employee rights. Teresa Thomas, partner, takes a look at some of the common pitfalls and provides some guidance on how to avoid them.
Employment regulations can be a complicated business. The perceived ‘red tape’ relating to employee issues is ever-changing, and keeping abreast of the latest updates can be a huge challenge for any business, particularly for SMEs that don’t have a dedicated HR resource.
A recent survey of 500 SMEs, conducted by recruitment website Jobandtalent, found that only 37% of small business owners claim to have good understanding on matters relating to employee rights and employer regulations. Whereas, more than one in ten (12 per cent) said they have limited, to no understanding, of current employment regulations; let alone being aware of changes coming into force in the future.
These findings follow the release of official data from The Pensions Regulator, which revealed how many employers have been fined for not complying with new workplace pensions regulations. The number of employers being fined up to £10,000 a day, for not complying with the regulations, has increased by a staggering 300% in three months, as more and more businesses fail to meet their auto-enrolment duties.
And of course, in addition to the financial implications of keeping up with employer policy (or not), dealing with the administrative side can often keep business owners away from their other key priorities. The Jobandtalent report found that majority of SME owners without dedicated HR resource said they themselves spent between two and five days just on the process of hiring one new staff member.
If, as a business owner, you’re feeling over-burdened by HR issues and keeping up to date with the latest legislation, you may wish to consider talking to us about our employment law and HR advice line. The service provides unlimited access to advice and specialist knowledge on all areas of employment law and HR issues, and can help ensure that your business doesn’t get left behind when it comes to employee matters.
The employment law and HR advice line is available for a fixed annual fee and is charged on a monthly basis. It provides you with access to our qualified, experienced and knowledgeable, employment law and HR experts.. You will also have access to a dedicated employment law and HR advisor.
If you would like to find out more about how the employment law and HR advice line could benefit your business, do contact me or a member of my team, and we’ll be happy to help.