Even the smallest firms need HR policies
Businesses can only succeed if they have a firm base and even a small business needs to install proper procedures so that when it grows, these systems are embedded in the culture of the company.
Without these solid foundations, you are likely to come up against disputes and misunderstandings that may damage your business.
Contracts of employment are a good example of this. By introducing them right from the start, you can avoid many problems later. Among the key areas that need to be addressed in a contract of employment are: the scope of the job, working hours, payment, holidays, sickness policy and disciplinary and grievance procedures. They should be reviewed regularly to ensure that they are up to date with current legislation and the needs of your business.
Most important, the contract should include reasonable restrictive covenants so, in the event of someone leaving your company, you are protected against unfair practices such as poaching of your clients, key members of your team or your intellectual property. These covenants need to be drafted in a balanced way so as not to stifle competition but to reasonably protect your business. Restrictions that are too onerous, in terms of the time period and the geographical width within which they apply, will not be enforceable by the courts.
Remember that a written statement of your main employment terms must be issued to your staff within two months of starting work. Remember also that if you wish to change employees’ terms and conditions, you will need their agreement first, otherwise they may be entitled to take you to an employment tribunal. However you should not shy away from making changes if they are necessary. By following best practice in discussing changes with your staff and in giving fair notification you should be protected from successful complaints.
Businesses can only succeed if they have a firm base and even a small business needs to install proper procedures so that when it grows, these systems are embedded in the culture of the company.
Without these solid foundations, you are likely to come up against disputes and misunderstandings that may damage your business.
Contracts of employment are a good example of this. By introducing them right from the start, you can avoid many problems later. Among the key areas that need to be addressed in a contract of employment are: the scope of the job, working hours, payment, holidays, sickness policy and disciplinary and grievance procedures. They should be reviewed regularly to ensure that they are up to date with current legislation and the needs of your business.
Most important, the contract should include reasonable restrictive covenants so, in the event of someone leaving your company, you are protected against unfair practices such as poaching of your clients, key members of your team or your intellectual property. These covenants need to be drafted in a balanced way so as not to stifle competition but to reasonably protect your business. Restrictions that are too onerous, in terms of the time period and the geographical width within which they apply, will not be enforceable by the courts.
Remember that a written statement of your main employment terms must be issued to your staff within two months of starting work. Remember also that if you wish to change employees’ terms and conditions, you will need their agreement first, otherwise they may be entitled to take you to an employment tribunal. However you should not shy away from making changes if they are necessary. By following best practice in discussing changes with your staff and in giving fair notification you should be protected from successful complaints.
