GROWING PAINS

June 24, 2019

As your company grows, so does the risk to it if you are not completely up-to-date with your HR and legal needs.

Leaving things to chance, or expecting what you have always done to suit the needs of an expanding business is dangerous. Failing to prepare for all eventualities, will mean your business will prepare to fail.

When you start out there are some basics you need to grasp, but as your company grows, sometimes rapidly, then these basics are often left behind.

It is  important to know that there are consequences, if this is the case, and what you should do to stop it from happening.

STARTING OUT

From the start it is crucial to set the right tone and to get the foundations of your business right.

If you have more than one Director, you should have well drafted Memorandum and Articles of Association that reflect the needs of your business. This means that if there is a disagreement between the Directors there is a mechanism in place to deal with it.

When employing staff you should have a well drafted employment contract setting out all of the terms and conditions relating to their employment.

Depending on the size of your business it might be necessary to have a  a company handbook in addition to an employment contract that details matters such as the  grievance and disciplinary procedures , or how and when to request holiday.

WHAT TO DO WHEN YOUR COMPANY GROWS

Once the policies and procedures are in place it is easy to think that you do not need to do anything else. Unfortunately this is not the case.

Both circumstances and the law frequently change. You should make sure that any employment contract and company handbook are updated to reflect this.

When a dispute occurs, you need to be sure that you have up to date policies and procedures in place.

At Tayntons, we have first-hand experience of companies who thought they had everything in place to deal with any dispute only to discover this was not the case. On many occasions the difficulties were as a result of a failure keep up to date with employment law.

THE CONSEQUENCES

Not having the time to change policies and procedures or simply thinking all will be fine, only to be later proved wrong will not help you in an employment tribunal.

If you don’t evolve your policies and procedures as your company grows, you can be left exposed. Usually, it’s not something that is deliberate on the company’s part but that will not help you at employment tribunal.

It’s a case of if you fail to prepare, then prepare to fail.

TOP TIPS:

1. Have a good employment contract

You will be surprised at how many times this isn’t the case. The contract needs to spell out all particulars of employment. Larger companies should have a company handbook outlining all of the important aspects of the employee’s employment.

2. Have clear disciplinary and grievance procedures

Make sure that both policies are clearly written and understood by everyone at the company.

3. Make sure your holiday policy is clear

Holiday entitlement should not be your only consideration. It is important the amount of holiday that can be taken at one time and the notice required when requesting it is clearly understood. You should avoid the circumstances where an employee comes into work on a Monday saying they have booked a holiday starting the next day.

In all  cases it is essential  everything is clear and understood by everyone. It may sound simple, but because it’s simple mistakes are easily made.

The worst possible way to find out that your policies, contracts or processes is the hard way. So be prepared.

For more advice about company procedures and policies contact Alex Lyttle on 01452 222340 to book an initial consultation.