As your small business develops and grows, the need for employing staff to service the needs of your clients and customers becomes part and parcel of the management and running of your business. It is often said that a business’s most important asset is its human capital, particularly as far as small businesses are concerned. The recruitment, retention and incentivisation of the workforce requires an understanding of basic management principles allied to a recognition of the rights enjoyed by your employees.
From the moment your business employs staff, a wide range of issues become relevant. Quite apart from the relatively simple process of registering as an employer and registering the employees there are larger issues at stake. Among these you will need to consider putting into place a contract of employment and a staff handbook which will detail all your policies and procedures including a disciplinary and grievance procedure. You will also need to bear in mind; issues surrounding the variation of employment terms and conditions; data protection and monitoring of the workplace; and, perhaps , the need to terminate a contract or to make redundancies.
In addition to these issues there are many other matters to be aware of such as, maternity and parental leave, sickness and discrimination issues. You may also require some practical and legal guidance and advice in the event that you find your business involved in Industrial Tribunal proceedings.
A practical understanding in relation to all aspects of employment is essential and what follows is a very brief summary of some of the requirements.
In the event that you wish to engage an employee you need to notify and register your vacancy and once you have completed your recruitment process you must file terms of the engagement. You may also wish to consider putting into place a contract of employment which it is recommended contain at the very least details of : the name of employer; job title; rate of pay and method of calculation; holiday entitlement; notice requirements; and sickness and incapacity details.
In addition to all those terms set out specifically in the contract of employment, a number of terms are implied, by law, into the agreement between employer and employee. Implied terms cover areas of the relationship that, for the sake of business and the protection of both employer and employee alike, must be adhered to, e.g., a duty owed by the employee to the employer to act honestly and to exercise all reasonable care and skill, in addition to duties requiring the employee to obey lawful orders and to take care of the employer’s property. Both parties to the employment relationship are bound to terms of this nature as though they were part of the contract between them.
As part of the ongoing employment relationship and particularly where there are a number of employees, it is important to establish a procedures/employment handbook where company policies and procedures are detailed in respect of matters such as leave requests/sick-leave certification etc. A handbook sets out to employees what the company expects from them and also what the law expects. In particular it could be very important and helpful to have a disciplinary procedure in place which is clearly stated.
In business, however, no matter how well prepared or how proper the company’s procedures, there may come a time when a problem arises with an existing or former employee. In such situations, there is no reason why an employer cannot represent itself in seeking to resolve the dispute or in tribunal proceedings. A large number of companies, however, do enlist the services of a lawyer, simply because the company considers its interests would be best served and protected by a professional experienced in such matters.
Although disciplinary matters can perhaps be significant in terms of employment, there are many other issues relevant to such a relationship which a small business would do well to familiarise itself with. A small business’s best bet is to invest some time in discussing employment matters with a lawyer as soon as the need for employing staff is contemplated. Helping you to understand the law and guiding you in the preparation of all the necessary paperwork will stand you in good stead and help you to confidently take your first steps in management.
For further advice please contact Samantha Grimes at Isolas’ Small Businesses Department or simply email her at samantha.grimes@isolas.gi. You can also register with Sam to join us at our coffee morning on Thursday 5th June and we’ll send you all the details you need.