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Establishing a successful recruitment process and clear written employment contracts for new employees can have a major impact on your business.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Employment laws could be damaging UK SMEs and jobs

21 August 2015

Employment laws could be damaging UK SMEs and jobsNew market research by consultants Citrus HR suggests UK employment laws could be damaging small business and preventing them from taking on more staff.

Three-quarters of respondents said keeping abreast of legislation was a "significant drain on their time". When asked whether current employment law affected their decision to hire, 39% of small business respondents said they would take on more people if employment law was less complex. Only a quarter thought employment law was acceptable as is.

The research also suggests a marked lack of understanding of UK employment law among respondents. Less than a third knew the current National Minimum Wage (NMW) rates – despite the risk of a fine of up to £20,000 for employers who do not pay at least NMW rates.

Respondents said calculating holiday for part-time staff and those working "casual hours contracts" was particularly difficult. Changes to flexible working rules was a common answer when respondents were asked for examples of a recent legislative change that had made small business employment law compliance more difficult.

Almost a fifth (18%) of respondents didn't know which countries are in the EU, which, according to Citrus, means there is a risk of sanction for not carrying out checks to find out if workers are allowed to work in the UK legally.

Among the employment laws respondents most wanted to change included not being able to pay employees for unused holiday unless they leave (37%), followed by removing the compulsory retirement age (29%), employees being able to claim sick leave when unwell while on holiday (21%) and women on maternity leave continuing to accrue paid holiday (14%).

More than half (60%) of respondents used HR support, although much of the support aimed at small businesses was viewed as "expensive and cumbersome", which is a key reason why 36% of respondents did not use HR support.

In July, the government unveiled plans to launch "ambitious reviews into burdensome red tape" in key sectors (energy, waste, agriculture, care homes and mineral extraction) – its first step to working with British businesses to "axe unnecessary regulation and its poor implementation" by a further £10bn over the course of this parliament.

Business Secretary Sajid Javid commented: "I'm determined to take the brakes off British businesses and set them free from heavy-handed regulators. The government's pledge to cut £10bn in red tape over the course of this parliament will help create more jobs for working people, boost productivity and keep our economy growing. For the first time, these reviews will look not only at the rules themselves, but [how] they're enforced. We want firms to tell us where red tape is holding them back."

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