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Practical employment law information to support your business, from Clover HR

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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.

Small business owners say they are ignored by their banks

20 June 2023

Seven in ten small business owners say their bank ignores them and even "actively discriminates against them in favour of larger companies" according to a new survey.

Most small business owners believe that their banks favour bigger businesses and don't do enough to support them. These are the findings of a new poll of 500 UK small business owners conducted by Censuswide on behalf of fintech platform HedgeFlows.

The findings show that 70% of small business owners say their bank "actively discriminates against them in favour of larger companies". A substantial majority also feel ignored by their bank, with 73% saying they struggle to secure a meeting with their bank or financial manager, leading to delays in business planning.

Lack of support from banks

In particular, those businesses looking to expand overseas are not getting the support they need from their banks, with 72% of small business owners saying that their bank provides very limited support around international payments and further support is needed to give them the confidence to expand.

Worryingly, 69% say their company would benefit from international expansion, but 65% say they currently lack the financial expertise to open an office overseas. Additionally, 78% admit that their company has limited cash reserves in the face of rising inflation and an uncertain economy.

High trading costs

SME bosses also say that plans for international and overseas trade are being scuppered by high trading costs; 72% say bank transfer fees abroad are too high and should be reduced for smaller companies.

"It's absurd that so many of our most ambitious and fast-growing businesses feel left out in the cold by their bank and unable to access the level of service enjoyed by their super-size counterparts. The time has come to equip SMEs with a level playing field to expand internationally, giving them access to a suite of services required to manage overseas transactions, currency conversions and cashflows. These privileges are already enjoyed by larger enterprises and should be available to businesses of all sizes." Neh Thaker, co-founder of HedgeFlows.

How to find the best bank account for your business

More and more small business owners are looking for a new business bank account. The past few years have seen an influx of new online banks, offering incentives to switch and promising higher levels of service.

The good news for small business owners is that once they have found the best business bank account for their needs, it is quick and easy to switch thanks to the Current Account Switch Service. This service can be used by small businesses and charities with less than 50 employees and an annual turnover of less than £6.5 million.

Written by Rachel Miller.

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