Five Indicators of a Bad Employer in England

While most employers strive to uphold their legal obligations to their employees, some do not. Poor conduct as an employer can result in an inefficient business with low staff morale. Where your conduct is unlawful, your business may face an employment tribunal. If the tribunal rules against you, you may civil and criminal liability. This article will explore five indicators of a bad employer. 

Overworking Your Staff 

Whilst your staff are in your business to work, you should be wary that you do not overwork them. 

Your staff should:

• not be working for more than 48 hours per week unless they have opted out of that limit; and

• get a legal rest break during their shift and throughout the week.

For example, you must give your staff a 30-minute break during a six-hour or more shift, so insisting your staff finish a task during their lunch break may be unlawful.

Also, overworking your staff can negatively affect their well-being. It is not good for their physical or mental health and is likely to impact their productivity in the long run. Remember that as an employer, you have a legal duty towards the health, safety and well-being of your staff.

Poor Communication

Communication is crucial to maintaining a healthy employee-employer relationship. If you avoid communicating with your staff, they will be unable to meet your expectations through no fault of their own. Good communication starts before employment begins during the recruitment process and should last for the length of each employee’s service. 

Examples of good communication include hosting regular staff meetings and one-to-ones. You should always appear approachable so that staff feel comfortable coming to you with concerns and suggestions for improvement. This can minimise formal grievance processes and mitigate your risk of an employment tribunal claim. 

Inadequate Compensation 

While fostering an enjoyable and inclusive workplace is an important aspect of any business, employees ultimately work to be paid. If employees are underpaid, they will leave your business to work for a competitor. 

In addition to ensuring that you pay your staff an adequate salary, there are rules in employment law regarding your staff’s pay. For example, you need to ensure that you: 

• pay the National Minimum Wage (NMW) where applicable;
• give your staff a payslip each time you pay them; and
• are using PAYEE when paying salaries.

High Employee Turnover

If you have a high staff turnover or you often dismiss staff, it could be a sign that you are a bad employer. High employee turnover is not good for any employer or your business. 

You invest in your staff by teaching them the job role and giving them training opportunities which are wasted with a high employee turnover. Furthermore, the recruitment process is costly for your business’s resources, and high employee turnover can lead to poor staff morale.

As an employer, you must:

• not carry out unfair dismissal;
• not cause your staff to claim constructive dismissal; and
• follow a full, fair and reasonable disciplinary procedure. 

Breaking Employment Laws

It goes without saying that an employer in breach of employment laws necessarily means they are not upholding their bare legal obligations. For example, as an employer, you must:

• uphold specific health and safety duties;
• prevent unlawful discrimination 
• ensure you respect your staff’s holiday entitlement; and
• undertake fair and reasonable disciplinary proceedings against your staff.

You must also keep up to date with changes in employment law. It is no excuse to say you did not follow the law because you did not stay informed. 

Key Takeaways

Bad employers frequently display similar trends. For example, a workplace with high rates of employee turnover suggests poor employer conduct. At the very least, these indicators suggest that a business is not thriving as it should. At worst, it suggests that the employer may not be upholding its obligation under the law. This can in turn mean it may face an employment tribunal claim. 

If you need help navigating your obligations under employment law, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions