Five Common Mistakes Employers Can Make

As an employer, you are bound to make mistakes in the workplace. However, making mistakes can result in you facing an employment tribunal. This can be a costly and timely process. To avoid such disputes, you should become aware of some common mistakes employers make, as this article explains. 

1. Employment Contract Mistakes

An employment contract forms the foundation of an employee’s relationship with you and your business. Therefore, employment contracts are an area of employment law where you will not want to make mistakes. However, employers often make mistakes in these contracts. 

For example, some employers may not put the contract into writing. Instead, they may rely on odd communication pieces such as emails or verbal conversations as the basis for the employment relationship. This can lead to confusion about certain job entitlements, as well as a breach of employment law, given you must give all employees a written statement of terms and particulars two months from their start date. 

Additionally, employers also mistakenly change their employees’ employment contracts without their knowledge. However, according to the law, you must agree on any changes with your employees. Otherwise, the employee may claim constructive dismissal if you breach the employment contract. 

2. Incorrectly Ending an Employee’s Employment

Another mistake employers can make is ending the employment relationship incorrectly. If you need to make staff redundant, you must deal with the process correctly rather than make mistakes. For example, you need to be fair when selecting who will be affected by redundancy and consult the affected employees.

Another mistake you might make when ending an employment contract is not giving your employee proper notice. Regardless of what your employment contract states, there are legal requirements regarding the notice you must provide to your employees. For example, you must give at least one week’s notice to employees who have worked for you for over a month but under two years. If you do not give the correct amount of notice, this can lead to a claim for wrongful dismissal.

3. Lack of Knowledge of Employment Law

Unfortunately, a lack of knowledge of employment law is a common mistake among employers. Employment law changes fast. So, while you think you may have a good grasp of the law, you may realise you are not as knowledgeable as you thought. Therefore, as an employer, you must seek the correct advice when dealing with employment law issues rather than choosing the wrong person to advise you or not getting any advice at all. 

4. Indirect Discrimination and Harassment Mistakes

While you may be aware of how discrimination is illegal, you are less likely to be mindful of what indirect discrimination is. Therefore, you could potentially carry out indirect discrimination by mistake. 

Employers have also been known for making mistakes regarding harassment in terms of not addressing the complaint. You need to avoid tolerating harassment, as often happens within the workplace regarding sexual and racist harassment. When you receive a complaint about harassment, you must deal with it seriously and correctly. 

5. Poor Ways of Dealing With Employee Issues

When your employees have issues at work, such as grievances or disciplinary matters, you must deal with them correctly according to your policies and how the law requires you to. However, employers make mistakes in terms of not correctly dealing with such things.

For example, if your employee has a grievance, you should have a policy that tells them how to raise it and with whom, what steps you will take and the time limits on these. It is a legal requirement to have a grievance procedure and give it to your employees in writing. 

Additionally, say you have a staff member who needs to be disciplined due to potential misconduct, you must ensure you have reasonable grounds to believe this. Furthermore, you must deal with the issue fully and fairly, or you could face a claim of unfair dismissal. If you do not follow such procedures correctly, the tribunal could increase the compensation payable by 25%.

Key Takeaways

Employment law is a complex and fast-moving area of law. As a result, it is easy to make mistakes. Many are legal obligations and requirements, such as not providing your employees with a written statement or terms and particulars within two months of starting their employment with you. Other mistakes are dealing with your employees’ employment contracts, such as amending and ending these contracts.

If you need help understanding common mistakes made by new employers in England and Wales, 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.

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