Is your business HR-compliant?  

2 July 2025 / Insight posted in Articles

Whether you have five employees or 500, you’re legally required to meet a wide range of obligations under UK employment law. Failing to do so could cost your business dearly. 

To help you spot potential gaps, here’s a quick HR compliance checklist you can work through: 

HR compliance checklist:  

  • Do all employees have a legally compliant employment contract and written statement of particulars (issued on or before day one)? 
  • Are your workplace policies up to date and in line with UK law?
    E.g. disciplinary, grievance, health & safety, equality and remote working policies. 
  • Are you following the latest national minimum wage and holiday pay rules? 
  • Do you comply with GDPR in storing and processing employee data? 
  • Are your managers trained to handle absence, performance and misconduct fairly and consistently? 
  • Are your onboarding and dismissal processes compliant with ACAS guidelines? 
  • Do you have a reliable way of keeping up with employment law changes (like those introduced under the Employment Relations Act 2024)? 

If you’re unsure about even one of these, there’s a risk of claims, tribunal costs or reputational damage. 

Consequences of non-compliance 

Here, we look some real-life occurrences of non-compliance to illustrate the gravity. Non-compliance is usually just a lack of time, oversight or up-to-date advice rather than bad intent but it is still breaking the law. 

Example 1:
A growing UK company failed to issue an employee with written terms of employment on day one. When a dispute arose, the company was penalised at an employment tribunal, even though the employee had only been with them for three months. 

Example 2:
A SME didn’t adjust pay rates in line with the latest national minimum wage increase. An employee triggered an HMRC investigation, resulting in back payments and fines. 

Compliance is more than a legal obligation – it’s smart business 

When your business is HR-compliant, it’s also: 

  • Easier to manage employees fairly and consistently 
  • Safer from costly claims and disputes 
  • More attractive to talent who value professional standards. 

Help from Moore Kingston Smith HR Consultancy  

Here is how our expert team at Moore Kingston Smith can support your business: 

  • Conduct HR compliance audits 
  • Create up-to-date contracts and handbooks 
  • Align with the ACAS Code of Practice 
  • Stay ahead of legal changes with proactive support. 

Contact us for a no-obligation conversation. 

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