Is your business HR-compliant?
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.