Small businesses are struggling to cope with the demands of HR and are more likely to end up in a tribunal than their larger counterparts, according to a new survey.

Peninsula Business Services polled 2,144 business in the Greater Manchester area.

Findings included:

• 72 per cent of employers polled failed to issue staff ‘contracts of employment’ in time.




• 38 per cent of employers were not totally sure all employees had been issued with a contract of employment.




• 81 per cent of employers admitted that they were not fully compliant with disciplinary procedures and still go ahead and dismiss employees without fully knowing what the law states.




• 91 per cent of employers complained that employment and HR law in the UK was too complex.




• 79 per cent of employers were unaware that Age Discrimination legislation is to be introduced later this year.

Peter Done, managing director of Peninsula, said: “The ever changing and evolving business environment can be an employment law minefield. It is important to keep up-to-date with employment law and any changes, which directly affect your company; otherwise you are placing your productivity and reputation on the line.

“Employees are increasingly more aware and up-to-date, and there are more reasons than ever before that tribunals can hear complaints about.

“One area where we are seeking litigation growth is from interview candidates who are not successful at interview and feel they have been discriminated against or hard done by.

“As an employer you must make sure you are one step ahead. However in the current climate it is becoming increasingly difficult to do so as there are huge amounts of red tape which employers need to wade through.”

Mr Done added: “It is a fact that smaller employers lose more often in employment tribunals than their larger counterparts. This is because larger employers tend to have in-house personnel systems, and are therefore better organised than small employers.

“Tribunals are won in the workplace not the courtroom, and as such employers must have proper HR policies and procedures in place. Policies and documentation must be communicated to staff, be enforced and be regularly updated.

“However if a lazy attitude is adopted, and such policies aren’t implemented and supported, they are leaving themselves at risk of being taken to tribunal and the problems they incur.”