New research shows that as many as one in three businesses make up their own employment contracts.

Giles Dixon, managing director of ContractStore.com, says the findings are worrying and believes that the trend is due to a renewed focus on the economy.

Less than 10% of business owners regard being taken to a tribunal as their ‘biggest threat’ whilst approximately 50% of businesses name the economic downturn as their number one concern.

Dixon said: “As times are possibly set to get tougher, it is vital to ‘batten down the hatches’ and leave no stone unturned with regards to protecting your business – whether this is guarding against bad debtors or making sure you are not exposed to employee claims”.