We write about what the cost of business is and I would like to start sharing the real human cost of some of the issues we deal with from both employee and employers points of view.
You build a business as you want to succeed. You want to help yourself and your family grow something. You start small (normally) and then grow through time. At some point, quicker for some, you take staff on. You
Then disaster. You didn’t put in place contracts of employment, you always meant to, but were too busy. If you don’t do it, you didn’t delegate it, so it just slipped. Something was always more important.
You don’t understand why one of your staff wants to take you to a Tribunal. You feel hurt, you are a small business and you take this personally.
You have to get over this and put your personal feelings to one side. Yes, it hurts. It can hurt like hell, but you need to deal with it.
If you don’t give your staff contracts of employment, they can take you to a Tribunal for 4 weeks pay. They will win, no point in trying to defend it and of course as hurt as you are, you can’t sack them, as they were only exerting their own employment law rights.
UK tells us that average salary is now £26K. So thats £2K. If you have 10 staff and they all do it, thats now £20K.
Do you have a spare £20K in these recessionary times?
We are just trying to use this to paint a picture of some of the things we come across. Is this right or just? I will leave that to someone else to answer, but it is the law.