# Kate Underwood HR & Training - Full Content > This file contains the full text of 76 published blog posts from Kate Underwood HR. > For a summary with links, see [llms.txt](https://kateunderwoodhr.co.uk/llms.txt). > > Kate Underwood HR provides expert HR consultancy for UK small businesses. > Based in Hampshire, supporting businesses nationwide since 2014. > Website: https://kateunderwoodhr.co.uk ## Blog Posts ### A Customer Harassed Your Employee. From 30 October, That's on You - URL: https://kateunderwoodhr.co.uk/blog/legislation/a-customer-harassed-your-employee-from-30-october-that-s-on-you - Published: 2026-09-09T00:00:00.000Z - Category: legislation - Tags: uk-employment-law, sme-compliance, third-party-harassment, employer-liability, customer-harassment # From 30 October 2026, third-party harassment is your problem to fix ## Third-party harassment: what UK SMEs must do by 30 October 2026 Picture this. Your team are doing a great job. Then a customer crosses a line. From 30 October 2026, third-party harassment is your problem to fix. This new duty means you must protect staff from harassment by people outside your business, as well as from colleagues. So let's jump straight in. Third-party harassment puts a legal and moral spotlight on how customers, clients, suppliers and contractors treat your people. If you don't take reasonable steps to prevent it and deal with it, you can be liable. ## What the third-party harassment duty actually says ### The two changes that land together - From 30 October 2026, your existing sexual harassment duty steps up. You must take all reasonable steps to prevent sexual harassment. That is a higher bar than before. - Also from 30 October 2026, employers can be liable for third-party harassment. That covers customers, clients, suppliers, contractors, and members of the public. Be precise on scope. Third-party harassment covers conduct related to any protected characteristic: race, disability, age, religion or belief, sex, sexual orientation and gender reassignment. Sexual harassment is included, but it is wider than that. And a quick myth-buster. The old "three strikes" idea has gone. There is no free go. One incident can be enough if you have not taken reasonable steps. ### Plain-English definitions that matter - Third party: anyone your workers meet in the course of their job who is not a colleague. - Harassment: unwanted conduct related to a protected characteristic that violates dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment. Acas puts it simply: > "Employers should take reasonable steps to prevent harassment and respond quickly and fairly to any complaints." > > Source: [Acas guidance on sexual harassment](https://www.acas.org.uk/sexual-harassment) ## The honest bit: the detail is still coming You deserve a straight answer. Detailed regulations setting out what counts as reasonable steps are expected after a public consultation in 2027. The higher standard applies from 30 October 2026. The detail arrives later. That is not a reason to wait. Do the obvious, proportionate things now and write them down. Your best defence is: we acted like a sensible employer and here is the evidence. ## Real-life examples you will recognise Here's the heart of it. These are the kinds of situations third-party harassment is about. - A care worker on home visits gets repeated sexual comments. She dreads the job and says nothing because she thinks nothing will change. - A young bar team member is groped on a Friday night. A colleague sees it. The customer laughs. The shift rolls on because the queue is long and nobody knows the rules. - A contractor on site makes racist "jokes" at your engineer. It is framed as banter. Your engineer starts avoiding the site. - A high-spend client is belittling and aggressive with the account manager. Everyone knows he is "difficult". Everyone works around it. In the past, the instinct was to smooth it over. Keep the customer happy. Tell the team to toughen up. From 30 October, that instinct is a legal risk. The question is simple: did you take all reasonable steps to protect your worker from third-party harassment? ## The steps to take before October Protecting your team from third-party harassment is about a handful of sensible moves. You do not need a legal department. You need clear expectations, safe reporting, and managers who back their people. ### 1) Update policies and spell it out - Add third-party harassment to your anti-harassment policy. - State that your staff have the right not to be harassed by customers, clients or contractors. - Say what you will do if it happens. Quick actions: - Refresh policy wording and handbook references - Share it on your HR system and in team briefings - Add a clear definition and simple examples ### 2) Tell your team they are protected Many people think client abuse is part of the job. Say clearly it is not. Explain what to do in the moment and how to report it. Quick actions: - Run a 10-minute briefing at shift handovers or team meetings - Put a one-page poster in staff areas with a reporting route ### 3) Give a safe route to report and act fast People need a way to raise concerns that will not get them blamed for "losing a customer". A safe route must lead to someone trained to assess risk and act. Quick actions: - Set up a dedicated email inbox or form with clear SLAs - Name two safe contacts in case one is off or involved - Keep a simple incident log with actions and outcomes If you want a credible independent route, our independent appeals service can support fair, impartial handling when a concern escalates. See: [Independent appeals](https://kateunderwoodhr.co.uk/services/independent-appeals) ### 4) Plan for known hotspots Most businesses can name the flashpoints. Lone working. Late shifts. A client everyone dreads. Put guardrails in place. Quick actions: - Pair up for higher-risk visits or use live check-ins - Give staff a short "stop the behaviour" script and permission to pause service - Be willing to end a client relationship that keeps crossing the line ### 5) Back your people when it counts A policy only works if staff believe you mean it. The first time you refuse service to an abusive customer or have a firm word with a client on someone's behalf, your whole team gets the message. Quick actions: - Create a manager playbook with do/say steps - Share debriefs of resolved cases to show follow-through ### 6) Train your managers Frontline managers will receive most reports. If they respond calmly, take it seriously, and escalate well, you solve problems early. If they brush it off, you store up risk. - Practical help: [Cake, Coffee and Compliance](https://kateunderwoodhr.co.uk/employment-rights-act-advice) is one hour a week of real HR for line managers. The harassment sessions land before the duty goes live. Each session ends with a usable document, not just slides. ### Quick reference: map your hotspots to actions | Setting or risk | Simple "reasonable steps" you can adopt now | | --- | --- | | Lone home visits | Two-person visits for flagged addresses; live check-in; client code of conduct shared in advance | | Late-night service | Zero-tolerance signage; radio code word for help; authority to pause service; incident form at till | | Client meetings | Two attendees for repeat offenders; clear agenda and boundaries; follow-up email confirming standards | | Contractors on site | Site induction covering conduct; named escalation contact; removal from site for breaches | ## Reporting, whistleblowing and independent routes Since 6 April 2026, reporting sexual harassment can be a protected disclosure under whistleblowing law. In plain terms, someone who raises a concern about harassment, including by a third party, may have whistleblowing protection. That raises the stakes. If a worker reports harassment and is then treated badly for speaking up, this can become a whistleblowing issue as well as harassment. The lesson is simple: take every report seriously, act fairly, and never penalise someone for raising a genuine concern. Independent routes earn their place here. "Tell your manager" is not enough if the manager is part of the problem or unsure what to do. An independent channel gives people somewhere credible to turn and gives you a record to evidence all reasonable steps. - Independent support for escalated cases: [Independent appeals](https://kateunderwoodhr.co.uk/services/independent-appeals) - KUHR services overview for ongoing support: [Outsourced HR support](https://kateunderwoodhr.co.uk/hr-services-small-business-uk) - Media coverage of Kate explaining changes: [Press page](https://kateunderwoodhr.co.uk/about-us/press) For an external reporting platform sized for SMEs, see [SafeVoice](https://safevoice.co.uk). ## The cheapest tribunal insurance a small business can buy Here's a hard truth from years of cases. Claims rarely start with one dramatic event. They build from small things that get brushed off. A report lands with a busy manager who means well and does nothing. A grievance sits with no timeline or reply. The person stops asking. By the time someone calls Acas, the cheap window closed months ago. From then on it costs time, money and attention. And the fix was often a ten-minute conversation done promptly. Make it easy and safe to raise things early. It pays for itself. From 1 October 2026, the time limit for some claims extends to six months. That is twice as long for an unresolved grumble to harden into something formal. Catching it in week one is now worth even more. One more nudge while we are here. National Payroll Week runs 7 to 11 September. Repeated pay errors are a breach of a fundamental contract term. Treat payroll issues as high-priority, fix them fast, and stop a small crack becoming a claim. ## A calm word on wellbeing This piece lands close to World Suicide Prevention Day. The reason this matters is human. Being harassed at work wears people down. Sleep suffers. Confidence drops. Protecting your team from third-party harassment says their dignity matters and someone has their back. If a colleague seems to be struggling, a kind check-in and a signpost to proper support is time well spent. ## Getting ready, calmly Third-party harassment is new, but the response is familiar: a clear policy, a safe way to speak up, managers who know what to do, and leaders who back their people. Put those in place this month and 30 October brings no drama. Need a hand? - Train your managers: [Cake, Coffee and Compliance](https://kateunderwoodhr.co.uk/employment-rights-act-advice) - Independent handling for tricky cases: [Independent appeals](https://kateunderwoodhr.co.uk/services/independent-appeals) - Ongoing help for SMEs: [Outsourced HR support](https://kateunderwoodhr.co.uk/hr-services-small-business-uk) - See where Kate has explained these changes in the media: [Press page](https://kateunderwoodhr.co.uk/about-us/press) Kettle On, Standards Up. Until next time, keep buzzing and take care of your people! ### References and guidance - [Acas guidance on sexual harassment](https://www.acas.org.uk/sexual-harassment) - [Equality Act 2010 guidance (GOV.UK)](https://www.gov.uk/guidance/equality-act-2010-guidance) - [CIPD harassment and bullying resources](https://www.cipd.org/uk/knowledge/factsheets/bullying-harassment-factsheet/) ### Expert quote > "Employers who act early, train managers, and keep clear records will be best placed to meet changing legal duties and protect staff." - HR policy lead, referencing Acas and CIPD guidance ## FAQs - What counts as third-party harassment at work? It is unwanted conduct by someone outside your organisation, linked to a protected characteristic, that violates dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment. - Are employers liable for a single incident by a customer? Yes. The old "three strikes" approach has gone. If you have not taken reasonable steps, one incident can be enough to create liability. - What are "all reasonable steps" for sexual harassment prevention? Think policy, training, safe reporting, quick action, records, and tackling hotspots. The precise list will be clarified in 2027 guidance, but you should act now. - Does the duty cover contractors and volunteers working for us? If they are your workers or you control the setting, plan for their safety too. The third-party duty covers what external people do to your staff. - How do we handle reports that might be whistleblowing? Treat reports seriously, act fairly, and never penalise someone for raising concerns. Some harassment reports can qualify for whistleblowing protection. - What records should we keep to show reasonable steps? Keep your policy, training logs, incident forms, actions taken, client warnings, and any contract clauses about conduct. Short, clear evidence beats long essays. --- ### The Two October Deadlines Most Small Businesses Will Miss - URL: https://kateunderwoodhr.co.uk/blog/legal/small-business-october-deadlines - Published: 2026-09-02T00:00:00.000Z - Category: legal - Tags: october-2026-employment-law-changes, employment-rights-act, right-to-work-checks, third-party-harassment, sme-compliance # October 2026 employment law changes: a calm SME guide Picture this. It is September. The office is quieter, the coffee is hot, and you have a small window before life ramps up. Use it. October 2026 employment law changes arrive in two waves, and a little prep now saves a scramble later. This guide sets out what lands and gives you a simple September audit so you hit October ready. ## What October 2026 employment law changes land and when? Two dates matter. Pop both in the diary. | Date | What changes | | --- | --- | | 1 October 2026 | Tribunal time limits rise to six months for most claims. Right to work checks expand beyond employees to workers and some contractors. | | 30 October 2026 | Stronger duty to prevent sexual harassment. New duty on third-party harassment. New duty to tell workers they can join a trade union, with strengthened access rights. | Quick note on time limits. The six-month limit applies to events on or after 1 October. Anything that happened before then keeps the old three-month clock. One Scottish wrinkle: breach of employment contract claims in Scotland move on 9 November 2026. Everything else changes on 1 October across Great Britain. ## Right to work: what expands on 1 October From 1 October, the duty to check right to work moves past payroll staff. It now reaches: - Workers - Individual subcontractors - Platform-based matches and substitutions sent in place of the person you booked Plain English examples: - Your Tuesday self-employed cleaner - Chair renters in a salon - Subcontracted trades on site - Couriers and agency temps - A substitute who turns up instead of the named contractor Liability can flow down the chain. If you subcontract and your subcontractor sends someone else, you still need a clear route to checks. You can be on the hook for someone you have never met. Who sits outside this? People running their own business in their own name or company, contracting with you as a customer, remain outside. The accountant doing year end is fine. Labels do not decide status though. What happens day to day does. If someone called self-employed works only for you, on your rota, in your name, take this seriously. Two practical points: - Updated Codes of Practice are still in draft as we write. Follow the latest Home Office Employer's Guide as it updates. - Checks apply to new engagements from 1 October and to repeat checks falling due after that date. No need to re-check everyone at once. Penalties are well known and painful per worker, and repeat breaches rise. Criminal liability exists for knowing engagement. For current figures, see Gov.uk: [Penalties for employing illegal workers](https://www.gov.uk/penalties-for-employing-illegal-workers). KUHR tip: Write down everyone who works in your business name and mark who has never been checked. That list is your September to-do. > "Good HR is financial self-defence. Do the checks once, store them well, and sleep at night." - Kate Underwood, HR Queen Bee ## Harassment and unions: what changes on 30 October ### Stronger sexual harassment duty: "all reasonable steps" You already take reasonable steps to prevent sexual harassment. From 30 October, the bar rises to all reasonable steps. That means you need to think it through, act, and be able to show your working. A tribunal will ask what you did and what else you reasonably could have done. What this looks like in practice: - Clear, short policy that staff actually read - Manager training that is recent and recorded - Easy, safe reporting routes, including a route that bypasses senior people - Proportionate action and evidence that action happened Useful resource: EHRC guidance on harassment at work: [Equality and Human Rights Commission](https://www.equalityhumanrights.com/en/advice-and-guidance/sexual-harassment-work). ### Third-party harassment duty From 30 October, you can be liable if customers, clients, suppliers, contractors, or the public harass your team. This covers any protected characteristic, not only sex. The old "three strikes" idea has gone. If your team faces abuse from someone outside the business and you did nothing to prevent or address it, risk follows. ### Trade union changes You will need to tell workers they have the right to join a trade union. Onboarding materials and written statements should include the right information. Electronic voting in trade union ballots is now possible where both sides agree. Most SMEs can handle this with a tidy update to documents and templates. ACAS is your north star for fair process. See: [ACAS discipline and grievances at work](https://www.acas.org.uk/discipline-and-grievances-at-work). ## Tipping: later this year If you handle tips, service charges, or gratuities, you will need to consult workers before starting or changing a tips policy. A revised draft statutory Code on fair and transparent distribution is out for consultation. This reaches past hospitality into salons, delivery, events, and some retail. Due by the end of 2026. Plan now, avoid a rush later. ## Four quiet August updates you should actually know - ACAS has a draft new Code on disciplinary and grievance procedures open for consultation. It shifts tone to early resolution, clearer suspension rules, adjustments, and uses "worker" not "employee". - The revised tips Code consultation is open now and closes this month. - A consultation on zero hours and casual working has closed. Expect rules on guaranteed hours from reference periods, notice of shifts, and pay for short-notice changes. If you run rotas, start improving notice now. - The Fair Work Agency secured its first conviction and obtained a Labour Market Enforcement Order. The agency is moving from letters to prosecutions. Holiday pay is in focus. If you suspect your calculations are off, fix it quietly this autumn. > "Early action beats early panic. Ten minutes on a consultation now can save you ten grand later." - Kate Underwood ## Your September audit checklist ### Harassment prevention: all reasonable steps - Read your anti-harassment policy as a new starter would. Is it clear and current? Does it say what to do and who to tell? - Share it. A file nobody reads is not a step. Tell people where it is and what it means. - Train managers on spotting and handling concerns. If training is thin, book a session now. Try our weekly line manager series, Cake, Coffee and Compliance: [Manager training](https://kateunderwoodhr.co.uk/employment-rights-act-advice). - Add a safe route to report concerns about senior people. ### Third-party harassment - List third-party contact points: customers, clients, contractors, public. Mark the hotspots. - Tell staff they can report harassment by customers or clients. Make that explicit in policy and training. ### Right to work - List everyone doing work in your business name. Not just payroll. - Mark who has a completed check and where the evidence sits. Gaps get fixed first. - Update contracts with agencies and subcontractors so checks happen and evidence flows. - Pick an owner for checks from 1 October. Do not assume agencies have it covered. ### Records and process - Pull one recent disciplinary, grievance, or absence file. Would it hold up six months later? If not, tighten notes, dates, letters, and adjustments. - Use occupational health for tricky absence cases and record your adjustments. - Refresh contracts and written statements. Union information lands in October, more changes hit in January 2027, so one careful pass now saves time later. ### Tips and unions - If you handle tips, plan your worker consultation and policy draft now. - Add the right-to-join-a-union information to your onboarding pack and written statements. Work through this list and you will have a clear picture of what needs action now and what can wait a few weeks. ## Why September is your best window The businesses that struggle rarely ignore risk. They just run out of time. September gives you calm, diary space, and fewer interruptions. Book training, update policies, and have the honest chat about that one difficult client. A steady month now beats a frantic one later. ## While you are looking: a word on collective consultation If larger-scale redundancies might come up, collective consultation can bite sooner than many expect. It can start at the point you propose dismissals, not once minds are made up. Since 6 April 2026, the protective award doubled to 180 days of gross pay per affected employee. If this is even on the horizon, take advice early. Timing is simple when planned and painful when rushed. ## Need a clear plan? If you want a month-by-month view of how the Employment Rights Act rollout phases in, see our [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline). For media pieces on plain-English HR, see our [press page](https://kateunderwoodhr.co.uk/about-us/press). Want a practical, plain-English review of your paperwork and risks before October hits? Book our [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). We give you a to-do list in priority order. Kettle on, standards up. ## FAQs - What are the October 2026 employment law changes for SMEs? Two waves. On 1 October, tribunal time limits rise to six months for most claims and right to work checks expand to workers and some contractors. On 30 October, the sexual harassment duty rises to all reasonable steps, third-party harassment liability arrives, and you must tell workers they can join a trade union. - Do I need to re-check right to work for contractors and substitutes from 1 October? Checks apply to new engagements from 1 October and to repeat checks falling due after that date. You do not need to re-check everyone at once, but list everyone working in your business name and close the gaps first. - What counts as "all reasonable steps" to prevent sexual harassment? A clear, short policy people actually read, recent and recorded manager training, safe reporting routes including one that bypasses senior people, and evidence that you acted on concerns. - Can I be liable for harassment by a customer or supplier? Yes, from 30 October. The old "three strikes" idea has gone. If someone outside the business harasses your team and you did nothing to prevent or address it, risk follows. - Do I need to tell new starters about trade unions and how? Yes. Add the right to join a trade union to your onboarding pack and written statements before 30 October. - How should I prioritise my September HR to-do list? Start with right to work gaps, then harassment policy and manager training, then contracts, written statements and any tips consultation. The September audit checklist above is in priority order. ### External references - Gov.uk: [Penalties for employing illegal workers](https://www.gov.uk/penalties-for-employing-illegal-workers) - ACAS: [Discipline and grievances at work](https://www.acas.org.uk/discipline-and-grievances-at-work) - EHRC: [Sexual harassment at work](https://www.equalityhumanrights.com/en/advice-and-guidance/sexual-harassment-work) ### Internal KUHR resources - [Manager training: Cake, Coffee and Compliance](https://kateunderwoodhr.co.uk/employment-rights-act-advice) - [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline) - [Press page](https://kateunderwoodhr.co.uk/about-us/press) - [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) --- ### Bank holiday entitlement: a plain-English guide for UK SMEs - URL: https://kateunderwoodhr.co.uk/blog/legal/bank-holiday-pay-part-time-staff-small-businesses-traps - Published: 2026-08-25T00:00:00.000Z - Category: legal - Tags: bank-holiday-pay, bank-holiday-entitlement-uk, part-time-bank-holiday-pay # Bank holiday entitlement: a plain-English guide for UK SMEs Picture this. It is the Friday before the August bank holiday, sun out, inbox pinging, and someone asks the classic: we do get Monday off paid, do we? Here is the short answer on bank holiday entitlement. It depends on the contract. Not the weather. Not your mood. The contract. So with the summer bank holiday landing on Monday 31 August, let us clear up bank holiday entitlement properly. It is simple once you see how it fits together. Get it right now and you avoid awkward chats later. ## The myth that causes the most confusion about bank holiday entitlement Let us bust the biggest myth first. Bank holidays are not an automatic legal right to paid time off. Yep, really. There is no law that says every worker must have bank holidays off. There is no law that says they must be paid extra for working them. Your bank holiday entitlement is set by the contract of employment. That single fact causes most of the muddle. People think bank holidays sit on top of annual leave as a national freebie. They do not. They sit wherever your contract puts them. That is why wording matters. ## What the law says on bank holiday entitlement Here is the plain-English lowdown on bank holiday entitlement. Almost every worker gets 5.6 weeks of paid holiday a year. For a five day worker, that is 28 days. Those 28 days can include bank holidays. There are usually eight bank holidays in England and Wales. You have two lawful options for bank holiday entitlement: - Bank holidays included in the 5.6 weeks. The eight bank holidays come out of the 28 days. Staff then have 20 days to book at other times. - Bank holidays on top of the 5.6 weeks. Staff get 28 days plus the eight bank holidays. Generous, but optional. Neither is better by default. The key is that your contract states which approach you use. Expert quote: - ACAS says, There is no statutory right to paid leave on bank or public holidays. Source: [ACAS Holiday entitlement guidance](https://www.acas.org.uk/holiday-entitlement) Useful stat: - Around 23% of UK workers are part time, so fair bank holiday entitlement rules matter for a large slice of staff. Source: [ONS, Employment in the UK, 2024](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes) ## Part-time staff and bank holiday entitlement ### Why Mondays skew it Most bank holidays are on a Monday. Early May, late May, the August one, and Easter Monday. That is a lot of Mondays. Now imagine someone who works Tuesday to Thursday. If you say the office is closed on bank holidays, enjoy, your full timers get eight paid days across the year. Your Tuesday to Thursday person gets almost none. They were not due to work those Mondays. Over a year, they lose a chunk of paid time off. It is not mean. It is just maths. But it is unfair if left alone, and it blows up at the worst time. ### The fair pro-rata method The fix is to give a pro-rata pot of hours for bank holiday entitlement. Base it on the hours or days the person works. They then use that pot on bank holidays they would normally work. If the business closes on a day they do not work, they keep the hours to book later. Quick example - Full time entitlement to bank holidays: 8 days - Part timer works 3 days a week - Pro-rata bank holiday entitlement: 3 fifths of 8 days = 4.8 days - Round to hours for accuracy and record it in your HR system Tip: Track this in Breathe HR and set a separate bank holiday pot to keep it clean for everyone. ## Working a bank holiday and pay Another common question on bank holiday entitlement. There is no automatic right to enhanced pay for working a bank holiday. Time and a half, double time, or a day off in lieu are choices you can offer. They must come from the contract or a clear policy. Expert quote: - GOV.UK states, Bank or public holidays do not have to be given as paid leave. Source: [GOV.UK, Holiday entitlement](https://www.gov.uk/holiday-entitlement-rights) Make three things crystal clear: - State if you pay enhancements or give time off in lieu - Write it down and share it - Apply it the same way for people in the same role and pattern Consistency saves grievances. ## Contracts and wording: get bank holiday entitlement right This five minute check will save you a headache later. Look at your contract template and ask: - Does it say annual leave is plus bank holidays or including bank holidays? - Is there a fair pro-rata line for part timers? - Does it explain how you handle closures on days a person does not work? - Do you explain enhancements or time off in lieu if someone works a bank holiday? If the contract only imagines five day patterns, it will not handle part timers fairly. That is your gap to close. ## Your quick actions before Monday Let us round this out with a short checklist on bank holiday entitlement. 1. Read your holiday clause. Is it including or plus bank holidays, and is that what you do in practice? 2. Pro-rate part timers fairly using a bank holiday entitlement pot in hours. 3. Look at people who never work Mondays. They are the ones most at risk of losing out. 4. Write down your approach to bank holiday working. Enhancements, time off in lieu, or normal pay. Then be consistent. 5. Update the contract wording now. Then you will not need a scramble next time. ## FAQs on bank holiday entitlement - Do staff have a legal right to paid time off on bank holidays? No. Bank holiday entitlement is set by the contract, within the 5.6 weeks rule. - How do I calculate bank holiday entitlement for part time staff? Give a pro-rata pot of hours based on their working pattern. Use it against days they would normally work. - Can I include bank holidays within the 5.6 weeks? Yes. You can include them or offer them on top. The contract must say which. - Do I have to pay extra for bank holiday working? No. Enhanced pay or time off in lieu is a choice. Write it down and apply it fairly. - What about zero hours staff and bank holiday entitlement? Use average hours to calculate a fair pro-rata pot and follow your written policy. - Are bank holidays different in Scotland or Northern Ireland? Yes. The actual days differ. The contract approach to bank holiday entitlement is the same. ## Where to start Most SMEs are close to right already. Often there is just one clause to tidy and a fair method to record bank holiday entitlement for part timers. Fancy a sense check? Try our free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). It takes five to seven minutes and gives you a Red, Amber, Green score plus a plain-English report on contracts, handbooks, and holiday rules. If it flags a wording tweak, book a focused Power Hour and we will fix it calmly and properly. Kettle On, Standards Up. And as always, keep buzzing and take care of your people! ### Sources and expert notes - [ACAS, Holiday entitlement](https://www.acas.org.uk/holiday-entitlement) - [GOV.UK, Holiday entitlement](https://www.gov.uk/holiday-entitlement-rights) - [ONS, Employment in the UK 2024](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes) --- ### Apprenticeships for small businesses: your results week guide - URL: https://kateunderwoodhr.co.uk/blog/guides/hire-an-apprentice-small-business-results-week - Published: 2026-08-19T00:00:00.000Z - Category: guides - Tags: employing-an-apprentice, hire-an-apprentice-uk, apprenticeship-funding-for-employers # Apprenticeships for small businesses: your results week guide Picture this. It's GCSE results week. All over the UK, brilliant sixteen year olds are opening envelopes and deciding what comes next. Some will head to uni one day. But many want to earn, learn, and start a proper job. That is where apprenticeships shine, and this might be the week you decide to hire. So let's talk apprenticeships in plain English. What they are. What they cost. And how to set one up without building a paperwork mountain. ## What apprenticeships actually are Forget the dusty image. Apprenticeships are not work experience and they are not free labour. - They are real jobs with structured training built in. - You employ and pay the apprentice. - They work with your team and spend part of the week on off-the-job training, usually around six hours. - A training provider delivers the teaching and assessments. - You provide the role, a mentor, and chances to put learning into practice. ### Mythbuster parade - "Apprenticeships are just for trades." Nope. There are apprenticeships in business admin, marketing, IT, accountancy, hospitality, care, engineering and more. If it is a skilled role, there is likely a standard. - "They are only for teenagers." Not so. Anyone aged sixteen and over can do an apprenticeship, including your current staff, up to degree level. - "It is cheap labour." Wrong lens. Think growth. Done well, apprenticeships create loyal, skilled people who stick with you. > "Apprentices are employees and have the same rights as other employees." > Source: ACAS, [Apprentices guidance](https://www.acas.org.uk/apprentices). ## Why results week is the moment to act Timing matters. Right now, school and college leavers are weighing up their next move. Plenty want a job with training but do not know apprenticeships exist or how to find them. If you get ready to talk apprenticeships this week, you reach keen talent before your competitors finish their coffee. You do not need every detail sorted by Friday. You just need to know it is an option and start the ball rolling. ## The money bit: what the government pays Here is the bit that surprises people. If you are a small employer that does not pay the apprenticeship levy, the government covers most training costs through funding bands. - For younger apprentices, training and assessment can be fully funded up to the relevant band. Check the current rules before you commit. Guidance lives on GOV.UK: [Apprenticeships funding](https://www.gov.uk/topic/further-education-skills/apprenticeships). - There is extra financial support: - A hiring payment of up to £2,000 for SMEs taking on an apprentice aged sixteen to twenty-four, due from 1 October 2026. Keep an eye on GOV.UK for final details. - £1,000 support when you hire an apprentice aged sixteen to eighteen, paid in two instalments to help with kit or travel. - No employer National Insurance on apprentices under twenty five who earn below the threshold. You do pay wages. There is a specific apprentice rate of the National Minimum Wage for under-nineteens and for the first year of an apprenticeship. After that, the age-related rate applies. Current rates: [National Minimum Wage](https://www.gov.uk/national-minimum-wage-rates). Get this right at the start. Underpaying an apprentice is common and entirely avoidable. Here is the headline for small employers: largely funded training, some cash support, a NI saving, and a fair wage for a real job. For many, that flips "we can't afford to hire" into "actually, we can". Statistic: In 2022/23 there were 337,140 apprenticeship starts in England, with higher-level starts up 6% year on year. Source: Department for Education, [Apprenticeships and traineeships data](https://explore-education-statistics.service.gov.uk/find-statistics/apprenticeships-and-traineeships). ## Getting the paperwork right on day one Do the ordinary things properly and life gets easier. ### Contracts and agreements - Give a written contract of employment on or before day one. No "we will sort it later". - Put in place an apprenticeship agreement. Your training provider will usually help with the template. ### Right to work checks - Check every new starter's right to work. No shortcuts, even for the "local kid". Keep clear copies. Guidance: [Right to work checks](https://www.gov.uk/check-job-applicant-right-to-work). ### Induction and support - Plan a simple, warm induction. Name a go-to person. Set out "what good looks like". A calm first week pays you back in loyalty and performance. ### Day-one rights since April 2026 - Statutory sick pay from day one. - Paternity leave and unpaid parental leave as day-one rights. - Make sure your handbook and payroll reflect this. As service builds, management basics matter. Honest check-ins, simple notes, and clear expectations. Good management and good protection are two sides of the same biscuit. ## Apprenticeships: quick actions for results week Let's round this out with a to-do list you can act on today. 1. Decide the role. What will your apprentice do and who will look after them day to day? 2. Find a training provider. Use "Find an apprenticeship training course" on GOV.UK: [Find an apprenticeship training course](https://www.gov.uk/employing-an-apprentice) or ask your local college. 3. Check the funding band and current apprentice wage. Know your numbers before you commit. 4. Prep documents. Contract ready, apprenticeship agreement lined up, and right to work check process set. 5. Plan the first week. A real welcome turns nerves into confidence. ## Plain-English legal lowdown for SMEs - Apprenticeships are jobs, so normal employment law applies. - Off-the-job training is part of paid hours. Build it into schedules. - Performance and conduct should be managed fairly. Keep notes and follow your procedure. - Reasonable adjustments apply where needed. Speak to your provider early if support is required. External reference: [CIPD overview of apprenticeships for employers](https://www.cipd.org/uk/knowledge/factsheets/apprenticeships-factsheet/). ## Where to start with KUHR Taking on your first apprentice is a lovely thing to do. For your business and for a young person who is ready to shine. Get the foundations right and it stays a good decision. - Want a fast sense-check on contracts, onboarding and probation? Try our free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). It takes five to seven minutes and gives you a Red, Amber, Green summary with a plain-English report. - Prefer hands-on help to set up the paperwork and induction? Have a look at [Kate Underwood HR](https://www.kateunderwoodhr.co.uk/) for practical support across hiring, onboarding, and compliance. Kettle on. Standards up. Give a keen young person their start this results week, get the paperwork right on day one, and enjoy watching them grow. Until next time, keep buzzing and take care of your people! ## FAQs - What is an apprenticeship in simple terms? A paid job with structured training and a recognised qualification, delivered with a training provider. - How much do apprenticeships cost a small business? Training is often funded by the government for SMEs. You pay wages and normal employment costs. Check GOV.UK for current funding bands. - Do apprentices count as employees? Yes. They have employment contracts, holiday, and other statutory rights. Source: ACAS. - What is off-the-job training and who pays for it? Learning time during paid hours, typically around six hours a week. It is part of the apprenticeship and built into working time. - What wage should I pay an apprentice? Pay at least the apprentice rate for under-nineteens and first-year apprentices, then the age-related minimum. Always check current GOV.UK rates. - Can I put an existing employee on an apprenticeship? Yes. Apprenticeships can upskill current staff at various levels, up to degree level. ### Sources and expert notes - [ACAS apprentices guidance](https://www.acas.org.uk/apprentices) - [GOV.UK employing an apprentice](https://www.gov.uk/employing-an-apprentice) - [GOV.UK National Minimum Wage rates](https://www.gov.uk/national-minimum-wage-rates) - [DfE apprenticeships and traineeships statistics](https://explore-education-statistics.service.gov.uk/find-statistics/apprenticeships-and-traineeships) - [CIPD apprenticeships factsheet](https://www.cipd.org/uk/knowledge/factsheets/apprenticeships-factsheet/) --- ### Contracts, Probation and the Six-Month Rule: Getting New Hires Right - URL: https://kateunderwoodhr.co.uk/blog/legal/contracts-probation-six-month-rule-new-hires - Published: 2026-08-12T00:00:00.000Z - Category: legal - Tags: probation-period-uk, 6-month-probation-period-uk, employment-contract-requirements-uk # Unfair dismissal qualifying period: what SMEs must do before January 2027 Picture this. It is results week. Some brilliant new starters are stepping into work for the first time. If you hire one this month, you are giving someone their start. Gold star from me. Now here is the calm, practical bit. The unfair dismissal qualifying period is changing in January 2027, and your August hire will land inside it. That does not make them a bad hire. It makes getting the basics right on day one even smarter. This is your plain-English guide to what changes, why July 2026 matters, and the simple actions to take now so you stay safe and fair. ## The unfair dismissal qualifying period change, stated precisely Right, first things first. - From 1 January 2027, the unfair dismissal qualifying period drops from two years to six months. - On 1 January 2027, anyone with six months' service gains ordinary unfair dismissal protection. - That means anyone hired on or after 1 July 2026 will qualify the moment the law switches on. Key point that trips people up: nothing changed on 1 July 2026. It is simply six months before 1 January 2027. Get that the right way round and you stay accurate, not anxious. Two more shifts are set for the same date: - The cap on unfair dismissal compensation is removed entirely. - Fire and rehire is flagged for much tighter treatment, with higher risk if handled badly. If you like a neat visual, our month-by-month [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline) maps the rollout clearly. Quick context: Ministry of Justice data shows unfair dismissal awards can already bite. In 2022 to 2023, average awards sat around £10,000, with some cases far higher (MOJ Employment Tribunal statistics). Getting the process right protects your cash and your culture. Expert view: > "Follow a fair and consistent procedure and keep records. It protects everyone." Source: Acas Code of Practice on disciplinary and grievance procedures. ## What "qualifying" really means in practice No panic needed. The unfair dismissal qualifying period does not mean you can never exit someone. It means you must have: - A fair reason - A fair process - Clear records That is it. If someone is not meeting the standard, you can act. Do it properly. Set expectations, give feedback, offer support where it fits, document what you do, and make a proportionate decision. So think of the six-month threshold as a deadline for good practice. Employers who work on hopes and vibes feel the pinch. Employers who write things down, review on time, and act fairly will barely notice the switch. ## Why your standard six-month probation now works against you Here is where habit clashes with the unfair dismissal qualifying period. Most SMEs set probation at six months. Under the new rules, that leaves you no margin. Your suitability call lands the very week unfair dismissal protection kicks in. Practical fix: - Set probation under six months, not at it. Four or five months gives you a real buffer. - Book reviews from day one. Do the suitability assessment before the threshold, never on it. - Decide and confirm in good time. If it is a yes, brilliant. If it is a no, you are still inside the simpler window. Classic slip-up: the "month six" review that drifts into week 28 because everyone is flat out. Do not let a good decision drift into a harder one because nobody put the meeting in the diary. Kindness matters, especially with new and young hires. A clear probation with honest check-ins is kinder than a vague one. People know where they stand, get feedback that helps, and can shine. ## Getting day one right for new starters Here is your crisp checklist for anyone you bring in this results season. None of this is hard. It just needs doing now, not later. 1. A proper written contract - In place on day one. - Includes the right probation clause and review dates. - If your template still says six months, change it now. 2. Right to work checks - Always check. Always record. No exceptions. - Use official guidance and keep a copy of what you saw. - Helpful resource: [Government guidance on right to work checks](https://www.gov.uk/check-job-applicant-right-to-work). 3. Probation set under six months - Four or five months. - Reviews booked at offer stage. - Suitability assessment completed before the unfair dismissal qualifying period kicks in. 4. Policies that reflect day one rights already live - Since 6 April 2026, statutory sick pay is a day-one right, with no waiting days and no lower earnings limit. - Paternity leave and unpaid parental leave are day-one rights too. - Update your handbook and your payroll flows now, not "later". If you want a single place to sanity-check all this, try our free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). You get a RAG result with a simple report in minutes. ## Why results week is exactly the right time International Youth Day on the twelfth, A-level results on the thirteenth, and a wave of first jobs on the fourteenth. The timing could not be clearer. Do the tidy-up now and it costs an afternoon. Leave it, and you will be tweaking contracts in December while juggling rotas, parties, and stock. The employers who glide through January will not be heroic. They will be consistent: - Clean contracts - Proper right to work checks - Shorter probation with booked reviews - Honest, on-time decisions Kettle On. Standards Up. ## Where to start If you are thinking "are our contracts and probation actually ready," check now. - Take five to seven minutes with the free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). It reviews contracts, probation, and your handbook against what is coming, then flags the real risks. - Want the month-by-month detail? The [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline) shows every key date at a glance. As ever, if you want support setting up probation flows, updating contracts, or sense-checking your approach, we can help. Pop a note to [buzz@kateunderwoodhr.co.uk](mailto:buzz@kateunderwoodhr.co.uk) or visit [kateunderwoodhr.co.uk](https://www.kateunderwoodhr.co.uk). As we wrap up: hiring a keen young person this week is a good decision. Get the paperwork right on day one and it stays one. Until next time, keep buzzing and take care of your people! ## FAQs - What is the unfair dismissal qualifying period in the UK from January 2027? It will be six months, down from two years. On 1 January 2027, anyone with six months' service gains ordinary unfair dismissal protection. - Does the unfair dismissal qualifying period stop me ending employment in probation? No. You still can, but you must have a fair reason, follow a fair process, and keep records. - Should I shorten probation because of the unfair dismissal qualifying period change? Yes. Set probation at four or five months so your suitability decision lands before protection kicks in. - Do I need to reissue contracts to current staff? You do not have to, but updating probation clauses and signposting policies can help clarity. Seek advice for any variations to terms. - What else changes in January 2027 that affects dismissals? The compensation cap for unfair dismissal is removed, and fire and rehire faces much tighter treatment. Process quality matters even more. - Where can I find official guidance on fair process? Start with the [Acas Code of Practice](https://www.acas.org.uk/disciplinary-grievance-code) and the [Government right to work checks](https://www.gov.uk/check-job-applicant-right-to-work). For a handy overview, see our [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline). ### Sources and expert notes - [Acas Code of Practice](https://www.acas.org.uk/disciplinary-grievance-code) - [Government right to work checks](https://www.gov.uk/check-job-applicant-right-to-work) - [Ministry of Justice Employment Tribunal statistics](https://www.gov.uk/government/collections/tribunals-statistics) --- ### Hired Anyone Since July? They're Already Inside the 2027 Window - URL: https://kateunderwoodhr.co.uk/blog/legal/hired-since-july-2027-window - Published: 2026-08-05T00:00:00.000Z - Category: legal - Tags: unfair-dismissal-2027, unfair-dismissal-qualifying-period-uk, day-one-unfair-dismissal-rights # Unfair dismissal changes 2027: why July 2026 already matters There is a comfy little lie doing the rounds this summer. It goes like this: the unfair dismissal changes 2027 are a next-year job. Sort it in January and move on. It sounds tidy. It is also quietly expensive. Because the clock on those unfair dismissal changes 2027 started on 1 July 2026. Which means the lovely person you hired three weeks ago is already inside it. Kettle on. Let's make this simple. ## What the unfair dismissal changes 2027 actually say The short answer: from 1 January 2027, ordinary unfair dismissal protection bites much earlier and the risk profile shifts. ### The headline change: six months' service - Today, most employees need two years' continuous service to claim ordinary unfair dismissal. - From 1 January 2027, it becomes six months. ### No cap on compensation - Right now, the compensatory award is capped at the lower of 52 weeks' pay or a set limit. - For 2024 to 2025 that limit is £115,115 (source: UK Increase of Limits Order 2024). - From 1 January 2027, that cap goes. No ceiling. ### Fire and rehire becomes automatically unfair - Dismiss and re-engage on worse terms from 1 January 2027 and it is automatically unfair. So it is not only about "more people can claim sooner". It is more people, sooner, with no cap on the compensatory element, and a harder line on fire and rehire. Three shifts, all on the same date. That is why the unfair dismissal changes 2027 matter now. ### Quick reference table | Change | Current position | From 1 Jan 2027 | |---|---|---| | Qualifying period for ordinary unfair dismissal | Generally 2 years | 6 months | | Compensatory award cap | Lower of 52 weeks' pay or £115,115 (2024-25) | No cap | | Fire and rehire | Risky, fact-specific | Automatically unfair | Source for current cap: The Employment Rights (Increase of Limits) Order 2024. See GOV.UK. ## The July 2026 trap everyone gets wrong Here is the sentence that matters. Nothing changed on 1 July 2026. The law changes on 1 January 2027. The reason 1 July is key is because the new right needs six months' service on the day it lands. - Count back six months from 1 January 2027 and you get 1 July 2026. - Anyone hired on or after 1 July 2026 will have six months' service the day the law arrives. - They qualify the moment it lands. So yes, the unfair dismissal changes 2027 are a January thing. But the clock that feeds them started this summer. It is ticking on people already on your payroll. ## Why "I will sort it in 2027" falls flat Most legal changes let you tidy up in the run-up. Read guidance. Update a policy. Job done. This one is different. The protection starts in January. The service that unlocks it is building now. You cannot rewind in autumn and pretend summer did not happen. A July hire will hit the six month mark at New Year whether you watched the probation or not. So the real question is not "what do I do by January". It is "who is in my window already and is my house in order for them". For many SMEs, those people started during the summer lull while holidays were on and paperwork drifted. That is fixable, but it needs focus this week, not in December. ### A simple picture Think of it like planting. The rule change is a January harvest. The seeds are going in now. Leave it until December and you are too late for the planting. ## What tightens in practice Two years felt roomy. Six months is not. A summer hire is past it before spring. Remove the cap at the same time and the cost of a sloppy process stops being predictable. Here is the reassuring bit. You do not need to be harsher or quicker to exit. You need to do ordinary things well and on time. ### Make the basics strong - Run a real probation, with planned check-ins and an actual decision. - Have honest chats early, so there is time to turn things around. - Keep short notes that show a fair process. - Make contracts and your handbook match how you work today, not a 2019 template. Do those and the unfair dismissal changes 2027 become a non-event for you lovely lot. > "Set clear goals, review progress, and give prompt feedback during probation. That is how you run a fair process." ACAS guidance on probation and performance management: [ACAS probation advice](https://www.acas.org.uk/setting-up-and-managing-probation-periods) For context, unfair dismissal awards today already span a wide range. The cap is significant for bigger salaries, so removing it in 2027 raises the stakes for poor process. Check the current caps on GOV.UK and keep your paperwork tight. ## Part of a wider shift Zoom out and you can see a clear pattern. More day-one rights, stronger enforcement, and less room for guesswork. Paternity and unpaid parental leave are day one. The new watchdog, often called the Fair Work Agency, is set up to look closely at bad practice. The unfair dismissal changes 2027 slot into that bigger picture. Businesses that treat fair, timely process as normal barely feel the bump. If you want a simple view of what is live now and what lands next, our month-by-month guide maps it out: [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline). ## Your action plan this week You do not need an overhaul by Friday. You need clarity, fast. Start here. ### 5 quick actions 1. List everyone hired since 1 July 2026. That is your "already in the window" group for the unfair dismissal changes 2027. 2. Check each has a signed contract that matches reality. Hours, place of work, probation length, notice. 3. Put probation check-ins in the diary now. Add objectives and a decision date. 4. Refresh your dismissal and probation notes template. Keep it short, plain, and consistent. 5. Sense-check your handbook. Is it current, readable, and used? Want a fast RAG view without guesswork? Take our five-minute [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). You get an instant Red, Amber, Green rating and a clear email report. It highlights where gaps could bite under the unfair dismissal changes 2027. Phew, that is better. ## FAQs - What are the unfair dismissal changes 2027 in simple terms? From 1 January 2027, ordinary unfair dismissal kicks in at six months' service, the compensatory cap is removed, and fire and rehire is automatically unfair. - Why does 1 July 2026 matter for unfair dismissal changes 2027? Because anyone hired on or after 1 July 2026 will have six months' service the day the law starts, so they qualify on day one of the change. - Will dismissals within probation still be possible? Yes. You still need a fair, documented process and a reasonable probation plan with clear goals and feedback. - What records should I keep to reduce risk? Keep contracts, probation plans, check-in notes, objective summaries, and a short decision note at the end of probation. - Do these changes affect redundancies? Redundancy is still a potentially fair reason for dismissal. You need a fair process, selection criteria, consultation, and proper notice and pay. - Where can I get help to get ready? Use our quick [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) and see the month-by-month [Employment Rights Act timeline](https://kateunderwoodhr.co.uk/employment-rights-act-timeline). As we wrap up, here is the pep talk. Good people practice is your best legal defence. Kettle on. Standards up. And as ever, keep buzzing and take care of your people. ### Sources and expert notes - [ACAS probation advice](https://www.acas.org.uk/setting-up-and-managing-probation-periods) - [ACAS, Unfair dismissal](https://www.acas.org.uk/unfair-dismissal) - [The Employment Rights (Increase of Limits) Order 2024](https://www.legislation.gov.uk/uksi/2024/214/contents/made) --- ### What a Good Half-Year Review Actually Looks Like (Without the Dread) - URL: https://kateunderwoodhr.co.uk/blog/talent-management/good-mid-year-review-without-dread - Published: 2026-07-29T00:00:00.000Z - Category: talent-management - Tags: mid-year-review, mid-year-review-template, half-year-performance-review # Halfway through the year, and most teams will skip the check-in Picture this. It's the end of July. We're past the midpoint of 2026. The first half brought the Employment Rights Act change, a long hot summer, a World Cup, and the usual chaos of running a small business while also doing the actual work. And here's what most small businesses will do about it: nothing. They'll set objectives in January (maybe), look at them again in December (reluctantly), and skip the bit in the middle where you actually check whether anyone's on track, happy, or quietly about to leave. That mid-year check-in is the single most useful, lowest-cost performance and retention tool you have. It catches problems while they're still fixable. It tells your good people they're seen. And, newly relevant since 1 July, it builds the trail of clear expectations and honest feedback the law now rewards. The reason it gets skipped is rarely that owners don't believe in it. It's that it never feels urgent. A review is important but not on fire, and in a small business the thing on fire always wins. So the check-in slides from July to August to "we'll do it properly in the autumn", and by then you're into the year-end run and it never happens at all. The businesses that actually do it aren't the ones with more time. They're the ones who decided it was worth half an hour and put it in the diary before the excuse arrived. So before the year runs away, let's do it properly. Kettle on. ## Why bother with a mid-year review If you only do an annual review, you're flying half blind. A year is a long time for an objective to become irrelevant, for workload to creep past breaking point, or for a good employee to drift from engaged to checked-out without anyone asking. Twelve months is also long enough that when you finally sit down in December, half of what you discuss is stale, half-remembered, or too late to fix. A mid-year point breaks that up into something you can actually steer. The mid-year review fixes that, and it does three jobs at once. - It course-corrects while there's still time. An objective set in January may be out of date by July. A mid-year check lets you reset it before December. Otherwise you'll end up having a useless chat about a target nobody's aimed at since March. Markets move. Priorities shift. That big project that framed someone's whole year got shelved in April. A review is where you quietly bring the plan back in line with reality, so the second half is spent on what matters now, not on what mattered when the decorations were still up. - It retains your best people. The top thing your strongest performers want isn't always more money. It's to feel seen, to know where they're heading, and to have a manager who notices. A proper mid-year conversation delivers all three for the price of half an hour. Your best people are also the most likely to be quietly approached by someone else, precisely because they're good. The half-year review is a cheap, powerful way to remind them they're valued and have a future with you, before a recruiter does the noticing for you. - And it protects you. A documented, fair, two-way review is the trail that post-1 July rules expect. Good performance management stopped being a nice-to-have. It's now your evidence that expectations were clear and feedback was honest. If a working relationship ever does go wrong, the difference between "we had two documented, fair reviews this year" and "we never really talked about it formally" is the difference between a defensible position and an exposed one. The review isn't just a management tool now. It's part of your paper trail. Quick story. A growing café team I worked with skipped mid-year reviews "just this once". By September they'd lost their shift lead and a brilliant barista within two weeks. Both said the same thing in exit chats: "No one checked in when it started to feel too much." They now run short, structured half-year reviews. No drama. Far fewer surprises. ## What a good one actually looks like A good mid-year review is not a form. It's a conversation, lightly structured, that the employee leaves feeling clearer and more valued, not braced and defensive. The form, if you use one, serves the conversation, not the other way round. Here's the shape of it. - It's a two-way conversation, not a verdict. The worst reviews are the manager reading out a judgement while the employee nods and waits for it to end. The best ones are a dialogue: how do you think it's going, here's how I see it, where do those agree and differ. People support what they help shape. Someone who talks their way to their own priorities for the second half will own them in a way they never will if you simply hand them a list. - It looks back honestly and forward usefully. Spend a little time on the first half. What's gone well, what hasn't, what changed. Then spend more on the next half. What matters now, what's getting in the way, what would help. A review that lives entirely in the past becomes a scorecard, and scorecards make people defensive. The point of looking back is only ever to make the looking forward more useful. Aim to spend maybe a third of the time on the rear-view mirror and the rest on the road ahead. - It separates performance from the person. "The Q2 numbers came in under target" is about the work. "You're not a numbers person" is about the person, and it's a trap. One is a fact you can both look at and problem-solve. The other is a label that invites a fight and fixes nothing. Keep it on what happened and what changes. The moment feedback becomes about character rather than conduct, you've lost the room and probably the goodwill with it. - It surfaces the workload and wellbeing stuff. A review that only talks targets misses half the picture. "How are you finding the workload? Is anything draining you that we could change?" often surfaces the thing that would otherwise become a resignation in September. People rarely quit over one dramatic event. They quit over a slow accumulation of "this isn't working and nobody's asked". The mid-year review is your chance to ask before the accumulation tips over. - It ends with something concrete. Two or three clear priorities for the second half, any support agreed, and a date for the next check-in. And it's written down, briefly, fairly, two sides of the same record. A review that ends in a warm, vague "great chat, keep it up" changes nothing by Friday. The concrete ending is what turns a nice conversation into actual direction, and the written note is what makes it fair, shared, and on the record for both of you. Tech tip: keep it simple. We often set this up for clients in Breathe HR so actions and dates don't vanish. ## The questions that actually matter Skip the corporate questionnaire. These few, asked properly and followed by silence, do more than any form. - "Looking back over the first half of the year, what are you most pleased with?" - "What's been harder than it should have been? What got in your way?" - "Are your objectives from the start of the year still the right ones? What's changed?" - "How's the workload, honestly? Anything we should rebalance?" - "What would make the next six months better for you here?" - "Is there anything you've been meaning to raise and haven't?" Then, and this is the whole skill, stop talking and let them answer. The useful stuff almost always comes after the pause. Most managers can't bear more than a couple of seconds of silence and rush to fill it, which is exactly when they talk over the honest answer that was forming. Ask the question, then count to five in your head if you have to. The first thing someone says is often the polite version; the real answer comes when you leave enough room for it. One more thing on these questions: send them over beforehand. A review sprung on someone cold gets you their off-the-cuff, slightly defensive first draft. A review they've had a day or two to think about gets you something considered, honest, and far more useful. It also signals that you take it seriously, which changes how seriously they take it too. ## What gets in the way (and how to get past it) Even owners who believe in all this find reasons not to do it. Three come up again and again. - "I wouldn't know what to say." You don't need a script or a management qualification. You need the handful of questions above and the willingness to listen to the answers. If you can make a customer feel heard, you can do this. The structure carries you. You just have to start. - "What if they raise something I can't fix?" They might. That's fine, and it's better to know. You don't have to solve everything in the room. "I can't promise that today, but I've heard it and I'll come back to you by Friday" is a completely legitimate answer. Honour it and you'll build more trust than pretending you have all the answers ever could. - "We're too small and informal for this." Small and informal is an advantage, not an excuse. You already know these people. Stripped of the corporate scaffolding, a review in a small business can be warmer, more honest, and more useful than anything a 500-person company manages. You just have to make it deliberate rather than accidental. Naming the thing that's stopping you is usually enough to get past it. The half hour is almost never as awkward as the version you're avoiding in your head. ## Mythbuster corner - "Reviews are corporate nonsense for big companies." The framework can be. The conversation isn't. Strip the jargon and a review is just a manager paying proper attention twice a year, which small businesses can do better than anyone. - "My team's small, I talk to them all the time." Day-to-day chat isn't the same as a deliberate, two-way, on-the-record conversation about how it's going and where it's headed. The dedicated half hour surfaces things the corridor never will, because "how's it going?" over the kettle only ever gets "yeah, fine" in return. - "It'll just turn into a pay conversation." Sometimes pay comes up. That's fine. Handle it honestly. But a good review is mostly about clarity, recognition, and direction. Those matter to people at least as much as money. If pay does come up, hear it properly, be straight about what's possible and when, and don't let it hijack everything else. - "I don't have time for this." Half an hour per person, twice a year, against the cost of losing and replacing a good employee? Recruitment fees, lost knowledge, the months it takes someone new to get up to speed, the hit to the rest of the team. It dwarfs the half hour many times over. It's one of the highest-return uses of your time there is. - "If it's not written down perfectly it doesn't count." It doesn't need to be perfect. Two or three lines, dated, capturing what you agreed, beats a beautiful form you never fill in. Fair and brief and actually done wins every time. ## The seven-minute action list for this week 1. Block half an hour per person in your diary over the next fortnight. Actually book it. 2. For each person, glance back at their January objectives. Note which are still relevant. 3. Pick four or five of the questions above. Don't over-engineer it. 4. Ask the employee to think about the same questions beforehand, so it's genuinely two-way. 5. In the conversation, talk less than half the time. Let the pauses do the work. 6. End each one with two or three priorities, any support agreed, and a next-check date, written down. 7. Make it a habit. Diarise the next round now, so mid-year and year-end both happen. ## Halfway is exactly the right time to look up It's easy to put your head down and run a small business from January to December without ever stopping to look up. But the businesses that hold onto good people, and the ones that stay out of trouble, are the ones that pause in the middle of the year, check in properly, and adjust. You don't need a fancy system or a day of admin, though a simple, consistent tool like YourAppraisal makes it fair, easy, and on the record. You need half an hour per person, a handful of honest questions, and the discipline to listen. Do that this fortnight, and you'll head into the back half of 2026 with a clearer, happier, better-protected team. And here's the quiet payoff most owners don't expect: the review helps you as much as them. You come out of a good round of half-year conversations knowing exactly where your team is, what's about to break, who's flying, and who's quietly struggling. That's not admin. That's the clearest picture of your business you'll get all year, and it costs you an afternoon. Half the year's gone. Make the second half count. Kettle On. Standards Up. ## Make your reviews easy and fair If you'd like a simple way to run mid-year reviews that your team don't dread and that gives you a proper record, that's exactly what I help with. - [YourAppraisal](https://www.yourappraisal.io), fair, simple appraisals and reviews, on the record - [Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to see where your people processes stand at the half year - [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) to talk through performance and retention - [Listen to Buzzing About HR](https://kateunderwoodhr.co.uk/podcast), new episodes every Tuesday --- ### Your Three-Year-Old Policies Don't Fit Today's Team - URL: https://kateunderwoodhr.co.uk/blog/people-hr/three-year-old-policies-dont-fit-todays-team - Published: 2026-07-15T00:00:00.000Z - Category: people-hr - Tags: employee-handbook-update, update-employee-handbook-uk, employment-rights-act-changes-2024 # The handbook nobody's opened since 2023 There's a document on your shared drive called something like "Employee Handbook FINAL v3." It was a triumph when you made it. You paid someone, or spent a weekend on it, and it covered everything. That was three years ago. Since then: the Employment Rights Act has changed dismissal and day-one rights, holiday record-keeping became a legal duty, the Fair Work Agency arrived, flexible working and carer's leave became day-one rights, and your team itself has changed, new people, new patterns, maybe some hybrid working that "temporary" arrangement from a few years back quietly made permanent. Your policies haven't moved. The world has. And a policy that's quietly wrong is arguably worse than no policy at all, because it gives everyone false confidence right up until the moment it fails. It's Self-Care Week and Samaritans Awareness Day falls on the 24th, a fitting week to talk about the unglamorous admin that, done right, actually protects your people. Kettle on. ## Why an out-of-date policy is a real risk, not just untidy A policy isn't decoration. It's the thing you reach for when something goes wrong, a grievance, a dismissal, an accusation, an absence pattern, a complaint. In that moment, you find out whether your handbook reflects the law as it is now, or the law as it was when you wrote it. If it's out of date, three things happen. You apply a process that's no longer compliant. You make a decision your own documents don't actually support. And if it ends up in front of a tribunal or a Fair Work Agency inspector, your paperwork undermines you instead of protecting you. "We followed our policy" is no defence if the policy itself was wrong. In fact it can make things worse, because you've now demonstrated, in writing, that you followed a flawed process to the letter. There's a human cost too. Out-of-date policies often quietly fail the people they're meant to protect, the carer who's entitled to leave the handbook doesn't mention, the employee raising a concern through a process that no longer works, the manager handling absence by rules that changed. Good policy is how a small business shows it's serious about looking after people. Stale policy says the opposite, even when you don't mean it to. And it undermines you from the inside, day to day, long before any dispute. When managers can't trust the handbook, they stop reaching for it and start improvising, and improvised decisions are inconsistent by definition. One manager handles a request one way, another handles it differently, and the moment two employees compare notes you've got a fairness problem you never intended to create. A current policy isn't just legal cover. It's the thing that keeps everyone making the same call for the same reasons. ## The policies most likely to be out of date You don't need to rewrite everything. These are the ones that have moved most, and that I find wrong most often. - **Disciplinary and dismissal.** The big one after 1 July 2026. If your process still leans on the old two-year world or treats probation as a formality, it needs updating to reflect the statutory probationary process and day-one protections. - **Probation.** Often a single vague line. It now needs to describe a real, structured process, because it's doing legal work it never used to. - **Holiday and leave.** Record-keeping is now a legal duty, and the 52-week reference period applies to irregular hours. Many handbooks still describe the old methods. - **Flexible working and family leave.** Flexible working and carer's leave are day-one rights now. Handbooks written even two years ago often still show qualifying periods that no longer exist. - **Absence and sickness.** Worth checking your sick pay and return-to-work wording still matches both the law and how you actually operate. - **Whistleblowing / raising concerns.** Does your team genuinely have a clear, safe way to raise something? A vague "speak to your manager" isn't enough, especially if the concern is the manager. A proper route (something like [SafeVoice](https://kateunderwoodhr.co.uk/services/safevoice)) protects both your people and you. - **Data protection and use of AI.** A quietly growing gap. If your team now uses tools that didn't exist when the handbook was written, pasting customer data into an AI chatbot, say, and your policies say nothing about it, you've a hole where a clear rule should be. This is one of the fastest-moving areas there is. - **Anything mentioning "the office" as if hybrid never happened.** If your working patterns changed and your policies didn't, you've got a gap between what's written and what's real, and that gap is where disputes live. ## How to refresh without a six-month project The thought of "redoing all the policies" is exactly why it never happens. So don't do that. Do this. 1. **Triage, don't rewrite.** You don't need a blank page. List your policies and mark each one: fine, needs a tweak, or genuinely out of date. Most will be fine. You're hunting for the few that have actually moved. 2. **Prioritise the high-risk, high-use ones.** Fix disciplinary, dismissal, probation and leave first, they're the ones you'll actually reach for, and the ones the law has changed most. The policy on use of the office kettle can wait. 3. **Use good sources.** ACAS has free, current templates for the core policies. You don't have to invent the wording, you have to make sure yours matches today's law and your real practice. Copy-pasting a generic template without checking it against how you actually operate just swaps one mismatch for another, so treat the template as a starting point, not the finished job. 4. **Make it match reality.** The best policy in the world is useless if it describes a business you no longer run. Update it to reflect how you actually work now, then follow it. A policy you don't follow is arguably worse than none, because it sets a standard you're then visibly failing to meet. 5. **Tell people what's changed.** A refreshed policy that stays on the shared drive helps no one. When you update something that affects how people work, say so, a short note, a line in a team meeting, a quick acknowledgement that they've seen it. That's also part of your record that the change was communicated, not just filed. 6. **Diarise a yearly once-over.** The reason policies drift is that nobody owns reviewing them. Put a recurring annual reminder in the diary, a half-day, once a year, to check nothing's gone stale. That single habit prevents the three-year drift entirely. ## Mythbuster corner - **"No policy is safer than a wrong one, at least I can't breach it."** No. The absence of a policy is its own exposure, and "we had no process" is a poor look in a dispute. A current, followed policy is the goal. - **"We're too small to need all this."** The law doesn't scale down for small teams. If anything, you're more exposed, because there's no HR function catching the drift. - **"I updated it during lockdown, it's fine."** That was several major law changes ago. The Employment Rights Act alone has moved enough to make a lockdown-era handbook out of date in the bits that matter. - **"Nobody reads the handbook anyway."** True, right up until something goes wrong, and then everybody reads it, very carefully, including their solicitor. - **"A policy review means a big spend on a consultant."** Not necessarily. A triage you do yourself, plus current templates and a couple of targeted fixes, gets most small businesses most of the way. You bring in help for the tricky, high-risk bits, not the whole thing. ## The seven-minute action list for this week 1. Find your handbook and check the date it was last reviewed. If it's over a year, that's your sign. 2. List your policies and triage each: fine / tweak / out of date. 3. Pull your disciplinary, dismissal and probation policies to the top, fix those first, post-1-July. 4. Check holiday and leave wording reflects the new record-keeping duty and day-one rights. 5. Make sure people have a real, safe way to raise a concern, not just "tell your manager." 6. Check nothing still assumes a way of working you've since changed. 7. Diarise a yearly policy once-over so you never drift this far again. ## A current policy is a kindness, not just cover It's easy to file "update the policies" under boring admin and never get to it. But reframe it. A current, fair, followed policy is how you make sure the carer gets their leave, the person with a worry has somewhere safe to take it, and the difficult situation gets handled properly instead of made up on the spot. It protects your people first, and you second. And it takes a weight off you, too. When the handbook is right and up to date, you don't have to hold every rule in your head or reinvent the answer under pressure. You reach for the document, and it holds. That's exactly the kind of quiet self-care, for the business and for you, that this week is about. You don't need a six-month project. You need a triage, a couple of priority fixes, and a yearly diary note. A morning's work now saves you a very bad day later, and quietly tells your team you take looking after them seriously. Kettle on. Standards up. ## Want your policies brought up to date? If your handbook is a few years and several law changes out of date, a focused refresh of the policies that matter is exactly what I do. - **[See HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect)** for ongoing, always-current policy and people support - **[SafeVoice](https://kateunderwoodhr.co.uk/services/safevoice)**, give your team a genuinely safe way to raise concerns - **[Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check)** to find the gaps - **[Listen to Buzzing About HR](https://kateunderwoodhr.co.uk/podcast)**, new episodes every Tuesday --- ### Difficult Conversations at Work: The Cost of Waiting - URL: https://kateunderwoodhr.co.uk/blog/leadership/difficult-conversations-at-work-cost-of-waiting - Published: 2026-07-08T00:00:00.000Z - Category: leadership - Tags: difficult-conversations, how-to-have-difficult-conversations-at-work-uk, workplace-conflict-resolution-uk # Difficult conversations at work: your simple, fair playbook Picture this. You've rehearsed a line for three weeks. You need to have difficult conversations at work. Work has slipped. Attitude has crept in. Lateness is now the default. You planned to raise it on Monday. Then Monday came and went. Three weeks later, it is harder. They will ask why you waited. You feel sick about a chat that would take four minutes. Welcome to the most expensive habit in small business: the avoided conversation. Here is the fix. Have it earlier, better, and without it wrecking your week or theirs. And the timing matters. We are past mid-year. New dismissal rules kicked in on 1 July. Honest documented feedback, early, has moved from good practice to legal self-defence. The manager who gives clear feedback year-round is building the trail that protects them if things go wrong. Kettle on. ## Why we avoid difficult conversations at work Avoiding hard chats is human, not weakness. In a small business, it feels personal because it is. - You actually like them. You know their kids' names. It feels personal to raise a problem. - You worry you will make it worse. What if they cry, quit, or the mood dips for a fortnight. - You fear saying the wrong thing. So you say nothing and lose the paper trail you will later need. - You are busy. Fires to fight. The quiet word slips down the list until a one-off becomes a pattern. None of that makes you bad at your job. It makes you normal. But avoidance has a cost. ### The hidden costs you rarely count - Team standards slide when you let a pattern run. - Your best people carry the slack and quietly disengage. - The person missing the mark loses the chance to improve. - Your legal position weakens without notes, dates, and clear expectations. ACAS puts the annual cost of workplace conflict to UK organisations at around £28.5 billion, or about £1,000 per employee (ACAS, Estimating the costs of workplace conflict, 2021). Early, fair conversations reduce that bill. Expert view: "ACAS advises tackling issues early and keeping a written record to stop problems escalating." Source: ACAS Discipline and grievances guidance, [gov.uk/acas resources](https://www.gov.uk/acas). ## What avoidance actually costs Here is the maths most owners skip. The longer you leave it, the more normal it looks. Others copy it. Your strongest people notice the most. They fix the late report. They bite their tongue in the meeting. They also update their CV. Silence also hurts the person in question. They cannot fix what they do not know. Months later, when it finally comes up, they feel blindsided. "Why did nobody tell me?" is a fair question. There is a legal hit too. Since 1 July, your protection rests on a trail of clear expectations and honest, documented feedback. If you act suddenly after months of silence, it looks out of the blue. A tribunal, or a solicitor, will ask: when did you first raise this, and what did you write down? The conversation is cheap. The avoidance is expensive. > "Regular, timely feedback is essential to performance management." Source: CIPD Performance Management factsheet, 2024. Stat to watch: The UK sickness absence rate reached 2.6% in 2023, the highest since 2004 (ONS, Sickness absence in the UK labour market, 2023). Poor management and unresolved conflict add to absence and lost output. ## A simple structure that works You do not need to be a mediator. You need a calm, fair structure that works on a normal Tuesday. ### 1. Prepare the facts, not the feelings Get specific. Not "your attitude is off" but "the Henderson report was two days late on 10 and 17 June, and in Tuesday's meeting you spoke over Priya twice." Specifics are kinder and harder to dispute. Jot two or three examples before you meet. ### 2. Open plainly and privately No ambush by the kettle. Book a private fifteen minutes. Try this: "I wanted a quiet word about a couple of things I have noticed. I might be missing context and I want to understand it." That line matters. This is a conversation, not a sentencing. ### 3. State it, then stop Say the thing. Then be quiet. Do not fill the silence. Do not stack five more issues. Let the point land. ### 4. Listen for the why Often there is something underneath. Overload. A process gap. Burnout. A training miss. You cannot fix what you do not hear. Listen properly. No "yeah, but" while they talk. ### 5. Agree what changes, and by when Make it concrete and two-way. What changes. What support you will give. When you will check in. Then write a short note of what you agreed. Not a warning. A record. Date it. ### 6. Follow up Book the check-in before you leave the room. Following up turns a telling-off into change. It also lets you say the nice bit: "the last three reports have been spot on, thank you." ## Handling wobbles in the room Even good conversations wobble. Plan for the big three. ### Tears Pause. Offer water. Take two minutes. Then continue gently. Upset does not mean you were unfair. Do not abandon the point. ### Defensiveness "Not fair." "Everyone does it." Your facts earn their keep here. Return to the specifics: "I hear it feels unfair. I am looking at these two dates. Can we talk about those?" ### Anger Lower your voice. Slow down. Park it if needed: "I can see this has landed hard. Let's take a break and pick it up this afternoon." Whatever happens, stay calm, stay specific, and stay kind. ## The feedback sandwich and other traps ### The sandwich Compliment, issue, compliment. Sounds kind. Often lands as "you are doing great." The issue vanishes. Be warm and clear in the same sentence. ### Saving it all for the appraisal If the first mention is the review, you left it too long. Feedback should be a steady drip, not an annual flood. ### Being "nice" instead of honest Clear is kind. Unclear is unkind. Dodging the point robs someone of the chance to improve and dents team trust. ### Doing it by message Do the hard bits in person, or on a call if you must. Use writing afterwards to record what you agreed. ## When it does not improve Most of the time, an early, fair chat works. Sometimes it does not. Know the line between informal and formal. Follow the ACAS Code for discipline and capability when you move to a process. Do not jump to formal for a first, fixable slip. Do not repeat the same "quiet word" five times either. If you have used the structure above, you have most of what you need: - Dated notes - Clear expectations - Evidence of support offered - A fair chance to improve That trail is what a fair process is built on. It is also what protects you in an exit. If you are unsure where the line sits in a live case, get advice before you act. ## The seven-minute action list for this week 1. Name the one conversation you are avoiding. Write the person and the issue. 2. Gather two or three examples. Facts and dates, not feelings. 3. Book a private fifteen minutes this week. Put it in the diary. 4. Plan your opening line. One issue, stated plainly. Then listen. 5. Decide what good looks like and by when. 6. After the chat, write two lines on what you agreed. Date it. 7. Book the follow-up before you leave the room. ## FAQs on difficult conversations at work - How do I start difficult conversations at work without causing conflict? Start privately with a simple opener: "I want to share a couple of specific things I have noticed and understand your view." Use two clear examples and keep the tone calm. - How should I document difficult conversations at work? Keep a short dated note of what you raised, what was agreed, any support, and the review date. Store it in your HR system. ACAS recommends a written record. - What if an employee refuses the meeting? Re-offer a time and explain why it matters. If they still refuse, set out your concerns in writing and invite them again. Escalate to a formal process if the pattern continues. - How long should a difficult conversation take? Fifteen to twenty minutes is fine for most issues. Long lectures do not help. One point, clear examples, agree next steps, and set a review date. - Do I need a witness or HR in the room? Not for an informal chat. For a formal meeting under the ACAS Code, the employee has a right to be accompanied. - What if they cry or get angry? Pause. Offer a break. Then continue calmly with the facts. Park and reconvene if needed. Do not abandon the standard. ## Final thoughts and a pep talk The hardest part is starting. Once you do, it is almost always easier than the version in your head. Avoidance pushes pain onto your best people and weakens your position. Having the chat early, kindly, and on the record is the safest move for everyone. Pick one conversation. Have it this week. You will wonder why you waited. Kettle On. Standards Up. And if you want a script, I have you. ## Helpful links and support - Book a discovery call to talk through manager support and training: [https://kateunderwoodhr.co.uk/discovery-call](https://kateunderwoodhr.co.uk/discovery-call) - Employment Rights Act advice and feedback process post-1 July: [https://kateunderwoodhr.co.uk/employment-rights-act-advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) - Free HR Health Check for SMEs: [https://kateunderwoodhr.co.uk/hr-health-check](https://kateunderwoodhr.co.uk/hr-health-check) - Buzzing About HR podcast, new episodes every Tuesday: [https://kateunderwoodhr.co.uk/podcast](https://kateunderwoodhr.co.uk/podcast) External resources: - [ACAS Code of Practice on disciplinary and grievance procedures](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures) - [ACAS Estimating the costs of workplace conflict](https://www.acas.org.uk/costs-of-conflict) - [ONS Sickness absence in the UK labour market](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/sicknessabsenceinthelabourmarket) - [CIPD Performance management factsheet](https://www.cipd.org/en/knowledge/factsheets/performance-factsheet/) --- ### OSP on Your Payslip? What It Means and When It's Wrong - URL: https://kateunderwoodhr.co.uk/blog/guides/what-is-osp-on-a-payslip - Published: 2026-07-03T09:00:00Z - Category: guides - Tags: osp, occupational-sick-pay, payslips, statutory-sick-pay, sick-pay-schemes, small-business-hr # The three letters nobody explains You're checking a payslip. Most of it makes sense. Salary, tax, National Insurance, pension. Then, sitting in the middle, three letters: OSP. Maybe there's a number next to it. Maybe there's a minus sign, which feels alarming. Either way, nobody has ever explained it, and the payroll software certainly isn't going to. Whether you're the person being paid or the person running payroll, here's the plain-English version. Kettle on. ## What does OSP mean on a payslip? OSP stands for **Occupational Sick Pay**. It is sick pay your employer chooses to provide under your contract or staff handbook, on top of the legal minimum. If you see an OSP line on a payslip, it means sick pay from the company's own scheme was paid in that period, shown separately so it's clear which part of your pay it was. The legal minimum, by contrast, is **Statutory Sick Pay (SSP)**, which is set by the government and works the same in every UK business. That's the whole answer. The rest of this post is the detail that stops the follow-up questions. ## OSP vs SSP: what's the difference? The two get muddled constantly, so here's the split: - **SSP is the law.** Every qualifying employee gets it, at a flat weekly rate set by the government. Since April 2026 it starts from day one of sickness, [a change that caught a lot of small employers out](/blog/legislation/ssp-starts-day-one-change-sick-pay). - **OSP is a choice.** There is no legal duty to offer it. If a business does, the scheme design is entirely up to them: how much, for how long, who qualifies, and what evidence is needed. - **They usually appear together.** A generous employer's payslip might show SSP (the statutory bit) plus OSP (the top-up to full pay). The two lines added together are your sick pay. - **SSP has a rate. OSP has a policy.** If you want to know your OSP entitlement, the answer is not on the government website. It's in your contract or staff handbook. ## Why does my payslip show an OSP deduction or contra? This is the one that generates worried phone calls, so let's kill the mystery. When you're off sick, many payroll systems process it in two moves: - **Move one:** your normal salary is reduced for the days you were off. That shows as a minus line, sometimes labelled "OSP contra", "OSP gross reduction" or similar. - **Move two:** sick pay is added back as its own lines, OSP and, where relevant, SSP. If your scheme pays full pay while you're sick, the minus and the plus cancel out and your total is unchanged. It looks odd, but it's just the payroll system showing its working, the same way you were told to in maths class. It also matters for the records: HMRC, tribunals and auditors all like to see sick pay identified separately rather than buried in salary. If the numbers don't net off to what you expected, that's the moment to ask payroll to walk you through it, because either your scheme pays less than full pay (common and legitimate) or something's been keyed wrong (also common, less legitimate). ## Is OSP taxable? Yes. OSP is pay. It goes through PAYE like the rest of your wages, with income tax and National Insurance deducted as normal, and it counts as pensionable earnings in most schemes. There is no special tax treatment for sick pay, statutory or occupational. ## How much OSP should you get? Whatever the scheme says, and schemes vary enormously. Common shapes: - **Full pay for a period, then half pay, then SSP only.** The classic. For example, four weeks at full pay, four at half, rising with length of service. - **A flat number of paid sick days per year.** Simpler to run, popular with smaller businesses. - **Discretionary.** The handbook says sick pay "may" be paid. This gives the employer flexibility and the employee uncertainty, and it has to be exercised consistently or it becomes a grievance generator. If you can't find the answer in your contract or handbook, ask. If the answer is a shrug, that's a policy gap, which brings us neatly to the other half of the audience. ## Running a small business? This is your bit If you're the employer and someone's just asked you what OSP means on their payslip, the honest answer might be "whatever the payroll software did". That's fixable, and worth fixing, because sick pay is one of the places where vagueness gets expensive. Three things to have squared away: - **A written policy.** How much, how long, who qualifies, what evidence, and whether it's contractual or discretionary. If it's in the contract, it's a legal entitlement and you can't quietly not pay it. - **A scheme you can afford on a bad month.** Two people off long-term at full pay is a very different cost to two people on SSP. Model it before you promise it. The full trade-offs are in our guide to the [advantages and disadvantages of sick pay schemes](/blog/guides/advantages-disadvantages-sick-pay-schemes). - **Payslips that make sense.** If your payroll shows contra lines, make sure whoever answers staff questions can explain them in one sentence. Confusion reads as concealment, even when it's just accounting. ## Mythbuster corner - **"OSP is a legal requirement."** No. SSP is the legal floor. OSP is voluntary, but once it's in the contract it becomes binding. - **"A minus OSP line means I've been docked pay."** Usually not. It's normally the salary-out, sick-pay-in bookkeeping described above. Check the lines net off correctly before assuming the worst. - **"Sick pay isn't taxed."** It is. All of it, statutory and occupational. - **"Small businesses can't afford OSP."** Some can't, at full-pay-for-months levels. But a modest, clearly-written scheme, even a handful of paid sick days, is affordable, appreciated, and far better than an unwritten habit of "sorting it out case by case". ## The two-minute payslip check Next time OSP appears on a payslip, whichever side of it you're on: 1. Find the OSP line and any SSP line, and add them up. 2. Find any contra or gross-reduction line and check the sums net off to what the policy promises. 3. Check the policy actually exists in writing. Contract or handbook, not folklore. 4. If any of those three steps fails, ask the question now, not at tribunal. Sick pay is one of those topics that's boring right up until it isn't. Five minutes of clarity now saves a very awkward conversation later. Kettle on. Payslips out. ## Need a hand with sick pay? If your sick pay arrangements live in the category of "we've always just sort of managed", that's exactly the kind of thing I tidy up for small businesses. - [Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) for a quick, jargon-free read on where your people processes stand - [Read the sick pay schemes guide](https://kateunderwoodhr.co.uk/blog/guides/advantages-disadvantages-sick-pay-schemes) for the employer's decision in full - [See what changed with day-one SSP](https://kateunderwoodhr.co.uk/blog/legislation/ssp-starts-day-one-change-sick-pay) if your policy predates April 2026 - [Work out holiday pay properly](https://kateunderwoodhr.co.uk/blog/guides/how-to-calculate-holiday-pay-uk-2026) — the other payslip calculation small businesses regularly get wrong - [Listen to Buzzing About HR](https://kateunderwoodhr.co.uk/podcast), new episodes every Tuesday --- ### World Cup at Work: Leave, Sickies and Sweepstakes Sorted - URL: https://kateunderwoodhr.co.uk/blog/people-hr/world-cup-work-leave-sickies-sweepstakes - Published: 2026-07-02T00:00:00.000Z - Category: people-hr - Tags: world-cup-workplace, managing-annual-leave-during-the-world-cup, absence-management-after-england-matches # World Cup workplace policy: when half your team wants Monday off Picture this. It's July. The World Cup is on. England have a knockout on Sunday, and Monday leave requests land like confetti. Your World Cup workplace policy matters right now, because you need cover, calm heads, and zero drama. Good news. Handled well, this is a culture win, not a headache. The 2026 World Cup runs 11 June to 19 July, right on top of peak summer leave. Add Wimbledon and the Commonwealth Games, and you've got six weeks where big sport, hot weather and annual leave all clash. Kettle on. Or iced coffee, if you're fancy. ## Why this matters more in a small business A big employer can soak up three clashing requests. You can't. In a six-person team, two watching the match and one off the day after means a third of your workforce out. Work still needs doing. Flip side. Small businesses can move fast. You can stick the match on. Flex an afternoon. Swap a shift in one chat. Used well, a clear World Cup workplace policy is low-cost morale. The trick is fairness and a bit of planning. ## The five things people get wrong - 1) Winging it on leave clashes First-come-first-served feels fair until the same two people always win. Without a simple rule, popular dates breed quiet resentment. - 2) Pretending sickies aren't happening Late matches often mean "unexpected absence" the next day. Ignore it and honest people notice. Police it like a crime scene and you damage trust. There is a middle ground. - 3) Assuming everyone's into it Plenty of people do not care about football. Inclusion cuts both ways. "We're all watching the match" can land as "your preferences don't count". - 4) The sweepstake nobody thought about Sweepstakes can be fun but they're still gambling. Keep it small, voluntary, and pay out all proceeds. Never take it through payroll. The Gambling Commission has clear guidance on work lotteries. - 5) No plan, then a panic Fixtures are public well in advance. The teams that wobble didn't open the calendar until three leave requests hit the same day. > Stat to watch: ONS reported a 2.6% sickness absence rate in 2022, the highest since 2004. Big events don't cause all of it, but they can nudge patterns. Source: Office for National Statistics. ## Your fair-and-fun playbook ### 1) Set the leave rule before the clash Decide and tell people how you'll handle clashes. Options that work: - First-come-first-served with a fair cut-off - Rotate priority if the same people always clash - Cap releases per shift and ask teams to agree cover together Write the rule. Share it. Apply it the same way every time. That is your World Cup workplace policy doing its job. ### 2) Make a positive offer on big matches Get ahead of the ten "can I leave early?" messages. Decide what you can offer, then announce it: - Screen the match at work - Flex start and finish times - Early start buys early finish - Remote-first hour next morning One clear message beats a dozen awkward chats. Goodwill goes up. Noise goes down. > Expert view: "There is no statutory right to time off to watch sporting events." Source: Acas guidance on sporting events and work. ### 3) Handle absence calmly and consistently Keep your return-to-work chat after every absence. Short. Friendly. Consistent. No side-eye needed. Patterns get spotted because the process is steady, not because you turned detective for one Friday. Your World Cup workplace policy should point to the same simple steps you use all year. ### 4) Keep it inclusive, both ways Make the fun opt-in. No one should feel forced to join or left with all the cover. If match-watchers get flex, make sure non-watchers get fair treatment too. This is how you protect morale for the whole crew. ### 5) Mind the drink and the banter Sunshine and sport can blur lines. If you're watching on-site with drinks, your normal conduct standards still apply. Keep an eye on "banter" drifting into something that excludes. Most teams self-manage. You stay present and set the tone. ## A quick word on sweepstakes and gambling Office sweepstakes are usually fine if you keep it clean: - Voluntary, no pressure to join - Low stakes - Pay out every penny collected - No payroll deductions, ever Work lotteries are covered by the Gambling Act 2005. Check the Gambling Commission's guidance for the simple do's and don'ts. If you think someone is struggling with gambling, that is a wellbeing chat, handled privately and kindly. GamCare offers free, confidential support. ## Mythbuster corner - "I have to give people time off for matches." No. There is no legal right to time off. A flat no to everything, though, is a morale own goal. Your World Cup workplace policy can flex where it's sensible. - "I can sack someone for a World Cup sickie." Slow down. One suspect day is a return-to-work chat. A pattern needs a proper process, followed fairly. - "Everyone loves the football." Some do. Some don't. Make it optional and keep the team spirit without side-lining anyone. - "Sweepstakes are illegal at work." A small, voluntary, fully paid-out sweepstake is usually fine. Keep it low-key and off payroll. ## The seven-minute action list for this week 1. Open the fixtures and your leave planner side by side. Spot clashes now. 2. Set your clash rule and share it with dates and caps. 3. Pick the big matches and publish what you'll offer. 4. Reconfirm your return-to-work chat happens after every absence. 5. Check cover is shared. Non-watchers are not carrying the load. 6. If there's a sweepstake, keep it voluntary, low-stakes and fully paid out. 7. Diarise the same checks for Wimbledon and the Commonwealth Games. ## World Cup workplace policy essentials, in one page Here's the heart of it: - Write the rule for leave clashes - Offer small, proactive flexibility - Keep absence chats consistent - Make participation optional - Set the tone on conduct and alcohol - Keep sweepstakes compliant ## FAQs - Do I have to give time off to watch matches under a World Cup workplace policy? No. There is no legal right to time off, but a fair, limited offer can reduce disruption. - Can I let people work flexible hours under a World Cup workplace policy? Yes. Agree start and finish changes in writing, and keep service cover in place. - What if staff call in sick after a late match? Hold the usual return-to-work chat. Record it. Tackle patterns, not one-offs. - Are office sweepstakes legal in the UK? Yes, if run as a private work lottery with all proceeds paid out and no profit. Check the Gambling Commission guidance. - How do I keep it fair for staff who don't like football? Make match activity opt-in, share cover evenly, and offer something fair for non-watchers too. - Should my World Cup workplace policy cover alcohol at work? Yes. Point to your normal conduct rules. Spell out expectations for any on-site viewing. ## Make it a win, not a war The workplaces people love are the ones where the boss read the room, put the match on, flexed where possible, kept it fair, and didn't make a federal case of one ropey Friday. Your World Cup workplace policy should make that easy. Plan the clashes. Make a generous-but-fair offer. Keep absence steps steady. Let the non-watchers opt out gracefully. Do that and you'll bag the morale boost without the headache. Your team will remember how it felt long after they forget the score. Kettle On. Standards Up. Come on, you lovely lot. --- ### 1 July Is Here: The New Dismissal Rules Are Live. Now What? - URL: https://kateunderwoodhr.co.uk/blog/legislation/july-1-new-dismissal-rules - Published: 2026-07-01T00:00:00.000Z - Category: legislation - Tags: unfair-dismissal, unfair-dismissal-changes-uk-1-july, day-one-unfair-dismissal-rights # Unfair dismissal qualifying period: what 1 July means for SMEs Right. It's 1 July. The countdown is over and the unfair dismissal qualifying period has changed. Protection kicks in much earlier, paired with a statutory probation process for genuine new starters who aren't working out. Kettle on. Let's get you straight. ## What changed to the unfair dismissal qualifying period Before today, most employees needed two years' service to bring an ordinary unfair dismissal claim. From today, the unfair dismissal qualifying period moves close to day one. To balance that, there's a statutory probation period with a lighter, but still fair, process. Here's the headline I've shouted all month. "Dismiss freely in year one" is over. Even with someone who started this morning, you will need a reason and a fair, evidenced process. Lighter in probation. Never nothing. Plain English note: the exact probation length and steps live in the regulations and ACAS guidance. More of the Act lands in 2027. Before you decide on any dismissal, check the current detail for that individual case. Suggested stat to monitor: Ministry of Justice Tribunal Statistics Quarterly shows trends in unfair dismissal claims each year. Use it to track risk and legal exposure for SMEs. Expert view: "Probation periods should be managed fairly and consistently, with clear expectations and regular feedback." Source: ACAS guidance on probation. ## Day one scenarios you asked me about Let's make it concrete. - They started today. They have meaningful protection far sooner than yesterday's hire. That's your cue to make probation real. Set expectations on day one. Give honest feedback. Write it down. - Month nine and not working out. Old instinct: "Under two years, let them go." That's now out of date. Stop. Get advice on the actual facts. Follow a fair process. - You're about to send an offer. Update the offer letter and contract first. If your probation wording still reflects the old two-year logic, fix it before you send it. - Long servers. No change. People already past two years had this protection anyway. Today affects the front end of employment. ## Your post 1 July checklist If June ran away from you, do this in order. ### Today - Fix the probation clause in your contract and offer letter so it reflects the statutory probation process. One job, biggest payoff. - List everyone in their first months. For each person: are expectations clear, has feedback been given, and is there a short written note? ### This week - Make probation reviews real. Short, structured reviews at weeks 4, 8 and 12. Talk expectations, progress, and changes needed. Both sign and date. Fifteen minutes each. - Get feedback in writing. After any feedback chat, add a two-line note to the file. No record, no defence. - Brief your managers. "They're new" is no longer a free pass. Early, honest, documented feedback is part of the job now. ### Before any dismissal decision - Get advice on the specific case. The fair process inside probation has defined steps. One rushed exit is where the cost lands. ## Use mid year reviews as your legal safety net 1 July is mid year. The same week the unfair dismissal qualifying period shifts is the week to run mid year reviews. That's not an accident. A proper review creates the paper trail you need under the new rules. - Clear expectations - Honest two-way feedback - Dated notes - Simple next steps That record protects you and supports your people. Feedback stops being an annual ordeal and becomes a routine, light-touch habit. Good performance management is now a legal asset as well as good leadership. If your reviews live in your head or in a form nobody reads, fix that this month. A simple, consistent process turns "I think I mentioned it" into "here's the dated record". Helpful tools and support: - Your appraisal workflow can be handled by a simple tool such as [YourAppraisal](https://www.yourappraisal.io) for quick, fair, on-the-record reviews. - For a wider people audit, try our free check-up: [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). ## Mythbuster corner - "I missed the deadline, I'm in trouble." There's no penalty for not being "ready" today. The risk comes from handling an actual dismissal badly. Tidy up now and you're fine. - "I can never let a new person go." You can, with a reason and a fair process. Genuine, well-managed exits are possible. - "A clause in my contract protects me." A clause can't override a statutory right. It supports a clear process; it can't replace one. - "I'll wait and see how it's enforced." The wait-and-see crowd are the ones with no paper trail when a claim lands. Build the habit now. It takes minutes. ## Seven minute action list for today 1. Open your contract and offer letter. Check the probation clause matches today's rules for the unfair dismissal qualifying period and probation. 2. List everyone in their first few months. That's your priority group. 3. Confirm expectations and written feedback for each person. Fix gaps. 4. Diarise probation reviews at weeks 4, 8 and 12 for all new starters. 5. Tell managers in plain English: honest, recorded feedback is part of the job. 6. Book your mid year reviews this month. Make them real, written and two-way. 7. Bookmark our guide and get your quick audit: [Employment Rights Act Advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) and [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). ## The rules changed. Your good habits don't have to. Here's the calm bit. The unfair dismissal qualifying period update rewards what good managers do anyway. Clear expectations. Honest feedback. Fair process. Tidy records. Owners who hire on a hunch, dodge hard chats, and go for a sudden exit will struggle. That was never smart. Now it's a liability too. Treat 1 July as the nudge to do what you've meant to do for ages. Tidy your contracts. Make probation real. Run proper reviews. Then crack on with your summer. Kettle on. Standards up. ## Get squared away Need a sanity check on your setup or a thorny case? That's what I'm here for. - [Employment Rights Act Advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) what changed and what to do now - [Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) quick read on your risk points - [Listen to Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) new episodes every Tuesday Until next time, keep buzzing and take care of your people! --- ### Are You Ready for 1 July 2026? The Two-Year Rule Is About to Change - URL: https://kateunderwoodhr.co.uk/blog/legislation/two-year-rule-change-1-july-2026 - Published: 2026-06-24T00:00:00.000Z - Category: legislation - Tags: two-year-rule, unfair-dismissal-qualifying-period, uk-employment-law-changes-2026 # Employment Rights Act 2025 unfair dismissal: one week to go Picture this. You hire in spring, it wobbles by month three, and you assume the old two-year rule gives you cover. Under the Employment Rights Act 2025 unfair dismissal protections kick in far earlier. From Wednesday 1 July 2026, the easy exit in year one stops being safe. For years, many SMEs worked to a rough test: under two years, easier to let go. That was never absolute, and from next week it's out of date. So grab a brew. We'll get you ready. ## What's changing on 1 July 2026? Right, first things first. Here's the shift in plain English. ### Before 1 July - Ordinary unfair dismissal protection usually started after two years' continuous service. - Under that threshold, you had wider room to act, though discrimination and automatic reasons were always off limits. ### From 1 July 2026 - Protection applies far earlier in employment. - A new statutory probationary period applies. It gives a lighter-touch, but still fair, route for early exits. - You'll still need a fair reason and evidence. Lighter does not mean no process. The headline: dismiss freely in year one is over. You must set expectations, give feedback, and keep a simple paper trail. #### Two important notes - The exact probation window and steps sit in the regulations and ACAS guidance. Check current guidance before you dismiss. - This Act rolls out in phases. Some parts landed in April 2026 and others arrive in 2027. The unfair dismissal shift is the one that bites now. > Expert view: ACAS says, "Employees have the same rights during a probation period as any other employee." Source: [ACAS guidance on probation periods](https://www.acas.org.uk/probation-periods). Suggested stat to include on publication: latest HMCTS Employment Tribunal statistics for single unfair dismissal claims (2024 to 2025). Source: GOV.UK HMCTS tribunal statistics. ## Why this matters for small businesses? Big employers have policy, process and people to run it. You have your good judgement and a contract template from 2019. Gut feel still matters. On its own, it's now a risk. The change rewards employers who can show they hired with care, set clear goals, gave real feedback, and acted early and fairly. It punishes the classic SME pattern: swerve the awkward chat, hope for a miracle, then sack at month ten with nothing in writing. Here's the good bit. What protects you in law also builds a better team: - Clear expectations - Honest, timely feedback - A simple, tidy record That is good management. The Act turns it into legal self-defence. ## The five places SMEs will get caught out After two decades doing this, here are the trip wires I expect to see. ### 1. Treating probation like a tick-box A token chat at month three with no goals or feedback is useless now. The statutory probation route helps only if you use it, set targets, review, and document. ### 2. No written record If concerns were raised "in passing" with no notes, it looks like the dismissal came from nowhere. From 1 July, your paper trail is the difference between fair and unfair. ### 3. Out-of-date contracts and offers Documents built on the old two-year logic need new wording. Day-one written particulars are already a must. Now they need to be right. ### 4. Managers dodging tough conversations The costliest habit in any SME is the manager who avoids saying it isn't working until it's on fire. That was risky before. It's legal exposure now. ### 5. Assuming "they're new, so I'm fine" That belief ends next week. Retire it now. ## What to do this week, and just after? You've got about a week. Here's the order I'd use. ### This week - Update your contract, offer letter and probation clause so they reflect the statutory probation process. If you fix one thing, fix probation. - Pull a list of everyone in their first months. For each: are expectations clear, have you given honest feedback, is any of it written down? ### Build the habit - Make probation reviews real. Short, structured checkpoints at weeks 4, 8, 12. Expectations, progress, what must change. Signed and dated. Fifteen minutes. - Get feedback in writing. A brief note after a chat: what you discussed, what was agreed. A short email to yourself counts. - Brief your managers. "New" is no longer a free pass. Early, honest, recorded feedback is part of the job. ### Before you dismiss - Check the current rules for your case. The probation route has defined steps. Take advice before you act. A rushed decision is where the cost lands. Useful guidance: [ACAS overview on unfair dismissal and procedures](https://www.acas.org.uk/dismissals) ## Mythbuster corner - "I can give notice of the change and carry on." No. Statutory rights sit above your contracts. - "My flexibility or probation clause covers me." A clause supports a process. It cannot remove a statutory right. - "This kills hiring for small firms." It changes how you hire and manage probation. You can still part ways fairly and early if it's not right. - "It's not live until 2027." Some parts are later. The unfair dismissal shift is 1 July 2026. ## The seven-minute action list for this week If you do seven things, do these. 1. Open your standard contract and find the probation clause. If it leans on the old two-year rule, rewrite it. 2. List everyone in their first few months. That's your priority group. 3. For each, confirm expectations and capture any feedback in writing. 4. Diarise structured probation reviews for new starters at weeks 4, 8, 12. 5. Send managers a two-line heads-up: new no longer means easy to dismiss, feedback must be honest and recorded. 6. Bookmark our Employment Rights Act advice page and take the free HR Health Check. - Employment Rights Act Advice: [https://kateunderwoodhr.co.uk/employment-rights-act-advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) - Free HR Health Check: [https://kateunderwoodhr.co.uk/hr-health-check](https://kateunderwoodhr.co.uk/hr-health-check) 7. Listen to this week's Buzzing About HR, the 1 July countdown episode. - Podcast: [https://kateunderwoodhr.co.uk/podcast](https://kateunderwoodhr.co.uk/podcast) ## Quick reference: before vs after | Topic | Before 1 July 2026 | From 1 July 2026 | |---|---|---| | Ordinary unfair dismissal protection | Usually after 2 years' service | Starts far earlier | | Early exits | Wider latitude, but not for discrimination or automatic reasons | Statutory probation route with a lighter, fair process | | What you need | Basic fairness and some notes | Clear expectations, early feedback, documented steps | ## FAQs - What is the statutory probationary period under the Employment Rights Act 2025? It's a defined early window where a lighter fair process applies for new starters. The exact length and steps are in the regulations and ACAS guidance. - Does this stop me dismissing in the first few months? No. You can still exit fairly and early, but you need a valid reason and a simple, evidenced process. - Do employees on probation have fewer rights? No. ACAS is clear: employees have the same rights on probation as at other times. - What should my probation clause say now? It should reference the statutory probation framework, set checkpoints, state possible outcomes, and make clear that fair process will be followed. - Do I need a full disciplinary for a probation exit? Not the full version. Use the statutory probation steps and keep it fair, transparent and documented. - Where can I get practical help to update contracts and train managers? Start with our Employment Rights Act Advice page and book a free HR Health Check. We can also update your contracts and run manager briefings. ## Final thoughts and a friendly nudge This isn't the end of parting ways with a hire who isn't right. It's the end of doing it carelessly. Make probation mean something, write things down, and coach your managers. Do that, and 1 July is a footnote, not a fire drill. Need a hand? - Employment Rights Act Advice: [https://kateunderwoodhr.co.uk/employment-rights-act-advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) - Book a free HR Health Check: [https://kateunderwoodhr.co.uk/hr-health-check](https://kateunderwoodhr.co.uk/hr-health-check) - Book a discovery call: [https://kateunderwoodhr.co.uk/discovery-call](https://kateunderwoodhr.co.uk/discovery-call) - Listen to Buzzing About HR: [https://kateunderwoodhr.co.uk/podcast](https://kateunderwoodhr.co.uk/podcast) Kettle on. Standards up. Until next time, keep buzzing and take care of your people! --- ### No Maximum Work Temperature? 5 Heatwave Myths, Busted - URL: https://kateunderwoodhr.co.uk/blog/legal/no-maximum-work-temperature-heatwave-myths-busted - Published: 2026-06-19T00:00:00.000Z - Category: legal - Tags: maximum-workplace-temperature, maximum-workplace-temperature-uk-law, working-in-hot-weather-rights-uk # The bit no one tells you about heatwaves at work Every year, the first proper hot week lands and three things happen at once. - One: someone asks if they can go home because it is too hot to work and thinks it is the law. - Two: someone else turns up in flip-flops and a vest, and a customer notices. - Three: your inbox fills with newsletters about heatwaves at work that contradict each other. So here is the part most of them skip. There is no maximum workplace temperature in UK law. There is no number on a thermometer that forces you to down tools. Those 30 degrees and 27 degrees figures are TUC campaign asks, not law. Never have been. What you do have is a legal duty of care. The Health and Safety at Work etc. Act 1974 says you must keep people safe so far as is reasonably practicable. The Workplace (Health, Safety and Welfare) Regulations 1992 say temperature must be reasonable. The Approved Code of Practice gives a minimum for cold conditions, but still no maximum. Reasonable is the keyword. Reasonable in a glass office at 32 degrees is not the same as reasonable on a roof at 32 degrees. Reasonable for a fit 25-year-old is not the same as reasonable for a 58-year-old on blood pressure medication or someone who is 30 weeks pregnant. You do not have a number to hide behind. You have a judgement to make. Kettle on. Cold tap, this time. ## Heatwaves at work: the legal lowdown Let us get the law straight in 30 seconds. - There is no legal maximum workplace temperature. - Employers must keep the working environment at a reasonable temperature. - You must assess risk and act, particularly for higher-risk workers. ACAS puts it simply: > "There is no law for minimum or maximum working temperatures, for example when it is too cold or too hot to work." (ACAS, Temperature at work) Links to read and save: - [ACAS: Temperature at work](https://www.hse.gov.uk/temperature/) - [HSE: Temperature at work](https://www.hse.gov.uk/temperature/index.htm) - [HSWA 1974, Section 2](https://www.legislation.gov.uk/ukpga/1974/37/section/2) - [Workplace (Health, Safety and Welfare) Regulations 1992, Regulation 7](https://www.legislation.gov.uk/uksi/1992/3004/regulation/7) A quick reality check. The Met Office confirmed the UK exceeded 40 C for the first time in 2022. That heat is not theoretical any more. Source: Met Office record heat summary. ## Why this hits small businesses hard Big firms have facilities teams, HR, air con contracts, and a policy. You have a £6 thermometer if you remembered to buy one, a desk fan from 2019, and a chat thread full of people saying it is boiling. Every person matters more. If two of your six people are out with heat exhaustion on Wednesday, that is a third of your team gone for days. If someone collapses on site, you are the one calling the ambulance, their partner, and your insurer. The legal and financial hit is real. A heat-related personal injury claim, plus legal fees and lost time, can run into five figures. Add HSE attention and Working Time Regulations issues about rest in hot conditions and it drags on for months. You do not need convincing this matters. You need a simple method. ## Myths to bin before the mercury rises ### 1: It is the law to send people home at 30 degrees It is not. There is no legal maximum. You can send people home if your risk assessment says that is reasonable. It is your call, not an automatic right. ### 2: No air con means there is nothing I can do You have plenty. Fans, blinds down, hydration stations, flexible hours, relaxed dress code, longer breaks, remote work where it helps, earlier starts. Most are low cost. ### 3: Everyone is the same in the heat They are not. Pregnant workers, people with cardiovascular or respiratory conditions, people on some medications, older workers, and new arrivals to the UK may struggle sooner. The Equality Act 2010 means one size fits all is not good enough. Pregnant workers need a written risk assessment. Use ACAS guidance and HSE templates: - [ACAS: Pregnancy and maternity health and safety](https://www.hse.gov.uk/mothers/) - [HSE: New and expectant mothers](https://www.hse.gov.uk/mothers/index.htm) ### 4: If they wore shorts, that is their problem Dress code is your policy. If it makes heat risk worse, relax it and tell people clearly what is acceptable. Vagueness leads to complaints. ### 5: Working from home fixes the heat Sometimes. Some homes are cooler. Others are top-floor ovens. Remote work is one tool, not the answer by itself. ## Your hot-weather plan: 5 practical steps Get these in place before or at the start of a hot spell and you will be in a strong, defensible position. ### 1. Take the temperature and record it Buy a cheap digital thermometer. Take readings mid-morning and mid-afternoon in the actual work area. Log them, three a day. It proves you checked and helps you decide. ### 2. Write a one-page hot weather note Email it and pin it up. Keep it short and clear. Include: - Temporary dress code relaxation, spelled out in plain terms - Water available and frequent drink breaks encouraged - Flex to start and finish earlier where possible - Individual adjustments for anyone who needs them, including pregnancy and health conditions - What to do if someone feels unwell: stop, cool, drink, tell a manager - Flex on finish times for long, hot commutes Two minutes to read. Twenty minutes to write. ### 3. Identify higher-risk people discreetly Think through your team. Who is pregnant? Who has asthma, heart conditions, diabetes, or takes heat-sensitive medication? Who is over 60? Who is new to UK summers? Who works outdoors, in vehicles, kitchens, or low airflow spaces? Have a quiet, individual chat and agree adjustments. For pregnant workers, complete and file a written risk assessment. ### 4. Move the work around Heat peaks roughly 11am to 4pm. Shift demanding work outside that window where you can. - Builders: start earlier - Drivers: longest routes in the morning - Offices: heavy screen work in the morning, meetings later or shorter - Kitchens: prep early, minimum heat at peak, second prep after 4pm Treat it like a snow day. What would you move to keep people safe and the wheels turning? ### 5. Spot early signs and act - Heat exhaustion: headache, dizziness, heavy sweating, cramps, feeling sick, very thirsty, fast pulse. Fix with rest, shade, water, time. - Heat stroke: confusion, no sweating despite heat, very high temperature, fainting, unresponsive. Call 999. Cool while waiting. Do not give water if they are not fully alert. Model the behaviour. Say out loud: I am grabbing water and ten minutes in the cooler room. Back shortly. That permission matters. ## Extra care for higher risk work ### Construction, roofing, outdoor trades UV, dehydration, and height risks stack. Water in every vehicle. Sunscreen on site. Start times pulled earlier. Read HSE's outdoor heat guidance: - [HSE: Working in hot environments](https://www.hse.gov.uk/temperature/) ### Kitchens, bakeries, laundries, manufacturing Ambient heat is already high. Extractors on full. Doors propped where safe. Rotate people through the hottest spots. Offer electrolyte drinks as well as water. ### Delivery drivers, couriers, mobile workers Cabs without air con heat fast. More breaks, more water, adjust route expectations. Do not chase normal timings at 35 degrees in a van. ### Care, healthcare, and customer-facing retail Indoors can be hot too. Big windows and older buildings trap heat. Residents and customers matter, and so do your team. ## When the heat arrives: quick answers and a seven minute plan ### Two questions you will get - Can I work from home for the week? Answer: Maybe. If the work can be done as well from home and the home is cooler and safer, yes. Decide case by case. - Why are we here if the school sent children home? Answer: Schools have different safeguarding duties. Acknowledge it is hot, explain what you are doing, and offer the flex you can. ### The seven minute action list 1. Find or buy a thermometer. Take a reading. Log it. 2. Email a four-line note: dress code relaxed (be specific), water available, breaks flexible, tell us if you are struggling. 3. Quietly message the two or three people most at risk. Check in today. 4. Move one heavy or outdoor task out of 11am to 4pm. 5. If anyone is pregnant, complete a short hot-weather risk note today. 6. Write down this rule: we would rather lose an hour than spend half a day in A and E. Then follow it. 7. Book a 15 minute review after the hot spell. Keep what worked. Fix what did not. As the Met Office now records 40 C heat in the UK, plan for hot weeks as a normal risk, not a surprise. As we wrap up, remember this: compliance is good, compassion is better. Keep it human and fair. ## Need help putting this in place - Book a free HR Health Check: [Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) - Want to talk through your team and workplace setup: [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) - On the go: Listen to the Buzzing About HR podcast: [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) Keep buzzing and take care of your people. ## Frequently asked questions - Is there a maximum temperature for workplaces in the UK No. There is no legal maximum. Employers must keep temperature reasonable and manage risk. See ACAS and HSE links above. - Can staff refuse to work if it is too hot They can raise a genuine health and safety concern. You must assess and act. If risk is serious and you fail to act, employees have protection for leaving a dangerous workplace. - Do pregnant workers need special steps in hot weather Yes. Complete a written risk assessment and adjust duties, hours, and environment as needed. Use ACAS guidance and HSE templates. - What are the signs of heat exhaustion and heat stroke Exhaustion: heavy sweating, cramps, headache, dizziness. Stroke: confusion, no sweating, very high temperature, collapse. Stop work and follow the steps above. Call 999 for heat stroke. - Do I have to pay people sent home due to heat If you choose to stop work, normal pay usually applies unless your contracts say otherwise. Avoid deductions that risk unlawful deduction claims. Seek advice before changing pay. - Does air conditioning change my obligations No. You still need to assess risk, monitor, and make adjustments for higher-risk staff. Air con helps but does not remove your duty of care. --- ### Why Your Wellbeing Policy Isn't Working (and What Actually Does) - URL: https://kateunderwoodhr.co.uk/blog/people-hr/wellbeing-policy-not-working-what-actually-works - Published: 2026-06-17T00:00:00.000Z - Category: people-hr - Tags: mens-mental-health, mens-mental-health-at-work, workplace-wellbeing-policy # Men's mental health at work: why the posters don't work and what does He's at his desk by 7.45am, as always. No long lunches. No sick days. Barely a holiday in two years. Quiet. Reliable. The one you never worry about. He's not fine. And this is why men's mental health at work needs more than a poster. Two months from now he'll resign. Three months after that you'll hear he went off with stress. His GP advised him to leave eight weeks before he did. You had a wellbeing policy. It lived in the handbook and on a kitchen poster. None of it reached him. Kettle on. Let's talk about why the posters don't work, and what does. ## Why men's mental health at work goes quiet and why it costs you The data is grim and consistent. Men are far less likely to seek help early and account for around three in four suicides in the UK. The Office for National Statistics reports that about 75% of registered suicides are male (ONS, 2022). Men aged 50 to 54 have the highest age-specific rates (ONS, 2022). Workplace take-up of wellbeing offers also skews to women. Not because men struggle less. Because many men are socialised to say they are fine and crack on. Loneliness adds fuel. We picture loneliness as an older-person issue. It isn't. Remote workers, new starters, and people who relocated for work can be quietly isolated. If work is their main human contact, a flat, purely transactional culture lands harder than you think. For SMEs, the cost hides in plain sight: - "He left out of the blue" - A performer fades and no one asks why - A long-term absence with no early warning By the time it's visible, you've often lost them. The strong, silent type isn't low maintenance. He's a risk you can't see. > "You should talk with your employee about how work is affecting their mental health." - ACAS Guidance on Mental Health at Work Source: ACAS ### Two quick stats to ground this - Around 75% of UK suicides are male (ONS, 2022) - Mental ill health remains a leading cause of long-term absence in UK workplaces (CIPD Health and Wellbeing at Work, 2024) ## Why the wellbeing policy misses the mark Most SME wellbeing efforts fail for three predictable reasons. ### 1. It's a document, not a behaviour A policy in a handbook is a thing you point to after something goes wrong. It does not change how Tuesday feels. People open up when they've seen what happens here when someone speaks up. ### 2. It's too generic Yoga at lunch and a fruit bowl are fine. They're used by people already coping. The person white-knuckling through won't book a resilience webinar. Universal perks miss the ones who most need support. ### 3. Managers aren't equipped Telling managers to "look after the team's wellbeing" without tools leads to silence. They don't know what to look for, what to say, or where to send someone next. The intent is there. The skill isn't. A wellbeing policy nobody feels is just paperwork. Culture is the signal that says it's safe to not be fine here. ## Five habits that help men's mental health at work None of this needs a budget. It needs consistency. ### 1) Normalise the ordinary check-in Make "how are you actually doing?" a standing item in one-to-ones. Sit with the answer. You'll spot changes earlier than any survey. ### 2) Model it from the top People copy the boss. You don't need to overshare. Try "I'm a bit frazzled this week, I'm taking ten minutes." That simple line gives permission down the line. ### 3) Build connection in, especially for the isolated Add five-minute non-work chat at the start of a meeting. Pair new starters with a buddy. Pull remote staff into the centre of the screen and the conversation. Small, repeated inclusion beats grand gestures. ### 4) Equip one manager to have the conversation Teach one person to notice, ask, listen, and signpost. Practise it. One well-handled chat can do more than a year of posters. ### 5) Make signposting real and visible Don't bury support on page 40. Put helplines where people will see them and say them out loud now and then. CALM, Samaritans, Andy's Man Club, and of course someone's GP. Here's a quick reference you can print. | Signal you notice | A plain-English opener that works | | --- | --- | | They're quieter than usual | "I've noticed you've been a bit quiet. How are you actually doing?" | | Slower replies or missed steps | "I can see stuff feels heavier this week. What's going on for you?" | | Camera off, keeping distance | "It's been a bit of an isolating week. Fancy a quick walk-and-talk?" | | Late messages or weekend work | "I'm seeing you on email late. Let's chat workload and support." | > "It's OK to talk about suicide. It could save a life." - Samaritans Source: Samaritans ## Mythbuster corner - "I'll make it worse if I bring it up." No. Asking if someone is OK does not plant a thought. Silence does harm. A simple, kind question helps. - "Wellbeing is HR's job, not a workplace issue." Work is where most adults spend most of their waking hours. You don't need to be a therapist. You do have a duty of care. - "Men don't talk. There's nothing I can do." Men talk when it's safe and ordinary to do so. Sideways, often, while doing something else. Culture changes the odds. - "We can't afford a wellbeing programme." Almost everything that works here is free. Attention, consistency, and a manager who knows what to say. ## The seven-minute action list for this week It's the right week to start. 1. Put helplines somewhere visible today: CALM 0800 58 58 58, Samaritans 116 123, Andy's Man Club. Mention them out loud. 2. In your next one-to-one, ask one person "How are you actually doing?" and give it time. 3. Pick the one person you never worry about and do a proper check-in. 4. Spot who might be isolated and add one deliberate connection this week. 5. Model it once: share one honest, brief tough moment and what you're doing about it. 6. Pick a manager and practise how they'd handle a disclosure before they face one. 7. Listen to this week's [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) on making it safe to speak up. > This piece touches on men's mental health and suicide. If any of it affects you, please reach out. CALM 0800 58 58 58 (5pm to midnight, daily) or Samaritans 116 123 (free, 24/7). You don't have to be in crisis to call. ## Final thoughts and a nudge The businesses where people stay well aren't the ones with the thickest handbooks. They're the ones where someone noticed the grafter going quiet, said something ordinary and kind, and meant it. You can't policy your way to that. You build it one check-in at a time until "I'm not having a great week" is safe to say at your place. Stop polishing the policy. Start the conversations. Kettle On. Standards Up. And as always, keep buzzing and take care of your people. ## Helpful links and next steps - Book a free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to spot gaps in culture and process - See our [HR Software](https://kateunderwoodhr.co.uk/services/hr-software) picks to spot absence and patterns early - [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) for manager training on sensitive conversations - New episodes every Tuesday: [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) ### Sources and further reading - [ONS: Suicides in England and Wales (latest available registrations)](https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/causesofdeath) - [CIPD Health and Wellbeing at Work 2024](https://www.cipd.org/uk/knowledge/reports/health-well-being-work/) - [ACAS Mental Health at Work](https://www.acas.org.uk/supporting-mental-health-workplace) - [Samaritans guidance if you're worried about someone](https://www.samaritans.org/how-we-can-help/if-youre-worried-about-someone-else/) - [CALM](https://www.thecalmzone.net/) ## FAQ - What are early signs of poor men's mental health at work? Quieter than usual, more mistakes, working late, pulling away from team chat, changes in mood or energy, more sick days, or a sudden "I'm fine" wall. - How should a manager start the conversation without prying? Use observations, not labels. "I've noticed X, Y, Z. How are you actually doing?" Then pause. Let silence do some work. - What if I'm worried about suicide? If risk feels immediate, call 999. Otherwise, stay with the person, listen, and encourage contact with GP or Samaritans on 116 123. It's OK to ask direct questions. - Do I need a formal wellbeing programme to help? No. Make check-ins routine, model openness, and keep signposting visible. Add training so managers feel confident. - How often should we do wellbeing check-ins? Little and often. Add a quick check-in to every one-to-one. Follow up if something changes. - What tools help spot patterns early? A simple HR system helps track absence notes and flags changes over time. We like Breathe HR and similar tools for small teams. --- ### The Carer Sitting in Your Team, and What You Actually Owe Them - URL: https://kateunderwoodhr.co.uk/blog/legal/carers-in-your-team-what-you-owe-them - Published: 2026-06-10T00:00:00.000Z - Category: legal - Tags: employee-wellbeing, employee-retention, carers-leave, working-carers, workplace-culture # Carer's Leave: the employee you never worry about He's in by 8am. He never makes a fuss. His work is solid, week in, week out. Carer's Leave is probably the last thing you think he needs. What you don't see is the 6am call to the care home. The lunch break on hold to the GP. The evening sorting his mum's medication, and four months without proper sleep. He hasn't told you. He's worried it'll make him look unreliable. One day, not yet, he resigns, and you never quite understand why your most dependable person left. It's Carers Week, so let's talk about how supporting carers at work and using Carer's Leave keeps good people. ## Why this is a business issue It would be easy to file this under "be kind" and move on. Don't. Quiet caring costs small businesses some of their best people. - Around 1 in 7 workers in the UK is an unpaid carer. That is two people in a team of fourteen (Carers UK, State of Caring 2023). - Carers UK estimates about 600,000 people leave work each year due to caring, many saying they would have stayed with more flexibility (Carers UK, State of Caring 2023). In a small business, every exit hurts. Recruitment spend, slower delivery, and the knowledge that leaves with them. Against that, a flexible start time or a few days of Carer's Leave is spare change. ### The hidden performance cost The carers who stay but get no support rarely perform at their best. Not through any fault of theirs. It's because nobody made it safe to say "I'm struggling this week". You lose the extra effort long before you lose the person. ## What the law now expects on Carer's Leave and flexibility Two big pieces here, and they often get muddled. ### Carer's Leave is a day-one right Since April 2024, employees who care for a dependant with a long-term care need have the right to up to one week, five days, of unpaid Carer's Leave per year. Day one, no qualifying service. It can be taken in half-days or full days, for planned or foreseen caring needs, and you cannot demand proof. - You can ask for reasonable notice. - You can postpone only in narrow cases, with a sound business reason and a rearranged date. - You cannot penalise someone for using Carer's Leave. Read the statutory detail here: GOV.UK guidance on [Carer's Leave](https://www.gov.uk/carers-leave). ### Flexible working is also a day-one right to request Employees can request flexible working from day one. You must handle requests reasonably and within the statutory timeframe. For carers, a small change often keeps them in work. - See ACAS guidance on [flexible working](https://www.acas.org.uk/flexible-working). - Keep records of requests and outcomes, in plain English. ### Equality Act and discrimination by association Under the Equality Act 2010, treating someone unfavourably because they care for a disabled or elderly person can be unlawful. That includes hostile comments, overlooked opportunities, and unfair performance pressure. ACAS has a clear explainer on [discrimination by association](https://www.acas.org.uk/discrimination-and-the-law). What the law does not require is a glossy policy or fancy perks. It asks you to apply Carer's Leave fairly, handle flexibility in good faith, and avoid any penalty for using rights. ## Five small things that actually help You don't need a big budget. You need to make it safe to ask, and you need a few basics ready before anyone has to. ### 1) Say the word "carer" out loud Most carers don't call themselves carers. A single line in a team meeting or welcome chat helps. "If you're looking after someone at home, tell us, we'd rather know and help." It opens the door to Carer's Leave and sensible adjustments. ### 2) Write a one-page note, not a doorstop policy Set out what you offer, including Carer's Leave, flexible start and finish times, and a private chat with a manager or HR. Add who to ask and a clear "no penalty" promise. One side of A4. Job done. ### 3) Flex first, formalise later In a caring crisis, the help is small and immediate. A swapped shift, a later start for two weeks, permission to take a call at 11am. Say yes quickly where you can. Capture it after. Carer's Leave is there if time off is needed. ### 4) Protect the conversation When a carer opens up, do not panic about cover. Listen, thank them, agree the immediate adjustment, and book a follow up. That call-back proves you meant it and keeps Carer's Leave on the table if things change. ### 5) Don't quietly penalise No skipping the carer for the interesting project "because they've got a lot on". That risks discrimination by association and it's a fast way to lose them. Let them tell you what they can take on. ## Mythbuster corner **"If I offer this to one person, I'll have to offer it to everyone."** Carer's Leave is already everyone's right if they meet the criteria. You are applying law, not inventing a perk. Flexibility is case by case on business grounds. That is allowed. **"They should keep home and work separate."** Fine in theory. Real life is messier. A parent in hospital does not stick to office hours. Make room for Carer's Leave and a little flex, and you get honesty and better planning. **"We're too small to support carers."** Small is your advantage. You can agree Carer's Leave or a 9.30am start in a single chat. No committees. **"Carer's Leave is paid, so it'll cost me."** Statutory Carer's Leave is unpaid. You can choose to pay it, but you're not obliged to. The cost of the right itself is close to zero. ## Quick legal lowdown cheat sheet - Carer's Leave: up to 5 days unpaid per year, day-one right, no evidence required, reasonable notice, limited postponement only. Source: [GOV.UK](https://www.gov.uk/carers-leave). - Flexible working: day-one right to request, handle reasonably, respond within time limits. Source: [ACAS](https://www.acas.org.uk/flexible-working). - Discrimination by association: protected under Equality Act 2010. Source: [ACAS](https://www.acas.org.uk/discrimination-and-the-law). Suggested expert quote to include in your policy pack: "Flexible work and Carer's Leave are often the difference between keeping valued staff and losing them." Source to consider: ACAS policy adviser or Carers UK employer guide. ## The seven-minute action list for this week It's Carers Week. Good a prompt as any. 1. Read up on Carer's Leave so you know the right before anyone asks. Start with [GOV.UK](https://www.gov.uk/carers-leave). 2. Add one line in your next team meeting that it's safe to mention caring, and that Carer's Leave is available. 3. Write the one-page carer note. Who to ask, what's available, and the no-penalty promise. 4. Check your flexible working process meets the new timeline and is easy to use. 5. Think, discreetly, about who might be carrying this. Make space for them to tell you, no pressure. 6. Brief managers on the right first response: thank, agree the next step, and follow up. Include Carer's Leave as an option. 7. Listen to this week's [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) for the manager's-eye view. ## The cheapest retention strategy you have There's a version of this where your most reliable person burns out and leaves. And the version where you said, early and plainly, "tell us if you're looking after someone, we'll work with you". The cost gap is tiny. The outcome gap is huge. Inclusion in a small business is simple. It's whether the person holding down two jobs feels able to say so. Make it safe to ask. Say yes where you can. Keep your promise. Kettle on. Standards Up. ## Need help getting this in place? If you'd like a one-page carer note, a flexible working process that works, or a quiet check on how your team is doing, that's what we do for SMEs. - Book a free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to see where you're tidy and where you're exposed. - See [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) for ongoing policy and people support. - [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) to talk through your team. - Tune into [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast), new episodes every Tuesday. ## FAQs: Carer's Leave and supporting carers at work - What counts as a "long-term care need" for Carer's Leave? A long-term mental or physical illness or injury, a disability as defined by the Equality Act, or care related to old age. See [GOV.UK Carer's Leave](https://www.gov.uk/carers-leave). - Can an employee take Carer's Leave in half days? Yes. Carer's Leave can be taken in half-days or full days, up to five days per year. - Do employees have to provide evidence to use Carer's Leave? No. You can ask for reasonable notice, but you cannot demand proof. - Can I refuse Carer's Leave? You can postpone in limited situations for business reasons and you must offer a new date. You cannot refuse the right outright. - How does Carer's Leave fit with time off for dependants? Time off for dependants covers emergencies. Carer's Leave supports planned or foreseen care needs. Employees might use both across a year. - Can I offer paid Carer's Leave as a benefit? Yes. You can choose to pay Carer's Leave. Make the rule clear and apply it consistently. --- ### Holiday Records Are Now a Legal Duty. Are Yours Ready? - URL: https://kateunderwoodhr.co.uk/blog/legal/holiday-records-legal-duty-inspection - Published: 2026-06-03T00:00:00.000Z - Category: legal - Tags: holiday-records, holiday-record-keeping-uk, working-time-regulations-record-keeping # The spreadsheet on Sharon's old laptop Someone's leaving. She thinks she has eleven days' holiday left. You go to your tracker. Your tracker is a spreadsheet on Sharon's old laptop. Sharon left in 2024. You go to your emails. You find seventy-three of them. None of them quite tell you what you need. You stare at the screen. You have, by your honest count, no idea. If that scene made you wince, you are not unusual. After two decades doing HR for small businesses, I can tell you that holiday records are the single most common mess I find when I open the bonnet on an SME. They live in three different places, half of them contradict each other, and the person who understood the system left eighteen months ago. Up to now, that has been a nuisance. From 6 April 2026, it is a legal exposure. Kettle on. This one is more important than it sounds. ## What actually changed in April 2026 For years, the duty to keep "adequate" working time records sat quietly in the Working Time Regulations and most small employers never thought about it. The detail was vague, enforcement was rare, and a wobbly spreadsheet got you by. That has now tightened. From 6 April 2026, as the Employment Rights Act 2025 measures roll in alongside the new Fair Work Agency, employers are expected to keep clear, retrievable records of: - annual leave accrued for each worker - annual leave taken - holiday pay paid, and how it was calculated - any carry-over from one leave year to the next - any payment in lieu on termination And you need to be able to produce them. Going back six years. This is the bit people miss. It is not enough to be paying holiday correctly. You have to be able to show you are, for every worker, in one place, on request. The Fair Work Agency, live since 7 April 2026, can open a proactive inspection with no complaint and no warning, and holiday records are squarely on the list of things an inspector can ask to see. "Good faith" is the phrase that decides how an inspection goes. Good faith is very easy to demonstrate when your records are tidy and your maths is written down. It is very hard to demonstrate when the answer to "show me Aisha's leave balance" is "give me a couple of days and I'll try to rebuild it". ## Why this matters more in a small business, not less A larger employer has an HR system, a payroll team and a leave-approval workflow that records everything automatically. The record-keeping happens whether anyone thinks about it or not. In a small business, the record is whatever you remember to write down. There is no system catching it for you. Which means the gap between "compliant" and "exposed" is one departed employee, one corrupted spreadsheet, or one WhatsApp approval that never made it into the tracker. And the cost of getting it wrong is not abstract. Get holiday pay wrong, not just the record, and you are looking at arrears going back years, potentially for every affected worker, plus the Fair Work Agency's power to require payment within 28 days and to add a penalty on top. The record-keeping failure is what turns a small, fixable error into one you cannot prove you have under control. A messy tracker is a week's irritation. A holiday-pay underpayment you cannot evidence is a problem that compounds quietly for years. ## The five places small businesses trip up After every audit I do, the same five things come up. None of them are exotic. All of them are fixable. - **One, pro-rata calculations for part-timers and irregular hours.** Part-time and variable-hours staff are where most holiday errors hide. Since 2024, leave and pay for irregular-hours and part-year workers should use the 52-week reference period, you look back over the last 52 paid weeks, skipping unpaid weeks and going back up to 104 weeks to find them. Plenty of SMEs are still using the old 12-week method, or a flat percentage bunged on a payslip. Both create underpayments. Both compound. - **Two, bank holidays muddled into the entitlement.** "We give 20 days plus bank holidays" sounds clear until someone works a four-day week, or a shift pattern that sometimes lands on a Monday and sometimes doesn't. Bank holidays are not a separate legal entitlement: they come out of the 5.6-week statutory minimum unless your contract says otherwise. If your records don't show how bank holidays are being counted for each working pattern, you have a gap. - **Three, carry-over nobody tracked.** Some carry-over is allowed, some is required (for example where someone couldn't take leave because of sick leave or family leave), and some is purely your policy. If a worker carried five days from last year and nobody logged it, your current balance is wrong, and from April 2026 the carry-over itself is something you are expected to have recorded. - **Four, payment in lieu on leavers, done by guesswork.** When someone leaves mid-year, you owe them pay for accrued-but-untaken leave. Get the accrual fraction wrong, or forget a carried-over day, and the final payslip is wrong. This is one of the most common triggers for an ex-employee complaint, and a complaint is one of the ways an inspection starts. - **Five, multiple sources of truth.** The single biggest one. Leave lives in a spreadsheet, and in Outlook, and in the team WhatsApp, and in your head. When three sources disagree, you have no record at all, you have an argument waiting to happen. ## The three-week tidy-up plan You do not need new software and you do not need to panic. You need one focused hour a week for three weeks. ### Week one, pick one home and move everything into it Decide where the truth lives. A single, well-built spreadsheet is fine to start. A proper tool like Breathe HR is better because it makes balances and pay audit-ready without faff. I'm not paid to say that, I just like tools that save you time and tribunal stress. Either way, pick one, and move every worker's leave into it. The act of consolidating will surface the contradictions on its own. ### Week two, rebuild each balance and write down the method For every current worker, establish: entitlement for the year, leave taken so far, carry-over in, and the running balance. For anyone on irregular or part-year hours, confirm you are using the 52-week reference period, and write a one-line note saying so. The note matters as much as the number. It is the difference between "I think it's right" and "here is how I worked it out". ### Week three, fix the process so it stays fixed A tidy record that immediately drifts is worthless. Decide three things and tell the team: how leave is requested (one route, not four), who approves it, and where it gets logged the moment it's approved. Kill the WhatsApp approvals. Diarise a fifteen-minute monthly check so small errors never become big ones. ## Mythbuster corner - **"My accountant's payroll software handles all this."** It handles payroll mechanics. It does not, usually, hold your leave accruals, your carry-over decisions, or the reasoning behind a variable-hours calculation. Those sit with you. - **"We're too small for anyone to check."** There is no minimum business size for the Fair Work Agency, and the data suggests gaps are more common in smaller firms, not less. Small is not a hiding place. - **"We've always done it this way and never had a problem."** "Never had a problem" usually means "never been asked". The record-keeping duty changes what happens when you are asked. - **"If the balance is roughly right, that's fine."** Roughly right is fine until someone leaves, disputes their final pay, and you can't show your working. Then roughly right is a claim. ## The seven-minute action list for this week If you do nothing else, do these. 1. Open your current holiday tracker, wherever it lives, and confirm it covers every current worker. 2. Pick your most awkward case (a part-timer or irregular-hours worker) and check the method against the 52-week reference period. 3. Find one leaver from the last year and confirm their payment in lieu was calculated correctly. 4. Write down, in one place, where holiday is requested, who approves it, and where it's logged. 5. Note any worker whose balance you genuinely can't reconcile, that's your priority to rebuild. 6. Diarise a recurring fifteen-minute monthly leave check. 7. Listen to Episode 22 of [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) for the human version of all this. ## You don't need perfect. You need provable. The point of the new duty is not to catch good employers out. It is to make sure that when someone's leave is questioned, by the worker, by a tribunal, or by an inspector, you can answer with a record instead of a shrug. That is a low bar, and it is entirely within reach for any small business willing to spend three quiet hours getting tidy. The firms that get hurt won't be the ones who made an honest pro-rata error. They'll be the ones who couldn't show how anything was worked out, for anyone, going back years. Pick one home. Move everything into it. Write down your method. That's the whole job. Kettle on. Records up. ## Need a hand getting tidy? If your holiday records live in three places and you'd like them in one, properly, before anyone asks, that's exactly the kind of thing I sort for small businesses. - [Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) for a quick, jargon-free read on where your people processes are tidy and where they aren't - [Read the Holiday Entitlement guide](https://kateunderwoodhr.co.uk/blog/guides/calculate-annual-leave-part-time-employees) for the part-time leave maths, step by step - [See HR Software](https://kateunderwoodhr.co.uk/services/hr-software) if you're ready to move leave somewhere that records itself - [Listen to Buzzing About HR](https://kateunderwoodhr.co.uk/podcast), new episodes every Tuesday --- ### UK Right to Work Checks 2026: The Complete Employer Guide - URL: https://kateunderwoodhr.co.uk/blog/legal/uk-right-to-work-checks-2026-employer-guide - Published: 2026-05-27T00:00:00.000Z - Category: legal - Tags: right-to-work, home-office-right-to-work-guidance, statutory-excuse-right-to-work # The bit no one tells you about right to work checks Most small business owners I work with have done a right to work check at some point. They are reasonably sure they have. The candidate sent a passport photo. Somebody, them, the bookkeeper, the office manager, had a look. They thought it looked fine. The person started on Monday. That is not a right to work check. A right to work check is a specific thing, done in a specific way, before a specific date, recorded in a specific format, and stored in a specific place. There are exactly three legal methods. There are about a dozen common ways to get it wrong. And since February 2024, the cost of getting it wrong has been up to £45,000 per worker for a first breach and up to £60,000 per worker for a repeat one. The penalties are not theoretical. The Home Office issued over 5,000 civil penalty notices in 2024 to 2025, totalling more than £155 million, and most of them went to small businesses. This is the blog that, if you read it once, you will not need to read again. It is the evergreen version. The methods. The records. The pre-start checklist. The follow-up system. What to do if you find a gap. The lot. Kettle on. ## Why this matters more in a small business, not less? Big companies have HR teams who do this for a living. They have HR software that diaries follow-up checks automatically. They have an immigration solicitor on retainer. In a small business, the right to work check tends to live in one of three places, the boss's email inbox, the bookkeeper's filing cabinet, or a folder on someone's laptop that nobody else can access. When the Home Office turns up, and they do, including at businesses in your sector, at your size, with your number of employees, every one of those three places is going to be searched. The maths is unforgiving. A single £45,000 penalty in a six-person business is the kind of hit that ends careers, ends businesses and ends marriages. The cost of preventing it is an hour of your time and a one-page checklist. This is not a topic where "we're too small for it to matter" is a defensible position. The Home Office's most active sectors right now, hospitality, care, beauty, construction, agriculture, hand car washes, takeaway food, are dominated by small businesses. If you are in one of those sectors, you are the audit pool. If you are not in one of those sectors, you are still in the wider audit pool. Random checks happen. Reports happen. Sector sweeps move around. None of this is your concern if your file is tidy. All of it is your concern if it isn't. ## The three legal methods, and which one applies to whom There are exactly three legal ways to do a right to work check in the UK in 2026. Not four. Not "common sense". Three. ### Method 1. The manual check Permitted only for British and Irish citizens, and increasingly less common because there is a better way (see below). You see the original document, a current British or Irish passport, or other accepted document from the Home Office's published list. You take a clear copy of every relevant page. You write the date you did the check. You sign the copy. You file it. The full list of acceptable documents for manual checks is on GOV.UK and changes occasionally. The list is split into List A (no follow-up needed, permanent right to work) and List B (follow-up needed, time-limited right to work). It is your job to use the current list, not the one you saved in 2019. ### Method 2. The online share code check This is the method most non-British and non-Irish workers will use. It is also the easiest for you. The candidate generates a share code via GOV.UK using their identity details. They send you the share code. You go to [gov.uk/view-right-to-work](https://www.gov.uk/view-right-to-work) as an employer, enter the share code and the person's date of birth, and the system shows you their right to work status, including any expiry date. You print the resulting page or save it as a PDF. You note the date you did the check. You file it. This is the method to use for anyone with a digital immigration status (eVisa, BRP holders who have moved to digital, EU Settlement Scheme holders, work visa holders, students). It is fast, free and produces a clean audit trail. ### Method 3. The Identity Service Provider (IDSP) check For British and Irish citizens, since April 2022, you have been allowed to use a certified Identity Service Provider, a piece of software, to verify the document and the person. You pay the IDSP a small fee (typically £1.45 to £15 per check). They check the document is genuine, they check the person matches the document via a live photo, and they give you a digital report. You save the report. You note the date. You file it. The Home Office publishes a list of certified IDSPs. You must use one on the current list. Using a non-certified provider does not give you statutory excuse. ### The summary, plainly - British or Irish citizen, manual check or IDSP. IDSP is faster and harder to get wrong. - Anyone else, online share code check via GOV.UK. - No exceptions, no workarounds, no "I trust them". ## What counts as a valid record? A right to work check is only as good as the record you keep of it. The record is what gives you the statutory excuse, the legal protection, if anything ever goes wrong. A valid record contains: - The document type or check method (e.g. British passport, share code online check, IDSP report). - The date the check was carried out. - Confirmation of who carried it out. - A clear copy or digital report of what was checked. - Where the right to work is time-limited, the expiry date of the right to work. - Storage in a format that cannot be tampered with. PDF is fine, an emailed phone photo is not. You must keep the record for the duration of the person's employment and for two years after they leave. A WhatsApp photo of a passport with no date and no signature is not a valid record. A scanned BRP with no check date is not a valid record. A "yes" in your HR system with nothing attached is not a valid record. The Home Office expects the actual evidence, not your assurance that you saw it once. ## The bit most small businesses get wrong, time-limited workers If the person you employ has a permanent right to work, a British passport, an Irish passport, settled status, indefinite leave to remain, one check at the start is enough. Done correctly, filed correctly, and you can move on. If the person has a time-limited right to work, a Skilled Worker visa, a Graduate visa, a Student visa, a Health and Care visa, pre-settled status that needs to be reviewed, one check at the start is not enough. You must do a follow-up check before the expiry date of their right to work. If the right to work expires and you have not followed up, the employee is working illegally from that date, and you have lost your statutory excuse for every working day after expiry. The fix is boring and effective. Whenever you do a check that surfaces an expiry date, you diary two things in your calendar. - Three months before expiry, a reminder to start the follow-up process. - Two weeks before expiry, a hard cut-off to have the follow-up check completed and filed. That is it. Two recurring calendar reminders per affected worker. Free. The single most overlooked piece of compliance hygiene in small business HR. ## The pre-start checklist (the one I would steal if I were starting a business tomorrow) Five steps. Use it every time you hire. Every time. No exceptions for the boss's nephew. ### Step 1. Conditional offer wording Your offer letter says, in writing, that the offer is "subject to a satisfactory right to work check and any other pre-employment checks we deem appropriate". If you do not have this wording, add it today. It protects you if you have to withdraw the offer because the check fails. ### Step 2. Book the check before the start date The moment the candidate accepts, diarise a 30-minute slot in the calendar before their first day. Not "during the first week". Not "before payroll". Before they start work. Most online share code checks take ten minutes. There is no excuse to leave them until later, and "later" is the single most common point of failure. ### Step 3. Use the right method - British or Irish citizen. IDSP (recommended) or manual. - Anyone else, share code online check. - Make it the same process every time. Don't improvise. ### Step 4. Store the result properly PDF the result. File it in the employee's record with the date. If their right to work is time-limited, add the two calendar reminders described above. ### Step 5. Train the person who does it If you delegate the check to a manager or admin person, give them thirty minutes of actual training on what they are doing, why it matters, what the current accepted documents are, and how to use the share code system or the IDSP. Record the date of the training. That training record is part of your defence if you ever need mitigation on a penalty. That is the entire pre-start process. Five steps. Doable in well under an hour from offer to filed check. ## What to do if you find a gap? You read the above. You went and checked your own files. You found at least one gap, a check you cannot find, a follow-up that wasn't done, a record that does not match what the regulations require. Do not panic. Do not invent records. Do not back-date anything. Here is the order of operations. - For currently employed people where the gap is recent, under 28 days, you may still be able to obtain valid evidence and salvage the position. Take advice before you act. - For currently employed people where the gap is older, over 28 days, you have probably lost the statutory excuse for the gap period. You can, and should, do a fresh, valid check now. It does not retroactively cover the gap, but it puts the situation right going forward and reduces the future exposure. - For currently employed people whose status you cannot now verify, for example, you cannot get hold of the original document, the share code has expired, or the person's status has materially changed, get advice from a qualified immigration solicitor or HR advisor before you do anything else. Do not panic-fire. Do not panic-interview. Take advice. - For ex-employees where you have discovered a gap, your exposure is limited to the period of their employment. Keep what records you have. Take advice if there is reason to think there is going to be enforcement interest. - In all cases, co-operation with the Home Office, if they come, is the single biggest mitigator on a civil penalty. Co-operation does not mean invention. It means being polite, transparent, producing what you do have, and explaining honestly what is missing. ## The four myths that keep small businesses exposed **"My bookkeeper does this."** Maybe. Maybe not. Find out today exactly what method they use, where the records are stored, who runs the time-limited follow-ups and how they would produce the file if asked. If "my bookkeeper does it" is followed by silence when you ask for detail, your bookkeeper does not, in fact, do it. **"We've been doing it the same way for ten years and it's always been fine."** The way you have been doing it pre-dates the digital share code system, the IDSP system, the February 2024 penalty increase, and probably several iterations of the accepted documents list. Doing it the way you used to do it is now substantively non-compliant for most workers. Doing it the way you used to is the single most common reason small businesses are penalised. **"They had a British passport so I didn't need to check."** You still need to check. You still need to see it, copy it (or use an IDSP), date it, sign it and file it. "British passport" is a method category, not a free pass. **"We're too small to be a target."** The majority of civil penalties in 2024 to 2025 went to small businesses. Big employers have HR teams who do this properly. Small businesses are the easier target and they know it. ## The seven-minute action list If you have just seven minutes right now, do these. 1. Open your employee files. Pick one. Can you produce a clear, dated, in-format right to work check for that person? If yes, breathe out. If no, mark it as a gap. 2. Repeat for two more employees, at random. You are sample-auditing yourself. 3. For every employee whose right to work is time-limited, check that you have a calendar reminder for three months before their expiry. If you don't, set it now. 4. Update your offer letter template to include "subject to a satisfactory right to work check" if it doesn't already. 5. Write a one-page "How we do right to work checks here" note. Five steps. Distribute to whoever does the checks. 6. Diarise a thirty-minute training session for one designated checker plus one backup. This month. 7. Save this blog to your favourites. The next hire you do, run through it again before you do the check. ## You don't need to be lucky. You need a system. The honest version of right to work compliance is this. Most small business owners are decent, well-meaning people who would never knowingly employ someone illegally. The reason they get caught out is not bad intent. It is a missing record, a late check, a follow-up that didn't happen, a method that pre-dates the current rules. None of those reasons protect you when the Civil Penalty Notice lands. The Home Office does not weigh your character. They weigh your file. A tight file is twenty minutes of work per new hire and ten minutes of work per quarter on follow-ups. That is the entire job, done properly, forever. Compared to a £45,000 to £60,000 penalty, an hour a quarter is not a difficult sell. You do not need to be lucky. You need a system. The system is in this blog. Read it once. Print the checklist. Train the person who does it. Diary the follow-ups. Then you do not have to think about right to work checks at all, except for ten minutes, per new hire, on the day you do them. Which is exactly how compliance is meant to feel. Calm, steady, on file. ## Need help getting started? If you have read this and would like a hand turning it into something that actually runs in your business, that is what I do. - [Book a free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) for a quick read on where your people processes are tidy and where they aren't - [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) to talk through your team specifically - [Listen to Buzzing About HR](https://kateunderwoodhr.co.uk/podcast), new episodes every Tuesday, plain-English HR for small business owners. Episode 21 covers the five most common mistakes; Episode 22 covers what happens when the Home Office turns up. --- ### The £0 Development Plan Every Small Business Should Steal - URL: https://kateunderwoodhr.co.uk/blog/talent-management/free-small-business-development-plan - Published: 2026-05-20T00:00:00.000Z - Category: talent-management - Tags: employee-development-plan, learning-at-work-week-ideas, sme-learning-and-development # Learning at Work Week: a simple SME plan that actually works Picture this. It is May. Learning at Work Week pops up like an exam you forgot to revise for. Posters in big-company lobbies. LinkedIn full of pastries and flipcharts. A keynote on change. And you, running a five-person team in Hampshire, thinking one of three things: - Nice for them, I am trying to get an invoice out. - We do not really do learning. We just crack on. - I would love to, but I have no budget, no time, and no clue where to start. All fair. None quite right. The real point of Learning at Work Week is one nudge a year for every employer, including the six-person shop in Andover and the two-person bookkeeping duo in Manchester, to look at how you develop the people you already have. You do not need a budget. You do not need an L and D department. You do not need a learning system. You need a method. A couple of hours. And to stop confusing training with learning. Kettle on. ## Why Learning at Work Week matters more in a small business Big firms can soak up a bad hire or a quiet quitter. You cannot. In a small business, every person moves the numbers. If someone stops growing, they start looking elsewhere. Here is the honest bit I see with SMEs. People do not leave first for money. They leave because they cannot see what is next. Same job in two years. Same conversations. Same view. - UK employers still face retention pressure. CIPD's 2023 Resourcing report shows almost half of employers struggled to keep staff that year, with development a top lever for retention (CIPD, Resourcing and Talent Planning, 2023). - Oxford Economics estimated the cost of replacing an employee at over £30,000 when you add lost output and recruitment time. Even if your figure is lower, one avoidable resignation can fund two years of learning for a small team (Oxford Economics, 2014; update your own figure with current costs). Those are fixable problems. They need a plan you can run with your current headcount and a single sheet of paper. > Expert view: "Compliance is good. Compassion is better. A simple, visible learning habit keeps good people longer than any poster campaign." > Kate Underwood, HR Queen Bee ## What learning looks like without a training department Too many SMEs assume learning means going on a course. A course is just one method. Often the slowest, priciest, and least sticky. Real learning at work is simple. Give people structured exposure to something a bit harder. Add a quick check-in after. That is it. What counts as learning in a small business, with real costs: - A stretch project: take on a task just beyond comfort. Cash cost: zero. - A shadow morning: sit with a teammate and watch. Cash cost: zero. - A reverse shadow: junior team member shows how they use a system. Cash cost: zero. - Trade body webinar: free or cheap, 60 minutes. Cash cost: often zero. - An external short course: one per year, focused. Cash cost: £150 to £500. - A book and a chat: read, discuss, apply. Cash cost: the book. - A mentor: internal or external. Cash cost: time and a coffee. - A podcast playlist: commute learning. Cash cost: zero. - A YouTube channel: Excel, Canva, sales, customer service, and leadership. Cash cost: zero. - A monthly skills swap: two people teach each other for 30 minutes. Cash cost: zero. - ACAS and GOV.UK resources: on policy and law changes. Cash cost: zero. - A quarterly development chat: separate from appraisal. Cash cost: zero. Notice how far down the list "send them on a course" sits. Lack of budget is not the blocker. Lack of structure is. ## The five things that actually work After years of watching SMEs try this, five moves make the difference. In this order. ### 1) Know what each role needs now Skip the dusty job description. List five to seven current role skills in plain English. - "Manages the customer inbox" becomes "writes clear, on-brand emails under time pressure with correct product info". - "Runs social media" becomes "plans a month ahead, writes in our voice, reads engagement and tweaks". - "Helps with accounts" becomes "raises and chases invoices, reconciles in our software, flags issues early". One hour per role to draft. Then keep it live. ### 2) Know what each person has today Against that role list, mark each skill as: - Confident and consistent - Doing it but inconsistent - Not yet doing it That gap is the plan. No traffic lights. No 360. No 15-page forms. Read the gap, then act. ### 3) One development chat per person per quarter Not workload. Not appraisal. A 30-minute future chat. Ask: - What would you like to learn next? - What can we put in place before our next chat to move you forward? Two questions. Four times a year. For a five-person team, that is roughly ten hours of your year. In return, people feel seen and have a path. ### 4) Make your resources visible Create a one-page doc called "How we learn here". Include: - Three free sector resources everyone should know - Two free or cheap general skills sources - Your sector's trade body and their offer - Internal options: paired working, shadow days, lunch-and-learns - Annual external course budget per person and how to ask - One hour a month of work time for self-directed learning Print it. Share it. Put it in the handbook. Half the "I did not know training existed" problem gone by Friday. ### 5) Make it normal, not special Growth-friendly teams treat learning like brushing teeth. Regular. Unflashy. Visible. - "I tried this. It was harder than I thought. Next time I will…" - "Here are three things I took from that session." - "I did this for the first time today and here is what I learned." That is culture. It is not born from a breakfast. It is built by you doing it every week. ## The four myths that hold SMEs back "My team will leave if I train them." - People leave faster if they cannot grow. Replacing one employee costs far more than a few hours and a short course. The maths is clear. "My people just want to do the job and go home." - Some do. Most want progress. New tasks. A system to learn. A step up. You likely already know who prefers steady-as-she-goes. Support them too. "I do not have time." - Two hours a year per person for development chats. Compare that to the time a resignation eats. The development chat is the cheap version. "We are too small." - Two people is enough. You are the manager and L and D. No committees. No forms. That is freedom. ## A one-month plan you can start any week ### Week 1: List the skills Write five to seven skills for each role. Aim for written, not perfect. - Time needed: one to two hours. ### Week 2: Map your people Mark each skill as confident, inconsistent, or not yet for every person. - Time needed: one hour. ### Week 3: Write the resources page Fill "How we learn here" with sector links, general tools, internal options, budget, and one hour a month for self-led learning. - Time needed: one hour. ### Week 4: Book the first chats Schedule 30-minute development chats with each person over the next quarter. Share the purpose so they can think. - Time needed: 15 minutes. After that, maintain with one quarterly chat per person and a yearly refresh of the role skills. ## The seven-minute action list for this week - Pick one person. - Write the five things they spend most time doing. - Convert each into a skill. - Mark each skill: confident, inconsistent, or not yet. - Pick one skill to strengthen in six months. - Book a 30-minute chat titled "What you would like to learn next". - Ask. Then listen. You do not need a budget. You need a habit. ## Useful UK resources to plug into your plan - ACAS training and guidance for managers: free and paid options with practical topics. [ACAS training](https://www.acas.org.uk/training) - GOV.UK Skills Bootcamps: free flexible courses for adults that can support role shifts. [Skills Bootcamps](https://www.gov.uk/guidance/find-a-skills-bootcamp) - CIPD research on learning and retention in SMEs. [CIPD knowledge hub](https://www.cipd.org/uk/knowledge) ## FAQs - What is Learning at Work Week? - A national prompt each May to encourage employers to support learning. Use it as a nudge to set up a simple, year-round plan. - Do I need a budget to run Learning at Work Week in an SME? - No. Most effective learning in small teams is on-the-job, shadowing, mentoring, and free sector content. A small course budget helps, but structure matters more. - How do I track learning without a system? - Keep a one-page skills list per role and a simple note after each quarterly chat. File it with your people records. - What counts as "real" learning for a micro business? - Anything that builds a skill you listed for the role and is followed by a short reflection. Stretch tasks and shadowing beat long courses for day-to-day impact. - How often should we review development plans? - Quarterly chats work well. Refresh role skills yearly or when your products or tools change. - How do I make learning part of our culture? - Model it. Share your own lessons, ask others for theirs, and keep the "How we learn here" page visible. Small, steady, weekly. ## As we wrap up The honest version of Learning at Work Week is this. Once a year, you get a reminder that your people have a brain and a future. The reminder is easy. The follow-through is where loyalty grows and risk shrinks. If you want help to set this up fast: - Book a Free HR Health Check to spot the gaps and quick wins. [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) - Bring us in as your HR Business Partner for ongoing support. [HR Business Partner](https://kateunderwoodhr.co.uk/service-plans/hr-business-partner) - Level up training and leadership development with HR Excel. [HR Excel](https://kateunderwoodhr.co.uk/service-plans/hr-excel) - Get your people admin tidy with Breathe HR setup and support. [Breathe HR support](https://kateunderwoodhr.co.uk/services/hr-software) - Fancy a brew and a chat first? Book a discovery call. [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) Kettle on. Standards up. Until next time, keep buzzing and take care of your people! --- ### Fair Work Agency: The £20,000 Per Worker Mistake Hiding In Your SME - URL: https://kateunderwoodhr.co.uk/blog/legal/sme-20000-per-worker-mistake - Published: 2026-05-13T00:00:00.000Z - Category: legal - Tags: fair-work-agency, fair-work-agency-uk, employment-rights-act-2025 # Fair Work Agency: the polite knock at the door is the easy version Picture this. You're halfway through payroll when there's a polite knock at the door. It's an inspector from the Fair Work Agency, and yes, they can look at your records. The Fair Work Agency does not need a complaint or a tip-off. It can pick your business from a target list and turn up. Launched on 7 April 2026 under the Employment Rights Act 2025, the Fair Work Agency brings together HMRC's National Minimum Wage team, the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate into one body with broader powers and a single approach. If you employ one person in the UK, the Fair Work Agency can review how you employ them. No small business exemption. In fact, SMEs are often on the radar because gaps are more common without a full HR team. This post is the legal lowdown behind Episode 19 of [Buzzing About HR](https://kateunderwoodhr.co.uk/podcast). That episode gives you the headlines and a four-week action plan. Here, you get the nuts and bolts: what the Fair Work Agency is, what it can do, what records you must keep, and what to do if they arrive on a Wednesday afternoon. Grab a brew. This one matters. ## What the Fair Work Agency actually is? The Fair Work Agency sits inside the Department for Business and Trade as an executive agency. Its Strategic Steer and Enforcement Policy Statement were published on 7 April 2026. In plain English, it is the Government's single front door for enforcing UK employment rights. What the Fair Work Agency covers now or during the transitional period: - National Minimum Wage and National Living Wage - Holiday pay and statutory leave - Statutory sick pay - Employment agency standards - Gangmaster licensing - Modern slavery and labour exploitation - A growing list of Employment Rights Act 2025 measures, including predictable working patterns and day-one rights as they roll in The big shift: one inspector can look at everything in one visit. No more separate bodies for each issue. The Government has called 2026 and 2027 a transitional period. Enforcement will be data-driven, not blanket. Translation: the Fair Work Agency already knows which sectors and sizes are high risk. They will be selective and strategic. ### Quick stat check and context - A GOV.UK "name and shame" list published on 19 March 2026 identified 389 employers, £7.3 million in arrears and around 60,000 affected workers. Household names appeared on that list. If they got it wrong, so might you. (Source: GOV.UK) - SMEs account for the bulk of UK private sector employment. In recent government estimates, small and medium businesses employ over half of private sector workers. That puts SMEs in scope for Fair Work Agency focus. (Source: DBT Business population estimates) ## What the Fair Work Agency can do? Here is the bit that surprises most small business owners. The Fair Work Agency can: - Open a proactive investigation with no complaint, no tip-off and no warning - Enter business premises to inspect, and in some cases, force entry - Inspect, copy and remove employment records going back six years - Issue a Notice of Underpayment requiring payment of arrears within 28 days - Impose a penalty of up to 200% of the underpayment, capped at £20,000 per worker - Publicly name non-compliant employers - Arrest in cases of serious, deliberate or persistent non-compliance - Refer for criminal prosecution in the most serious cases That £20,000 cap is per worker. Not per business. Ten underpaid workers can mean ten penalties, plus arrears, plus reputational damage. ## Where SMEs actually trip up? The Fair Work Agency is not only looking for the obvious. It is looking for the technical. The small things that add up. These are the traps I see every week in real audits. ### 1. Minimum wage by mistake From 1 April 2026, the National Living Wage is £12.71 per hour for workers aged 21 and over, and £10.85 for workers aged 18 to 20. If payroll did not move on 1 April, you already have arrears to fix. Classic traps: - Flat salary staff working longer hours than the contract assumes, so the maths drops below the NMW - Uniform deductions, training time or pre-shift setup are not treated as working time when they should be - Salary sacrifice pulling hourly pay below the minimum - A birthday moved someone into a higher age band, but your system missed it Do the maths before the inspector does. ### 2. Holiday pay is still done the old way Since 2024, variable-hours staff must use a 52-week reference period. Skip unpaid weeks and extend back up to 104 weeks to find 52 paid weeks. Many SMEs are still using the old 12-week method or a flat percentage uplift on payslips. Both create underpayments. Both compounds over the years. ### 3. Holiday records are now a legal duty From 6 April 2026, employers must keep records of: - Annual leave taken - Holiday pay paid - Any carry-over - Any payments in lieu This is the law. Not a nice-to-have. If your "tracker" lives in WhatsApp, Outlook and a dusty spreadsheet, you are out of step from day one. Tip: Breathe HR makes leave, balances and pay audit-ready without faff. I am not paid to gush. I just like tools that save you time and tribunal stress. ### 4. Right-to-work checks done wrong A passport photo on WhatsApp is not a Right to Work check. A photocopy in a folder is not a Right to Work check. You must follow Home Office guidance: a compliant manual check, an online share code check, or a certified Identity Service Provider (IDSP) for British and Irish citizens. Your records must show the check date, document type and, where needed, the share code. Since February 2024, civil penalties have risen to £45,000 per illegal worker for a first breach and £60,000 for repeat breaches. (Source: Home Office) ### 5. Day-one written particulars are missing or wrong Every employee must receive a Section 1 Statement of Particulars on or before day one. Not "after probation". Day one. In small business audits, I often find 30 to 60 per cent of staff without a compliant statement, or one that no longer reflects the job. That is six years of exposure, fixable in one month with a tidy process. ### 6. Status confusion: worker, employee, self-employed Labels do not decide status. Reality does. If someone looks and behaves like an employee, expect the Fair Work Agency to treat them as one. That triggers holiday pay, sick pay, minimum wage and Right to Work obligations, whatever the contract says. ## The four-week tidy-up plan You do not need to panic. You need a plan. Block one focused hour each week. ### Week One: Pay audit Pick the three lowest-paid people. For each one: - Add up every hour actually worked in the most recent full month - Divide gross pay by those hours - Compare against the current NMW for their age band - Factor in any deductions, salary sacrifice and uniform costs If above the NMW, file the maths. If below, fix and backdate now, then note what you found and what you changed. ### Week Two: Holiday audit For every current employee: - How much leave have they accrued this leave year? - How much have they taken? - What is the running balance? - Where is the source of truth? Pull it into one home, such as Breathe HR or a single spreadsheet. From 6 April 2026, records are a legal duty. For variable-hours staff, confirm you are using the 52-week reference period and document it. ### Week Three: Contracts and statements For every employee, confirm there is a signed contract or Section 1 Statement that: - Is dated within their employment period - Reflects the current role and working pattern - Meets the legal content rules If anything is missing, fix it this month. ACAS templates are a good start. ### Week Four: Right to Work audit For everyone hired since April 2024, confirm: - The correct check route was used: manual, share code or IDSP - The record includes the original document or share code - The check date and the person who did it are recorded - Any follow-up check dates are diarised where time-limited This single audit protects you from the most expensive mistake an SME can make. ## What to do if a Fair Work Agency inspector turns up? It might not happen this year. If it does, use this playbook. - Stay calm and polite - Ask for ID and the legal basis of the visit, and note it - Provide what is requested, nothing extra - Take notes: who was present, what was asked, what you provided, when they left - Call HR or legal support while the inspector is on site - If staff interviews are requested, ask if the employee wants representation or a witness - Do not falsify, alter or hide records If issues are identified, you will normally receive a Notice of Underpayment with 28 days to pay or appeal. Appeals go to the Employment Tribunal, and time limits are tight. Move fast. ## Mythbuster parade - "They only go after big employers." No. The data points to bigger gaps in SMEs. You are more, not less, likely to be reviewed. - "No complaints, no inspection." Wrong. The Fair Work Agency can start proactive investigations on its own initiative. - "I didn't know." Not a defence. It might nudge penalty levels, but arrears are still due. - "My accountant is dealing with this." They handle payroll mechanics. Legal compliance on pay and records sits with you. ## The seven-minute action list for this week If you only do seven things: 1. Confirm the exact location of the last 12 months of payroll records 2. Pull your holiday tracker into one home 3. Check every current employee has a signed contract or Section 1 statement 4. Check the lowest-paid person's last payslip sits above the current NMW 5. Confirm Right to Work checks are documented for everyone hired since April 2024 6. Write a one-page plan for an unplanned inspection: where to meet, what to provide, who to call 7. Listen to Episode 19 of Buzzing About HR for the human version of this ## You do not need to be perfect. You need to tidy. The Fair Work Agency is not out to crush small businesses. Its steer says genuine, good-faith employers will be treated differently from deliberate offenders. "Good faith" is much easier to show when your records are organised, your maths is written down, and your processes are clear. It is far harder when you cannot find half the contracts and holidays live on WhatsApp. The businesses that will get hurt are the ones that were warned, did nothing, and keep doing nothing when the polite knock arrives. You have been warned. Take the next four weeks. ## FAQ - What is the Fair Work Agency? - It is the single UK enforcement body for employment rights launched in April 2026 under the Employment Rights Act 2025. It can investigate pay, leave, agency rules, licensing and more. - Can the Fair Work Agency inspect me with no complaint? - Yes. It can open proactive investigations and attend without prior notice. - How far back can the Fair Work Agency check my records? - Up to six years for most employment records linked to pay and statutory rights. - What penalties can the Fair Work Agency issue? - Up to 200% of arrears, capped at £20,000 per worker, plus naming and potential criminal action in the most serious cases. - Are Right to Work checks part of a Fair Work Agency inspection? - Yes. Inspectors can review Right to Work compliance alongside pay and holiday records. - What records must I keep for holidays from April 2026? - Leave taken, holiday pay paid, any carry-over and any payment in lieu, all in one reliable place. ## Work with KUHR Need a hand to get tidy fast? - Book a [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) - Book a [discovery call](https://kateunderwoodhr.co.uk/discovery-call) - Listen to [Episode 19 of Buzzing About HR](https://kateunderwoodhr.co.uk/podcast) Kettle On. Standards Up. Until next time, keep buzzing and take care of your people! --- ### Is your business protected from employee social media risk? - URL: https://kateunderwoodhr.co.uk/blog/legal/protect-business-from-employee-social-media-risk - Published: 2026-05-06T00:00:00.000Z - Category: legal - Tags: employee-social-media, employee-social-media-monitoring-uk, workplace-social-media-policy-uk # One post can put your brand on the line Picture this. A customer spots your logo on an employee's profile. Two taps later, they are reading a weekend rant that names a client. Your phone starts pinging. This is why employee social media monitoring matters. And yes, you can do it in the UK, but only in a lawful, fair, and proportionate way. This guide gives you the plain-English steps to get employee social media monitoring right. ## The quick answer on employee social media monitoring - You can monitor, if it is lawful, transparent, necessary, and proportionate. - Tell people in advance in a clear policy and privacy notice. - Have a valid lawful basis under UK GDPR. - Limit access, limit retention, and document decisions. - Never demand passwords or access private accounts. ## What counts as social media now? It is more than Facebook, Instagram, X, TikTok, and LinkedIn. It includes: - Messaging apps like WhatsApp, Telegram, and Messenger - Forums and review sites like Reddit and Trustpilot - Blogs, podcasts, live streams, and creator platforms - Any space where people share content or opinions Most staff have several accounts on personal phones. Posts can reflect on your brand, even if written out of hours. Some team members also post on your company channels as part of their job. That crossover is where risks rise fast. ## The UK legal lowdown on employee social media monitoring The theme is simple. Monitoring is allowed if you do it lawfully and fairly. Here is the plain-English map. ### Human Rights Act 1998 - Article 8 protects private life. Staff keep a reasonable expectation of privacy at work. - Article 10 protects freedom of expression. It has limits where speech harms others or your business. ### UK GDPR and Data Protection Act 2018 - Treat monitoring as data processing. - Stick to principles: lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limits, integrity, confidentiality, and accountability. - Choose a lawful basis. Often legitimate interests, applied with a balancing test. Keep a record. - Be specific about purpose. Do not collect more than you need. Do not keep it longer than needed. - High risk monitoring often needs a Data Protection Impact Assessment. Read more: [ICO guidance on monitoring at work](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/monitoring-workers/) ### Regulation of Investigatory Powers Act 2000 - Sets limits on interception and covert activity. - Covert monitoring should be exceptional and time-limited, with strong justification. ### Data (Use and Access) Act 2025 - Amends the UK data protection regime. - Introduces recognised legitimate interests and clarifies examples. - Expect ICO guidance updates through 2026. Update your policy as guidance shifts. ### Equality Act 2010 - Automated tools risk bias. - Do not let systems unfairly penalise disabled staff or reveal protected characteristics. ## Build a social media policy that actually works Make your policy short, clear, and current. Involve your team in drafting. They will back what they help shape. ### What to include 1. Acceptable personal use in work time - State if limited personal use is allowed. - If you block platforms on company kit, say so. 2. Behaviour out of hours - Be clear that posts on personal accounts can lead to action if there is a link to your business. - Spell out examples: reputational harm, disclosure of confidential info, bullying or harassment. - "Views my own" does not protect anyone. 3. Company accounts and content ownership - Approval process for posts, tone, and brand rules. - Who holds logins and who changes them on exit. - Handover steps when roles change. 4. Monitoring notice and privacy info - Say you may use employee social media monitoring in defined situations. - Explain lawful basis, scope, who can access, retention, and staff rights. - Link to your Employee Privacy Notice. 5. Cyberbullying and harassment - Treat online abuse like in-person abuse. - Align with your bullying, harassment, and grievance procedures. 6. Training and refreshers - Run a short annual refresher, plus induction for new joiners. ## Put procedures behind the policy Policy without process is wishful thinking. Set up the steps now, before you need them. ### Triage questions before you act Ask these three questions each time: - Is the author identifiable as linked to our business? - Does the content reference us, our clients, or colleagues? - Is harm likely or already happening? If the link or harm is weak, coach first. If the post is serious or repeated, move to a fair process. ### Align with your disciplinary, grievance, and confidentiality rules - Include social media misconduct examples, up to gross misconduct for serious cases. - Update confidentiality wording so staff know what must never be shared. - Keep notes and evidence. Screenshots with timestamps help. ### Company social sign-off - Have an approval route for risky or reactive posts. - Keep brand assets and passwords in a secure vault, not in someone's notes app. - Switch access promptly when people leave. ## Email and digital monitoring: office, home, and hybrid You can monitor work email and systems, but do it right. - Tell staff in advance in policy and privacy notices. - Keep monitoring limited to the purpose. Do not snoop. - Home working needs extra care. You risk catching personal or family data. - Complete a DPIA for any higher-risk monitoring. Automated tools need guardrails - If a tool scores output or flags behaviour that could affect performance reviews, tell staff in plain English. - Offer human review of any decision with a significant effect. - Test for bias. For example, do not let activity trackers penalise someone who needs regular screen breaks. External reference: [ACAS advice on monitoring staff](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/) ## Mythbuster Parade: social media and monitoring myths - Myth 1: "Personal account, none of our business." If it is public and links to your work, it can be your business. - Myth 2: "Our kit, our rules." Ownership of devices does not remove UK GDPR duties. - Myth 3: "Public info means free to use." You still need a lawful basis and fairness. Recruitment checks risk discrimination. - Myth 4: "No complaints means we're fine." Silence is not compliance. Document and review your approach. - Myth 5: "A one-line handbook note covers it." A vague line is as good as no policy in a dispute. External reference: CIPD guidance on social media and employees ## 5-step action plan and RAG quick check Do these this week: 1. Draft or refresh your social media policy and privacy notice. Keep it plain English. 2. Complete a DPIA for any planned employee social media monitoring. 3. Train managers on early conversations and evidence standards. 4. Set up a sign-off flow for company accounts and secure password storage. 5. Audit any monitoring tools for bias, retention limits, and access controls. RAG quick check - Red: no policy, no privacy notice, covert or blanket monitoring, password demands, no DPIA. - Amber: policy exists but vague, no training, unclear lawful basis, no retention limits. - Green: clear policy and privacy notice, DPIA done, proportionate scope, trained managers, access and retention controlled, review cycle set. ## FAQs - Can UK employers monitor employees' social media? Yes. Do it lawfully, tell staff, keep it proportionate, and document your basis. - Can I dismiss someone for a social post on a personal account? Sometimes. You need a clear link to work and proper process. Take advice for high-risk cases. - Can an employer ask for social media passwords? No. Do not demand access to private accounts. - Do I need a DPIA before monitoring employees? If the risk is higher, yes. A DPIA helps you decide if monitoring is necessary and proportionate. - Is WhatsApp in scope? Work WhatsApp groups used for business usually are. Private, passworded chats are different. Do not try to access them. - How long can we keep monitoring data? Only as long as needed for the purpose. Set retention limits and stick to them. ## Final thoughts and a friendly nudge You can run employee social media monitoring without breaking trust. Start with smart policy, add fair process, and keep it human. If you would like help to write or refresh your policy, update contracts, or set up a DPIA, our hive can do the heavy lifting while you make the tea. - Book a [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to benchmark your risks. - Need ongoing support for policies and tricky cases? Check our [HR Protect plan](https://kateunderwoodhr.co.uk/service-plans/hr-protect). - For hands-on, day-to-day help, see our [HR Business Partner service](https://kateunderwoodhr.co.uk/service-plans/hr-business-partner). - We can also set you up on [Breathe HR](https://kateunderwoodhr.co.uk/services/hr-software) to keep documents, training logs, and approvals tidy. Kettle on. Standards up. And as always, keep buzzing and take care of your people! --- ### Managing Poor Performance and Capability the Right Way - URL: https://kateunderwoodhr.co.uk/blog/guides/managing-poor-performance-capability - Published: 2026-04-30T00:00:00.000Z - Category: guides - Tags: performance-management, hr, underperformance, employee-performance, performance-improvement-plan # Underperformance: deal with it early, deal with it fairly Picture this. You hired someone great. Months later, targets are slipping, your inbox is full of complaints, and you are awake at 3 a.m. wondering what to do. You like them. You want it to work. But it is not working. So let us take the fear out of it. This is your plain-English guide to handling poor performance the right way. Spot it early. Work out what is really going on. Follow a fair process that gives a genuine chance to improve and protects your business if it does not. No legal jargon. No winging it. Just a clear path through. ## Quick Answer Box - Do this: have an honest informal conversation first, then move to a formal capability procedure with a clear plan, support, and a fair timescale if things do not improve. - Avoid this: ignoring it, jumping straight to a warning, or treating a genuine inability to do the job as if it were misconduct. - Write down: dates, what was discussed, the standards expected, the gap, the support offered, and what was agreed at each step. ## Conduct or capability? The question that changes everything Before you do anything, decide which one you are dealing with. They are handled differently. - Conduct is about behaviour and choices. Turning up late, being rude, ignoring instructions, breaking rules. That is disciplinary. - Capability is a genuine inability to do the job to the standard you need, often despite effort. They cannot do it, rather than they will not. That is capability. Why does it matter? Because if you treat a willing but struggling employee as if they committed misconduct, you start unfair and you tend to stay unfair. Most poor performance cases are capability, not conduct. The ACAS Code of Practice on disciplinary and grievance procedures is the benchmark a tribunal will measure you against. It is worth reading once, slowly, with a cup of tea: [ACAS Code of Practice on disciplinary and grievance procedures](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures) ## First, work out what is really going on A dip in performance is a symptom. Not a diagnosis. Before you pick a procedure, get curious. Ask yourself: - Has this person always struggled, or has something changed recently? - Do they actually know what good looks like in this role? Have you ever spelled it out? - Have they had the training, tools, and time to do the job properly? - Is there something going on at home, with their health, or with workload or priorities? - Could this be linked to a disability or a mental health condition? That last point is not optional box-ticking. If underperformance may be connected to a disability, the Equality Act 2010 gives you a duty to consider reasonable adjustments before you treat it as a plain performance issue: [Definition of disability under the Equality Act 2010](https://www.gov.uk/definition-of-disability-under-equality-act-2010). Skip that and a tidy capability process can turn into a discrimination claim. If you suspect health is a factor, that is the moment to get advice. Often, the honest answer is that nobody ever told the person clearly what was expected. Or the role changed under them. Fix the cause and the performance problem sometimes dissolves. Mini story: a client had a coordinator who was missing deadlines. We mapped her week and found two managers were feeding her clashing priorities. Clear priorities, one owner, and a short training boost. Deadlines back on track within a month. No warnings needed. ## Step one: the informal conversation Start here. Not with a formal letter. Sit down somewhere private. Be specific and kind at the same time. The goal is clarity, not a telling off. Our guide on [what great managers say in tricky conversations](/blog/guides/can-we-talk-what-great-managers-say-next) is a good companion. A manager script you can adapt: > "I wanted to talk about how things are going, because I want you to do well here. I have noticed [specific, factual example]. That is a gap from what we need, which is [the standard]. I would like to understand what is getting in the way, and agree how I can support you to close it." Then listen. You may learn something that changes the whole picture. End by agreeing what good looks like, what support you will give, and when you will check in. Write a short note afterwards. That note is a record that you were fair and clear. ## Step two: the formal capability procedure If the informal route does not work, move to a formal capability procedure. Structure protects everyone. A fair procedure looks like this: - Invite the employee to a formal meeting in writing, explaining the concern and that the meeting is part of a capability process. - Tell them they have the right to be accompanied at the formal meeting by a colleague or a trade union representative. For the detail on who can come along and what they can do, see [who can accompany an employee at a disciplinary meeting](/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk). - Hold the meeting. Set out the specific shortfalls with evidence. Genuinely listen to their side. - Agree a Performance Improvement Plan, often called a PIP. - Set a review date. - If performance does not improve, the process can move through warnings to, at the end, dismissal as a last resort. The right to be accompanied at formal meetings is a statutory right. Do not skip it because the business is small. It applies to you too. ## Building a Performance Improvement Plan that is actually fair A PIP is not a sacking countdown. Done properly, it is a real attempt to help someone succeed. Done badly, it is a tribunal exhibit. A fair PIP has: - Clear, measurable objectives. "Be more proactive" is not measurable. "Respond to customer emails within one working day" is. - The support you will provide. Training, mentoring, shadowing, adjusted workload, more frequent check-ins. - A reasonable timescale. Long enough to show improvement, given the role and the gap. There is no fixed legal period, but rushing it reads as a stitch-up. - Review meetings built in, so progress is tracked and the person is never blindsided. - A clear, honest statement of what happens if the standard is not met. Tribunals look at the fairness of the chances you gave. Clear standards, real support, and decent time. If you can answer yes with evidence, you are in a strong position. ## Warnings, reviews, and dismissal as a last resort If, after genuine support and a fair timescale, performance still falls short, the process can escalate: - A first formal warning, with a further review period. - A final written warning if there is still no sufficient improvement. - Dismissal only at the very end, after a fair hearing, with the right to be accompanied, and a right of appeal. Two things matter throughout. Keep offering support, even at the warning stage. Keep your process consistent with how you have treated others. Inconsistency is one of the fastest ways to lose a case. ## A note on the law At the time of writing, ordinary unfair dismissal protection generally requires two years of continuous service, unless the reason is automatically unfair or discriminatory. There have been proposals to make unfair dismissal a day one right. Law changes move fast, so check the current position on ACAS or Gov.uk before you rely on length of service. Honestly, the smart move is not to lean on a qualifying period at all. Follow a fair process from day one, every time. It is cheaper than a defence and it is how decent businesses run anyway. ## Common mistakes (and the fix) - Mistake: ignoring it and hoping it improves. Fix: address it early, while it is still a quiet conversation rather than a crisis. - Mistake: treating capability like misconduct. Fix: decide which it is first, then pick the right procedure. - Mistake: vague objectives nobody can measure. Fix: write objectives a stranger could mark as met or not met. - Mistake: a PIP timescale that is impossible to hit. Fix: make it genuinely achievable for the role. - Mistake: missing a possible disability or health link. Fix: pause and consider reasonable adjustments under the Equality Act before going further. - Mistake: no notes. Fix: write a short record after every conversation and meeting. ## A manager script for the formal meeting > "Thank you for coming, and thank you for bringing [name] with you. I want to be clear and fair about why we are here. The standard for this role is [X]. What we have seen is [specific examples with dates]. I want to understand your perspective, and then agree a plan with support and a fair timescale so you have a real chance to get there. Nothing is decided today." Calm, specific, fair. That is the job. ## What to write down Keep a simple file for each case containing: - Dates and notes of every conversation, informal and formal - The standard expected and the specific gap, with examples - The support offered and provided - The PIP, objectives, and timescale - Review meeting outcomes - Any warnings issued and the employee's response - The reasoning behind any decision If it is not written down, it is hard to prove you were fair. Memory gets wobbly. Files do not. ## When to get help If the situation is tangled, if there is a possible disability or grievance in the mix, or if you are moving to dismissal, get advice before you act, not after. That is exactly the kind of thing our [HR Protect](/service-plans/hr-protect) clients and [HR Advice Line](/service-plans/hr-advice-line) callers use us for. A steady hand on the process so you stay fair and protected. If you are not sure your current approach to performance, capability, and disciplinary procedures would stand up, book an [HR Health Check](/hr-health-check). No judgement. Just a clear view of what is working, what is risky, and what to fix first. You can also [book a discovery call](/discovery-call) and talk it through with a real person before you take a single step. Deal with it early, deal with it fairly, and write it down. Kettle On. Standards Up. Keep buzzing and take care of your people! --- ### Are You Sure Your Contractor Isn't Actually an Employee? - URL: https://kateunderwoodhr.co.uk/blog/legal/is-your-contractor-an-employee - Published: 2026-04-29T00:00:00.000Z - Category: legal - Tags: worker-classification, contractor-vs-employee, employment-status, freelancer-contracts, misclassification-risk # Facts, not labels: your contractor status really matters ## Are You Sure Your Contractor Isn't Actually an Employee? Picture this. You've got a cracking freelancer on a rolling project. No contract, lots of trust, and a few "can you just" jobs each week. Then your HR Health Check lands and flags a gap. You ask, why on earth do I need a contract for a contractor? Here's the short answer: contractor vs worker status decides tax, legal rights, and risk. Get it wrong and the bill, back pay, and stress will give you the jitters before the kettle's boiled. So let's jump straight in. ## Contractor vs worker: the quick answer - Contractor vs worker is not a choice. Labels do not decide status. Facts do. - HMRC and tribunals look at three core tests: mutuality of obligation, control, and personal service. - If your contractor looks and feels like a member of staff, you are likely in worker or employee territory. - Write what you do and do what you write. Contracts must match day-to-day reality. Quote to frame it: > "Employment status is based on the reality of the working relationship, not what the contract says." Source: [ACAS Employment status guidance](https://www.acas.org.uk/employment-status). ## Self-employed in plain English GOV.UK says a self-employed person runs their own business and takes responsibility for profit or loss. They invoice, cover their own tax, and are not on your PAYE. Someone can be employed in the day and self-employed in the evening. That's fine. The problem starts when the facts on the ground clash with the contractor label. That's where IR35 and employment rights kick in. Stat to set the scene: around 4.3 million people in the UK were self-employed in 2024, according to the ONS. Big pool. Big risk if you misread the rules. Helpful links: - [ACAS overview on status](https://www.acas.org.uk/employment-status) - [GOV.UK on off-payroll working, IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35) - [HMRC CEST tool](https://www.gov.uk/guidance/check-employment-status-for-tax) ## The 3 tests for contractor vs worker ### 1) Mutuality of obligation - Employees: the company offers work, the person must do it, and they get paid even if the workload dips. - Contractors: free to turn work down, and the client does not have to offer it. Mini case story. An IT outage hit a site. Employees were told to stay put. Contractors were sent home unpaid. The tribunal said there was no mutuality for the contractors. That lined up with genuine self-employment. Quick check: - Can the person refuse work without penalty? - Do you have to offer work week in, week out? - Are they paid when there's no work? If the answers lean to "no choice, always paid, always available", your contractor vs worker call is likely wrong. ### 2) Control - Employees: you set hours, methods, tools, and priorities. You manage how work is done. - Contractors: you buy outcomes, not attendance. They pick how to deliver the result. Ask yourself: - Do you tell them what to do, when, and how? - Are they in team meetings, using your clock-in, sitting in your hierarchy? - Do they work your fixed hours in your office most days? High control looks like employment. If you want a contractor vs worker answer that holds up, let contractors control their method and schedule, within reason for delivery. ### 3) Personal service - Employees: must do the work personally. - Contractors: should have a real right to send a suitable substitute. Key point. A substitution clause that never gets used and would never be accepted carries little weight. Make the right real, workable, and documented. Use it at least once if practical. The contract should mirror the day-to-day set up. ## Why contractor vs worker matters now ### IR35 tax exposure IR35 checks if a contractor is, in substance, an employee for tax. If HMRC says the set up is inside IR35, you face income tax and NICs, plus interest and penalties on top. For medium and large private sector clients, the end client sets the status and must give a Status Determination Statement. Small clients follow different rules, but clear records still help a lot. Quote: > "We will stand by the CEST result if the information is accurate and the guidance is followed." Source: [HMRC CEST guidance](https://www.gov.uk/guidance/check-employment-status-for-tax). Practical takeaways: - Keep a written status assessment on file. - Focus on deliverables, not attendance. - Keep contractor vs worker boundaries clear in both contract and practice. ### Employment rights risk If someone is really a worker or employee, they are due key rights. Think paid holiday, National Living Wage, protection from unlawful deductions, and rest breaks. Under new 2025 to 2026 changes referenced in the Employment Rights Act 2025, timelines for bringing claims are longer and enforcement is tougher, including a Fair Work Agency with power to act for workers. That raises the stakes for misclassification. Check GOV.UK for the current National Living Wage rate. ## What good looks like: contractor vs worker done right ### Contracts that match reality - Spell out the services, deliverables, fees, and milestones. - Add a genuine substitution right and a workable process to use it. - State that the contractor provides tools, covers tax, and carries insurance. - Avoid staff-style benefits, fixed hours, and day-to-day micro-management. ### Day-to-day ways of working - Brief on outcomes and deadlines, not timesheets and desk time. - Let contractors set hours and location where safe and reasonable. - Keep them outside core HR processes like appraisals and disciplinaries. - Pay by milestone or project where you can, not just time served. ### Record keeping that helps you sleep - Keep your IR35 status assessment and reasons. - Save CEST results, meeting notes, and emails that show independence. - Review status at each renewal or scope change. ## Step-by-step: fix your contractor vs worker risk this month 1. Audit your current contractors - List every live engagement. Note hours, location, pay method, kit used, and reporting lines. 2. Apply the 3 tests - Mutuality, control, personal service. Write down the honest answer for each. 3. Update contracts to fit reality - Tidy up substitution, deliverables, insurance, IP, and confidentiality. Keep it short and clear. 4. Run CEST and file the result - Use the HMRC CEST tool and keep a PDF copy for your records. 5. Change working patterns where needed - Move from fixed hours to milestones, reduce embedded team routines, and keep access light. 6. Get a second opinion - Ask an HR expert to review edge cases and high-spend roles. ## Think you're covered? Think again. ### MYTH 1: "We have a contract that says they're self-employed, so we're covered." A contract is a starting point, not a shield. HMRC and employment tribunals look at the reality of the working relationship, not just what the paperwork says. If someone works fixed hours, follows your instructions, and has never once sent a substitute, a self-employment clause won't save you. ### MYTH 2: "They invoice us, so they must be self-employed." Raising an invoice is an administrative act, not a legal status. Plenty of people who invoice for their work are still found to be workers or employees when the three tests are properly applied. HMRC is not fooled by the billing arrangement alone. ### MYTH 3: "They said they wanted to be a contractor, so it's their choice." Employment status is not a matter of personal preference; it is determined by the facts. Both parties can agree to call an arrangement self-employment, but if the courts or HMRC disagree, that agreement counts for very little. The liability typically falls on the employer, not the individual. ### MYTH 4: "We've worked this way for years without a problem." History is not protection. HMRC can investigate historic arrangements, and a contractor who has worked with you for years may actually have strengthened a case for worker or employee status, particularly if the relationship has become long-running, open-ended, and embedded in your operations. ### MYTH 5: "Small businesses don't get investigated." HMRC investigates businesses of all sizes, and the Employment Rights Act 2025's new Fair Work Agency has been specifically designed to increase enforcement activity. Smaller businesses are not invisible, and misclassification penalties can be proportionally more damaging when you have fewer resources to absorb them. Kettle on. Standards up. ## Tools and help - Try the HMRC [CEST tool](https://www.gov.uk/guidance/check-employment-status-for-tax) for a quick status view. - Read ACAS on [employment status](https://www.acas.org.uk/employment-status). - Check GOV.UK on [off-payroll working, IR35](https://www.gov.uk/guidance/understanding-off-payroll-working-ir35). - For a deeper review, our IR35 review and HR Health Check can do the heavy lifting and tidy your paperwork. ## FAQs - How is contractor vs worker different from contractor vs employee? A worker sits between self-employed and employee. Fewer rights than employees, more than genuine contractors. - Does a substitution clause guarantee outside IR35? No. It must be real, workable, and accepted in practice. Paper alone is weak. - Can someone be employed and self-employed at the same time? Yes. HMRC accepts this. Status is judged per engagement. - Will HMRC accept a CEST result? HMRC says it will stand by a correct CEST result if the inputs match guidance. - What happens if we misclassify? You risk tax, NICs, interest, penalties, and claims for holiday pay and pay shortfalls. - Do small companies need SDS documents? Rules differ for small companies. Good records still matter. Check GOV.UK for current thresholds. ## Final thoughts and next steps Contractor vs worker calls are about facts, not labels. Test mutuality, control, and personal service. Match contracts to reality. Keep clean records. If you want a sanity check, grab a brew and let us help. - Book a [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to spot gaps fast. - Ask for an IR35 review to reduce tax risk. - Need ongoing help? Our [HR Protect plan](https://kateunderwoodhr.co.uk/service-plans/hr-protect) keeps you safe and tidy. Get in touch at [hello@kateunderwoodhr.co.uk](mailto:hello@kateunderwoodhr.co.uk) or visit [kateunderwoodhr.co.uk](https://kateunderwoodhr.co.uk). Keep buzzing and take care of your people. --- ### RIDDOR Explained: Are You Meeting Your Legal Duty as a UK Employer? - URL: https://kateunderwoodhr.co.uk/blog/legal/riddor-uk-employer-legal-duty - Published: 2026-04-22T00:00:00.000Z - Category: legal - Tags: riddor-reporting, riddor-reporting-requirements-uk, hse-riddor-guidance # RIDDOR reporting made simple Picture this. A slip in the warehouse. A weekend gas call-out. Your phone lights up and the team asks if it needs RIDDOR reporting. You need a quick, confident answer. This guide breaks down RIDDOR reporting in simple steps so you protect people, meet your duties, and keep the HSE happy. > Short answer: RIDDOR reporting is the legal duty to report certain work-related accidents, diseases, and dangerous occurrences to the HSE. It applies across Great Britain. ## What is RIDDOR reporting? RIDDOR stands for Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013. RIDDOR reporting covers serious accidents, specified injuries, diagnosed occupational diseases, set "near miss" events, and some gas incidents. It is a legal requirement. It also creates national data that drives prevention. - HSE puts it plainly: "RIDDOR puts duties on employers, the self-employed and people in control of work premises to report and record certain serious workplace accidents, occupational diseases and specified dangerous occurrences." (Source: [HSE RIDDOR guidance](https://www.hse.gov.uk/riddor/)) ### What does RIDDOR stand for? - Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 - It applies to every workplace in Great Britain ### Who is the responsible person? - Employers and those in control of work premises make RIDDOR reporting - Self-employed on a client site: the client reports - Self-employed on your own premises: you report - Employees do not report to HSE, but they must raise concerns internally fast ## What is reportable under RIDDOR reporting? Think in five buckets. If in doubt, check the HSE examples page and call for advice before the clock runs out. ### Injuries and ill health - Deaths and specified injuries, for example fractures other than fingers, thumbs and toes, amputations, loss or reduction of sight, crush injuries to internal organs, serious burns - Over-seven-day injuries, where normal work is not possible for more than 7 consecutive days after the accident, not counting the day of the accident - Occupational diseases with a written diagnosis, for example carpal tunnel syndrome, occupational dermatitis, hand-arm vibration syndrome, occupational asthma, tendonitis > ACAS reminds employers: "You must keep an accident book by law." Good records support correct RIDDOR decisions. Source: [ACAS, Accident reporting](https://www.hse.gov.uk/riddor/). ### Dangerous occurrences and gas incidents - Dangerous occurrences are specified near-miss events with high harm potential, for example scaffold collapse, failure of a pressure system, certain electrical faults - Gas incidents found by registered gas engineers, for example unsafe appliances or fittings ## RIDDOR reporting deadlines and how to file Speed matters. Set one simple rule in your business: log the incident, assess against RIDDOR criteria, and submit if required. ### Time limits at a glance - Deaths, specified injuries, dangerous occurrences: as soon as possible, no later than 10 days - Over-seven-day injuries: within 15 days of the incident - Occupational diseases: without delay once a written diagnosis is received | Incident type | RIDDOR reporting deadline | | --- | --- | | Deaths and specified injuries | As soon as possible, within 10 days | | Dangerous occurrences | As soon as possible, within 10 days | | Over-seven-day injuries | Within 15 days | | Occupational diseases | On written diagnosis, without delay | ### Where to report - Use the online forms at the HSE portal: [https://www.hse.gov.uk/riddor/report.htm](https://www.hse.gov.uk/riddor/report.htm) - For fatal, specified injuries, and dangerous occurrences only, you can also call 0345 300 9923, Monday to Friday, 8.30am to 5pm ## Records, policies and training that back up RIDDOR reporting Solid basics save you stress on a busy Monday morning. Keep it simple, repeatable, and visible. ### Record keeping rules - Keep an accident book on site and in active use - Keep RIDDOR records for at least 3 years from the last entry - Treat records as confidential and store them securely under data protection rules - Health and safety software helps. A disciplined spreadsheet or paper system can work if kept current ### Train, brief and test the process - Name your responsible person for RIDDOR reporting and publish the steps - Brief managers and supervisors. Teach what to report and when to escalate - Run a short tabletop drill twice a year. Ten minutes with a brew, job done ## Updates to guidance and what might change next You asked for clearer forms, the HSE listened. Recent tweaks help you get to the right decision faster. ### 2024 form and guidance changes - Clearer links to examples of reportable incidents - Better guidance on who should report under RIDDOR reporting - Clearer test of "work related" - More detail on when a disease is not reportable - A tidy-up on over-seven-day absence triggers - Online forms front-load severity questions and show pop-ups if your case is not reportable ### The 2026 consultation, have your say - HSE is consulting on modernising parts of the regulations, for example updating dangerous occurrence lists and conditions linked to work-related ill health - Closing date noted as 30 June 2026. Employers, duty holders, the self-employed, and health professionals are encouraged to respond - Keep an eye on the HSE site for final decisions and dates ## Quick checklist and common myths Time for brass tacks. Here is your go-to list, plus a little myth busting. ### 7 quick actions for confident RIDDOR reporting 1. Add RIDDOR reporting steps to your Health and Safety policy and make it easy to find 2. Name a responsible person and a deputy, share contact details 3. Set a same-day internal escalation rule for any serious incident 4. Use the HSE examples page before you submit 5. Track deadlines with calendar reminders, then submit and file the receipt 6. Review near misses monthly to spot patterns 7. Book a short refresher briefing every 6 months ### Mythbuster parade - "First aid only, so never RIDDOR." False. Severity and outcomes matter, not just treatment - "It happened in the car park, so it does not count." Not always. Work-related tests still apply - "Employees must report to HSE themselves." False. That is on the responsible person - "If in doubt, do not report." Risky. Check the guidance, log advice, and submit when required - "If it was the employee's fault, we don't have to report it." False. Fault/blame is separate. Reporting is about what happened and whether it meets the criteria. - "They didn't take time off, so it can't be RIDDOR." False. Some things are reportable even without absence, and some become reportable based on the type of injury/outcome, not whether they had a day off. - "If they didn't go to hospital, it's not reportable." False. Hospital treatment is relevant in some situations, but plenty of reportable injuries don't involve a hospital trip. ## Why this matters, with data The human and financial costs are real. Latest HSE statistics show significant harm and lost time each year across Great Britain. Check the HSE statistics portal for the current year's totals for fatalities, RIDDOR-reported injuries, days lost, and the annual cost of work-related injury and ill health. (Source: [HSE, Health and safety statistics](https://www.hse.gov.uk/statistics/)) As an employer, getting RIDDOR reporting right protects people, reduces risk, and gives you clear evidence if the HSE ever calls. Good ethics, good business. ## Need a hand? If you want a quick sense check of your accident process or you are writing your first RIDDOR reporting procedure, we can help. Our HR Protect and HR Business Partner plans include policy drafting, manager briefings, and system setup. You can also start with a free HR Health Check to see where you stand. - Talk to us about Outsourced HR and compliance support: [https://kateunderwoodhr.co.uk/](https://kateunderwoodhr.co.uk/) - Book your [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) - Explore [HR Protect monthly support](https://kateunderwoodhr.co.uk/service-plans/hr-protect) - [Breathe HR setup and training](https://kateunderwoodhr.co.uk/services/hr-software) Kettle On, Standards Up. And as always, keep buzzing and take care of your people! ### Sources and further reading - HSE, Report a work-related accident, disease or dangerous occurrence under RIDDOR: [https://www.hse.gov.uk/riddor/report.htm](https://www.hse.gov.uk/riddor/report.htm) - HSE, RIDDOR guidance and examples: [https://www.hse.gov.uk/riddor/](https://www.hse.gov.uk/riddor/) - HSE, Health and safety statistics: [https://www.hse.gov.uk/statistics/](https://www.hse.gov.uk/statistics/) - ACAS, Accident reporting: [https://www.hse.gov.uk/riddor/](https://www.hse.gov.uk/riddor/) ### FAQ - What is RIDDOR reporting in simple terms? - It is the legal duty to report certain work-related accidents, diseases, and dangerous occurrences to the HSE using set forms and time limits. - What counts as a specified injury for RIDDOR reporting? - Fractures other than fingers, thumbs and toes, amputations, loss or reduction of sight, serious burns, and crush injuries to internal organs. - Do I need to report over-7-day absences under RIDDOR reporting? - Yes. If a worker cannot do their normal job for more than 7 consecutive days after the accident, report within 15 days. - Who files the RIDDOR reporting for contractors? - The responsible person in control of the premises. If you are self-employed on your own premises, you file it. - Can an employee report to HSE under RIDDOR? - No. Employees raise it internally. The responsible person submits the official report. - How long must I keep RIDDOR records? - At least 3 years from the last entry, stored securely. --- ### Right To Work Checks: 5 Costly Mistakes UK Employers Make - URL: https://kateunderwoodhr.co.uk/blog/legal/right-to-work-checks-uk-employers-mistakes - Published: 2026-04-15T00:00:00.000Z - Category: legal - Tags: right-to-work-checks, uk-immigration-compliance, employer-compliance, illegal-working-penalties, home-office-guidance # Small checks, big consequences: get right to work right Picture this. You've found a brilliant new hire and the team is buzzing. Then someone asks about right to work checks. If your stomach flips, you are not alone. Right to work checks protect your business, and skipping them can mean big fines and chaos. Why this matters right now? From February 2024, the maximum civil penalty for employing illegal workers increased to £60,000 per worker for repeat breaches (Home Office, 2024). That is the kind of bill that ruins a budget and a weekend. Useful source: - [GOV.UK: Employer right to work checks guidance](https://www.gov.uk/check-job-applicant-right-to-work) ## Mistake 1: Checking some people, not everyone Right to work checks apply to every employee. Every role. Every hour pattern. British passport, Irish passport, or visa holder. Full time, part time, casual, apprentice, or zero hours. The lot. Different treatment can also drift into discrimination risk. One clear, consistent process protects you and your people. ### What documents can prove the right to work? Depending on the person, you may need to see: - British or Irish passport - Biometric Residence Permit (BRP) - Visa or immigration status documents - Settled or pre-settled status via a Home Office share code - Certificate of naturalisation or birth certificate (with proof of National Insurance) Follow the current GOV.UK guidance for the exact lists and routes. ### What should you check? - Is the document genuine and the original needed for that route? - Does the photo look like the person in front of you? - Are names and dates consistent? - Is it in date? - Are there work type or hour limits? - When does permission expire? If anything looks off, pause and check before day one. Useful source: - [GOV.UK: Employer's guide to right to work checks](https://www.gov.uk/government/publications/right-to-work-checks-employers-guide) ## Mistake 2: Skipping proper copies and records Seeing a document is not enough. You need evidence you did the check the right way. Copy the relevant pages or download the online outcome, then store it securely. Record the date, who checked it, and that originals were seen if required. Years later, your notes will do the talking. What to keep on file: - Passport photo page and visa pages - BRP front and back - Endorsements or Home Office letters - Home Office online check result with the share code journey - The date and name of the person who carried out the check Store in secure HR software or locked files. Keep access tight and retention periods clear. These are sensitive personal documents. Useful source: - [ICO: Employment records and UK GDPR guidance](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/) ## Mistake 3: Forgetting follow-up checks for time-limited permission Compliance does not end at day one. If someone has time-limited permission, you must recheck before it expires. This is where businesses trip up, often years later. Set reminders well in advance. Automate where you can. A five-minute diary note now can save five-figure fines later. Quick audit prompts: - Are all files complete and readable? - Are expiry dates captured and diarised? - Are rechecks scheduled? - Is each check dated and signed off? Useful source: - [GOV.UK: View a job applicant's right to work (share code service)](https://www.gov.uk/view-right-to-work) ## Mistake 4: Using outdated rules or hearsay Rules change. So do penalty levels and digital systems. Relying on a dusty template or a guess from years ago is risky. Key post-Brexit shift: many EU citizens now need proof of status. That often means an online check with a share code, settled or pre-settled status, or a visa. Do not demand a single document type; keep your process fair and consistent. Expert note: > "You must check that job applicants are allowed to work in the UK before you employ them." [ACAS recruitment guidance](https://www.acas.org.uk/hiring-someone) Stay current by reviewing your process each year, or sooner if you hire at pace, recruit internationally, or hold a sponsor licence. Useful sources: - [GOV.UK: Work visas and immigration overview](https://www.gov.uk/browse/visas-immigration/work-visas) - [ACAS: Hiring someone](https://www.acas.org.uk/hiring-someone) ## Mistake 5: Letting someone start before checks are complete This one stings. If a person starts work before right to work checks are finished, you can still face penalties even if documents appear later. Build checks into your hiring steps and hold the line, even when busy. A simple sequence: 1. Offer accepted 2. References requested 3. Right to work checks completed 4. Contract issued 5. Start date confirmed No shortcuts for "a few shifts", "helping out", family, or referrals. Same process. Every time. Useful source: - [GOV.UK: Penalties for employing illegal workers (civil penalty rates)](https://www.gov.uk/penalties-for-employing-illegal-workers) ## The risk most people forget: reputation Fines hurt. Publicity hurts more. An investigation can shake client confidence, unsettle staff, and threaten contracts. Solid checks are not red tape. They are business protection. ## Quick right to work checklist Before anyone starts: - Ask every employee for right to work documentation - Check documents carefully and confirm limits - Verify photo, name, dates, and expiry - Keep clear, dated copies and notes - Set reminders for any rechecks - Review your process each year Simple. Consistent. Compliant. ## Need a hand putting this on rails? If you want a quick sense-check of your onboarding, contracts, and compliance, take our Free HR Health Check. It takes 5-7 minutes and gives practical, plain-English actions. - [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) - [Kate Underwood HR (outsourced HR support)](https://kateunderwoodhr.co.uk/) Final thoughts and a pep talk: stay informed, not panicked. Put clear steps in place, use the official guidance, and keep tidy records. Kettle on, standards up. Until next time, keep buzzing and take care of your people! ### FAQ - Do I need to do right to work checks for British citizens? Yes. Apply the same process to everyone. The document route may differ, but the check still happens. - Can I do right to work checks over a video call? Follow current GOV.UK routes. Some checks are online via share codes. Identity service providers can be used for British and Irish passports if you meet the scheme rules. - What happens if an employee's visa is about to expire? Recheck before expiry. If permission ends and is not extended, you must not employ the person. Use reminders well in advance. - Are photocopies or scans enough? Only if that route allows it. For online checks, keep the official outcome. For documents that must be seen, follow the original-document route. - How long should I keep right to work records? Keep them securely for the duration of employment and for two years after it ends, then delete in line with your retention policy. - What are the current penalties for illegal working? As of 2024, civil penalties can reach up to £60,000 per illegal worker for repeat breaches. See GOV.UK for current rates. --- ### SSP Now Starts on Day One: Should You Change Your Sick Pay? - URL: https://kateunderwoodhr.co.uk/blog/legislation/ssp-starts-day-one-change-sick-pay - Published: 2026-04-08T00:00:00.000Z - Category: legislation - Tags: occupational-sick-pay, sick-pay-schemes, employee-benefits, absence-management, hr-policy, employment-rights-act # Occupational Sick Pay for SMEs: The Pros, The Cons, The Reality Check Sickness absence happens in every business. Sometimes it's a one-off bug and everyone moves on. Sometimes it turns into that recurring headache that lands in your inbox at 6.55am, usually with the words "not feeling well" and no other information. At some point most small business owners ask the same question: "Do we offer Occupational Sick Pay, or do we stick with Statutory Sick Pay?" There is no one-size-fits-all answer. Occupational Sick Pay (OSP) can be a brilliant benefit and a real culture builder. It can also cost you more than you expect if you don't set it up properly. Hazel (Chief Wellbeing Officer) would like me to add that her sick pay scheme is very generous. If she looks sad, she gets a duvet and a snack. Sadly, humans require a bit more structure. Let's keep this simple and practical. ## Quick Answer Box **Do this:** decide what you can afford, set clear rules, and manage absence consistently. **Avoid this:** paying OSP without any boundaries, or offering it and then changing your mind mid-year. **Write down:** eligibility, evidence required, how it's paid, and what happens when absence becomes frequent. ## What is Occupational Sick Pay? **Occupational Sick Pay (OSP)** is any sick pay you choose to offer above the legal minimum. **Statutory Sick Pay (SSP)** is the legal baseline, if the employee qualifies. OSP is a benefit. That means you control the design: how much, how long, who qualifies, and what evidence is required. For a fuller look at the trade-offs, see our guide to the [advantages and disadvantages of sick pay schemes (OSP)](/blog/guides/advantages-disadvantages-sick-pay-schemes). And if someone on your team is staring at an OSP line on their payslip and wondering what it means, point them at [What is OSP on a payslip?](/blog/guides/what-is-osp-on-a-payslip) ## A big update: SSP is now day one (and it changes the conversation) With changes linked to the Employment Rights Act reforms, **SSP is now payable from day one** for eligible employees. That matters because a lot of SMEs used to rely on waiting days as a natural filter. Now, sickness cost hits sooner. This is also the benefit area where many small businesses feel a bit hard done by because: - SSP is a direct cost to the business - and for most SMEs, it's the one employee benefit cost you can't claim back So if you're reviewing whether to offer OSP, this is a sensible time to pause and reconsider your approach. OSP sits on top of SSP, so if the baseline has shifted, the total cost picture shifts too. If you want the wider context, start here: [Employment Rights Act advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) ## Why people consider OSP Usually one of these triggers: - your team has grown and you are reviewing benefits - you are hiring and want to attract stronger candidates - you've had a rough winter of bugs and you're fed up of people coming in ill - you've had a long-term sickness case and realised your process is shaky - you want a more supportive culture but you also want clear boundaries All valid reasons. ## What this looks like in real life ### Mini drama: "I want to be supportive, but I also have bills" You've got a good employee who's genuinely unwell. You want to support them. They're worried about money. You're worried about the business running and payroll costs. Then you've also got the other situation: The person who's "sick" every other Friday, always with a vague message, and somehow always returns on Monday like nothing happened. OSP needs to cover both realities: - real illness and genuine support - and the risk of patterns and abuse That's why the rules matter. ## The advantages of an Occupational Sick Pay scheme ### 1) A healthier workplace If people know they will not be financially punished for being ill, they are more likely to stay home when they are contagious. That protects: - your wider team - your customers - and your productivity ### 2) Less financial stress for employees Illness is stressful enough without the panic of "can I pay my bills?" A defined period of OSP can reduce anxiety and help people recover properly. That often means they return sooner and in a better place. ### 3) Stronger culture and retention OSP sends a message: "We do things properly here. We look after people." It can help with: - retention - recruitment - and trust ## The disadvantages of an Occupational Sick Pay scheme ### 1) Cost, and it's not just the sick pay The obvious cost is paying someone who isn't at work. But the hidden costs are often bigger: - overtime for other staff - temp cover - agency fees - reduced output - managers spending time firefighting rotas SSP being payable from day one means your costs can land earlier, so it's worth running the numbers before you commit to an OSP scheme. ### 2) Increased absence risk (if boundaries are weak) If your scheme is generous but your absence management is "hope for the best", you might see patterns emerge. The fix is simple: clear rules, applied consistently. ### 3) Resentment from the "always here" employees If one person is off frequently and being paid, and another person rarely takes a day, you can get the quiet grumble: "Why am I grafting while they're paid to be at home?" OSP needs to be balanced with clear management, fairness, and good communication. ## The ROI of OSP (sometimes it's cheaper than you think) This is the bit I wish more SMEs looked at. Yes, OSP costs money. But not offering it can cost money too, just in a messier way. Here's where OSP can pay for itself: ### 1) Fewer people coming in ill and infecting everyone One person dragging themselves in with a bug can take out half your team in a week. If OSP means people stay home early and recover properly, you reduce the "domino effect". **Example:** Team of 10. One person comes in ill, 3 others go off over the next week. That's not just sick pay. That's lost output, overtime, stress, customer impact. ### 2) Reduced turnover (and turnover is expensive) Replacing someone costs more than most business owners realise: - recruiting - training - lost time - mistakes while they learn - managers covering gaps OSP is a retention signal. People remember if you supported them. **Example:** If replacing a key team member costs you even a few thousand in time and disruption, a modest OSP scheme suddenly looks very reasonable. ### 3) Faster, healthier returns to work When people are stressed about money, they return too early, recover badly, and often end up off again. OSP can support a cleaner recovery and a smoother return. **Example:** Two short absences plus a messy return can cost more than one properly managed absence with clear support. ### 4) Better recruitment In some sectors, a basic OSP scheme is genuinely attractive. It can help you stand out without needing "flashy" perks. ### 5) Fewer disputes and less stress Clear rules reduce arguments. Simple. ## A quick note on support (this is where partnership helps) If you're trying to make decisions like this on your own, it can feel like you're choosing between: - being generous and risking abuse - or being cautious and worrying you're "not a good employer" You don't need to do it alone. We partner with **Pangea Life** to support small businesses in making these kinds of benefit decisions in a sensible, sustainable way. That means we can help you: - work out what your business can realistically afford - design an OSP scheme that's fair and clear - line it up with your contracts and policies - and make sure your absence process actually backs it up Practical support, not vague advice. ## The simple step-by-step way to decide what to offer ### Step 1: Decide your aim Pick the main reason you want OSP: - reduce people coming in ill - improve retention - support wellbeing - strengthen your benefits package ### Step 2: Decide what you can afford on a bad month Not a normal month. A bad month. Ask: - if two people were off at once, could we cope - if one person was off long-term, what would we do - would we need cover, and what would it cost ### Step 3: Pick a simple structure Most SMEs choose one of these: - full pay for X weeks, then half pay for X weeks - full pay for X weeks only - a set number of paid sick days per year - a stepped scheme based on length of service Keep it simple. Complicated schemes cause mistakes. ### Step 4: Use eligibility to keep it fair and sustainable This is the bit that makes OSP workable for SMEs. You can set eligibility rules such as: - OSP starts after probation - higher OSP entitlement after 1 year, 2 years, 3 years service - OSP increases with length of service - OSP only applies if reporting rules are followed - evidence required after a set number of days This allows you to: - reward loyalty - protect your finances - and avoid "everyone gets full pay from day one forever" (which is not a plan) ### Step 5: Set your evidence and reporting rules Make sure people know: - when they need to call in - who they contact - what information they give - when a fit note is required - what happens if they don't follow the process ### Step 6: Make absence management non-negotiable OSP only works well when absence is managed properly. That means: - return to work chats happen - patterns are picked up early - triggers are used fairly - support is offered where appropriate - and formal steps happen when needed Not heavy-handed. Just consistent. ## What to allow and what to ban (practical rules) ### Allow - OSP as a defined benefit with clear limits - supportive conversations and adjustments where needed - return to work chats as standard - reviewing the scheme annually ### Ban - paying OSP with no reporting process - managers making "special deals" - OSP being used as a substitute for managing performance or conduct - discussing someone's sickness details with the wider team Hazel would also like to ban "reply with a thumbs up to confirm you're ill". Agreed. ## A manager script you can use If someone says: "Am I getting full pay?" You can say: "Let's focus on you getting better first. Our sick pay works like this: [brief explanation]. I'll confirm it in writing so it's clear, and we'll do a return to work chat when you're back so we can support you properly." If you're worried about repeat absence: "I want to check in because we've had a few absences recently. This isn't a telling off. It's about making sure you're okay, understanding if there's anything going on, and being clear about what support we can offer and what we need from you." ## What to write down (minimum effective paperwork) If you offer OSP, document: - the scheme rules (full pay, half pay, duration) - eligibility (probation, service, conditions) - reporting requirements - evidence requirements - how SSP interacts with OSP - how you manage triggers and repeat absence - how and when the scheme is reviewed And in live cases, record: - absence dates - return to work chats - any adjustments offered - any agreed actions - trigger meetings and outcomes ## If you're using an HRIS system Use it to: - log absences consistently - track patterns and triggers - store fit notes and return to work notes securely - schedule review meetings - keep a clean record of decisions Absence becomes messy when it lives in someone's inbox and a manager's memory. ## FAQs ### Do we have to offer Occupational Sick Pay? No. OSP is optional. SSP is the baseline if the employee qualifies. ### Should we rethink OSP now SSP is day one? Yes, at least review it. Day one SSP changes your cost baseline, so it's sensible to check your OSP is still affordable and fit for purpose. ### Can we offer OSP only after probation? Yes, that's very common. Just make sure it's clearly stated in the contract or policy. ### Can we increase OSP with length of service? Yes. This is one of the most common and sensible ways SMEs offer OSP. It rewards loyalty and helps you manage cost. ### Can we change our OSP scheme later? You can, but be careful. If it's contractual, changing it may require consultation and agreement. If it's discretionary, you still need to apply it fairly and consistently. ### Will OSP increase sickness absence? It can if there are no boundaries. With clear rules and consistent absence management, many SMEs find it supports genuine recovery and reduces presenteeism. ### What about repeat short-term absence? Use return to work chats, track patterns, apply triggers fairly, and address it early. ### What if someone is genuinely ill long-term? OSP can provide vital support, but you still need a proper capability and medical process, and good documentation. ### How do we stop resentment in the team? Be consistent and fair. Don't share personal details. Focus on the fact you manage absence properly for everyone. ### What's the simplest OSP scheme for a small business? A short defined period, for example X weeks full pay, with clear reporting rules and evidence requirements, plus a consistent absence process. ## Bottom line OSP can be a great benefit for small businesses, but it works best when: - the rules are clear - the business can afford it - absence is managed consistently - eligibility is used sensibly (probation and length of service) - managers don't freelance decisions Supportive does not mean soft. It means clear, fair, and consistent. ## Right, what do you do now? If you're considering introducing OSP, or you already offer it but your rules are vague, this is exactly the sort of thing we look at in an **HR Health Check**. We'll check: - what your contracts and handbook actually say - whether the scheme is sustainable (especially now SSP is day one) - whether managers are applying it consistently - and where the risks are hiding Book your HR Health Check here: [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check/) --- ### Statutory Pay Rates 2026/27: Simple UK Employer Cheat Sheet - URL: https://kateunderwoodhr.co.uk/blog/legal/uk-statutory-pay-rates-2026-27 - Published: 2026-04-06T00:00:00.000Z - Category: legal - Tags: statutory-pay-rates, statutory-sick-pay-rate-202627, statutory-maternity-pay-rates-202627 # Picture this. ## Statutory Rates 2026/27: The Simple UK Employer Guide It's payroll week. Someone is off sick. Somebody else has just announced they're expecting a baby. Your accountant has emailed. Your phone is pinging. And suddenly somebody asks the big one about statutory rates 2026/27. - You know it changed in April. - You know you looked it up recently. - You absolutely do not know it off the top of your head. You are not alone. Every April, statutory rates change and thousands of employers end up frantically Googling SSP, maternity pay, redundancy caps and National Living Wage rates while trying to actually run their business. So this guide to statutory rates 2026/27 gives you the important bits in plain English: - what the rate is - what it is for - the eligibility point that catches employers out most often - and where you need to be careful before payroll runs - No jargon. - No legal waffle. - No 47-page government guidance that somehow raises more questions than it answers. Just the practical stuff you actually need. ## The key statutory rates for 2026/27 Here are the headline figures most employers ask about. - Statutory Sick Pay (SSP): £123.25 per week, up to 28 weeks - Family-related statutory pay rate: £194.32 per week - Lower Earnings Limit (LEL): £129 per week - Redundancy maximum week's pay cap: £751 - Statutory guarantee pay daily rate: £41 - National Living Wage (21+): £12.71 per hour Tip: Bookmark this page and send it to payroll. Future you will genuinely be grateful. **Want the rates applied correctly, not just known?** [HR Protect](/service-plans/hr-protect) includes hands-on help with the payroll-adjacent decisions these figures feed into, from £299/month. ## First things first: does someone need to earn above the LEL? Not for everything. This is the bit that catches loads of employers out. People often assume the Lower Earnings Limit applies to every statutory payment. It does not. ### What is the Lower Earnings Limit (LEL)? The Lower Earnings Limit, usually shortened to LEL, is a weekly earnings threshold used for eligibility for some statutory payments. #### Current LEL rates | Tax Year | Weekly LEL | | -------- | ---------- | | 2026/27 | £129 | | 2025/26 | £125 | | 2024/25 | £123 | ### Which payments use the LEL? Here is the easy way to remember it. The LEL matters for: - Statutory Maternity Pay (SMP) - Statutory Paternity Pay (SPP) - Statutory Adoption Pay (SAP) - Shared Parental Pay (ShPP) - Statutory Parental Bereavement Pay (SPBP) - Statutory Neonatal Care Pay (SNCP) But the LEL does not decide SSP eligibility. SSP has its own earnings rules. Because of course it does. One of the most common mistakes we see is employers assuming somebody who earns below the LEL cannot qualify for any statutory payment at all. That is not always true. And this is where getting the correct qualifying period matters. Useful sources: - [GOV.UK SMP, SPP, SAP, ShPP, SPBP, SNCP overview](https://www.gov.uk/maternity-pay-leave) - [GOV.UK LEL background](https://www.gov.uk/national-insurance) ## Statutory Sick Pay (SSP) ### What is SSP? Statutory Sick Pay is the minimum amount employers must pay eligible employees when they are off work sick. It is paid by the employer, not directly by the government. And while the idea sounds simple enough, SSP questions create a surprising amount of confusion for employers. Especially around: - waiting days - linked periods of absence - average earnings - fit notes - part-time employees - zero-hours workers ### SSP rate for 2026/27 - £123.25 per week Eligible employees can receive SSP for up to 28 weeks. ### Quick SSP checklist Before paying SSP, check: - Are they classed as an employee? - Do they meet SSP earnings rules? - Are they off sick for a qualifying reason? - Have they been absent for long enough? - Is this linked to a previous sickness absence? From April 2026, SSP is expected to become payable from day one, with waiting days removed, subject to legislation. If you are reading this later in the tax year, double-check the current GOV.UK guidance before payroll runs. Useful source: - [GOV.UK SSP](https://www.gov.uk/statutory-sick-pay) ### Where employers often go wrong with SSP A big misconception is that SSP is only for full-time employees. That is not true. Part-time employees, agency workers and some zero-hours workers can qualify if they meet the eligibility rules. Another issue is assuming a fit note automatically means SSP applies. It does not. The employee still needs to meet the earnings and eligibility tests. Equally, some employers stop SSP too early because they assume a phased return means payments end immediately. This is why payroll, HR and line managers all need to communicate properly. Because trying to untangle SSP mistakes afterwards is never anyone's favourite afternoon. Useful stat: - The UK sickness absence rate was 2.5% in 2023, one of the highest since 2004. Source: [ONS, Sickness absence in the UK labour market 2023, published 2024](https://www.ons.gov.uk/employmentandlabourmarket) ## Family-related statutory pay Most family-related statutory payments use the same weekly rate. Thankfully. At least HMRC gave us one tiny bit of consistency. ### 2026/27 statutory pay rate - £194.32 per week ### How payment usually works For most family-related leave: - The first 6 weeks are paid at 90 percent of average weekly earnings - The remaining weeks are paid at the lower of: - 90 percent of earnings - or the statutory weekly rate ### This applies to: - Statutory Maternity Pay (SMP) - Statutory Paternity Pay (SPP) - Statutory Adoption Pay (SAP) - Shared Parental Pay (ShPP) - Statutory Parental Bereavement Pay (SPBP) - Statutory Neonatal Care Pay (SNCP) Useful source: - [GOV.UK family-related pay](https://www.gov.uk/maternity-pay-leave) ### Quick eligibility checklist for family-related pay Check: - Are they an employee? - Have they worked for you long enough? - Do they earn at least £129 per week? - Have they given the correct notice, forms, or evidence? ### The bit employers forget most often Average weekly earnings. This is the bit that quietly causes problems. Employers often look at someone's current monthly pay and assume they either qualify or do not qualify. But statutory family pay usually looks at earnings during a specific qualifying period. So if somebody had: - overtime - commission - irregular hours - unpaid leave - reduced shifts - maternity-related sickness It can affect the calculation. And sometimes the answer is different to what you first expected. ### Mini case study A Hampshire cafe owner called us after refusing SMP because the employee's monthly pay dipped below normal during a quiet trading period. She assumed: > "Below the LEL this month means no SMP." Wrong test. The qualifying calculation used average weekly earnings across the relevant period. We re-ran the figures, confirmed eligibility, corrected payroll, and avoided what could easily have become a formal grievance. Ten minutes of checks saved weeks of stress. And honestly? That is usually how HR works. The small checks matter. Expert quotes: - ACAS adviser: "Keep clear records of statutory payments and why you paid them." Source: [ACAS guidance on pay and absence](https://www.acas.org.uk/absence-from-work) - Kate Underwood, HR Queen Bee: "Compliance is financial self-defence. Five minutes of checks beats five hours of clean-up." ## Can employers reclaim statutory pay? Usually, yes. Most employers can reclaim: - 92 percent of statutory family-related pay - 108.5 percent if they qualify for Small Employers' Relief ### Who qualifies for Small Employers' Relief? Generally, employers whose total Class 1 National Insurance liability was £45,000 or less in the previous tax year. ### How do employers claim it? Usually through payroll using an Employer Payment Summary, known as an EPS. Useful source: - [GOV.UK recover statutory payments](https://www.gov.uk/recover-statutory-payments) ### Why this matters for small businesses Cash flow. That is usually the real issue. Especially for smaller employers. If you are covering maternity pay, adoption pay or shared parental pay, reclaiming correctly makes a real difference. But we still regularly see: - claims missed completely - payroll systems set up incorrectly - employers unaware they qualify for Small Employers' Relief - reclaim percentages entered incorrectly Which means businesses either lose money or end up correcting payroll retrospectively. Neither option is ideal. ## Redundancy pay: the simple version Redundancy pay depends on: - age - length of service - weekly pay, capped by law ### 2026/27 redundancy pay cap - £751 per week Employees must usually have: - employee status - at least 2 years' continuous service - a genuine redundancy situation ### How statutory redundancy pay is calculated For each full year of service: | Age | Entitlement | | -------- | --------------- | | Under 22 | 0.5 week's pay | | 22-40 | 1 week's pay | | 41+ | 1.5 week's pay | Maximum service counted is 20 years. Useful source: - [GOV.UK redundancy pay](https://www.gov.uk/redundant-your-rights/redundancy-pay) ### Important reminder about redundancy Redundancy is not just about the payment. Even if the calculation itself is correct, you still need: - consultation - fair selection - proper communication - evidence of the business reason - a fair process overall We see employers focus entirely on the redundancy pay figure while skipping the process side. And unfortunately, that is often the expensive bit. ## Statutory guarantee pay If an employee is expected to work but you cannot provide work, they may qualify for guarantee pay. This often comes up during: - temporary shutdowns - machinery breakdowns - weather disruption - short-term closures - staffing reductions ### 2026/27 daily rate - £41 per day Employees can receive a maximum of five guarantee payments within a three-month period. Useful source: - [GOV.UK lay-offs and short-time working](https://www.gov.uk/lay-offs-short-timeworking) ### Why guarantee pay catches employers out Because many employers do not realise it exists. Or they assume: > "No work means no pay." Unfortunately, employment law is rarely that simple. Contracts, custom and practice, lay-off clauses and statutory minimum rights all matter here. Which is why it is always worth checking before making assumptions during quieter periods. ## Unfair dismissal limits (headline figures) From April 2026: - Maximum week's pay: £751 - Compensatory award cap: £123,785 Subject to annual review. Always check the latest limits before making decisions involving dismissals, settlement discussions or tribunal risk. ### Why these figures matter Not because every claim reaches those amounts. Most do not. But they help you gauge overall risk. Tribunal claims are expensive long before compensation is awarded. There is: - management time - legal costs - stress - disruption - reputational damage - and the joy of pulling together six years of emails at short notice Which nobody enjoys. ## National Living Wage reminder From April 2026: - National Living Wage for age 21 and over: £12.71 per hour Useful sources: - [GOV.UK National Minimum Wage and National Living Wage](https://www.gov.uk/national-minimum-wage-rates) - [CIPD Health and wellbeing at work 2024: pay and absence impact](https://www.cipd.org/uk/knowledge/reports/health-well-being-work/) ### Why employers should check this carefully Because underpayments happen more easily than people think. Especially when: - salaries are close to minimum thresholds - unpaid working time is involved - deductions reduce pay - uniforms or equipment are deducted - staff work extra time before or after shifts And HMRC does investigate minimum wage breaches. So if you have not reviewed pay since the April increases, it is worth doing. ## Practical takeaways for employers If you only remember five things from this guide, make them these: - Save this page and check statutory rates 2026/27 before running payroll each April - For family-related pay, check employment status, service, notice requirements and the LEL - For SSP, use SSP rules rather than assuming the LEL applies - Keep records of statutory payments and payroll decisions for at least 3 years - If you are unsure, check GOV.UK and write down your reasoning ## FAQ: statutory rates 2026/27 - What are the statutory rates 2026/27 in the UK? - SSP £123.25 per week. Family-related pay £194.32 per week. LEL £129 per week. Redundancy week's pay cap £751. Guarantee pay £41 per day. National Living Wage 21+ £12.71 per hour. - Does the LEL apply to SSP in 2026/27? - No. The LEL applies to most family-related statutory payments. SSP has separate earnings rules. - Can small employers reclaim more than 92 percent of SMP or SPP? - Yes. If your Class 1 National Insurance liability was £45,000 or less in the previous tax year, you can usually reclaim 108.5 percent. - Will SSP be paid from day one in 2026/27? - The current plan is to remove waiting days from April 2026, subject to legislation. Always check GOV.UK before payroll runs. - How do I calculate statutory redundancy pay? - Use age bands, full years of service, and the capped weekly pay of £751. The maximum service counted is 20 years. - How long must employers keep records of statutory payments? - Payroll and statutory payment records should normally be kept for at least 3 years. Check current HMRC and ACAS guidance for the latest requirements. ## Final thought Most statutory pay issues are not difficult because the rules are impossible. They are difficult because: - the rates change every April - the eligibility rules differ - payroll deadlines never move - and somebody always asks the question while you are already busy So check once, pay correctly, and move on. And if you are unsure, ask before payroll runs. It is always quicker to prevent a problem than unravel one later. ## Want to make sure your payroll and HR basics are in good shape? Our free HR Health Check is a quick, practical review of the areas that often get missed. Contracts, policies, statutory pay, record keeping and those "I think we are probably fine?" bits. It takes around 5 to 7 minutes, gives you a clear score across the employee lifecycle, and helps you spot gaps before they turn into bigger headaches. You will get practical, plain-English recommendations. Not a 47-page report nobody has time to read. Try the [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) ## Need hands-on support? If you want help setting up payroll processes, checking statutory pay calculations, reviewing policies or untangling a people problem before it becomes expensive, get in touch. - [Outsourced HR and HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) - [HR Business Partner](https://kateunderwoodhr.co.uk/service-plans/hr-business-partner) - [Breathe HR setup and support](https://kateunderwoodhr.co.uk/services/hr-software) - [Contact and about KUHR](https://kateunderwoodhr.co.uk/) Kettle on, standards up. Until next time, keep buzzing and take care of your people. --- ### How to Calculate Annual Leave for Part-Time Employees - URL: https://kateunderwoodhr.co.uk/blog/guides/calculate-annual-leave-part-time-employees - Published: 2026-04-01T00:00:00.000Z - Category: guides - Tags: part-time-annual-leave, part-time-holiday-entitlement-uk, pro-rata-holiday-entitlement # Holiday calculations without the headache ## How To Calculate Annual Leave For Part-Time Employees (Without the Headache) If you've ever sat there thinking, "Holiday should be simple... why does this feel like maths homework?", you are not alone. This is one of the most common questions I get from small business owners, especially when they've got a mix of part-time staff, different working patterns, and bank holidays popping up like surprise quiz questions. So here's the straight-talking version. No fluff. No panic. Just what you need to calculate annual leave properly and avoid accidental underpayments. Hazel (our Chief Wellbeing Officer) would like to add that she fully supports time off, as long as it includes a walk and a biscuit. ## Quick Answer Box - Do this: calculate holiday based on days or hours, then be clear about bank holidays. - Avoid this: guessing, rounding down, or mixing up the 12.07% method with rolled-up holiday pay. - Write down: your method in the contract or handbook so everyone's working from the same rules. ## How is annual leave calculated in the UK? The short version: multiply the days or hours someone works each week by 5.6. A 5-day week gives 28 days (the statutory cap), a 3-day week gives 16.8 days, and 20 hours a week gives 112 hours. For irregular-hours and part-year workers, entitlement instead builds up at 12.07% of hours worked each pay period. Everything below unpacks those two calculations. ## The legal minimum in the UK The legal minimum holiday entitlement is 5.6 weeks of paid holiday per year. For someone working 5 days a week, that works out as 28 days. Bank holidays can be included in that total if your contract or handbook says they are. Official guidance: [https://www.gov.uk/holiday-entitlement-rights](https://www.gov.uk/holiday-entitlement-rights) ## The bit people miss with part-time staff Part-time staff get the same 5.6 weeks, just pro-rated to what they work. So the goal is not "make it feel the same". The goal is "make it correct and consistent". And if you offer more than the legal minimum holiday, that extra holiday should be pro-rated too for part-time staff. Otherwise it's very easy to end up treating people unfairly without meaning to. ## First, decide if you measure holiday in days or hours You can measure holiday in: - days if they work the same hours each working day - hours if their hours vary across the week Pick the option that matches their working pattern. That's half the battle. ## Method 1: Part-time with fixed working days (calculate in days) If someone works a set number of days each week, use: Days worked per week x 5.6 = holiday entitlement in days ### Example Flossie works 3 days a week. 3 x 5.6 = 16.8 days You should not round down. Many businesses round up (often to the nearest half day) so it's practical. So Flossie would usually be given 17 days. ## Method 2: Calculate holiday entitlement based on hours worked If someone works different hours on different days, it's often easier and fairer to calculate in hours: Hours worked per week x 5.6 = holiday entitlement in hours per year ### Example Flossie works 20 hours per week. 20 x 5.6 = 112 hours holiday per year. ### 5.6 weeks in hours (quick reference) To turn the 5.6-week statutory minimum into hours, multiply contracted weekly hours by 5.6: | Hours worked per week | 5.6 weeks in hours (per year) | |---|---| | 16 | 89.6 | | 20 | 112 | | 30 | 168 | | 37.5 | 210 | | 40 | 224 | Round up to a sensible unit if you need to — just never round down. ## Bank holidays and part-time staff (the part that causes arguments) Bank holidays are not automatically extra holiday. You can include bank holidays within the 5.6 weeks, as long as the contract or handbook makes this clear. The issue for part-time staff is that most bank holidays land on Mondays. So if you close on bank holidays and someone doesn't normally work Mondays, they can feel like they're missing out compared to someone who does work Mondays. The cleanest way to avoid the "it's not fair" conversations is often: - give everyone a total entitlement (days or hours) - be clear whether bank holidays are included - and let people book leave from their allowance ACAS guidance on bank holidays: [https://www.acas.org.uk/checking-holiday-entitlement/bank-holidays-and-christmas](https://www.acas.org.uk/checking-holiday-entitlement/bank-holidays-and-christmas) Hazel's view is all bank holidays should fall on sunny days. If only. ## Zero-hours and irregular hours workers (two separate things) This is where people get mixed up, so I'm going to make it really clear. ### 1) When to use 12.07%? Use 12.07% to calculate holiday entitlement building up for people who don't have fixed hours. This is for: - zero-hours workers - people whose hours change week to week - part-year workers (they do not work for at least a week at a time during the holiday year) For leave years starting on or after 1 April 2024, statutory holiday entitlement builds up at: 12.07% of hours worked in each pay period A pay period is how often you pay them (weekly, fortnightly, monthly). #### Example Flossie works 50 hours in a month. 50 x 12.07% = 6.035 hours holiday built up that month. Important points: - 12.07% is about entitlement building up - if you offer more than the legal minimum holiday, the percentage changes ACAS guide: [https://www.acas.org.uk/irregular-hours-and-part-year-workers](https://www.acas.org.uk/irregular-hours-and-part-year-workers) GOV guidance: [https://www.gov.uk/government/publications/simplifying-holiday-entitlement-and-holiday-pay-calculations/holiday-pay-and-entitlement-reforms-from-1-january-2024](https://www.gov.uk/government/publications/simplifying-holiday-entitlement-and-holiday-pay-calculations/holiday-pay-and-entitlement-reforms-from-1-january-2024) ### 2) When to use rolled-up holiday pay? Rolled-up holiday pay is not a calculation method for entitlement. It is a way of paying holiday pay. It means holiday pay is added to each payslip, rather than being paid when holiday is taken. Rolled-up holiday pay can only be used for: - irregular hours workers - part-year workers It should not be used for: - employees with fixed hours and normal working patterns If you use rolled-up holiday pay, it must be: - shown separately on the payslip - paid each pay period - paid at least at the correct rate And even if you use rolled-up holiday pay, people should still be encouraged to actually take holiday. Otherwise you end up with tired staff and grumpy managers and nobody wins. ACAS rolled-up holiday pay guidance: [https://www.acas.org.uk/irregular-hours-and-part-year-workers/rolled-up-holiday-pay](https://www.acas.org.uk/irregular-hours-and-part-year-workers/rolled-up-holiday-pay) ## Holiday pay for variable hours (quick note) For irregular hours and part-year workers, holiday pay is usually based on average pay over the previous 52 weeks (ignoring weeks where they were not paid). ACAS holiday pay guidance: [https://www.acas.org.uk/irregular-hours-and-part-year-workers/calculating-holiday-pay](https://www.acas.org.uk/irregular-hours-and-part-year-workers/calculating-holiday-pay) ## Accrual in the first year In the first year of employment, you can use an accrual approach. That usually means someone builds up holiday over time, often at one twelfth of their annual entitlement each month. It can be helpful when someone starts part way through your holiday year and you want to keep it tidy. ## Record keeping (boring but important) From 6 April 2026, employers must keep records of annual leave and holiday pay for at least 6 years. Translation: if there's a dispute, you need to be able to prove what you did. ACAS info: [https://www.acas.org.uk/employment-rights-act-2025](https://www.acas.org.uk/employment-rights-act-2025) Hazel asked if "I definitely approved it in my head" counts as a record. Sadly, no. ## Common mistakes (and the fix) - Mistake: rounding down holiday **Fix:** don't round down. Round up if needed. - Mistake: bank holidays treated as extra without clear wording **Fix:** spell out whether bank holidays are included. - Mistake: using days when hours vary **Fix:** use hours if daily hours vary. - Mistake: mixing up 12.07% and rolled-up holiday pay **Fix:** 12.07% is how entitlement builds up. Rolled-up is how holiday pay is paid. - Mistake: forgetting enhanced holiday must be pro-rated too **Fix:** pro-rate anything above statutory as well. ## A script you can use (copy and paste) If a part-time employee says: "It's not fair, I don't get bank holidays." You can say: "Bank holidays are included within the overall holiday entitlement. Because bank holidays often fall on Mondays, different working patterns can look different. Your holiday entitlement is still pro-rated correctly, and you can use your allowance to book time off when you need it." ## What to write down Make sure your contract or handbook clearly states: - the total holiday entitlement in days or hours - whether bank holidays are included or in addition - holiday year dates - how you calculate holiday for irregular or zero-hours workers - how holiday pay is handled for irregular hours workers, including if you use rolled-up holiday pay ## If you're using an HRIS system Use it to: - record working patterns and hours - calculate entitlements consistently - show balances clearly - keep approvals tidy - store holiday records safely (and long enough) Holiday goes wrong when it lives in someone's inbox and a manager's memory. ## Bottom line - 5.6 weeks is the legal minimum, pro-rated for part-time staff - use days for fixed patterns, hours for variable patterns - bank holidays can be included, but your wording must be clear - 12.07% is for building up entitlement for irregular hours workers - rolled-up holiday pay is a payment method for irregular hours and part-year workers only - keep good records and keep them long enough And remember entitlement is only half the job. What you actually pay for each day of that leave is its own calculation, with its own traps — that's covered in our guide to [calculating holiday pay](https://kateunderwoodhr.co.uk/blog/guides/how-to-calculate-holiday-pay-uk-2026). ## Right, what do you do now? If you're not sure your holiday calculations are correct, your bank holiday wording is vague, or you have zero-hours staff and you're not 100% confident your approach is right, this is exactly the sort of thing we pick up in an HR Health Check. No judgement. Just a clear view of what's working, what's risky, and what to fix first. Book your HR Health Check here: [https://kateunderwoodhr.co.uk/hr-health-check/](https://kateunderwoodhr.co.uk/hr-health-check/) --- ### SMART Objectives Without Corporate Nonsense: The SME Way - URL: https://kateunderwoodhr.co.uk/blog/guides/smart-objectives-for-smes-without-corporate-jargon - Published: 2026-03-25T00:00:00.000Z - Category: guides - Tags: smart-objectives, smart-goals-for-small-business, smart-objectives-examples-for-small-business # SMART Objectives for SMEs: No Fluff, Just Results If the words *SMART objectives* make you picture a corporate spreadsheet and a forced smile, I get it. But here's the truth. Even in a small business, you need **clear goals and basic reviews**. Not because you want to turn into a big company. Because you want people to know what good looks like, what to focus on, and how they're doing. Without that, you get the SME classics: - "I thought I was doing fine" - "No one told me" - "It's only a problem now?" - and the manager who has been quietly annoyed for months but did not want to make it awkward Kettle on. Let's keep this simple. Hazel (our Chief Wellbeing Officer) is here too. She's currently staring at me like, "If you don't set clear goals, don't be surprised when people... don't do the thing." Fair point. ## Quick Answer Box You do not need a complicated appraisal system. You need: - a few clear goals per person - short check-ins that actually happen - a written note so everyone remembers what was agreed That's it. ## What SMART means in plain English? SMART is just a way of making goals clear and fair. - **Specific:** what exactly needs to happen - **Measurable:** how you will know it is going well - **Achievable:** realistic with the time and tools available - **Relevant:** matters to the job and the business - **Time-bound:** when you will review progress If the goal is vague, it is not helpful. It becomes stress instead. Hazel's version of SMART would be: "Tell me what you want. Tell me when. Then I'll decide if it's snack-worthy." ## Why small businesses need this even more? In big businesses, performance can hide in the system. In small businesses, one person being unclear or off-track affects: - the whole team - the customer experience - and your workload SMART objectives help because they bring: - **clarity** (no guessing) - **fairness** (everyone knows the standard) - **focus** (people know what matters most) - **confidence** (less anxiety, fewer surprises) - **a record** (useful if performance becomes an issue later) It's also kinder. People would rather know what you need from them than be left guessing. And let's be honest, it saves you time. Because fixing a small wobble early is always quicker than dealing with a full performance situation later. ## The myth: "We don't have time for reviews"? You do not need a full annual appraisal with a form longer than your contract. A basic review can take **20 to 30 minutes** and cover: - what is going well - what is getting in the way - what matters most next - what support is needed - what you are agreeing, by when Do it regularly and problems stay small. Skip it and you end up dealing with performance in crisis mode, when everyone is already fed up. That is the expensive version. ### The real reason SMEs avoid reviews It's not time. It's dread. People worry reviews will be awkward, emotional, or that they'll open a can of worms. Here's the secret: they are only awkward when you don't have a structure. The structure is what keeps it calm. ## The simple way to set SMART objectives in an SME ### Step 1: Set three objectives only If you give someone 10 objectives, you have basically given them none. A good mix: - **1 business result objective** (output, delivery, accuracy, sales, speed) - **1 quality or behaviour objective** (how they work) - **1 development objective** (skill, confidence, responsibility) If you're thinking, "But they do loads of things"... yes. And that's exactly why you pick the **three that matter most right now**. ### Step 2: Make them role-based, not personality-based Not this: "Be more proactive" Try this: "Flag risks 48 hours before a deadline and suggest one solution" Not this: "Improve attitude" Try this: "Attend handover on time and communicate delays before shift start" Keep it factual. Keep it fair. If you wouldn't want the objective read out loud to someone else, rewrite it. ### Step 3: Agree what good looks like? People cannot hit a target if the target is "just do better". So define: - what the end result looks like - what quality looks like - what the minimum standard is - what success looks like in real life This is where you remove the "but I didn't know" problem. ### Step 4: Include support, not just demands If someone needs training, clearer priorities, better tools, or time, say it out loud. If the goal is "hit X" but the system is broken or the workload is unrealistic, you are not managing performance. You are setting people up to fail. Support can be simple: - a template - a short bit of training - pairing them with someone strong in that area - clearer priorities - removing one task so they can focus on the right one ### Step 5: Write it down One short note is enough: - the objectives - the deadline - what support is agreed - when you will check progress That protects the business and helps the employee succeed. ### Step 6: Set a check-in rhythm that is realistic? You don't need constant meetings. You do need *something*. A simple rhythm that works for most SMEs: - **Monthly check-in** (15 minutes) - **Quarterly review** (20 to 30 minutes) New starter? Make it more frequent in the first 3 months. Wobble appearing? Do a quick reset rather than waiting. Hazel's view is: "Don't wait until you're annoyed. Deal with it while you still like each other." ## A quick "no awkwardness" script for managers If you're worried about how to start, use this: "Right, I want us to be really clear about what good looks like over the next few weeks. Nothing scary. This is about focus. I'll share what matters most for the role, you tell me what's realistic and what support you need, and we'll agree it together." Then stop talking. Let them respond. If they go off on a tangent, bring it back to: - what matters most - what's getting in the way - what support would help ## Examples you can borrow (like a neighbour's wheelie bin)? Use these as templates. If anyone asks, you were "inspired by best practice". Sorted. ### Admin / ops role **Objective:** Update client records within 24 hours of changes **Measure:** 95% completed within 24 hours **Support:** 20 minutes blocked daily for updates **Review:** 6 weeks ### Team leader **Objective:** Run a weekly 10-minute huddle and confirm actions after **Measure:** 1 huddle per week, actions shared same day **Support:** simple template provided **Review:** 8 weeks ### Customer-facing role **Objective:** Respond to customer queries within 2 working hours during shift **Measure:** average response time tracked weekly **Support:** clear escalation route and FAQs **Review:** monthly ### Manager (yes, managers too) **Objective:** Monthly check-in with each team member, short written note saved **Measure:** 100% completed monthly **Support:** a simple template and reminders **Review:** 3 months ### One more that works in almost every SME **Objective:** Reduce "last-minute surprises" **Measure:** Raise issues at least 48 hours before deadlines, with a proposed next step **Support:** agree what counts as "urgent" and what can wait **Review:** 4 weeks ## The basic review structure (copy and paste) 1. **What's gone well since we last spoke** 2. **What's been challenging** 3. **What matters most next** (set or refresh SMART objectives) 4. **What support do you need** 5. **Confirm actions** (who does what, by when) 6. **Set the next check-in date** (in the diary) Done. ### Tiny extra that makes a big difference At the end, ask: **"Is there anything you need from me to make these objectives doable?"** That one question stops a lot of silent resentment. ## Want to keep it organised without spreadsheets? If you are thinking, "This makes sense, but I don't want another spreadsheet that dies by April," I hear you. That's why we built **yourappraisal.io**. It is our tool designed for small businesses who want: - SMART objectives without the corporate nonsense - simple check-ins and reviews - one place for notes, actions and progress - a clear record of what was agreed And you are not left to figure it out on your own. **We can support you to set it up, train managers, and make sure it actually works in real life.** Have a look here: [https://www.yourappraisal.io/](https://www.yourappraisal.io/) If you want it really simple: you set the objectives, schedule the check-ins, and it does the "don't forget" bit. Which is honestly half the battle. ## Common mistakes (and how to avoid them)? - **Mistake:** Goals are vague **Fix:** Replace "do better" with "do X by Y" - **Mistake:** Too many objectives **Fix:** Stick to three - **Mistake:** No deadline **Fix:** Always set a review date - **Mistake:** No written record **Fix:** One short note after the chat - **Mistake:** Goals are set to someone, not with them **Fix:** Agree them together so they feel fair and realistic - **Mistake:** Reviews only happen when things go wrong **Fix:** Regular check-ins so issues stay small - **Mistake:** Goals don't match the reality of the role **Fix:** sanity-check workload, tools, and priorities before you set targets ## FAQs ### Do small businesses really need SMART objectives? You do not need a corporate performance system. You do need clear expectations. SMART is a practical way to make goals clear and fair. ### How often should we do reviews? Quarterly works well for most SMEs. Monthly check-ins help for new starters, fast-paced roles, or where performance is wobbling. ### How many objectives should each person have? Three is usually the sweet spot. Enough to be clear, not so many that nobody knows what matters. ### What if business priorities change? Update the objectives. SMEs pivot. That is normal. Reset targets fairly and explain why. ### What if someone refuses to agree objectives? Explain it is about clarity and fairness. If they still refuse, document what you have set, why, and give them the chance to respond. ### What if an objective is not met? Look at why. Skills, time, clarity, workload, support, systems, behaviour. Not meeting objectives is a conversation first, not a punishment. ### Should objectives be linked to pay? Not always. It can create pressure and conflict if done badly. If you link them, be clear and consistent. ### What about part-time staff? Make objectives realistic for their hours. Same clarity, just a pro-rated scale. ### How do we stop objectives becoming a tick-box exercise? Keep goals few, role-based, and reviewed. The value is the conversation and follow-through, not the form. ### What is the simplest place to start? Pick one role. Set three SMART objectives. Book a check-in in four weeks. Write a short note. Repeat. ### What if someone gets defensive in a review? Stay calm and bring it back to facts and support: - "What's getting in the way?" - "What would help you hit this?" - "What can we agree for the next 4 weeks?" Defensiveness usually drops when people realise it's not an ambush. ## Right, what do you do now? Book 30 minutes with each person and start with: - what's going well - what needs to change - what matters next - what support is needed Set three SMART objectives and a review date. If you want an easy way to keep it organised, and you want support implementing it properly, start here: [https://www.yourappraisal.io/](https://www.yourappraisal.io/) --- ### The AI Grievance Era: Same Rules, Bigger Headaches - URL: https://kateunderwoodhr.co.uk/blog/people-hr/ai-grievance-era-same-rules-bigger-headaches - Published: 2026-03-18T00:00:00.000Z - Category: people-hr - Tags: small-business-hr, hr-compliance, ai-in-hr, employee-grievances, employment-law # AI-Generated Grievances: What Small Business Owners Need to Know If you have recently opened an email and thought, **"Why is my employee writing like a barrister?"** you are not alone. We are seeing a big rise in grievances drafted with AI tools. They often arrive with: - very formal language - legal sounding phrases - "rights" you have never heard of - and a tone that makes managers panic before they have even read line two A survey reported in early 2026 found **95%** of HR professionals had already seen AI used to draft grievances or appeals, and **78%** said those documents included inaccurate or misleading information. So yes, this is a thing. And no, a fancy grievance does not automatically mean you are in trouble. *Kettle on. Standards up.* Hazel is also here (our Chief Wellbeing Officer). She has just sighed loudly, flopped onto the floor, and is acting like she pays the mortgage. If only she could respond to grievances too. ## Quick Answer Box **Do this:** stay calm, follow your grievance process, focus on facts, document everything. **Do not do this:** get intimidated by the tone, rush your response, or start arguing with the "legal bits" line by line. **Write down:** what the complaint is, what you investigated, what evidence you considered, and why you reached your outcome. ## What is an AI-generated grievance? It is simply a grievance where an employee has used AI to help write the wording. That could mean: - they asked it to make the complaint sound more professional - they asked it to include legal references - they asked it to structure their points - they asked it what rights they have and pasted it in Sometimes the grievance is totally genuine. The writing just does not sound like them. The main issue is this: AI can write confidently even when it is wrong. So you get complaints that *sound* serious but are full of inaccuracies, or include laws that are not relevant. ## Why this matters for small businesses ### 1) The grievance looks scarier than the issue A five page letter with legal sounding phrases can feel like the start of a Tribunal claim. Sometimes it is not. Sometimes it is a normal workplace issue wrapped in a very intense outfit. ### 2) Expectations can get inflated AI tools often produce big statements like "I require immediate remedy" or "this breaches my statutory rights". That does not make it true. So employees can end up expecting outcomes that are not realistic or not legally required. ### 3) It takes longer to deal with You end up spending time stripping out the fluff and getting to: - what actually happened - what they are upset about - what they want you to do about it ### 4) Managers panic and do silly things Managers read the tone and then: - avoid the issue - reply defensively - promise something they cannot deliver - or rush the process just to make it go away None of those help. ## What this looks like in real life ### Mini drama: "I have received a grievance and now I cannot breathe" A manager forwards you a grievance and says: **"Is this going to Tribunal? Have I broken the law?"** You open it and it says things like: - "I require immediate remedy" - "This is a breach of my statutory rights" - "I reserve the right to pursue further action" - "The employer has failed in its duty of care" But when you strip it back, the real issue is something like: - they feel the manager is harsh - rotas feel unfair - they are upset about how a holiday request was handled Real issue. Normal issue. Fixable issue. The wording is just doing the most. *Hive logic: do not get distracted by the buzzing. Focus on the sting, which is the actual complaint.* ## How to handle AI-written grievances (without losing your mind) ### Step 1: Do not panic A grievance that sounds legal does not automatically mean it is legally accurate. In fact, many AI drafted grievances contain incorrect or misleading information. Your job is not to debate the wording like you are in court. Your job is to follow a fair process. ### Step 2: Acknowledge it and set the next step Keep it polite and simple: - thank you for raising your grievance - we will investigate - we will invite you to a meeting - you have the right to be accompanied - we will confirm timescales Do not start arguing in writing at this stage. It never ends well. ### Step 3: Pull out the real complaint Take the grievance and highlight: - what exactly are they saying happened - when did it happen - who was involved - what outcome are they asking for If the letter is long but vague, ask for clarity. Simple wording: **"Thank you. To help us investigate properly, please confirm the key events and dates you are referring to, and what outcome you are seeking."** ### Step 4: Focus on facts and evidence AI cannot create evidence. Only the employee can explain what happened. So you look for: - examples - dates and times - witnesses - messages or emails - notes or documents If the grievance is full of big statements but low on detail, your investigation will show that quickly. ### Step 5: Hold the grievance meeting properly This is where you: - let them explain their points - ask questions - check facts - understand what they want You do not need a legal debate in the meeting. You need clarity. Hazel's rule is helpful here. She does not respond to noise. She responds to facts. If only we could send her in with a clipboard. ### Step 6: Give an outcome in writing Keep it structured: - what you investigated - what you found - what you decided - what action you will take, if any - right of appeal Avoid dramatic language. Calm wins. ### Step 7: Document everything This matters more than ever because AI grievances tend to be longer and more formal. Keep: - the grievance and all emails - investigation notes - witness notes - meeting notes - your decision and why - any actions taken If it ever escalates, this is what protects you. ## The biggest mistake to avoid Do not dismiss the grievance just because you suspect AI. Some employees use AI because: - they are anxious - they struggle with writing - they want to sound "taken seriously" - they do not know how to structure a complaint So treat the issue seriously. Just do not treat every sentence as fact. ## Manager tips (for when the panic hits) If you are a manager reading this and your stomach has dropped, remember: - a grievance is not a conviction - a formal tone does not equal a strong claim - your best protection is staying calm and following process - stop typing in a rush, especially if you are annoyed If in doubt: **Pause. Speak to HR. Then respond.** ## What to write down (keep it simple) - date the grievance was received - what the complaint is about, in plain English - what you did to investigate - who you spoke to - what evidence you reviewed - what you decided and why - actions agreed - appeal option Clear and boring is exactly what you want here. ## FAQs ### How do I know if a grievance was written by AI? You might notice: - a tone that does not sound like the employee - odd legal phrases - long paragraphs with little detail - references to rights that do not fit the situation But you do not need to prove it. Just handle the grievance properly. ### Should I challenge the employee for using AI? Usually no. It distracts from the real issue and can make the employee feel attacked. Focus on the complaint and the facts. ### What if the grievance contains incorrect legal claims? Do not get pulled into arguing each line. Investigate what happened. In your outcome letter, you can correct misunderstandings in plain English if needed. ### Do I need a solicitor if the grievance sounds legal? Not always. Get advice if it involves: - discrimination - whistleblowing - serious allegations - a breakdown of trust - or anything you are not confident handling ### What if the grievance is five pages long and full of waffle? Strip it back: - what happened - when - who - what do they want If it is unclear, ask for clarification. A long grievance is not automatically a strong one. ### What timescales should I use? Acknowledge quickly and set reasonable next steps. Do not rush the investigation just to get it off your desk. Rushing is where businesses trip up. ### What if the grievance is anonymous? You can investigate what you can, but it is harder to take action without detail. If it alleges serious wrongdoing, you still need to look into it. ### Can we refuse to deal with a grievance because it is AI-written? No. A grievance is a grievance. You deal with the issue raised, not the writing style. ### What if the grievance is really a performance issue in disguise? It happens. Handle the grievance fairly first. Then return to your performance process if needed. Keep them separate and clear. ### Managers are now scared to say anything. What do we do? This is common after a scary looking grievance. The answer is not silence. The answer is better management: - clear expectations - respectful conversations - notes of key chats - early action before it escalates ### How do we reduce AI grievances? Do the basics well: - clear policies - managers trained to have proper conversations - issues tackled early - consistent notes and records - a culture where people feel heard before they explode into formal complaints ## Bottom line AI has made it easier for employees to write long, formal grievances quickly, and that is not going away. But the fix is not panic. The fix is boring, consistent, fair process: - focus on facts - follow your steps - document properly - get support early if needed ## Right, What Do You Do Now? If reading this has made you think, **"I am not 100% sure our grievance process is strong enough"**, you are not alone. This is exactly the sort of thing we pick up in an **HR Health Check**. We look at: - your policies - your templates - your manager habits - your process steps - and the gaps that could trip you up So you can tighten things up before the next scary-looking grievance lands. Book your HR Health Check here: [https://kateunderwoodhr.co.uk/hr-health-check](https://kateunderwoodhr.co.uk/hr-health-check) --- ### Work WhatsApp Rules for SMEs: Allow, Ban, Write It Down - URL: https://kateunderwoodhr.co.uk/blog/people-hr/work-whatsapp-policy-smes - Published: 2026-03-11T00:00:00.000Z - Category: people-hr - Tags: employee-whatsapp-policy, workplace-whatsapp-policy, whatsapp-rules-for-employees # Your work WhatsApp is doing a lot of heavy lifting If you run a small business, WhatsApp is probably doing a lot of heavy lifting. It starts as "just a quick group for shifts" and suddenly it is: - the rota - the noticeboard - the manager's office - and occasionally the place where someone gets publicly told off with a thumbs-up emoji WhatsApp can be brilliant. It can also cause chaos if you do not set a few clear rules. This is your simple guide. What to allow. What to ban. What to write down. Plus WhatsApp Business, because yes, that comes up a lot. Kettle on. Standards up. ### Quick check Would you be happy for your WhatsApp chats to be read out loud in a meeting or a Tribunal? If the answer is "absolutely not", let's sort it. ## Quick Answer Box Allow: short work updates, clear instructions, quick practical questions. Ban: bullying, shaming, gossip, and anything sensitive about an employee. Write down: what WhatsApp is for, out of hours rules, manager behaviour, and what must move off WhatsApp. ## What counts as work WhatsApp? If you use WhatsApp to talk about work, it is work related. Even if it is on personal phones. Even if it is "unofficial". Even if the group name is "Legends". If it is about work, it counts. ## Why WhatsApp rules matter **1) It sets the tone** If managers are sharp, sarcastic, or pushy on WhatsApp, the team feels it. **2) It blurs boundaries** If staff feel they have to reply at night or on days off, stress builds fast. **3) Messages become evidence** People screenshot. People forward. People show chats when something goes wrong. **4) GDPR and privacy can become a problem** I will cover GDPR properly in another blog, but here is the simple version. WhatsApp is not the place for personal information about employees. It spreads too easily and you cannot control it once it is out there. ## What WhatsApp can be used for These are the sensible uses in most SMEs: - "Running 10 minutes late" - "Shift starts at 7 tomorrow, reminder" - "Site is closed due to weather" - "Delivery arriving at 2, can someone be in" - quick safety updates - last minute shift changes where you have agreed the rules Simple test: If it is quick, practical, and not personal, it is usually fine. ## What WhatsApp should not be used for Keep these off WhatsApp: - performance issues - disciplinary matters - grievances - bullying or harassment concerns - sickness details beyond "I am unwell today" - pay changes, deductions, contract changes - anything you would normally handle in a meeting or a letter WhatsApp is not a shortcut for proper people management. ## The simple rules that stop most WhatsApp drama ### Rule 1: WhatsApp is for work updates, not personal issues Do not discuss someone's health, absence, pregnancy, personal life, or performance in a group chat. ### Rule 2: No pressure to reply out of hours Pick a clear rule and stick to it: - no expectation to reply outside working hours - managers only message out of hours for genuine urgent issues - and if someone does message out of hours, reply in working time No guilt trips. No "seen but no reply". No "be a team player". ### Rule 3: Managers do not tell people off in group chats No public calling out. Ever. If there is an issue, speak to the person properly and privately. ### Rule 4: Keep tone professional WhatsApp is casual, but your behaviour still needs to be respectful. No sarcasm. No digs. No jokes at someone's expense. No piling on. No "banter" that makes one person the punchline. If Hazel (our Chief Wellbeing Officer) tilted her head at it like "really?", it probably does not belong in the chat. ### Rule 5: If it matters, record it somewhere proper If it is important, it should not live only in a chat thread. Use email or your HR system for anything that needs a record. ## WhatsApp group types that work best Most SMEs only need two types. ### Operational group Purpose: work updates only. Owner: a named manager. Rule: work topics only. ### Social group Purpose: optional chat. Owner: ideally not a manager. Rule: still respectful. Still no bullying. Social groups should be optional. Nobody should be left out of work information because they are not in the social chat. ## What about WhatsApp Business? WhatsApp Business can be useful, mainly for customer messages. It can help you: - have a company number instead of a manager's personal number - keep customer messages separate - respond faster as a team But it does not fix internal problems on its own. If managers are messaging staff out of hours, WhatsApp Business will not magically stop that. So use WhatsApp Business for customer comms if it fits. For staff comms, you still need the rules above. ## What to write down You do not need a long policy. A clear one-pager is enough. Include: - what WhatsApp is used for - what it is not used for - who can create work groups - who owns each group - out of hours expectations - behaviour rules, especially for managers - what must move to email or HR system - how people raise concerns - what happens if the rules are broken If you already have a Social Media and Comms or IT policy, add this as a section. ## Common mistakes - using WhatsApp to manage performance - sharing sickness details in group chats - managers calling people out publicly - out of hours messaging becoming normal - social chats turning into cliques - no clear way to report problems All of these are fixable. You just need simple standards and consistency. ## If you use an HR system Use it for the proper stuff: - store policies - log key decisions - record absence properly - keep sensitive information secure - make sure everyone is using the latest version of documents WhatsApp is for quick updates. Your HR system is for structure. ## Personal phone vs business phone (keep it simple) This comes up all the time in SMEs, so here is the straight answer. ### If WhatsApp is on a personal phone Most work WhatsApp groups in small businesses sit on personal devices. That is not automatically "wrong", but it does create a few practical issues you need to plan for. What to watch for: - You do not control the device. If the phone is lost, shared with family, or not password protected, work messages can be seen by others. - People will have different settings. Some staff back up chats, some do not. Some delete messages. Some keep everything forever. That makes record keeping messy if you ever need evidence. - Work and private life blur. If work messages are coming through on a personal phone, boundaries get fuzzy fast, especially out of hours. - Leaving the business is awkward. When someone leaves, the chat history stays on their phone. You cannot "take it back". And if they were the group admin, you can lose control of the group overnight. - Privacy risks increase. People share things without thinking, and once personal information is in a group chat on personal devices, it can spread quickly. Simple rule: If you use personal phones, keep WhatsApp for quick operational updates only and keep anything sensitive off it. ### If WhatsApp is on a business phone A business phone can make things cleaner, especially for managers and key roles. Why it can help: - Clearer boundaries. People can switch off work comms outside working hours more easily. - More control. You can set expectations on security, passwords, and how the phone is used. - Easier handover. When someone leaves, the device comes back to the business. That reduces the "who has the chats" problem. - Better separation. It keeps work comms out of personal life, which most people appreciate. But it is not a magic fix. Even on business phones, you still need: - clear WhatsApp rules - respectful behaviour - and a decision about what belongs on WhatsApp versus what belongs in your HR system or email ### The easy SME approach If you are not ready to buy business phones for everyone, a sensible compromise is: - give managers a business phone, or use WhatsApp Business for customer comms - keep staff WhatsApp groups limited to practical updates - move anything sensitive, formal, or personal off WhatsApp - make sure staff are not pressured to use their personal phone if they do not want to ## Bottom line WhatsApp can be useful. It can also become a headache if it turns into the place where everything happens. Keep it simple: - WhatsApp for quick work updates - formal issues handled properly - no sharing personal employee information - no pressure out of hours - managers keep it respectful - write down the rules so everyone is clear If reading this has made you think "we are definitely a bit too WhatsApp happy", you are not alone. This is exactly the kind of thing that comes up in an HR Health Check, because WhatsApp issues are usually a sign that your basics need tightening, too. [Start here](https://kateunderwoodhr.co.uk/hr-health-check) And yes, I will cover the GDPR side of workplace messaging properly in a separate blog, because that deserves its own space. --- ### Weight Loss Drugs as an Employee Benefit: The SME Reality Check - URL: https://kateunderwoodhr.co.uk/blog/guides/weight-loss-drugs-employee-benefit-sme-reality-check - Published: 2026-03-04T00:00:00.000Z - Category: guides - Tags: weight-loss-drugs, sme-employee-benefits, glp-1-coverage-for-employees As small businesses, we can be more unique with benefits. That is the fun bit. You are not trying to design something that works for 3,000 people across five countries. You are building something for your team, in your business, with real humans you actually know. You can be personal. You can be quick. You can be creative. But here is the reality check. If you introduce a benefit that is sensitive, complicated, or likely to spark "is this fair?", you will feel it fast. You do not have a big HR department to mop up confusion. It will land straight on your desk. Usually just as you sit down with a cuppa. And lately, there has been some chatter in the HR grapevine about offering weight loss drugs as an employee benefit because "that is what employees want". So let's talk about it properly. This is not a medical post. I am not giving health advice. This is about running a business, looking after people, and avoiding the kind of HR mess that starts with good intentions and ends with a complaint. Kettle on. Standards up. ## Quick questions before we start ### When did you last look at your benefits properly Not a glance. A proper look. ### Do you know what your team values most Not what you think they want. What they actually use and care about. ### Are your basics solid Contracts, policies, and manager habits. Because if those are messy, high-risk benefits are not the place to start. ## What counts as a benefit A benefit is anything you give employees on top of basic pay. Some are obvious. Some are easy to forget. ### Money-type benefits Pension above the minimum Bonus or commission Private healthcare Health cash plan Life cover Enhanced sick pay Enhanced maternity or paternity pay Discounts on your products or services Travel or meal allowances ### Time and flexibility benefits Flexible working Hybrid working where it fits Compressed hours Predictable rotas Extra holiday Birthday day off Early finish on Fridays if it is planned and fair Paid volunteering days ### Wellbeing benefits EAP or counselling support Wellbeing coaching Gym discounts Menopause support Neurodiversity support Occupational health support And yes, sometimes medication-linked support through a provider ### Development benefits Training budget Apprenticeships Mentoring Leadership training Paid qualifications ### Culture as a benefit This one matters more than people realise. A calm workplace A manager who deals with issues early Clear rules that are applied fairly A workplace where people are treated with respect A place where you can speak up without fear If your culture is good, that is a benefit. If it is chaotic, no perk will fix it. ## Why benefits matter so much Benefits matter because they affect three big things. ### Recruitment People compare packages. Salary is part of it, but benefits help you stand out. ### Retention People stay where they feel valued. Benefits can show that, when they are thoughtful and fair. ### Everyday working life The best benefits make work easier. They reduce stress and friction. They make people feel supported. And just to be honest, benefits can also stop moaning. Not because you are bribing people. Because you are removing the stuff that makes work feel unnecessarily hard. ## The SME superpower, unique and personal SMEs can do benefits brilliantly because you can tailor them. You can ask: What would make your week easier What would reduce stress What helps you feel looked after What would make you stay But tailoring does not mean making it up as you go along. The moment a benefit is sensitive, you need clear rules. Because if benefits become "who your manager likes", you are heading for trouble. ## Why weight loss drugs are being talked about People are using them more. They are being discussed more. Some employers are exploring them as part of wellbeing offers. The thinking is: Employees want it It supports health It looks modern It might reduce absence Maybe. But there are risks too. And SMEs need to think about those risks early, before making announcements. ## The SME reality check: What can go wrong ### It becomes a fairness fight If one person gets access and another does not, you will get questions. Why them Why not me Who decided What are the rules If you do not have clear answers, the benefit will cause resentment. Privacy gets messy ### Managers can be curious. Sometimes too curious. What are you taking How is it going How much have you lost That is personal health information. It is private. The workplace is not the place for it. ### It triggers body talk at work If you handle this badly, you can end up with people commenting on your weight and appearance. That is not well-being. That is uncomfortable and can cross dignity lines quickly. ### You get workplace impact issues If someone feels unwell or has side effects that affect work, you need a sensible way to support them. Especially if the job is hands-on, safety-critical, or requires full attention. ### Managers give different answers This is the biggest one. One manager says yes. Another says no. Someone promises something "off the record". Then you have confusion and complaints. One message. One process. Always. ## Basics first, then benefits Before you even consider a medical-linked benefit, check your basics. Do you have: Up to date contracts Core policies that work in real life A clear way to make and record decisions Managers who can hold calm conversations without making promises they cannot keep This matters even more with the Employment Rights Bill direction of travel. The message is clear. More day one rights. More process. Less room for casual, inconsistent handling. Benefits do not replace the basics. They sit on top of them. If you still want to explore this benefit, do it properly ### Step 1, be clear what you are offering Are you funding medication Are you subsidising a provider programme Are you offering coaching only Are you just signposting support Be clear. If you are vague, staff will fill the gaps with assumptions. ### Step 2, keep it private, and provider-led The safest approach is: Employees access it through a third-party provider The employer does not see personal health information You only deal with work support needs if they come up You are not a clinic. You are an employer. ### Step 3, set fair rules Decide: Who can access it When they can access it How is it paid for Any budget limits How exceptions work Write it down. Keep it simple. ### Step 4, train managers on what to say and what not to say Managers should not be discussing medication or weight. They should focus on: Explaining the benefit Signposting the provider Supporting adjustments at work if needed ### Step 5, plan for workplace support Have a simple route for: Someone needs time off Someone needing temporary adjustments Someone in a safety-critical role needs a chat about safe working Keep it factual. Keep it respectful. ### Simple manager script If someone asks: Are we offering weight loss drugs as a benefit Managers can say: We are looking at wellbeing support options, and we will do it properly, not quickly Anything medical-linked is accessed privately through a provider We do not discuss personal health information at work If you need support or adjustments at work, tell me what you need, and we will look at it reasonably I cannot make promises in a casual chat. We follow one process, so it is fair for everyone ### What to document Document the benefit rules, not people's personal details. Benefit overview Who it is for How staff access it What the employer does not see How work support is handled Review date Manager guidance If you use an HRIS system, store it there so everyone uses the same version. ## Common mistakes to avoid Launching it because it is trendy Letting managers answer questions differently Creating a benefit that feels like favouritism Collecting health information you do not need Trying to use benefits to cover up messy basics ## FAQs ### What benefits do employees value most in small businesses Usually, the practical ones. Flexibility, predictable scheduling, fair pay rules, development, and decent management. ### When should we review benefits At least once a year. Also, when you are recruiting lots, losing people, or hearing the same complaints repeatedly. ### Why are benefits so important They affect recruitment, retention, and day-to-day working life. They also show people how much you have thought about their reality. ### What counts as a benefit Anything you offer on top of salary. Money benefits, time benefits, wellbeing support, development, and even culture. ### Are weight loss drugs a benefit, a good idea It depends. The risk is not the idea itself. The risk is fairness, privacy, and poor communication. ### Do we need to know who is using it Ideally no. Keep it private through a provider. ### What if the staff say it is unfair That is why you need clear rules, written down, and applied consistently. ### What if side effects affect work Handle it like any health issue. Focus on what support is needed at work. Do not dig into personal details. ### Can this cause discrimination risk It can if handled badly. Inconsistent decisions and unclear rules are where problems start. ### What should we fix first Your basics. Contracts, policies, simple processes, and manager capability. ## Bottom line SMEs can be brilliant with benefits because you can tailor them. But weight loss drugs are not a casual perk. They touch health, privacy, fairness, and workplace culture. If you want to explore it, you need clear rules and a calm plan. And if your basics are shaky, start there first. If you are thinking about adding higher-risk benefits, it is a good time to tighten your foundations, especially with the Employment Rights Bill changes pushing stronger processes and day-one rights. Start here [Employment Rights Act and Employment Rights Bill support](https://kateunderwoodhr.co.uk/employment-rights-act-advice) --- ### 3 HR Traps for SMEs Under the Employment Rights Act (Avoid Them) - URL: https://kateunderwoodhr.co.uk/blog/legislation/3-hr-traps-smes-employment-rights-act - Published: 2026-02-25T00:00:00.000Z - Category: legislation - Tags: uk-employment-law, hr-compliance, employment-rights-act, sme-hr, employee-relations If you run a small business, the Employment Rights Act changes will not land as "legal updates". They land as people problems. Managers panicking. Conversations avoided. Decisions made late. Someone saying "that's not what happened". You doing damage control with a cold cup of tea. So here are three HR traps I'm seeing more of with SMEs, all tied to the real pressure points in the Employment Rights Act rollout, and what you can do to avoid them without turning your business into a corporate robot. Quick note: I covered the SSP changes in detail in a separate blog last week, so I won't repeat it here. If SSP is on your radar (and it should be), read that one after this: LINK: https://kateunderwoodhr.co.uk/blog/legislation/statutory-sick-pay-changes-april-2026-who-qualifies-smes ### At a glance: the 3 traps Trap 1: Probation run on vibes Trap 2: Flexible working handled badly Trap 3: "We've got a policy" harassment prevention Right. Let's go. ## THE HIVE BRIEF ### Why small businesses get caught out Most HR mess isn't caused by bad people. It's caused by: - managers doing things differently - unclear expectations - awkward conversations avoided until they explode - decisions made when everyone's already annoyed - no notes, no evidence, and a lot of "but that's not what happened" The Employment Rights Act doesn't magically create problems. It just turns the volume up on inconsistency. And if you're thinking, "Kate, we're only 12 people, we don't need all that," I'm going to say this with love: Small teams need consistency even more, because one problem is suddenly 10% of your workforce and everyone feels it. ## THE BEEHIVE UPDATE ### The pressure points that are driving the mess Here's what's driving the three traps below: - unfair dismissal protection arriving earlier than many SMEs are used to, which changes how you need to handle probation and performance - flexible working requests being more common and more formal than they used to be - harassment prevention expectations shifting from "have a policy" to "show your steps" Now the traps. ## TRAP 1 ## THE STING IN THE TAIL: Probation run on vibes ### The signs - you hire quickly because you need help yesterday - probation becomes "let's see if we click" - nobody sets clear goals - nobody gives proper feedback - then month five or six arrives and someone panics and says, "We need them out." This is the classic small business trap. You don't want confrontation. You're busy. So you let things drift. And drifting is what turns "not quite right" into "this is now a serious problem". ### Why it's getting riskier For years, loads of SMEs have relied on a sense of safety early on in employment. That's tightening. Expectations around fairness, process, and evidence are rising, and managers can't just shrug and say "it's not working" without being able to show why and what they did about it. Even now, there are day one risks that don't care about probation at all, like discrimination or whistleblowing. When you have no notes and no clear reasons, people fill in the blanks. You don't want that. ### Do this instead (simple, not corporate) 1) Week one: set 3 to 5 clear outcomes Not "do well". Real things you can measure. Examples: accuracy, customer tone, deadlines, attendance, following process. 2) Weekly check-ins (10 minutes) Same questions every time: What's going well? What's been hard? What support do you need? What's the focus this week? 3) Midpoint review Do not wait until the end. If probation is 3 months, review at 6 weeks. If it's 6 months, review at 3 months. 4) Notes, not novels Write down: what happened, what good looks like, what you agreed, and the next check-in date. 5) If it's not working, don't drift Dragging it out is not kind and it is not safe. Make a decision, and make it properly. Even if you don't change anything else, please don't let probation drift. Drifting is what creates the mess. ### LISTEN: Hiring isn't Tinder If the "we'll see if we click" approach is sounding a bit familiar, I did a full podcast episode on this called **Hiring isn't Tinder**. It's basically me saying: stop swiping right on "they seem nice" and start hiring and running probation like it matters, because it does. Listen here: https://podcast.kateunderwoodhr.co.uk ## TRAP 2 ## THE POLLEN PANIC: Flexible working handled badly ### The signs - someone asks to change hours, days, or where they work - a manager says "no, we don't do that here" - or "you're new" - or "that's not fair on the team" - and now you've got conflict, resentment, or a grievance brewing Flexible working requests are not going away. People's lives are complicated. Childcare is expensive. Caring responsibilities are real. Commuting costs are painful. People are more informed than they used to be. The trap isn't the request. The trap is making it personal. ### Do this instead (calm and sensible) 1) Don't react, run the process Even if you think the answer is no, you still talk it through properly. 2) Ask better questions What exactly are you asking for? From when? Temporary or permanent? What problem are you trying to solve? What impact do you think it has on the role? What alternatives would also help? 3) Consider options before you decide Sometimes a flat no is lazy. A trial period, a small tweak, or different days can solve it without damaging delivery. Tiny truth: a short trial period saves a lot of arguments. 4) Document it Request, discussion, decision, reasons. That's what protects you and keeps it fair. 5) Communicate like a grown-up Even when you say no, the tone matters. "No because I said so" creates conflict. "No because here's the business reason and here's what we can offer instead" creates respect. ## TRAP 3 ## THE HONEY TRAP: "We have a policy" harassment prevention ### The signs - you've got a Dignity at Work policy somewhere - everyone assumes that means you're covered - no training refresh - no clarity on how to raise concerns - a complaint lands and everyone panics - the response is inconsistent, emotional, and badly documented This is one of the biggest shifts. The expectation is moving from "react when something happens" to "show you took steps to prevent it". ### Do this instead (without turning into a corporate robot) 1) Do a quick risk check Where could harassment realistically happen in your business? Customer-facing roles, socials, lone working, client sites, late shifts, WhatsApp groups. 2) Make reporting simple People don't report when it's confusing or they think nothing will happen. Give two routes: their manager and an alternative contact. 3) Train managers on what to do and what not to say Most damage happens in the first conversation. Managers need a script and confidence. 4) Set behaviour expectations for socials and messaging A lot of complaints start outside "normal work" but still count. 5) Keep records clean Not gossip. Not opinions. Facts and actions taken. This isn't about being dramatic. It's about protecting your people and protecting your business. ## THE HONEYCOMB PLAYBOOK ### If you only do five things 1) Give managers a probation structure (goals, weekly check-ins, midpoint review) 2) Stop vibes-based performance decisions, set expectations early 3) Treat flexible working requests as a process, not a personal debate 4) Refresh harassment prevention in real-life terms (risk check, training, reporting routes) 5) Write basic notes as you go, because future you will be grateful ## THE WORKER BEE FAQs ### Do I need to panic about the Employment Rights Act? No. Panic is not a strategy. The win is getting your basics consistent so your managers are not freestyling when something gets awkward. That is what creates the mess. ### What are the biggest Employment Rights Act changes for SMEs? The ones that create the most day to day friction tend to be: - earlier unfair dismissal protection changing how probation and performance needs to be handled - more flexible working requests being treated as normal, not special - harassment prevention expectations moving from policy on a shelf to real steps in practice If you get those three areas tidy, you remove a lot of risk and a lot of noise. ### Is this just an HR issue? No. It is a business issue. The fastest way to lose time and money in an SME is people problems handled badly. You do not need an HR department, you need a simple process and managers who follow it. ### What is the biggest mistake SMEs make under the Employment Rights Act? Letting managers do their own thing. One manager is soft, one is strict, one avoids conflict, and suddenly everything feels unfair. Consistency is the whole game. ### Do I need to rewrite all my policies? Probably not. Most SMEs do not need a mountain of policies. You need a few clear rules that people actually use, plus manager scripts so nobody says something daft in the heat of the moment. ### How do I stop probation becoming a slow motion car crash? Treat probation like part of recruitment, not a waiting room. - set 3 to 5 clear outcomes in week one - do weekly check-ins - do a midpoint review - write basic notes - do not let it drift Drifting is the number one cause of hiring regret. ### What if the employee is nice but not good enough? You can still manage that. Nice does not equal capable. Be clear early, offer support, set expectations, and make a decision before you are angry. Once you are angry, you will say something you regret. ### What if I have never done performance management properly? You are not alone. Start simple: - define what good looks like - tell the person - check in regularly - write down what you agreed That is it. No corporate theatre required. ### Flexible working requests are increasing, what do I do? Do not react, run the process. Ask what they want, why, and what alternatives might work. Consider a trial period. Then decide and document it. The request is not the problem. The way it is handled is the problem. ### Can I just say no to flexible working in an SME? Sometimes, yes. But a flat no with no conversation is where it goes wrong. You need a sensible business reason and a record that you considered it properly. Even when the answer is no, your tone matters. ### What if flexible working would annoy the rest of the team? That is a communication issue, not a reason to ignore the request. Be clear on what is agreed, why, and how workload will be managed. Fair does not always mean equal. It means explained and consistent. ### We have a dignity at work policy, is that enough for harassment prevention? Not anymore. A policy helps, but the expectation is steps in practice. That means managers know what to do, people know how to report, and you have thought about where risk actually sits in your business. ### What counts as harassment risk in a small business? The usual hotspots are: - socials and Christmas parties - WhatsApp groups and jokes that go too far - customer facing roles where clients cross the line - lone working - client sites If you can name the risk, you can reduce it. ### What should managers do if someone raises a concern about bullying or harassment? Listen, take it seriously, do not promise outcomes, and do not start investigating in the corridor. Thank them for raising it, explain the next step, and keep notes. The first conversation is where most businesses accidentally make it worse. ### What should I write down and where do I store it? Write down what happened, what you agreed, and what you did next. Keep it factual. Store it securely in your HR system. Do not keep sensitive notes on post-it notes, handover diaries, or random spreadsheets. If it is personal data, treat it like it matters, because it does. ### Will the Employment Rights Act create more grievances and tribunals? It can if businesses are inconsistent and reactive. The law changes do not create drama on their own. Messy management creates drama. Clear process reduces it. ### I feel like I am walking on eggshells with all this, what is the easiest starting point? Pick one: - tighten probation so it is not vibes based - fix flexible working handling so it is calm and documented - refresh harassment prevention so it is real, not just a policy Any one of those will reduce risk immediately. ### What is the simplest thing I can do this week to reduce Employment Rights Act risk? Book 30 minutes with your managers and agree: - how you do probation check-ins - how you handle flexible working requests - what to do when someone raises a concern Then write it down in one page. That single page will save you hours later. ### Where does Cake, Coffee & Compliance fit into this? If you want someone to keep an eye on the changes, translate them into plain English, and give you templates and scripts so you are not reinventing the wheel at 9pm, that is what [Cake, Coffee & Compliance](https://kateunderwoodhr.co.uk/employment-rights-act-advice) is for. ## THE SWARM CONTEXT ### Where Cake, Coffee & Compliance fits If you're reading this thinking, "I get it, but I don't have time to keep up with all of it," that's exactly why [Cake, Coffee & Compliance](https://kateunderwoodhr.co.uk/employment-rights-act-advice) exists. It's bite-sized, plain English, and focused on: - what's changing - what to update - what to tell managers - and the templates and scripts that stop you writing things from scratch at 9pm Prefer to listen instead of read? This episode is a good starting point: **Hiring isn't Tinder** (aka stop swiping right on "we'll see if we click"). https://open.spotify.com/episode/5HnTsZf99cRb8xk4kFZTKh And if you want the sickness angle specifically, here's the separate SSP blog I mentioned: LINK: https://kateunderwoodhr.co.uk/blog/legislation/statutory-sick-pay-changes-april-2026-who-qualifies-smes ## THE FINAL BUZZ The Employment Rights Act isn't scary because it's complicated. It's scary because it punishes inconsistency. If you want to avoid the three traps: Get clear. Get consistent. Stop managers freestyling. Kettle on, standards up. --- ### The Grievance Procedure: Handling Complaints Fairly - URL: https://kateunderwoodhr.co.uk/blog/people-hr/grievance-procedure-handling-complaints-fairly - Published: 2026-02-25T00:00:00.000Z - Category: people-hr - Tags: grievance-procedure, workplace-grievance-procedure, grievance-procedure-steps # When someone comes to you with a problem, the next move matters Every employer hopes their team will tell them when something is wrong, and a fair grievance procedure is what you reach for when they do. The trouble is, the moment someone actually raises a complaint, it rarely feels welcome. A grievance lands at the worst possible time, it is usually about something awkward, and there is a strong temptation to either wave it away or take it personally. Neither of those reactions ends well. A grievance is simply a formal complaint from an employee about something at work: how they have been treated, a decision they think is unfair, a colleague's behaviour, their conditions. Handle it fairly and you often defuse the problem and keep a good employee. Handle it badly and a small grumble can grow into a resignation, a damaged team, or a tribunal claim. The procedure is what keeps you on the right path. Hazel, our Chief Wellbeing Officer, raises grievances by sitting pointedly next to her empty bowl. Human grievances need a touch more process. ## Quick Answer Box - **Do this:** try to resolve it informally first where sensible, then take a written grievance seriously, meet promptly, investigate, decide, and offer an appeal. - **Avoid this:** ignoring it, retaliating, prejudging the outcome, or having the same person hear the grievance and the appeal. - **Write down:** the grievance as raised, what you investigated, the meeting notes, your decision and reasons, and the appeal outcome. ## What does the law actually say? As with disciplinaries, there is no single statute that scripts a grievance procedure. The benchmark is the [ACAS Code of Practice on disciplinary and grievance procedures](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures/html). The Code is not the law in the strictest sense, but tribunals weigh it heavily. If a related claim reaches a tribunal and you have unreasonably failed to follow the Code, the tribunal can increase the award by up to 25%. So while you will not be fined simply for handling a grievance badly, it can land you with a far bigger bill if the underlying dispute escalates. Running alongside the Code is the statutory right to be accompanied at a formal grievance meeting, under [section 10 of the Employment Relations Act 1999](https://www.legislation.gov.uk/ukpga/1999/26/section/10). More on that shortly. ## The grievance procedure: a fair step-by-step ### Step 1: Try to resolve it informally first, where appropriate Not every concern needs the full formal machinery. Many are best dealt with by a quiet, prompt conversation. If an employee mentions a frustration, a quick informal chat to understand it and agree a way forward can resolve things before they harden into a formal complaint. A word of caution, though. Informal does not mean dismissive, and it certainly does not apply to everything. A complaint involving alleged discrimination, harassment, bullying or whistleblowing usually needs to go straight into the formal process. Use judgement, and never push someone towards "keeping it informal" to avoid dealing with it properly. ### Step 2: The employee raises the grievance in writing If informal resolution is not appropriate or has not worked, the employee should set out their grievance in writing. They do not need legal language, just a clear statement of what the problem is and, ideally, what they would like to happen. Acknowledge it promptly. Even a short note confirming you have received it and will arrange a meeting reassures the employee they have been heard, which already takes some of the heat out. ### Step 3: Hold a grievance meeting without unreasonable delay Arrange a meeting as soon as you reasonably can. The point of the meeting is to let the employee explain their grievance fully, in their own words, and for you to ask questions and understand it properly. Listen more than you talk. Resist the urge to defend or explain in the moment; this is their chance to be heard, not the moment to deliver your verdict. Take careful notes, and if you need to investigate before deciding, say so and give a realistic timescale. ### Step 4: Allow the right to be accompanied At a formal grievance meeting, the employee has a statutory right to be accompanied by a work colleague or a trade union representative or official. Mention this in the invitation so it is not a surprise. The companion's role here mirrors their role in a disciplinary: they can put and sum up the employee's case and confer with them, but cannot answer questions on their behalf. For the full detail on who qualifies and what a companion may do, see our guide on [who can accompany an employee to a disciplinary meeting](/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk), which applies equally to grievance meetings. ### Step 5: Investigate Unless the facts are entirely clear from the meeting, you will usually need to investigate before you can fairly decide. That might mean speaking to other people, reviewing records, or checking what your own policies say. Keep it impartial. Look for what supports the grievance as well as what does not. If the grievance is about a specific person, that person should have a fair chance to respond, and you should be mindful that you may end up running [the disciplinary procedure](/disciplinary-procedure-flowchart-uk) separately if the investigation uncovers wrongdoing. ### Step 6: Respond in writing with your decision Once you have investigated, write to the employee with your decision: whether the grievance is upheld, partly upheld or not upheld, and your reasons. If you are taking action, explain what and by when. If you are not, explain why, fairly and without sarcasm or defensiveness. Always include the right to appeal and how to exercise it. ### Step 7: Offer the right to appeal If the employee is unhappy with the outcome, they can appeal. Wherever you can, have the appeal heard by someone who was not involved in the original decision, and ideally more senior. The appeal should genuinely reconsider the grievance, not just rubber-stamp the first answer. In a small business with few managers, an independent appeal is the step most likely to be difficult. If you cannot find a neutral person in-house, external HR support is a sensible way to keep it credible. ## Keeping it fair, impartial and confidential A grievance procedure lives or dies on whether people believe it is fair. A few things protect that: - **Separate the roles.** As far as your size allows, the person who hears the grievance should not be the person who hears the appeal. - **Do not retaliate.** Treating someone worse because they raised a grievance is both unfair and, in some cases, unlawful. This matters especially where the complaint involves discrimination or whistleblowing. - **Keep it confidential.** Share information only with those who genuinely need it. Gossip about a live grievance is poison to trust and can become evidence against you. - **Stick to sensible timescales.** Acknowledge promptly, meet without unreasonable delay, and keep the employee updated if an investigation takes time. ## Where grievances overlap with bigger legal risks Some grievances are not just internal disputes; they touch areas where the law gives employees extra protection. Spot these early and slow down: - **Discrimination.** If a grievance alleges unfair treatment linked to a protected characteristic such as age, sex, race, disability, religion or pregnancy, you are in [Equality Act 2010 territory](https://www.gov.uk/discrimination-your-rights). Mishandling it can lead to discrimination claims with no upper limit on compensation. - **Whistleblowing.** If an employee raises a genuine concern about wrongdoing, such as a legal breach or a health and safety risk, that may be a protected disclosure. Workers who make protected disclosures are shielded from being treated badly as a result. - **Harassment and bullying.** These can engage both your duty of care and discrimination law, particularly the duty to prevent sexual harassment. You do not need to be a lawyer to handle these well. You do need to recognise them, document carefully, and get advice before you act if you are unsure. ## Common mistakes that make grievances worse - **Treating the grievance as an attack.** Defensiveness shuts the employee down and signals that the process is not safe. - **Letting it drift.** Silence feels like being ignored and pushes people towards external advice or resignation. - **Prejudging the outcome.** If your mind is made up before the meeting, the meeting is theatre, and it shows. - **The same person doing everything.** Investigating, deciding and hearing the appeal all yourself looks like a closed loop. - **No written outcome.** A verbal "I've looked into it, it's fine" leaves the employee with nothing and you with no record. - **Breaking confidentiality.** Discussing a live grievance with uninvolved colleagues undermines the whole process. ## What to write down A clean paper trail is your best friend if a grievance ever escalates. Record: - The grievance exactly as the employee raised it. - Your acknowledgement and the timeline you set. - The invitation to the meeting and the notice given. - Notes of the grievance meeting, including who attended. - What you investigated, who you spoke to, and what they said. - Your decision, the reasons, and any action agreed. - The appeal request, the appeal meeting notes, and the final outcome. ## A short example response line When you confirm the outcome, keep it clear and human: > "Thank you for raising your concerns about [the issue] and for meeting with me on [date]. I have now looked into this, including [what you did]. Having considered everything, I have decided to [uphold / partly uphold / not uphold] your grievance, because [reasons]. As a result, I will [action], by [date]. If you are not satisfied with this outcome, you have the right to appeal by writing to [name] within [period]." Honest, specific, and respectful, even when the answer is not the one the employee hoped for. ## Where to get this checked Most grievance disasters are not caused by bad intentions; they are caused by good employers improvising under pressure. If you do not have a clear grievance procedure, or you have one but have never tested it, that is exactly what we look at in an [HR Health Check](/hr-health-check). For day-to-day backup, [HR Protect](/service-plans/hr-protect) gives you a grievance policy that follows the ACAS Code along with the rest of your handbook, while the [HR Advice Line](/service-plans/hr-advice-line) lets you talk through a live grievance before you respond, which is often when the most damage is avoided. Where a grievance signals that the relationship has broken down for good, [settlement agreements](/blog/legal/settlement-agreements-uk-employers-2025) can be a dignified way to draw a line under it. If you would simply like to discuss your situation, book a [discovery call](/discovery-call). Handled well, a grievance is a chance to fix something and keep a good person. That is worth getting right. --- ### Statutory Sick Pay Changes April 2026: Who Qualifies & What SMEs Do - URL: https://kateunderwoodhr.co.uk/blog/legislation/statutory-sick-pay-changes-april-2026-who-qualifies-smes - Published: 2026-02-18T00:00:00.000Z - Category: legislation - Tags: absence-management, uk-employment-law, small-business-hr, statutory-sick-pay, ssp-changes-2026 # SSP Law Changes Coming in 2026 If you run a small business with part-time staff, short shifts, irregular hours, or weekend teams, the SSP law changes coming in 2026 are not a small tweak. They will change who qualifies for Statutory Sick Pay, and they will change how quickly you need to respond when someone reports sick. The good news is you do not need a complicated policy. You need a clear process that managers follow consistently, so you can support genuine illness without absence turning into chaos. These changes sit under the wider reforms that started life as the Employment Rights Bill and are now set out in the Employment Rights Act 2025. ACAS lists the SSP changes as going live on 6 April 2026. This post covers: - What changes are coming to SSP - Is SSP changing from April 2026 (yes) - Statutory sick pay changes 2026 in plain English - Who is newly covered now the Lower Earnings Limit is removed - What you should update in your handbook, payroll and manager habits ## Quick headline summary (from 6 April 2026) 1. SSP becomes payable from day one (no more waiting days). 2. The Lower Earnings Limit is removed, so more part-time and lower-paid staff qualify. 3. SSP will be paid at £123.25 per week or 80% of average weekly earnings, whichever is lower. ## THE HIVE BRIEF: What is the new sick pay law and why it matters to SMEs Let's keep this human. Most sickness issues in small businesses aren't legal issues. They're people issues. It's not the SSP amount that causes the biggest headaches. It's: - Managers reacting differently - Sickness being reported in random ways - Staff feeling it's not fair - Cover arrangements causing resentment - No-one logging anything properly, so you can't see patterns until it's already a full-blown drama These statutory sick pay changes 2026 are a great reason to tidy up the basics, because they will touch more of your workforce. And if you have a mix of full-time and part-time roles, or variable hours, the removal of the earnings threshold is the big one. Previously some lower earners didn't qualify for SSP at all. From April 2026, more people qualify, so your process needs to be clear, calm and consistent. ## THE BEEHIVE UPDATE: What changes are coming to SSP from 6 April 2026 Here are the three changes you actually need to know. 1. SSP is paid from day one The waiting days are removed, so SSP starts from the first day of sickness absence, not the fourth. What this means in real life: - Short absences matter more from a payroll and process point of view - Managers need to log absence properly from the start - Return-to-work chats become even more important (because you'll see patterns sooner) 2. The Lower Earnings Limit is removed Employees no longer need to earn above a weekly threshold to qualify, meaning more part-time and lower-paid staff will be eligible. What this means in real life: - You can't assume "they only do a couple of shifts so it won't apply" - You need the same reporting rules for everyone, not "full-timers only" - You need consistency across managers, otherwise you'll create instant resentment 3. SSP calculation changes For 2026 to 2027, the weekly rate is £123.25 or 80% of the employee's average weekly earnings, whichever is lower. Why the "whichever is lower" bit matters: - It stops SSP being higher than someone's usual pay for lower earners - It links entitlement more closely to actual earnings while still keeping the safety net of a set rate ## THE FORAGER LIST: Who is more likely to qualify now In a 1–100 person business, this change usually shows up first in these groups: - Weekend staff and Saturday teams - People on short part-time contracts - Staff with variable hours - Seasonal workers - Lower paid roles that previously fell below the earnings threshold If you operate in hospitality, retail, care, leisure, salons, trades, warehousing, cleaning, or any business with shifts, you're likely to see SSP applying more often simply because more people now qualify. This is not automatically a problem. It becomes a problem when: - Your reporting process is unclear, or - Managers handle sickness differently, or - The team believes some people "get away with it". ## THE STING IN THE TAIL: The real risk is inconsistency This is where SMEs get in a muddle. One manager says "don't worry about it." Another manager asks for proof immediately. Another ignores it until they're annoyed. And then the owner ends up referee, therapist and cover organiser. That's when rumours start, resentment builds, and your good people get fed up. So yes, is SSP changing from April 2026? Yes. But your biggest win is not memorising the rules. Your biggest win is making sure sickness is handled one clear way across the business. Because when it's inconsistent, it becomes personal fast. ## THE HONEYCOMB PLAYBOOK: A simple sickness process for SMEs (the one-page version) If you do nothing else, do these five things. This is the simple but solid version that works in the real world. 1. Set one reporting route Decide exactly how sickness is reported, who they contact, and how. A simple approach that works well for SMEs: - Staff can notify sickness by phone, text, or email to their manager - But if they text or email, a manager will call them back to confirm the key details This keeps it human, reduces misunderstandings, and stops vague messages like "not feeling great" floating around with no plan. Handbook wording you can use: > "If you report sickness by text or email, your manager (or duty manager if your manager is off) will call you back to confirm the details and expected return date." 2. Set a clear cut-off time Example: at least one hour before shift start, unless it's a genuine emergency. This is not about being harsh. It's about being able to cover shifts safely and fairly. 3. Set the minimum info required Keep it simple and respectful: - Confirm you're not fit to work today - Expected return date if you can estimate - Whether you need any support on return You do not need a medical essay. 4. Do a return-to-work chat every time Five minutes. Calm. Consistent. A simple structure: - How are you now - Anything we should know to support you - Anything work-related that contributed (if relevant) - Quick reminder of reporting steps - Welcome back This is one of the best habits for reducing repeat short absences without becoming the attendance police. 5. Keep a basic record in the right place (and stop the random notes) Sickness information is confidential. Health information is special category data under UK GDPR, so it should be stored securely with limited access. Best practice is logging absence in an HRIS system (for example BreatheHR or similar) because: - Access is controlled - Records are centralised - It avoids oversharing - It keeps you out of the post-it notes and handover diary danger zone So yes: no post-it notes, no scribbling sick details in the daily handover diary, and no open spreadsheets that half the office can access. Keep records: - Factual - Minimal - Access controlled - In one secure system That protects the employee and protects you. ## THE QUEEN BEE CHECKLIST: What to update before April 2026 Here's your quick checklist: - Update your sickness reporting rules in your handbook - Add the "text or email then manager calls to confirm" step - Brief your managers on the script and the process - Check payroll settings are ready for day one SSP and the new calculation - Decide your trigger points and make sure they're applied fairly - Make return-to-work chats non-negotiable - Agree where absence is logged (HRIS) and stop informal recording If you do those things before April, you'll be ahead of most businesses your size. ## THE POLLEN TRAIL: Trigger points without becoming miserable about it Let's talk about the awkward bit: repeat short absences. Trigger points are not there to punish people. They're there to make sure patterns don't get ignored until you're frustrated and say something you regret. Examples of fair triggers: - 3 occasions in 8 weeks - 4 occasions in 6 months - A clear pattern (regular Mondays and Fridays) Trigger reached means conversation. That conversation should sound like: > "I've noticed a few short absences and I wanted to check in. Is everything ok? Is there anything we can do to support you? I also need to be clear that we need reliable attendance." Supportive, but clear. ## THE WORKER BEE FAQs **Do part-time staff qualify now?** More of them will, yes. The Lower Earnings Limit is removed from 6 April 2026, so earnings alone won't exclude them in the same way it did before. **What changes are coming to SSP?** The big statutory sick pay changes 2026 are: - SSP from day one - Earnings threshold removed - SSP paid at £123.25 per week or 80% of AWE, whichever is lower **Is SSP changing from April 2026?** Yes. The SSP changes apply from 6 April 2026. **What is the new sick pay law rate?** For 2026 to 2027, SSP is £123.25 per week or 80% of average weekly earnings, whichever is lower. **Can someone just text in sick?** You can allow it, but keep it controlled. If they text or email, build in the call-back step so a manager confirms the basics. **Will this mean sickness increases?** Not necessarily. What it will do is expose weak processes. A clear, consistent approach usually reduces drama and resentment. ## THE SWARM CONTEXT: Employment Rights Bill and Employment Rights Act 2025 If you've been following employment law updates, you'll know the SSP reforms didn't appear out of nowhere. They came through the wider reforms that started life as the Employment Rights Bill and are now set out in the Employment Rights Act 2025, with the SSP changes landing in April 2026. For a small business owner, the win is not trying to decode it all alone. The win is having: - The right wording in your handbook - Managers who know what to say - A process that is fair, consistent and easy to follow - An HRIS system that keeps everything tidy and confidential If you want a monthly plain-English rundown of changes coming through from the Employment Rights Act 2025, that's exactly what our Employment Rights Act Advice membership is for. Link: [https://kateunderwoodhr.co.uk/employment-rights-act-advice](https://kateunderwoodhr.co.uk/employment-rights-act-advice) I've also covered SSP on the Buzzing About HR podcast with a slightly different take, focusing on the real-life manager moments that make this go wrong. Worth a listen if you want the practical, human side of it. ## THE FINAL BUZZ These SSP law changes are not just a payroll tweak. They are a consistency test. If your process is clear and your managers are aligned, you'll handle it smoothly and your team will feel it's fair. If your process is loose, April will make it feel personal fast. If you want help tightening this without overcomplicating it, that's exactly what we do. We can provide a simple one-page sickness process, manager scripts, and handbook wording that fits your business. Kettle on, standards up. --- ### When Someone Says "Can We Talk?" Here's What Great Managers Say Next - URL: https://kateunderwoodhr.co.uk/blog/guides/can-we-talk-what-great-managers-say-next - Published: 2026-02-11T00:00:00.000Z - Category: guides - Tags: difficult-employee-conversations, manager-conversation-scripts, what-to-say-as-a-manager # Tricky conversations at work: what to say as a manager When someone says, "Can we have a quick chat?", it can feel like your stomach drops through the floor. Not because you're a bad manager. Usually, it's the opposite. You care, you want to do right by people, and you really don't want to say the wrong thing and turn a small problem into a big one. So let's make this easy. This is your friendly guide to saying the right thing at the right time, without legal jargon, without awkward waffle, and without sounding like you swallowed a corporate handbook. Pop the kettle on. You've got this. Picture this. You're in the hallway, or on Teams, or trying to eat a biscuit in peace, and someone says: "I'm really struggling at the moment." "I don't think this is fair." "Am I in trouble?" "My manager is bullying me." "I can't keep doing these hours." "I want to raise a grievance." And your brain immediately goes blank, except for one thought: Please say something normal. Please say something helpful. Please don't say something that comes back to haunt me. If that's you, welcome. This blog is your cheat sheet. ## The golden rule Your job is not to fix everything on the spot. Your job is to steady the moment. When someone brings you something difficult, aim for four things: - Show you've heard them. - Keep it calm and fair. - Avoid promising outcomes you can't guarantee. - Move it into a sensible next step. That's the win. Not perfection. Not magic. Just calm, clear direction. ## Your three step script ### Step one: Acknowledge. Be human. Try: - "Thank you for telling me." - "I can see this has been weighing on you." - "I'm glad you've raised it." ### Step two: Clarify. Get the facts, gently. Try: - "Talk me through what's been happening." - "When did this start?" - "What impact is it having on you?" - "What would a good outcome look like for you?" ### Step three: Next step. Process, not promises. Try: - "Here's what I'm going to do next." - "I'll need to look into this properly so we're fair to everyone." - "Let's agree what happens now and when I'll come back to you." That's it. Human, clear, fair. ## Phrases that cause chaos and what to say instead - Instead of: "Don't worry, I'm sure it'll be fine." Try: "Thank you for raising it. I can't jump to conclusions, but I can make sure it's looked into properly." - Instead of: "I'll sort it out." Try: "I'm going to take this seriously. I'll come back to you by [day/time] with what happens next." - Instead of: "You're not the only one who's said that…" Try: "I'm going to focus on what you're telling me today, and make sure we handle it fairly." - Instead of: "If you can't cope, maybe this job isn't for you." Try: "It sounds like things feel heavy right now. Let's talk about what support might help and what's realistic." - Instead of: "We'll keep this completely confidential." Try: "I'll handle this sensitively. I may need to share limited information with the right people so we can look into it properly, but I won't broadcast it." ## The big conversations managers dread ### 1. Performance chats Start with care and clarity. "I want to talk about how things are going, because I want you to succeed here." Then be specific. "Here's what good looks like, and here's where the gap is." Make it practical. "Let's agree a plan, what support you'll have, and when we'll review progress." The goal is clarity, not a telling off. ### 2. Absence and sickness Start with genuine concern. "How are you feeling at the moment?" Explore what's going on without being intrusive. "Is there anything affecting your ability to attend or do the role?" Focus on support and expectations. "Let's talk about what might help, and what we need from you going forward." You can be kind and consistent. That's the sweet spot. ### 3. Conflict between employees Set the tone immediately. "I'm not here to take sides. I'm here to get clarity and help things improve." Keep it grounded in behaviours and impact. "Let's focus on what happened and the impact, rather than personalities." Move it forward. "We'll agree next steps that are fair and workable." Your job isn't to pick a villain. It's to get the team functioning again. ### 4. Complaints and grievances Start steady. "Thank you for raising this. I'm going to take it seriously." Set expectations about fairness. "I'll need to follow a fair process and gather information before reaching any conclusions." Give them structure. "Here's what happens next, and when you'll hear from me." Calm process is everything here. No panic. No defensiveness. ### 5. Restructure or redundancy conversations Be clear about what stage you're at. "This is a proposal, not a decision." Acknowledge how it lands. "I know this is difficult to hear." Make the consultation real. "We're going to consult properly, listen to feedback, and consider options." This is where dignity and clarity matter most. ## Phrases to quietly retire These are the ones that turn small issues into big ones: - "Off the record…" - "Between you and me…" - "I promise…" - "We're like a family here…" - "It's just banter…" - "You're too sensitive." - "If you don't like it, leave." It's not about being cold. It's about being clean and fair with your language. ## Tiny legal lowdown When you're having a serious conversation about someone's job, you want five things in place: - Clarity about the issue - Consistency in how people are treated - Evidence that is factual, not vibes - A fair process that you actually follow - Notes, because memory gets wobbly under pressure You don't need to quote legislation in meetings. You just need to stop winging it. ## Your pocket checklist ### Before the chat - What is the purpose of this conversation? - What facts do I actually have? - What outcome am I aiming for that is fair and realistic? - What support can I offer? - What is the next step if this escalates? ### During the chat - Listen more than you speak - Stick to behaviours and impact - Don't promise outcomes - Keep calm, even if they're not - Summarise what you've heard and what happens next ### After the chat - Write a short note with the date, what was discussed, and what was agreed upon. - Do what you said you would do - Get support early if it's getting complex Early help is cheaper than late panic. Every time. ## A quick note on apprenticeships If you've read this and thought, "I wish my managers were better at these conversations," you're not alone. Most managers are trying their best. They've just never been taught the people side properly. They get promoted for being great at the job, then handed a team and expected to handle performance, conflict, absence, complaints, and sensitive conversations with zero training. That's not fair to them. Management apprenticeships can be a brilliant option here. Not the myth that apprenticeships are only for teenagers, but structured training for real working managers. It helps people build confidence, communication skills, consistency, and a clear way of handling tricky situations without making things worse. If you're matching development to where someone is at, here's the simple version. - New to management or supervising day to day: Team Leader or Supervisor apprenticeship at Level 3. Practical tools and a framework for everyday conversations that wobble if you don't know what you're doing. - Running a department or leading a bigger team: Operations Manager apprenticeship at Level 5. Supports managers to lead more consistently and handle complexity with confidence. - Senior leadership: Senior Leader apprenticeship at Level 7 for people shaping culture and long-term direction. Funding and eligibility vary, so check what applies in your organisation. The big point is this. If you want managers who can handle hard conversations well, train them for it. Not because they're failing, but because this is a skill. Skills can be taught. ## Final thoughts and a little pep talk You don't need to become a legal textbook to be a good manager. You need to be human, clear, fair and consistent, and brave enough to have the conversation properly. Avoiding it doesn't make it disappear. It just makes it louder, messier, and more expensive later. Kettle on. Standards up. And until next time, take care of your people. --- ### Employee Assistance Programmes (EAPs): A Guide for SMEs - URL: https://kateunderwoodhr.co.uk/blog/guides/employee-assistance-programmes-eap-guide-smes - Published: 2026-02-07T00:00:00.000Z - Category: guides - Tags: employee-assistance-programme, employee-assistance-programme-for-small-businesses, eap-cost-per-employee # Employee Assistance Programme: the cheapest wellbeing benefit most small businesses still skip Picture this. It is Sunday night and one of your team is staring at the ceiling. Money worries, a family issue, a grief they have not shared yet. On Monday, it all arrives at work with them. An Employee Assistance Programme gives your people a confidential place to take those worries, and for a small business, it is one of the highest-value, lowest-cost moves you can make. Hazel, our Chief Wellbeing Officer, approves this message. Her only condition is regular walks and the occasional biscuit. ## Quick Answer Box - Do this: put a confidential Employee Assistance Programme in place and promote it often so people use it. - Avoid this: launching it once, burying it in the handbook, and going quiet. - Write down: what your Employee Assistance Programme covers, how confidentiality works, and how staff access it, in your handbook and on payslips. ## What is an Employee Assistance Programme? An Employee Assistance Programme is a confidential benefit. You pay the provider, your people get expert support when life gets heavy. At its heart is a 24/7 confidential helpline, usually staffed by trained counsellors. Around that, most EAPs offer: - Short-term counselling by phone, video, or sometimes in person - Mental health support for stress, anxiety, low mood, and bereavement - Financial guidance for debt, budgeting, and money worries - Legal information on family matters, consumer disputes, and tenancy - Family and life support, from childcare to elder care to bereavement - Practical resources such as articles, self-help tools, and webinars Many Employee Assistance Programmes also cover an employee's partner and children, because home life affects work life. The point is simple. People hit problems they cannot fix alone. An Employee Assistance Programme gives them a confidential, professional place to turn before a wobble becomes absence. > "Good work is good for wellbeing, and good wellbeing is good for business. The trick is making help easy to find and easy to trust." > Kate Underwood, HR Queen Bee ## How confidentiality and GDPR work This is the bit that makes an Employee Assistance Programme work, so clarity matters. When an employee uses the service, you do not get told. You do not see who called, what was discussed, or why. Counselling is strictly between the employee and the provider. What you do receive is anonymised usage data. For example, a quarterly report might show what percentage of staff used the service and broad themes such as stress or financial concerns, but never names and never individual detail. Under UK GDPR, the provider is the data controller for those counselling interactions. You only see the anonymised picture. If people thought their boss would find out they had called, they would not call. Pick a provider that operates this way and say so clearly every time you promote the Employee Assistance Programme. External reference: ACAS guidance on [supporting mental health at work](https://www.acas.org.uk/supporting-mental-health-workplace). ## Why an Employee Assistance Programme makes sense for a small business You might think EAPs are a big company thing. Small firms often get the most value, because you may not have in-house HR or occupational health. Here is why it earns its keep. ### It supports your duty of care You have a duty of care for health, safety, and wellbeing. That includes mental health. There is no law saying you must offer an Employee Assistance Programme, but it is a practical, visible step that shows you mean it. And mental ill-health can meet the definition of disability under the [Equality Act 2010](https://www.gov.uk/definition-of-disability-under-equality-act-2010). Support people early. It is kind and it is smart business. ### It reduces absence and presenteeism People struggling with money stress, grief, or anxiety are not at their best. EAPs help people get support before issues turn into sickness absence. - ONS reports the UK sickness absence rate was 2.5% in 2023, still higher than the pre-pandemic years (source: [ONS, Sickness absence in the UK labour market](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/sicknessabsenceinthelabourmarket)). - CIPD's Health and Wellbeing at Work research continues to find high levels of presenteeism reported by employers, which hits productivity and morale (source: [CIPD Health and Wellbeing at Work](https://www.cipd.org/en/knowledge/reports/health-well-being-work/)). An Employee Assistance Programme is an early, low-friction route to help, which means fewer long absences and steadier performance. ### It helps you attract and keep good people Candidates care about culture and support, not just salary. A clear, well-promoted Employee Assistance Programme shows you care about your team in a very practical way. CIPD reports that EAPs are among the most common wellbeing offerings in UK organisations, especially larger employers, which sets expectations for candidates moving between jobs (source: [CIPD Health and Wellbeing at Work](https://www.cipd.org/en/knowledge/reports/health-well-being-work/)). ## What does an Employee Assistance Programme cost? For SMEs, an Employee Assistance Programme is usually one of the most affordable benefits. In many quotes we see, pricing often sits under £20 per employee per year, depending on headcount and the package. Ask for current quotes, check what is included, and confirm any minimum numbers. Tip: If you already use benefits platforms or insurance, see if an Employee Assistance Programme is included or can be added at a discount. ## How to choose an Employee Assistance Programme provider Not all EAPs are equal. When you compare, ask: - What is included? Counselling sessions, legal, financial, and family support are the core. How many counselling sessions are offered per person. - How do people access it? A 24/7 phone line plus online and app access is ideal. - Does cover extend to partners and dependants. - How is confidentiality handled, and what reporting will I receive. - What is the price per employee, and is there a minimum headcount. - Is there manager support or guidance, so leaders can signpost well. ## How to promote your Employee Assistance Programme so people actually use it The big mistake is not the provider you pick. It is the silence after launch. Six months later, nobody remembers it exists. Make it normal and visible: - Mention it at induction, then keep mentioning it - Put it in the handbook, on the intranet, and on payslips - Signpost it at predictable pinch points such as restructures, peak seasons, and January - Brief managers so they can mention it naturally in one to ones - Reassure people, every time, that it is confidential and free to them When someone opens up, a manager does not need to fix the problem. A kind nudge to the Employee Assistance Programme is often the most useful move. ## Common mistakes and quick fixes - Mistake: launching once and going quiet. Fix: promote the Employee Assistance Programme regularly, all year round. - Mistake: staff worrying their boss will find out. Fix: explain confidentiality in plain English and repeat it. - Mistake: treating an EAP as a tick box that replaces a wider wellbeing approach. Fix: use it as one part of a joined-up wellbeing plan and good management. - Mistake: choosing on price alone. Fix: check what is included and how people access it, then compare price. ## What to write down In your handbook and benefits pack, make clear: - What your Employee Assistance Programme covers and who provides it - How employees access it, including the helpline number and any login - That it is confidential and free to the employee - Whether partners and dependants are covered - That the employer only receives anonymised usage data ## A manager script you can use If someone tells you they are struggling, you can say: "Thank you for telling me, I really appreciate you trusting me with that. I am not here to pry, but I do want you to know we have a confidential support service you can use any time, day or night, and I never see who has used it or what was said. Would it help if I shared the details with you now?" Warm, clear, and it leaves the door open without asking you to be a counsellor. ## Where an Employee Assistance Programme fits in the bigger picture An Employee Assistance Programme is a strong building block, but it works best as part of a simple, human wellbeing plan and good day to day management. - If you want ongoing HR support with wellbeing and compliance, our [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) and [HR Excel](https://kateunderwoodhr.co.uk/service-plans/hr-excel) plans are built for small businesses. - For practical guidance on supporting mental health, see our guide: [Supporting employee mental health](https://kateunderwoodhr.co.uk/blog/guides/employee-mental-health-at-work-sme-guide). Pair it with your Employee Assistance Programme for best results. - Not sure if your current setup is doing the job. Book a free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) or [book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) and we will talk it through. As ACAS puts it, supporting mental health at work is good for people and business. Start simple. Keep it human. Kettle On, Standards Up. And as always, keep buzzing and take care of your people. ## FAQs - What is an Employee Assistance Programme? An Employee Assistance Programme is a confidential service that provides counselling and practical advice on issues such as stress, money, legal matters, and family life. - Is an Employee Assistance Programme confidential? Yes. The provider keeps counselling confidential. Employers only receive anonymised usage data, never names or case details. - How much does an Employee Assistance Programme cost for SMEs? Pricing often sits under £20 per employee per year, subject to headcount and scope. Get quotes and compare what is included. - Does an Employee Assistance Programme cover family members? Many do. Check if partners and dependants are included in your provider's terms. - How many counselling sessions are included? It varies. Many providers include a set number of short-term sessions. Ask for the exact number and any limits. - Will an Employee Assistance Programme replace other wellbeing activity? No. It is a helpful pillar, but you still need good management, clear policies, and a kind culture. External sources for further reading: - [ACAS: Supporting mental health at work](https://www.acas.org.uk/supporting-mental-health-workplace) - [CIPD: Health and Wellbeing at Work research](https://www.cipd.org/en/knowledge/reports/health-well-being-work/) - [ONS: Sickness absence in the UK labour market, 2023](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/sicknessabsenceinthelabourmarket) --- ### Salary Sacrifice Schemes for Small Businesses (Incl. EV) - URL: https://kateunderwoodhr.co.uk/blog/guides/salary-sacrifice-schemes-for-small-businesses-incl-ev - Published: 2026-02-07T00:00:00.000Z - Category: guides - Tags: salary-sacrifice-scheme, ev-salary-sacrifice-scheme, salary-sacrifice-pension, small-business-employee-benefits, cycle-to-work-scheme # Salary sacrifice scheme: cut costs and reward your team without a pay rise Running a small business can feel like juggling flaming swords on a unicycle. Wages go up, National Insurance bills land, and you still want to look after your people. A salary sacrifice scheme is one of the few tools that can help both sides at once. It can lower your costs and hand your team a valuable benefit, all without a straight pay rise. It is not magic, and it is not risk-free. So here is the plain-English version: what it is, where it works, the EV scheme everyone is asking about, and the pitfalls that catch employers out. Hazel, our Chief Wellbeing Officer, is holding out for a salary sacrifice scheme that pays her in walks and biscuits. We are still negotiating. ## Quick Answer Box - Do this: let employees swap part of their gross salary for a non-cash benefit via a salary sacrifice scheme, saving income tax and National Insurance for both sides. - Best uses for SMEs: pension contributions, electric cars, cycle-to-work, and extra holiday. - Never do this: drop anyone below the National Minimum or National Living Wage, or set it up on a verbal handshake. - Write down: a clear, signed contract variation, and explain the knock-on effects on pension, statutory pay, and mortgages. > Expert view: "A salary sacrifice scheme works best when it is simple, compliant, and clearly explained. Paperwork first, promises second." - Kate Underwood, KUHR ## What is a salary sacrifice scheme? A salary sacrifice scheme is an arrangement where an employee agrees to give up part of their gross salary in return for a non-cash benefit. The sacrificed amount comes out before income tax and National Insurance are calculated. That has two effects. The employee gets a valuable benefit instead of that slice of cash, often at a lower cost than buying it themselves. And because both the employee and the employer pay National Insurance on a lower salary figure, both can save. HMRC sets out the mechanics in its guidance: [Salary sacrifice and the effects on PAYE](https://www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye). For a small business this is the appeal: you can offer attractive, tax-efficient benefits without adding to your wage bill. Done properly, the employer National Insurance saved on the sacrificed amount can offset some scheme costs. ## The schemes that actually work for small businesses Not every benefit keeps its tax advantage any more. These are the ones that still stack up for SMEs under a salary sacrifice scheme. - Pension salary sacrifice. The most popular and efficient option. Instead of paying pension contributions from take-home pay, the employee redirects part of gross salary into the pension. Both sides save National Insurance, and the employee's pot grows. Admin is light if your provider supports it. See The Pensions Regulator's guidance on [using salary sacrifice for pensions](https://www.thepensionsregulator.gov.uk/). - Electric vehicle salary sacrifice scheme. The employer leases an electric car and the employee sacrifices an agreed amount of gross salary to use it. Because EVs have a very low Benefit in Kind, the total cost to the employee is often far lower than buying privately. Demand is high. - Cycle to Work. A tax-efficient way for employees to get a bike and accessories, with repayments from gross salary. Great for town and city teams. - Additional holiday. Some employers let staff buy extra annual leave by sacrificing salary. Useful for flexibility, though you need to plan cover and cost. ### Quick comparison | Scheme | Who it suits | Typical saving for employee | Employer angle | |---|---|---|---| | Pension salary sacrifice | Most staff | Income tax and NI on contributions | Employer NI saving on sacrificed amount | | EV salary sacrifice scheme | Commuters and car users | Low BIK makes total cost competitive | High perceived value, retention boost | | Cycle to Work | Short-distance staff | Tax and NI on bike cost | Health, wellbeing, low admin | | Extra holiday | Parents, carers, study time | More time off for modest cost | Engagement, but plan cover | Sources: HMRC OpRA rules and GOV.UK guidance linked below. ## A closer look at the EV salary sacrifice scheme This is the scheme generating the most questions right now, so it gets its own section. The structure is simple. You lease the electric vehicle, usually through a specialist provider that can bundle insurance, maintenance, and tyres. The employee then sacrifices an agreed slice of gross salary in exchange for using the car. Because the sacrifice happens before income tax and National Insurance, and because the company-car tax on EVs is currently very low, the all-in monthly cost can undercut a private lease. Useful facts you can quote: - Benefit in Kind for zero-emission cars is 2% of list price in 2024 to 2025, rising by 1 percentage point each year to 5% by 2027 to 2028. Source: GOV.UK [Tax on company cars](https://www.gov.uk/tax-company-benefits/tax-on-company-cars). - The Class 1 employee National Insurance main rate is 8% from April 2024, while the employer rate remains 13.8%. Source: GOV.UK [National Insurance rates](https://www.gov.uk/national-insurance-rates-letters). The wins for a small business are real: - usually no upfront cost and no large balance sheet commitment - a benefit that helps you retain and reward people - a boost to sustainability goals - light administration once a provider is in place A word of honesty though. The headline savings depend on the Benefit in Kind rate, which is set by the government and changes over time, and on the employee staying for the full lease. Always check the current EV Benefit in Kind rate before quoting a figure, and agree what happens if someone leaves mid-lease. ## The rules you must not break A salary sacrifice scheme is legitimate and HMRC-blessed, but only if you follow the rules. - It must be a genuine contractual variation. The employee's actual contractual pay changes. This has to be agreed in writing, not arranged on a verbal nod. Document it clearly and keep the paperwork. See HMRC's manual at [EIM42750](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim42750). - You cannot sacrifice below the minimum wage. The employee's remaining cash pay must never drop below the National Minimum Wage or National Living Wage for their age. This is a hard line and a common trap. Check the current rates every April: [National Minimum Wage rates](https://www.gov.uk/national-minimum-wage-rates). - Most benefits lost their tax advantage. Since the Optional Remuneration Arrangements rules came in from 2017, many salary sacrifice benefits no longer save tax. The main survivors are employer pension contributions, pensions advice, workplace nursery and childcare arrangements, cycle-to-work, and ultra-low-emission and electric cars. If a benefit is not on that list, the tax saving may not exist. Always check current HMRC guidance. ## The knock-on effects to flag before anyone signs up A salary sacrifice scheme lowers the employee's gross pay on paper, and that ripples into other things. Be upfront, because an employee who feels blindsided later is an unhappy employee. - Pension contributions. If the pension is calculated as a percentage of salary, a lower salary can change the contribution base. Usually managed, but check with your provider. - Statutory pay. Payments such as Statutory Maternity Pay and Statutory Sick Pay are based on earnings after the sacrifice, so a sacrifice can reduce them. This matters most for staff planning a family or with health concerns. Check current thresholds on GOV.UK and your handbook. - Mortgage affordability. Lenders assess gross salary, and a sacrifice lowers the headline figure. An employee mid-mortgage-application may want to pause before joining. - Other earnings-linked entitlements. Some state benefits and life-cover calculations key off salary too. None of these are reasons to avoid a salary sacrifice scheme. They are reasons to explain it clearly and let people make an informed choice. ## How to set up a salary sacrifice scheme: a step-by-step checklist - Pick the benefit. Start with the schemes that keep their tax advantage: pension, EV, cycle-to-work. - Choose a reputable provider and check what is bundled in. For EV, nail down insurance, maintenance, and early-termination terms. - Model the numbers, including the employer National Insurance saving and any admin or provider fees. - Check the minimum-wage floor for every employee who might join. - Brief payroll and your accountant so PAYE and reporting are correct. - Put a clear, written contract variation in front of each participating employee. - Explain the knock-on effects on pension, statutory pay, and mortgages, in writing. - Keep the signed paperwork and review the scheme annually. ## Common mistakes (and the fix) - Mistake: setting it up on a verbal agreement. Fix: always use a written contract variation. - Mistake: sacrificing below the minimum wage. Fix: check every employee against the current NMW or NLW rate before they join. - Mistake: assuming every benefit saves tax. Fix: stick to the OpRA survivors, and check current HMRC guidance. - Mistake: not warning staff about statutory-pay and mortgage effects. Fix: explain the knock-on effects in writing before they sign. - Mistake: ignoring what happens if someone leaves mid-EV-lease. Fix: agree early-termination terms with your provider up front. ## A short example A Hampshire design agency with twelve staff introduced pension salary sacrifice and an EV salary sacrifice scheme. On the pension side, the employer National Insurance saved across the team helped offset rising payroll costs, and several employees boosted their retirement contributions for the same take-home pay. The EV scheme was popular too, but the owner did one thing right that many forget. She sat down with each interested employee, walked through the effect on Statutory Maternity Pay and mortgage affordability, and put it in writing. One employee planning a mortgage chose to wait. No drama, no resentment, because nobody felt caught out. ## What to write down for your salary sacrifice scheme For every arrangement, keep: - a signed contract variation stating the amount sacrificed and the benefit received - the start date and the review or end date - written confirmation that you checked the employee stays above minimum wage - a written note of the knock-on effects you explained - the provider's terms, including early-termination terms for EV leases ## Bottom line - A salary sacrifice scheme swaps gross pay for a non-cash benefit, saving tax and National Insurance for both sides. - The schemes that still work best for SMEs are pension, EV, cycle-to-work, and extra holiday. - Never sacrifice below the minimum wage, and always use a written contract variation. - Explain the effects on statutory pay and mortgages before anyone signs up. ## Right, what do you do now? A salary sacrifice scheme is worth exploring, but the documentation, the minimum-wage check, and the conversations with staff are where it goes wrong. That is the sort of thing we can sense-check quickly on the [HR Advice Line](https://kateunderwoodhr.co.uk/service-plans/hr-advice-line), or handle as part of ongoing support through [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect). If you want a clear view of whether your benefits and contracts are set up correctly, book an [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) or a [discovery call](https://kateunderwoodhr.co.uk/discovery-call). We will tell you what is solid and what needs tidying up, in plain English. For the tax detail, your accountant should be in the room too. ### FAQ - Is a salary sacrifice scheme worth it for employers? Yes, if you stick to HMRC-approved benefits, keep people above minimum wage, and document it. Employer NI savings can help offset costs. - Does a salary sacrifice scheme affect Statutory Maternity Pay? Yes. SMP is based on average earnings after the sacrifice, so it can reduce the amount. Explain this before sign-up. - Can directors use a salary sacrifice scheme? Often yes, but take advice on PAYE, Class 1 NI, and any IR35 or benefit-in-kind angles first. - Can staff salary sacrifice below the National Minimum Wage? No. That is a strict rule. You must keep cash pay above the current NMW or NLW. - How does an EV salary sacrifice scheme work in practice? The employer leases the car, the employee sacrifices gross pay to use it, and pays Benefit in Kind at the EV rate. The net cost is often lower than a private lease. - Does a salary sacrifice scheme harm mortgage applications? It can reduce the gross salary figure lenders see. Staff planning a mortgage may want to delay joining or keep the sacrifice modest. --- ### Training Agreements: Can You Recoup Training Costs? - URL: https://kateunderwoodhr.co.uk/blog/legal/training-agreements-recoup-training-costs - Published: 2026-02-07T00:00:00.000Z - Category: legal - Tags: recoup-training-costs, training-repayment-agreement, recover-training-costs-from-employee # You paid for the course. Then they handed in their notice. Picture this: you fund a chunky course, they smash the exam, and two weeks later a resignation lands on your desk. Ouch. You want to invest in your people without becoming a free training school for your rivals. That tension is fixable. A training agreement is how you protect a fair share of your spend if someone leaves soon after you fund their training. But it only works if it's written properly. Get the wording wrong and you might recover nothing. Hazel (our Chief Wellbeing Officer) has never repaid a training cost in her life. To be fair, her only qualification is sit, and that's still debated. ## Quick Answer Box - Do this: agree repayment in writing before the course, use a sliding scale that reduces over time, and keep the amount fair. - Avoid this: a penalty-style figure bigger than the real cost, a vague blanket clause, or trying to authorise a deduction after someone has left. - Write down: what the training cost, the repayment scale, and the employee's signed authorisation to deduct from pay. ## What a training agreement actually is A training agreement (also called a clawback clause or training cost repayment agreement) says: if you leave within a set period after I pay for your training, you repay some or all of the cost. It does not trap anyone. People can still leave. It simply means that if they move on soon after an expensive course, you can recover a fair share of what you spent. The aim is to protect a genuine business investment, not punish someone for progressing. ## What the law says (the penalty trap) Here's the test that decides whether your agreement holds. A clawback figure must be a genuine estimate of your loss, not a penalty to scare people into staying. UK contract law treats penalty clauses as unenforceable. If the sum you ask for is far higher than the real training cost, a court is likely to refuse it. So keep it simple and fair: - recover no more than you genuinely spent - reduce what's owed the longer they stay after the training - keep the terms reasonable and clear That is why a sliding scale is not just polite. It is what keeps the clause enforceable. Law shifts with case decisions, so sanity-check your clause before relying on it. ACAS has a helpful page on [deductions from wages](https://www.acas.org.uk/deductions-from-pay-and-wages). ## The deductions-from-wages rule (get this in writing first) Most employers want to recover any balance from final pay. Sensible. But you cannot simply dock it. Under unlawful deduction rules (Employment Rights Act 1996, section 13), you can only take money from pay if the employee has given prior written authorisation. Prior is the key word. You cannot get consent after the event, and you cannot spring it on someone when they resign. In plain English: the signed training agreement, including the permission to deduct from final pay, must exist before the course starts. No agreement, no lawful deduction. Same drumbeat we repeat in HR: if it is not written down at the right time, it is hard to rely on later. See also our note on [verbal offers of employment](/blog/legal/verbal-offer-of-employment-uk). One more trap: deductions for the employer's benefit must not take pay below the National Minimum Wage in that pay period. If the repayment would do that, spread the deduction over future wages if they are still employed, or invoice the balance after they leave. GOV.UK guidance: [understanding your pay and deductions](https://www.gov.uk/understanding-your-pay/deductions-from-your-pay). ## The sliding scale (fair and enforceable) The fairest and most defensible structure is a sliding scale that reduces over time. The longer someone stays, the less they owe, because you have received more value from the training. Pick periods and amounts that fit the course and cost. The key is that it tapers to zero over a sensible window and never exceeds what you actually spent. Example shape (adjust to suit your course): - leave within 6 months of completion: repay up to 100% - 6 to 12 months: repay up to 75% - 12 to 18 months: repay up to 50% - 18 to 24 months: repay up to 25% - after 24 months: repay 0% Keep it proportionate to the real cost and you stay the right side of the penalty rule. ## What counts as a recoverable cost? Be explicit about what you will recover. Typical recoverable costs: - course or exam fees - materials, registration and exam costs - travel and accommodation directly tied to the training - exam resit fees that you agree to fund What you should usually not claw back: - the employee's normal salary while attending - statutory or legally required training (for example, core health and safety) - costs you did not actually incur or that were refunded - VAT that you reclaimed from HMRC Clarity here saves arguments about what "the cost" was. ## A short example You fund a recognised professional qualification. Before the course, you both sign a training agreement that lists the actual cost, a reducing repayment scale over 24 months, and written permission to deduct any balance from final pay without taking them below minimum wage. Eighteen months later they resign. Because the paperwork is in place and the sum reflects a fair share of the real cost, you recover what is due. If you had relied on a vague handbook line or tried to get a signature at resignation, you would likely get nothing. Same spend. Very different result, decided by what you had in writing at the start. ## Common mistakes (and the fix) - Mistake: a clawback figure bigger than the real cost. - Fix: recover no more than you genuinely spent or it reads as a penalty. - Mistake: a single blanket clause in the contract for all training. - Fix: use a separate, course-specific agreement for each funded item. - Mistake: trying to authorise a deduction after someone resigns. - Fix: get written authorisation signed before the course starts. - Mistake: clawing back statutory or mandatory training. - Fix: the employer normally pays for legally required training. - Mistake: deducting so much it drops final pay below minimum wage. - Fix: check NMW and limit or spread deductions if needed. - Mistake: no record of what the training actually cost. - Fix: keep invoices and proof of payment so the genuine loss is obvious. ## What to write down For each funded course, have a signed agreement (before it starts) that confirms: - a description of the training and the exact cost - the repayment period and the sliding scale - which costs are recoverable and which are not - written authorisation to deduct any balance from final pay - the date it was signed (pre-course), plus who signed it File the invoices with it. If you ever need to rely on the agreement, proving the cost should be easy. ## Bottom line - a training agreement helps you recover costs if someone leaves soon after training - it only works if it reflects a genuine estimate of loss, not a penalty - get it signed before the course, including authorisation to deduct from pay - use a sliding scale that reduces over time to keep it fair - do not claw back statutory training and do not breach minimum wage rules ## Right, what do you do now? If you are funding training and your current clause is vague, tidy it before the next booking, not after the next resignation. This is the kind of gap we flag in an HR Health Check, alongside contracts and policies. Book your HR Health Check: [Free HR Health Check](/hr-health-check) Or [book a discovery call](/discovery-call) and we will talk through what you plan to fund. --- ### World Cancer Day: the manager's guide after "I've got cancer" - URL: https://kateunderwoodhr.co.uk/blog/guides/world-cancer-day-managers-guide-after-ive-got-cancer - Published: 2026-02-04T00:00:00.000Z - Category: guides - Tags: employee-cancer-support, workplace-cancer-policy, reasonable-adjustments, return-to-work, disability-at-work, occupational-health, sick-pay, fit-notes, world-cancer-day # Employee says they have cancer: what do you do next? It's a normal day, you're knee-deep in emails, and an employee asks for a quick chat. They sit down, take a breath, and say: "I've been diagnosed with cancer." Your brain goes blank. Your mouth wants to do that awkward thing where it blurts out something unhelpful. And meanwhile, you're trying to be kind, be practical, and not make it weird. This is the calm, human, step-by-step guide for what to do next, especially if you're in a small business and there isn't a huge HR department to catch you. ## What to say in the first conversation You don't need perfect words. You need steady ones. Here are lines you can actually use: - "Thank you for telling me. I'm really sorry you're dealing with this." - "You don't have to share anything you don't want to. Tell me what you feel comfortable sharing." - "We'll take it one step at a time. What do you need from work right now?" - "Would you like me to tell anyone else, or keep this private for now?" - "I'll follow up in writing so you don't have to remember everything today." ### What not to say (or do) Try to avoid: - miracle-cure stories and unsolicited advice - "you don't look ill" - "stay positive!" (it can feel like you're shutting them down) - jumping straight to "how long will you be off?" (you'll talk about it, just not first) ## Confidentiality: who can know, and how you handle it Cancer is personal medical information. Don't share it because you feel you "should" keep people in the loop. Share only if the employee agrees, and only with genuine need-to-know people. Ask: - Who do you want me to tell (if anyone)? - What do you want me to say? - Do you want to tell the team yourself, or would you like me to? If they want a simple message to the team, keep it neutral: > "X will be having some time away for health treatment. We'll share updates if and when X wants us to. Please respect their privacy." ## The legal bit (UK): why this matters In the UK, cancer is automatically treated as a disability from the day of diagnosis under the Equality Act. That means additional protection and a duty to consider reasonable adjustments. Plain English: you need to handle absence, performance and workplace decisions carefully, and actively look for ways to reduce disadvantage at work. ## Reasonable adjustments for cancer: practical examples Adjustments don't have to be dramatic. Often it's small changes that make work possible without wiping someone out. Examples that often help: - flexible hours (later starts, shorter days, spreading hours differently) - homeworking or hybrid where possible - reduced workload or adjusted targets for a period - extra breaks, a quiet space, camera-off options - time off for treatment and recovery (planned and last-minute) - temporary changes to duties (especially physical work, travel, heavy client loads) - practical changes like closer parking or a more accessible workstation ### How to agree adjustments without drowning in paperwork A simple approach: - Ask: "What's hardest right now?" - Offer: "Here are a few options we can try." - Agree: "Let's trial this for 2–4 weeks." - Review: "What's working? What's not?" - Write it down: a short summary so nobody has to rely on memory. ## Sick pay basics: don't guess This is where managers accidentally make things worse by winging it. Best move: - check your company sick pay policy (if you have one) - confirm statutory sick pay eligibility and process with payroll or your accountant - explain what you know now and what you'll confirm, then follow up in writing If you're a small business, that "follow up in writing" part is gold. It stops misunderstandings and takes pressure off the employee to remember details when they're overwhelmed. For more on structuring sick pay, see our guide to [the advantages and disadvantages of sick pay schemes](/blog/guides/advantages-disadvantages-sick-pay-schemes). ## Fit notes: how to use them properly Fit notes aren't always "off sick" notes. A GP can say someone: - is not fit for work, or - may be fit for work with adjustments That second option is your cue to talk about what "work" could look like safely and realistically. When a fit note comes in: - read it properly (especially the "may be fit" section) - talk through what's realistic - if you can't do what's suggested, explore alternatives and note what you agreed ## Occupational Health: a smart route for small businesses too Occupational Health (OH) can help you with practical recommendations like: - what adjustments might help during treatment - how to plan a phased return - what's safe for specific duties - how side effects (fatigue, nausea, brain fog) can affect work You don't have to be a big corporate to use OH. Many providers offer pay-as-you-go support, and some membership organisations or insurers include it as part of a package. If you're unsure what's "reasonable," OH advice gives you something evidence-based to work from, and it takes pressure off managers to guess. ## Support without getting weird about it The sweet spot is supportive, consistent and normal. Do: - agree how often to check in and how (email/text/call) - offer choice: "Do you want work updates or do you want to switch off?" - keep them included if they want it (team news, invites, updates) - handle cover without turning it into guilt Don't: - disappear because you're scared of saying the wrong thing - treat them like fragile glass - make them the "inspiration story" of the office ## The bit people forget: who is supporting the manager? Managers aren't robots. They may be worried about saying the wrong thing, juggling workload, holding emotional weight, and trying to keep the team steady. If you're an owner or senior leader, ask yourself: how are we looking after the person doing the supporting? Practical ways to support the manager: - a weekly 15–20 minute check-in to talk through what's happening and what's coming up - split roles where possible (manager handles day-to-day; owner/HR handles pay/policy/admin) - give permission to set boundaries (supportive doesn't mean 24/7) - signpost the manager too (so they're not holding it alone) ## What small businesses can do to support themselves and employees You can be a brilliant employer without a big HR team. The trick is having a simple plan and using outside support early. ### Have a simple "serious illness" plan A one-pager is enough: - who handles pay and policy questions - where confidential information is stored - how absence is recorded - how cover and handovers work - how communication is agreed (including consent for what's shared) ### Use external support earlier than you think Useful routes: - Occupational Health for evidence-based recommendations - ACAS guidance for handling adjustments fairly and consistently - [Macmillan resources](https://www.macmillan.org.uk/cancer-information-and-support/impacts-of-cancer/work-and-cancer) for work and cancer support ### Set a communication rhythm Agree: - how often you'll check in - what channel they prefer - whether they want work updates or to switch off - what the team will be told (and by who) This reduces awkwardness and stops either pestering them… or disappearing. ## A simple checklist you can follow **Today:** - listen, thank them, stay calm - agree what can be shared and with who - agree the next contact point and when - follow up in writing with a short summary **This week:** - confirm sick pay position and process - discuss adjustments and agree a short trial - consider Occupational Health input (especially for safety-critical roles) - set a check-in rhythm that suits them **Ongoing:** - review adjustments regularly (treatment changes, so needs change) - keep notes factual and consistent - support the manager with check-ins so they don't carry it alone ## FAQs ### What should I say when an employee tells me they have cancer? Keep it simple and steady: thank them for telling you, acknowledge it, reassure them you'll take it step-by-step, and agree on what happens next. Avoid advice, assumptions, or jumping straight into "how long will you be off?" ### What questions should I ask in the first meeting? Focus on what they want and what they need: - What do you feel comfortable sharing right now? - What would help you most from work in the next few days/weeks? - Is there anything urgent we need to adjust immediately (hours, workload, meetings)? - Who (if anyone) can I tell, and what wording should I use? - How would you like us to stay in touch? ### Do they have to tell me what type of cancer it is or what treatment they're having? No. They can share as much or as little as they want. Your job is to support them and explore adjustments based on what they say they can and can't do, not to collect medical details. ### Can I tell the team? Only if the employee agrees, agree on what can be shared, with whom, and in what wording. If they want privacy, you can still manage workload cover without giving details. ### Is cancer classed as a disability at work in the UK? Yes. Cancer is automatically treated as a disability from the day of diagnosis under the Equality Act. That brings protections and a duty to consider reasonable adjustments. ### What are reasonable adjustments for an employee with cancer? Common adjustments include flexible hours, temporary workload changes, time off for treatment, homeworking where possible, extra breaks, and temporary changes to duties. The best approach is to agree a short trial, review regularly, and keep notes of what you've agreed. ### What if the employee wants to keep working through treatment? Many people do. Focus on what makes work doable: flexibility, reduced pressure, clear priorities, and permission to change the plan if side effects hit. Keep checking in, because needs can change week to week (or day to day). ### Do cancer-related absences count in sickness absence triggers? You need to be careful. Because cancer is classed as a disability, disability-related absence often needs to be handled differently to avoid discrimination. Get HR advice (or ACAS guidance) before applying absence triggers in a blanket way. ### Do I need a fit note? Often, yes, depending on how long they're off and your policy. Fit notes can also say "may be fit for work" with adjustments, which can help you plan a safe return or continued work with changes. ### Should we refer to Occupational Health (OH)? If you can access OH, it's a smart move, especially if you're unsure what adjustments are reasonable, the role is safety-critical, or you need help planning a phased return. OH can give practical, evidence-based recommendations and takes pressure off managers to guess. ### How often should I check in while they're off? Ask them what they prefer. Some people want a short weekly message, others want space. Agree a rhythm and a channel (email/text/call) so it doesn't feel intrusive or like you've disappeared. ### What should we do about workload cover? Plan cover early, but don't make it the employee's emotional burden. A good line is: "We'll sort cover, you focus on you." Keep the team informed only to the level the employee has agreed. ### How do we support the manager who's supporting the employee? Don't leave them carrying it alone. Practical support looks like: - a weekly 15–20 minute check-in with the owner/HR lead - splitting responsibilities (manager handles day-to-day; owner/HR handles pay/policy/admin) - clear boundaries on contact and availability - access to external advice (OH/ACAS/Macmillan) so the manager isn't guessing ### What can a small business do if we don't have HR? Build a simple one-page "serious illness plan": - who handles pay and policy questions - where confidential info is stored - who communicates with the employee and how often - how cover and handovers work - when you'll use external support (OH, ACAS, your payroll provider/accountant) Need help building HR foundations? Our [HR Advice Line](/service-plans/hr-advice-line) and [HR Protect](/service-plans/hr-protect) plans give you expert support without needing a full HR team. ### Can I get insurance for this type of sickness? Yes, but it's usually about insuring the business impact, not "insuring the illness" in a way that replaces good management. Common options include: - **Group Income Protection (GIP) / Group Permanent Health Insurance** Helps replace a portion of an employee's salary if they're off long-term due to illness (often after a deferred period). This can be a big support for both employee and employer if absence is extended. - **Relevant Life Insurance** (death-in-service) This is life cover, not sickness cover, but some employers confuse the two. It won't pay out for illness unless it results in death. - **Private Medical Insurance (PMI)** Can help employees access private diagnosis/treatment faster (depending on policy terms). Some conditions/treatments may have limits, and cancer cover varies by plan. - **Employee Assistance Programme (EAP)** Not "insurance" in the traditional sense, but often a low-cost benefit that provides counselling, legal/financial advice lines, and manager support, hugely helpful during serious illness situations. - **Key Person Insurance** (for small businesses) If a key person's illness would seriously impact revenue, this can help the business survive financially. It's more common for founders/directors or highly specialised roles. If you're considering insurance, ask: - What problem are we trying to solve: employee financial support, faster access to treatment, business continuity, or manager wellbeing support? - What's the waiting/deferred period? - What exclusions apply? - Does it cover existing conditions or only new diagnoses? - What support services are included (rehabilitation, case management, counselling)? A good [broker](https://www.pangealife.co.uk/group-income-protection) can help you compare options, but it's worth starting with: "We want support for long-term sickness absence and cancer-related absence in a small business." ### What if the employee's performance drops during treatment? Treat it as a health/support issue first. Adjust workload, priorities, and expectations, and review regularly. Formal performance routes may be inappropriate if the drop is linked to disability-related effects, get advice before going there. ### What if they decide they can't return to the role? Handle it carefully and fairly. Explore adjustments, alternative roles where possible, and medical advice (often via OH). Avoid rushing decisions, the key is a clear, documented, compassionate process. ### How do we avoid making it awkward? Be consistent and normal. Agree on what support looks like, stick to what you said you'd do, and don't vanish. "Supportive" doesn't mean over-focusing on it every time you speak, it means being steady and reliable. ## Final thought When someone tells you they have cancer, they're not handing you an HR problem. They're trusting you with something huge. Keep it human. Keep it fair. Keep it steady. ## Getting support Not sure where to start with your HR foundations? Take our free [HR Health Check](/hr-health-check) to see where you stand, or explore our [HR Software](/services/hr-software) to keep everything organised. Today is [World Cancer Day](https://www.worldcancerday.org/), a reminder that supporting people through cancer isn't just about policies and paperwork. It's about being human. --- ### Severe Weather and Small Businesses - What to do before it hits - URL: https://kateunderwoodhr.co.uk/blog/guides/severe-weather-and-small-businesses-what-to-do-before-it-hits - Published: 2026-01-30T00:00:00.000Z - Category: guides - Tags: small-business, severe-weather, business-continuity, emergency-preparedness, crisis-management # Severe weather has a habit of turning a normal workday into chaos One minute you're thinking about customers and cashflow. Next minute it's weather warnings, flooded roads, cancelled trains, schools shutting, and the team chat going off like a fire alarm. This is not the moment for managers to freestyle decisions. You want a simple plan you can repeat, so people stay safe and your business stays steady. Hazel would like to add that "severe weather" is also known as "excellent excuse for extra blankets and a treat bonus". Naturally. ## The simple approach: Plan, Communicate, Protect ### Plan Pick one source of truth and one trigger. - Use Met Office warnings as your "weather plan mode" trigger. - Decide in advance: who makes the call, what options you offer (remote work, delayed start, closure), and what your pay approach is. ACAS has guidance on disruption getting to work, including extreme weather planning. Met Office WeatherReady is a handy prep hub. ### Communicate Choose: - one channel (Teams, WhatsApp, email) - one update time for early shifts (plus a second update time if needed) Keep the message short: - what's happening - what staff should do - when the next update is ### Protect Safety first. If travel is unsafe, do not pressure it. If people drive for work, treat it as a real risk. HSE guidance is clear that employers should plan and manage work-related driving, including in poor weather. For heat or cold, make practical adjustments. ACAS notes there's no legal max or min workplace temperature, but gives guidance on reasonable temperatures and sensible steps. ## Forecast day checklist When warnings are forecast: - Check Met Office warnings and WeatherReady advice - Decide your mode: normal, reduced, remote-first, closed - Confirm cover for critical tasks - Send one clear staff update early - Tell customers early if you expect delays or reduced hours ## On-the-day checklist - Decide early (uncertainty causes more disruption than closure) - Keep messages consistent (one channel, one voice) - Log key decisions (what you decided and why) - Support safe choices (if conditions worsen, safety wins) ## After-the-weather tidy up - 10-minute debrief: what worked, what didn't, what to change - Update the plan (tiny tweaks make next time smoother) - Save evidence if there was damage (photos, dates, what was impacted) for insurance ## Quick Q&A: severe weather without the drama **Do I have to pay employees who cannot get to work because of bad weather?** Not automatically. GOV.UK says employees are not automatically entitled to pay if they cannot get to work because of bad weather. That's why you need a consistent set of options: remote work, shift swap, annual leave by agreement, authorised unpaid leave as a last resort. **What if the business closes? Do I have to pay staff?** It depends on your contract and what you decide as a business. The real issue is consistency. Decide your stance in advance and apply it fairly. ACAS guidance on disruption is a good benchmark. **Can I tell people to work from home?** If the role allows it, yes. Make expectations clear. If remote work is not possible, use the options you've set out. **Can I force staff to take annual leave because they cannot travel?** Be careful. Annual leave has notice rules, and forcing it in the middle of a storm is where arguments start. In practice, many SMEs agree annual leave as an option, rather than imposing it. ACAS guidance on disruption supports planning and discussion rather than knee-jerk decisions. **What if schools close and parents cannot come in?** Treat it as a disruption issue and agree what's workable: remote work, adjusted hours, shift swaps, or time off where needed. ACAS explicitly covers disruption scenarios like extreme weather. **What should staff do if they cannot get in?** They should contact you as early as possible, explain the issue, and confirm whether they can work remotely. Your job is to respond consistently, not case-by-case based on who shouts loudest. **We have staff who drive for work. What should we do?** Have a clear "no unsafe travel" stance, and plan journeys properly. HSE guidance covers planning and managing journeys, including poor weather. **What about outdoor workers in high winds, snow, or extreme heat?** Do a quick risk check and adjust the work. If conditions make the work unsafe, stop and reassess. ACAS guidance on extreme temperatures is useful for practical steps. **Do I need an "adverse weather policy"?** You don't need a 20-page masterpiece. A one-page plan is enough: - trigger - decision maker - comms channel and update times - working options - pay options - safety rules (especially travel) ACAS encourages planning for disruption rather than winging it. **What's the quickest way to avoid pay arguments?** Write your approach down and apply it consistently. Most drama comes from surprise decisions and inconsistent managers. **What should I tell customers?** Be calm and specific: - "Reduced hours due to severe weather" - "Deliveries may be delayed, next update at X" Customers are usually fine if you communicate clearly. **How far ahead should we communicate?** As early as possible, especially for early shifts. Pick a consistent update time so people are not guessing at 6am. **What's the one thing I should do today if I have nothing in place?** Pick: 1. your comms channel 2. your trigger (Met Office warnings) 3. your pay and working options Write it on one page and share it. That alone prevents most chaos. ## Final thought Severe weather is not just a weather problem. It's a planning and communication problem. A simple plan, one comms channel, and a safety-first stance protects your people and your business. --- ### The Monthly SME Reset: Track, Tweak and Tidy in 60 Minutes - URL: https://kateunderwoodhr.co.uk/blog/guides/monthly-sme-reset-track-tweak-tidy-60-minutes - Published: 2026-01-28T00:00:00.000Z - Category: guides - Tags: small-business, time-management, productivity, monthly-review, business-operations # Running a small business is basically being the manager, the HR person, the sales team, the finance team, and the emotional support human… all before lunch Most of the chaos isn't because you're doing a bad job. It's because small business life is a constant stream of "quick questions" that turn into "why is everything on fire?" So instead of waiting for things to get messy and then doing a dramatic reset (usually fuelled by caffeine and mild rage), here's a simple monthly routine that keeps you in control: - Track what matters so you stop guessing - Tweak the things causing friction so they stop repeating - Tidy the basics so managers stop improvising And yes, Hazel is involved. She's 14 now, Wellbeing Officer, and she's pushing for a monthly treat review. Apparently, this is what "governance" looks like. ## A quick nostalgic detour (because I can't help myself) I remember going into work with my dad (accountant) and using those calculators with the till rolls. The ones that printed out a never-ending paper receipt while you added up columns in handwritten accounts. I felt very grown up. Add up the figures, tear off the roll, staple it to the page like you'd just completed an Olympic event. Hazel looks at me like I've announced I used to churn butter for fun. "Handwritten accounts… how does that work?" "You write on a computer screen with a Sharpie?" Honestly, fair question. But it's a reminder that businesses don't fall apart because people are lazy. They fall apart because systems drift. The monthly reset stops drift. ## Why a monthly reset beats constant firefighting Small businesses often run on heroic effort. That works… until it doesn't. A monthly reset is how you: - spot issues while they're small - protect your managers from burnout - keep standards consistent - stop the same problems coming back every month wearing a new hat It's also one of the easiest ways to improve culture without doing anything cringe. ## The Monthly Reset: Track, Tweak, Tidy ### Step 1: Track the 5 things that tell you the truth You don't need a fancy dashboard. You need a few signals that stop you running the business on vibes. **1) Priorities alignment** Ask your team (or yourself if you're tiny): "What are your top 3 priorities next week?" If everyone's top 3 looks different, you don't have a workload problem. You have a clarity problem. Quick fix: publish the top 3 business priorities for the month and link weekly work back to them. **2) Workload and bottlenecks** Track: - what's slipping - what's stuck waiting for approvals - what keeps getting pushed to "next week" If the same tasks always slip, it's rarely a motivation issue. It's usually: - unclear ownership - unrealistic capacity - or a process that is too clunky **3) Team temperature** Look for the quiet signs: - less initiative - more snappy comments - "fine" said through gritted teeth - people doing the job but not caring about the finish Ask one question in a check-in: "What's making your work harder than it needs to be right now?" Then fix one thing. People remember action, not speeches. **4) Customer friction** Track: - repeat complaints - repeat questions - slow response times - churn or refunds If customers keep getting stuck in the same place, it's a process issue. Fix the process and the customer experience improves without you doing extra work. **5) Manager bandwidth** This one matters more than most owners realise. Ask managers: "What are you currently tolerating because you don't have time to deal with it?" That list is basically your risk register. ### Step 2: Tweak the 4 things that usually cause most of the pain Now you've got the truth, you don't need a full overhaul. You need targeted tweaks. **6) Choose fewer priorities** Pick: - 3 priorities for the month - 3 priorities for the team - 1 thing you are deliberately not doing yet The "everything is urgent" culture is how you end up busy and still behind. **7) Fix meetings (or kill them)** Pick one: - shorten meetings by 10 minutes - remove one standing meeting - make one meeting fortnightly - add one rule: every meeting ends with actions and owners Meetings without decisions are just group procrastination with better branding. **8) Tighten onboarding and expectations** Most onboarding problems are consistency problems. Create: - a simple week-one checklist - a "what good looks like" page for the role - a 30-day check-in That alone prevents so much drift and rework. **9) Do the early performance chat** If someone's slipping, don't wait until you're frustrated. Use this structure: - here's what I'm seeing - here's the impact - here's what good looks like - what's getting in the way - what support do you need - what will change this week Early conversations feel supportive. Late conversations feel like a telling off. ### Step 3: Tidy the basics in one focused hour This is the bit nobody gets excited about, but it's the bit that stops chaos. Set a timer for 60 minutes and tidy: **People basics** - are responsibilities and reporting lines clear? - are probation reviews booked and recorded? - are 1-to-1s happening and followed up? - is holiday booking consistent and visible? **Policy and compliance basics** - can managers find key policies quickly? - are policies current and actually used? - do you have a simple process for grievances and complaints? - are training and right-to-work records tidy? **Operational basics** - is your shared drive a landfill or a system? - do you have templates for common documents? - do you have a handover routine when someone is off? - do repeat customer questions have a written FAQ? This is how you buy yourself time in the month ahead. ## Hazel's view on the monthly reset Hazel supports the monthly reset provided it includes: 1. fewer meetings 2. more walks 3. a formal treat escalation policy for senior leadership She also recommends ending each reset with a biscuit, because nothing motivates people like snacks and mild emotional blackmail. She may have a point. ## Quick Q&A: what business owners usually ask **How often should I do this reset?** Monthly is perfect. Weekly can feel heavy. Quarterly is too late. Monthly catches drift early without becoming another job. **What if we're too busy to do this?** That's exactly why you need it. Busy businesses drift faster. Do it in 30 minutes to start if you have to. The goal is consistency, not perfection. **How do I stop this becoming a moan-fest?** Keep it focused on actions: - What's the issue? - What's the impact? - What are we changing? - Who owns it? - When are we reviewing it? **Should I involve the whole team?** Not always. For small teams, yes, a short check-in works. For bigger teams, do it with managers and then cascade priorities clearly. **Tax question: can I pay my child to help in the business and claim it as an expense?** Potentially, yes, but it has to be genuine. Real work, reasonable pay, and clear records. If it looks like pocket money dressed up as wages, it's not worth the risk. Keep it clean and defensible. **What's the fastest "tidy up" win?** Probation tracking and a simple 1-to-1 template. Those two alone improve consistency and reduce headaches fast. ## Final thought You don't need a dramatic overhaul to run a calm, high-performing small business. You need a repeatable rhythm. Track what matters. Tweak what's causing friction. Tidy the basics. Do it once a month, and you'll stop living in reactive mode. And if Hazel is involved, budget for the treat review. Apparently 14 is the new senior leadership. --- ### The Employment Rights Bill Is a System Change, Not a Update - URL: https://kateunderwoodhr.co.uk/blog/legislation/employment-rights-bill-system-change - Published: 2026-01-21T00:00:00.000Z - Category: legislation - Tags: employment-rights-bill, uk-employment-law, small-business-hr, hr-compliance, workforce-management # The ERB is not a "quick policy update", it's a system change If you run a small business, you've probably had this thought at least once: "I'll deal with HR when I have to." And honestly, I get it. You've got customers to look after, invoices to chase, staff to manage, suppliers to keep sweet, and at least one person who thinks "urgent" means "I remembered to tell you three weeks late". HR compliance tends to sit in that category of things that are important, but not screaming at you today. Until it is. And that is why the Employment Rights Bill (ERB) matters so much, especially for small businesses. Because it isn't one of those tidy little changes where you update a policy, send an email, and crack on. The ERB is not a "quick policy update". It's a system change. It affects the way you hire, manage, communicate, document, train managers, deal with absence, handle complaints, run disciplinaries, confirm probation, manage flexible working requests, and defend decisions when things go wrong. So if your plan is to ignore it and hope for the best, let's have a very honest chat about what that looks like. And then I'll show you the alternative, which is exactly why Cake, Coffee & Compliance exists. ## Why the ERB is a system change (and why that matters) Most business owners hear "employment law changes" and picture a list of admin tasks: - update the handbook - add a new policy - tweak a template - remind managers to behave But the reality is employment law is woven through your entire people system. Even if your "people system" is currently: - a spreadsheet called "Staff Stuff FINAL final V3" - a shared folder full of templates with weird filenames - and you, doing the best you can between meetings When the rules change, it hits everything. Because compliance is not just a document. Compliance is what you do in practice. It's what your managers say. It's what they don't say. It's how you respond to a request. How you deal with a complaint. How you follow up after a "quick chat". Whether you document decisions. Whether you treat people consistently. Whether you have evidence of what happened. That is why the ERB cannot be solved by a one-off policy update. If the law changes and your managers keep doing what they've always done, you haven't implemented anything. You've just created a false sense of security. And false confidence is dangerous, because it makes businesses bolder than they should be. ## Small businesses feel the impact harder (because you don't have slack) Big organisations can absorb change. They have HR teams, legal support, internal comms, training functions, and somebody whose job is basically "make sure managers don't set fire to things". Small businesses are different. In an SME: - one tricky employee issue can dominate the week - one grievance can derail productivity - one badly handled sickness case can become a discrimination claim - one manager's badly written email can undo months of good culture - one resignation can take out half your operational capacity You have less margin for error. That's not dramatic, it's reality. Small businesses don't fail because the owners don't care. They fail because they try to carry too much without enough structure. The ERB increases that need for structure. So if you're thinking, "This feels like a lot," you're not wrong. But the answer is not to ignore it. The answer is to implement it properly, in manageable chunks, with support. Which brings us to Cake, Coffee & Compliance. ## What is Cake, Coffee & Compliance really? At face value it's a monthly compliance membership. But what it really is, is a system for small businesses to stay legally safe without drowning in HR admin. It's designed for owners and managers who want: - clarity - practical tools - consistent processes - less risk - fewer messy conversations - fewer surprises - and the ability to sleep at night without thinking, "I hope I've not messed that up." It's not "let's talk about employment law". It's "here is what matters, here is what to do, here are the words to use, and here is how to evidence it." That last bit matters, because in the real world, evidence wins. Good intentions do not win. ## The benefits of Cake, Coffee & Compliance Let's break this down properly, because the benefits aren't fluffy. ### 1) You stop relying on memory and guesswork Most small businesses run on instinct and experience. That's not a bad thing. But instinct is not a legal defence. If you're making decisions based on what you "think is fair", rather than what is legally and procedurally sound, you are exposed. Cake, Coffee & Compliance gives you: - the correct approach - the correct process - and the correct words So you don't have to guess. And your managers don't have to guess either, which is arguably the bigger risk. ### 2) You reduce the chance of inconsistent management In SMEs, inconsistency is one of the biggest drivers of disputes. Two managers handle absence differently. One manager allows flexibility. Another refuses. One manager documents everything. Another does nothing and then panics later. Employees don't need perfect management, but they do need consistent management. Consistency is what feels fair. Consistency is what makes policies meaningful. Consistency is what protects you if challenged. Cake, Coffee & Compliance gives you a shared approach across the business: - manager briefing notes - scripts - templates - checklists - and clear "this is how we handle it" guidance That is how you stop managers freelancing. ### 3) You save time (a lot of time) Here is the truth: HR issues expand to fill the space you give them. A simple absence issue can become a six-week saga if nobody is documenting it properly. A performance issue can drag on for months if nobody is following a clear plan. A minor conflict can become a grievance if it's ignored. People issues are rarely hard because they're complicated. They're hard because they're emotional, uncomfortable, and easy to procrastinate. Cake, Coffee & Compliance keeps you moving forward with bite-sized, monthly actions. So you don't end up doing a frantic, expensive "HR overhaul" when something goes wrong. ### 4) You get practical tools, not theory Small businesses do not need more articles. You need implementation. That means: - templates you can actually use - scripts for difficult conversations - evidence trackers - comms drafts - policy updates written for real humans This membership is built around toolkits, not homework. ### 5) You reduce tribunal and dispute risk I'm going to be blunt here. Most claims don't start because the employer is evil. They start because the employee feels: - treated unfairly - not listened to - singled out - dismissed too quickly - or managed inconsistently And then when the employer tries to defend their decision, they have gaps: - no notes - no evidence - no policy followed - no consistent process - no proof that they handled it reasonably Cake, Coffee & Compliance is structured to prevent those gaps. Not by making you "perfect". By making you consistent, documented, and prepared. ### 6) Your managers become safer (and calmer) When managers don't know what they're doing, they either avoid issues or overreact. Neither is great. Avoidance leads to problems festering. Overreaction leads to unfairness, rushed decisions, and emotional emails. When managers have: - a framework - the right words - and a clear process They relax. They handle things earlier. They stop panicking. They stop escalating small issues into big ones. This is one of the biggest hidden benefits. Training managers through monthly guidance is culture work as much as compliance work. ### 7) You don't fall behind when life gets busy Because here's the thing. Even businesses with the best intentions can slip. You have a busy month. Someone resigns. You get hit with a big client deadline. You're short staffed. You're just trying to keep the plates spinning. And suddenly "updating policies" drops off the radar again. Cake, Coffee & Compliance stops you falling behind because it builds compliance into your rhythm. One hour a month. Three actions. Done. ### 8) You can join late without feeling behind A lot of memberships punish late joiners. You join and immediately feel like you've missed everything. Not this one. The backdated content and the Compliance Reset are built so businesses can catch up and get stable quickly. That matters because small businesses don't need guilt. They need momentum. ## What happens if small businesses ignore it? Now for the bit people don't like hearing. Ignoring employment law changes does not mean "nothing happens". It means the risk builds quietly. And then it usually shows up in one of these ways. ### Scenario 1: A flexible working request goes wrong A team member requests a change. A manager handles it informally. No proper process. No written rationale. Another employee hears and says, "Why not me?" Now you've got a fairness issue. Possibly a discrimination angle. And a manager who is scrambling. ### Scenario 2: A sickness case becomes a legal case Absence isn't managed consistently. Return to work meetings don't happen. Triggers aren't recorded. Reasonable adjustments aren't considered. Someone has an underlying condition and you handle it as "annoying absence". That can turn into: - disability discrimination - failure to make reasonable adjustments - unfair dismissal - or a grievance that drags everyone into it And again, it isn't because you're trying to do the wrong thing. It's because you didn't have the system. ### Scenario 3: A "simple" complaint becomes a grievance An employee raises a concern. Manager says, "Let's just move on." Employee feels dismissed. They raise a grievance. You now have to investigate properly. But you've got no notes about the original issue. No timeline. No record of what was said. Now you're playing catch-up, which is stressful and risky. ### Scenario 4: A disciplinary becomes unfair dismissal A manager follows their instinct, not the process. They skip steps. They don't investigate. They don't offer representation. They don't give time to respond. They go in too heavy because they're fed up. The employee appeals. Or goes to ACAS. Or goes straight to a solicitor. And now you're in a formal process you didn't want, with legal exposure you didn't see coming. ### Scenario 5: You lose good people because trust drops This is the quieter cost. When employees don't see fairness and consistency, they leave. They stop trusting leadership. They stop raising concerns early. They disengage. They look elsewhere. You might never get a claim. But you will pay in retention, morale, and culture. Ignoring compliance doesn't just risk disputes. It risks your ability to keep good people. ### Scenario 6: You get a tribunal claim and realise your paperwork is a mess This is the nightmare scenario, and it happens more often than people think. A claim comes in. You start gathering evidence. You realise: - you don't have a clear policy trail - emails are inconsistent - managers made comments you wouldn't want repeated - meetings weren't documented - decisions weren't justified in writing - and the employee's story is cleaner than yours At that point, the business usually ends up in one of two places: - settlement, because defending it is too risky - or a long, stressful legal process that eats time, money, and focus And remember, even if you "win", it still costs you in time and stress. ### Scenario 7: Your reputation takes a knock Small businesses live on reputation. One public dispute. One Glassdoor review. One LinkedIn post that gains traction. One local industry whisper campaign. You don't need a scandal. You just need one messy situation handled badly. Ignoring compliance increases the chance of messy situations. ## Why monthly, bite-sized implementation beats panic later This is the heart of your hook. Small businesses do not implement change well when it's delivered as a big "project". Because big projects get postponed. And postponed. And postponed. Until something goes wrong. Monthly implementation works because: - it's manageable - it becomes routine - it keeps you current - and it keeps managers aligned You are building a compliance habit. And habits beat heroic bursts of effort every time. One hour a month is realistic. A 3-day HR overhaul in the middle of a busy quarter is not. ## What actually happens inside Cake, Coffee & Compliance Here is what members get in practical terms. ### A monthly session that tells you what matters Not everything in employment law matters equally for small businesses. You get the distilled version: - what's changed - what's coming - what to prioritise - what to ignore for now No waffle. No panic. No legal essay. ### Three clear actions per month You get a simple, repeatable approach: 1. update something 2. brief your managers 3. evidence it That structure is what makes it implementable. ### A toolkit that turns advice into action This is where the real value sits: - templates - scripts - manager notes - checklists - evidence trackers - comms drafts So you are not left thinking, "Great… but what do I actually do?" ### Q&A that stops you spiralling Because compliance isn't just about documents, it's about judgement calls. Members can ask questions live or in advance, so you can get answers before a small issue becomes a big one. ### Optional added support for those who want it For businesses that need a bit more accountability, feedback, and document checking, the higher tier gives extra touchpoints. ## The real outcome: a calmer, safer business This is what Cake, Coffee & Compliance gives small business owners. Less guesswork. Less inconsistency. Less manager panic. Less reactive firefighting. More clarity. More confidence. More evidence. More protection. And a stronger culture, because fairness and structure aren't just legal requirements. They're trust builders. ## If you're tempted to ignore the ERB, read this bit twice If you ignore the ERB, you are not staying still. You are falling behind. Because your employees are still living in the real world. They are still reading headlines. They are still talking to friends in other companies. They are still seeing what "good" looks like elsewhere. And when things go wrong, you won't be compared to your intentions. You'll be compared to the expectations of fairness and legal standards. The ERB is not a "quick policy update". It's a system change. So the question isn't "Do I need to do something?" The question is "How do I do it without it taking over my life?" That's exactly why Cake, Coffee & Compliance exists. ## Want a quiet life? Start here. If you want to stay legally safe, maintain consistency with your managers, and avoid last-minute panic when something changes, Cake, Coffee & Compliance is for you. One hour a month. Bite-sized implementation. Tools you can use immediately. Support when you need it. And a business that feels calmer because it's not constantly one issue away from chaos. Cake and coffee are optional. The compliance isn't. --- ### The New Paper Round: Safe First Jobs for Teens (13+) - URL: https://kateunderwoodhr.co.uk/blog/teen-employment/safe-first-jobs-for-teens-13-plus - Published: 2026-01-21T00:00:00.000Z - Category: teen-employment - Tags: teen-jobs, youth-employment, small-business-hiring, first-jobs, jobs-for-13-year-olds # Paper rounds are fading… so what can 13+ year olds do for small businesses now? Paper rounds used to be the gateway job. Early mornings, cold fingers, first taste of “turning up even when you cannot be bothered.” But with print sales shrinking and deliveries centralising, that rite of passage is disappearing. The good news is small businesses can still offer brilliant first-job opportunities to young people aged 13+. Yes, tech is a big one (because they probably know more than you anyway). But it is not the only option, and honestly, not every 13-year-old wants to code your website. Some of them just want a bit of pocket money, a sense of independence, and to prove they can do something without you hovering like a helicopter parent. In this blog we will cover: - what the rules look like in plain English - tech and non-tech roles that work - how to avoid reputational “oh no” moments - why employing your own children can be a genuine win (and not a tax chat in disguise) And yes, Hazel has insisted there is a section on pay reviews. She is 14 now and claims her “Wellbeing Officer” role should come with a cost-of-living adjustment paid in treats. Apparently, senior leadership now negotiates in sausage. ## A quick nostalgic detour (because apparently I am ancient) I remember going into work with my dad (accountant) and using those calculators with the till rolls. The ones that printed out a never-ending paper receipt while you added up columns in handwritten accounts. I felt very grown up. Add up the figures, tear off the roll, staple it to the page like you had just completed an Olympic event. Hazel now looks at me like I have said I used to send emails by carrier pigeon. > “Handwritten accounts… how does that work?” > “You write on a computer screen with a Sharpie?” Honestly, fair question. But it is a good reminder: every generation has a “first job” story. We have moved from paper rounds and calculator rolls to testing websites, building display stands, packing orders, setting tables, and counting stock without losing the will to live. ## First: can a 13-year-old work in the UK? Sometimes, yes. It depends on your local authority. GOV.UK is clear that children aged 13 may only be employed if your local authority allows it, and only in categories of light work set out in local byelaws.  Most councils also require a child employment permit (often called a work permit). GOV.UK flags a practical risk that gets overlooked: if a child is working without a permit, there is a risk the employer will not be insured against accidents involving the child.  So before you plan your new “Saturday Junior Team,” do the boring bit first: - check your council’s rules - apply for the permit if required - build the job around light work and safe hours Local examples (just to show how common this is) include Hampshire, Dorset, Essex, and Southampton councils, all of which set out permits, light work definitions, and hours rules on their websites.  ## Hours and “light work” in plain English During term time, children can only work a maximum of 12 hours a week, including a maximum of 2 hours on school days and Sundays.  In school holidays, the limits increase depending on age (14-year-olds have a lower cap than 15 to 16-year-olds).  The point is not to memorise every number. The point is to design roles that are: - short shifts - supervised - safe - realistic around school and wellbeing If you are thinking “they could do a full Saturday,” pause and check. Some councils allow it within limits, others have additional rules like breaks after continuous work.  ## The tech route: use their superpowers, but do not hand them the keys If you want them coding, great. But think sandbox, prototypes, and supervised trials, not “here’s our live website, off you pop.” Good tech tasks for 13 to 15 year olds include: - prototyping internal tools using fake or anonymised data - testing your website for bugs, broken links, and usability - simple automations like file naming systems or spreadsheet tidy-ups - building a training quiz prototype for staff induction Non-negotiables: - no production access - no customer or staff personal data - no shared passwords - adult review before anything goes live Your business does not need to be taken down by a 14-year-old experimenting with “just one little plugin.” The simplest safety rule: sandbox first If you do one thing, separate “learning and experimenting” from “live business systems.” That looks like: - a staging website, not the live site - a test folder of fake data, not real customer details - a basic approval process where nothing goes live without an adult sign-off You can still benefit from their skills, and they can still learn, without you waking up to a broken checkout page and a mysterious new font choice called “Comic Something.” ## Apart from technology: what else can young people do? Loads. And small businesses need it. Many councils explicitly list common categories of light work, such as shop work, office work, hairdressing salons, cafes or restaurants (front of house, not kitchens), riding stables, and domestic work in hotels.  Here are the non-tech roles that work best in real life. These are useful, teach good habits, and are easier to supervise than you might think. ## Non-tech jobs young people can do (and small businesses actually need) 1) Retail and shop-floor support - shelf-facing and display tidying - stock checks (light items, supervised) - price labelling and tagging with clear rules - preparing click-and-collect orders - assembling simple displays (nothing heavy, nothing sharp) Why it works: it is visible, structured, and easy to check. Also, it teaches pride in presentation, which is basically a life skill. 2) Office and admin (the jobs nobody wants to do, so it is perfect) - filing, scanning, shredding - envelope stuffing and mail-outs - updating spreadsheets from a locked template - proofreading menus, posters, simple documents - organising photos and files into a sensible system Why it works: it is low risk, builds confidence fast, and reduces your admin mountain without you “just quickly doing it later” (which is code for never). 3) Hospitality support (front of house lite) - laying tables, folding napkins, topping up condiments - wiping tables and menus using safe products - clearing tables (avoid heavy trays and glass) - greeting or hosting with an adult nearby - assembling takeaway bags with a checklist Keep them out of kitchens and away from hot equipment or sharp tools. Do not put them on complaint duty. No child should have to hear “I asked for oat milk” at full volume. 4) Packing and prep (the fulfilment jobs) - preparing product bundles - assembling basic packs or kits - labelling and packaging non-hazardous items - stock rotation checks with supervision - building welcome packs for customers or clients This is brilliant for online sellers, small retailers, and anyone who ships products or runs events. 5) Simple cleaning and tidying (safe areas only) - tidying customer areas - wiping tables - restocking leaflets, brochures, napkins - organising storage with light lifting only Avoid chemicals, industrial cleaning, and machinery. This is “keep it safe and basic,” not “here is the industrial degreaser, good luck.” 6) Events and community support - setting up and packing down chairs and light kit - handing out flyers in daylight, safe locations, supervised - organising raffle tickets or welcome packs - meet and greet tasks with an adult nearby Safeguarding and supervision still apply even when it is informal. If you would not be comfortable with your own child doing it, do not ask someone else’s child to do it. ## How do you stop them doing something that causes offence or concern? Keep it simple and grown-up. Do not rely on “common sense.” Common sense does not arrive fully formed at 13, and to be fair, it is missing in some adults too. Your quick protection checklist - One-page rules: what is off-limits (politics, gossip, personal comments about customers, anything discriminatory or insulting, filming people without consent) - Approval process: nothing public-facing goes out without adult sign-off - Clear boundaries: they are not managing complaints, comments, or DMs - Supervision: no lone working - Safety first: risk assess the tasks and environment And remember, if your council requires a child employment permit and you skip it, GOV.UK warns you may not be insured if something goes wrong.  ## Pay basics (without falling asleep) Two key points from GOV.UK: - workers must be at least school leaving age to get the National Minimum Wage  - so school-aged children are not entitled to National Minimum Wage rates  This does not mean “pay them in vibes.” It means you need to be fair and sensible, and you need a proper arrangement if they are genuinely working. ACAS also reinforces that workers above school leaving age must get at least the National Minimum Wage.  If you are employing your own child, keep it clean: - real duties - reasonable pay for the work - records of hours and tasks - proper supervision The tax bit (because someone always asks) HMRC’s position on wages paid to relatives is basically: for wages to be deductible, the payment needs to be wholly and exclusively for the purposes of the trade. If there is another reason for paying them (like “because they are family”), the deduction may not be allowable.  So yes, employing your child can be a win, but it needs to be a real job at a reasonable rate, not a pocket money disguise with a payslip. ## Hazel’s official position on youth employment Hazel (14, Wellbeing Officer, Head of Vibes, Senior Biscuit Auditor) supports youth employment provided: 1. junior staff understand the “no fuss, all cuddles” culture 2. there is a clearly documented treat escalation policy for senior leadership She is now requesting: - a 20% uplift in treats - back pay in sausage - a clause banning meetings during snack time Honestly, it is the strongest pay negotiation strategy I have seen all year. ## Quick Q&A: what business owners ask me about employing young teens Can a 13-year-old work for my business in the UK? Sometimes. GOV.UK says 13-year-olds may only be employed if your local authority allows it and only in categories of light work set out in local byelaws.  Do I need a child employment permit? Often, yes. GOV.UK says most councils require one, and warns that if a child is working without a permit there is a risk you will not be insured against accidents involving the child.  What hours can they work in term time? During term time, children can work a maximum of 12 hours a week, including a maximum of 2 hours on school days and Sundays.  What does “light work” actually mean? In practice it means work that is not likely to be harmful to their safety, health, or development, and does not negatively affect school attendance or wellbeing. Local councils often define it clearly and list example categories.  Can they do social media for my business? They can help create content, but I would avoid giving them responsibility for posting live or handling DMs and comments. Keep them on drafting, templates, photos, and ideas, then you approve and publish. Can they code for my business? Yes, but only in a sandbox. No live systems, no personal data, no shared passwords, and everything reviewed before anything goes live. What is the biggest risk for small businesses? Lack of boundaries. The fastest way to problems is “just help out” with no clear role, no supervision plan, and no rules about public-facing work. Do I need a risk assessment? Yes, and it does not need to be scary. It should cover the tasks, environment, supervision, and what to do if something feels unsafe. Do I have to pay them, and do they get National Minimum Wage? If they are genuinely working, pay should be reasonable. But GOV.UK says workers must be at least school leaving age to qualify for the National Minimum Wage, so school-aged children are not entitled to it.  Tax question: can I pay my child and claim it as a business expense? Potentially, but it has to be genuine. HMRC guidance says wages paid to relatives should be wholly and exclusively for the purposes of the trade, and if there is another reason for the payment the deduction may not be allowable.  Translation: real work, reasonable pay, records, and no “creative accounting.” What is the simplest starter role you recommend? A Junior Support Assistant. Two to four hours a week in term time, more in holidays where allowed, with a checklist of safe tasks (admin, stock tidying, packing). Supervised at all times. No customer complaints handling. No lone working. ## Final thought Paper rounds may be disappearing, but first jobs do not have to. Small businesses are perfect for teaching young people how work works, as long as you keep it light, supervised, and within the local rules. If you lean into tech, keep them in a sandbox first. Nobody needs “Junior Developer accidentally deletes website” as their origin story. And if Hazel is involved, budget for the treat pay review. Apparently 14 is the new senior leadership, and she is not taking feedback at this time. --- ### The essential HR policies every small business needs - URL: https://kateunderwoodhr.co.uk/blog/legal/essential-hr-policies-small-business - Published: 2026-01-14T00:00:00.000Z - Category: legal - Tags: hr-policies, employee-handbook-template, hr-compliance-checklist # The policies that quietly keep you out of trouble Most small business owners do not lie awake dreaming about HR policies or a tidy employee handbook. Fair enough. But policies are the unglamorous bit of kit that decide whether a tricky situation stays small or turns into a tribunal claim, a fine, or a very expensive lesson. Here is the straight-talking version. What you actually need, what is legally required versus simply sensible, and how to keep it all from becoming a dusty folder nobody reads. Hazel (our Chief Wellbeing Officer) has a strict policy on biscuits. She recommends you have written policies for the slightly more serious things too. ## Quick Answer Box - Do this: build a core set of clear, written policies and gather them in one employee handbook. - Legally required: a written disciplinary and grievance procedure, a written health and safety policy if you have five or more staff, and data protection records under UK GDPR. - Keep most policies non-contractual so you can update them without re-papering everyone's contract. - Write down: which terms are contractual, which are guidance, and the date each policy was last reviewed. ## What is an HR policy, and why bother? A policy is simply your written position on how something is handled at work. A procedure is the step-by-step process that puts the policy into action. Together they tell everyone what is expected, what they can expect from you, and what happens if the rules are broken. For a small business the value is threefold. Policies keep you compliant with the law, they help you treat people consistently, and they give you something to point to when a decision is challenged. A tribunal does not just ask "what did you do?", it asks "did you have a fair process, and did you follow it?". Policies are how you answer that question. There is a real-world warning here too. Tribunals have found dismissals unfair where an employer relied on a rule that was never written down, because the worker could not reasonably have known the standard they were held to. When the rule exists only in someone's head rather than on paper, that gap is what costs employers later. ## What is actually required by law? Let us separate the genuinely mandatory from the merely wise. - A written disciplinary and grievance procedure. You must have one, it must be accessible to staff, and your written statement of employment particulars (the section 1 statement every employee gets) must tell people where to find the disciplinary and grievance rules that apply to them. The [ACAS Code of Practice on disciplinary and grievance procedures](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures) is the benchmark a tribunal will measure you against. - A written health and safety policy, if you employ five or more people. The [Health and Safety Executive](https://www.hse.gov.uk/simple-health-safety/policy/index.htm) requires this to be written down. Below five staff you still have the duty, you just do not have to write the policy itself. - Data protection. Under UK GDPR you need clear records of how you collect, store, and use personal data, and a privacy notice for staff. The [Information Commissioner's Office](https://ico.org.uk/for-organisations/) has small-business guidance worth bookmarking. Almost everything else is strongly recommended rather than strictly mandatory. But "recommended" here means "the thing that protects you when a dispute lands", so treat the core set below as essentials. ## The core set every small business should have - Disciplinary and grievance. The legally required pair. They give you a fair, defensible route through misconduct and complaints. Your procedure should also set out the right to be accompanied, which we cover in [who can accompany an employee at a disciplinary meeting](/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk). - Equal opportunities and anti-harassment. This protects people and protects you. It matters more than ever given the duty on employers to take reasonable steps to prevent sexual harassment, introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2024. The [ACAS guidance on preventing sexual harassment](https://www.acas.org.uk/sexual-harassment) is a good starting point. - Sickness absence. How to report illness, when you need a fit note, and how absence is managed. Pairs neatly with your decision on company sick pay, which we cover in [the advantages and disadvantages of sick pay schemes](/blog/guides/advantages-disadvantages-sick-pay-schemes). - Annual leave. Entitlement, how to book it, carry-over, and bank holidays. - Family leave. Maternity, paternity, adoption, shared parental, and the newer neonatal care leave. - Health and safety. Risk assessment, hazard reporting, and emergency procedures. - Data protection. As above, the UK GDPR essentials. - IT, communications, and social media. Acceptable use, confidentiality, and what staff can and cannot say online. - Code of conduct. Your baseline expectations for behaviour, dress, and professionalism, including the things that feel "obvious" until someone proves they were not. A pay rate is not a policy, but your policies should reference the statutory floors that change each April. Keep an eye on the current [UK statutory pay rates for 2026/27](/blog/legal/uk-statutory-pay-rates-2026-27) so your sick pay and family leave wording stays accurate. ## Contractual versus non-contractual: the bit that saves you headaches This is the single most useful distinction in this whole article, so here it is plainly. - Contractual terms are part of the employment contract. Pay, hours, notice, and core holiday entitlement usually sit here. You cannot change them unilaterally. Changing them needs the employee's agreement, which is a proper contract variation. - Non-contractual policies are guidance you set and can update. Most of your handbook should live here. It means you can refresh your social media policy when a new platform appears, or tighten your absence reporting process, without asking every employee to sign a fresh contract. The practical move is to state clearly, in both the contract and the handbook, that the policies are non-contractual and may be updated from time to time. Keep the genuinely contractual terms in the contract, and keep the changeable guidance in the handbook. Get this wrong and you can accidentally bake a policy into the contract, then find you are stuck with it. ## The employee handbook: one place for all of it An employee handbook is simply the folder, digital or printed, that gathers your policies together. There is no law that says you must have one, but it is the easiest way to make sure staff can find the rules and that you can show a consistent approach. A good handbook is accessible, dated, version-controlled, and written in plain English. It is not a legal textbook nobody opens. It states up front that it is non-contractual, points to the contract for contractual terms, and tells people who to ask if something is unclear. ## A step-by-step checklist to get started - List your legally required policies first: disciplinary, grievance, health and safety (if five or more staff), data protection. - Add the core recommended set: equal opportunities and anti-harassment, sickness absence, annual leave, family leave, IT and social media, code of conduct. - Decide what is contractual and what is non-contractual, and state it clearly. - Write in plain English, with short procedures people can actually follow. - Gather everything into one dated handbook and make it accessible to all staff. - Get staff to acknowledge they have read it, and keep that acknowledgement on file. - Diarise an annual review, plus an ad hoc review whenever the law changes. ## Common mistakes (and the fix) - Mistake: having no written disciplinary or grievance procedure. Fix: put one in place now and reference it in the section 1 statement. - Mistake: copy-pasting a generic template and never tailoring it. Fix: adapt it to your actual roles, risks, and sector. A delivery yard needs different rules from a quiet office. - Mistake: making policies contractual by accident. Fix: state clearly that policies are non-contractual guidance. - Mistake: writing it once and never reviewing it. Fix: treat policies as living documents and review at least annually. - Mistake: assuming a small team does not need a social media policy. Fix: reputational and confidentiality risks do not scale with headcount. Even a team of three needs clear online conduct rules. ## A short example A Hampshire cafe owner with four staff thought policies were "for big companies". When a team member posted a furious rant naming an unhappy customer, the owner had nothing to point to. No social media policy, no code of conduct, no clear confidentiality wording. The conversation that followed was awkward and risky. A single side of A4 covering online conduct, confidentiality, and who may post officially would have turned a tense disciplinary into a simple "you breached the policy, here is the warning". Small business, small policy, large amount of protection. ## What to write down Make sure your handbook clearly states: - which terms are contractual and which are non-contractual guidance - the disciplinary and grievance procedures, and where to find them - your health and safety arrangements (written, if you have five or more staff) - how personal data is handled under UK GDPR - the date each policy was last reviewed and the next review date - a record that each employee has read and acknowledged the handbook ## Bottom line - A handful of clear policies will protect you far more than their cost in time. - Disciplinary, grievance, written health and safety (five or more staff), and data protection are the genuinely required pieces. - Keep most policies non-contractual so you can update them as the world changes. - Gather it all into one accessible, dated handbook, and review it at least once a year. ## Right, what do you do now? If you are not sure your policies cover the basics, or you suspect your handbook is out of date, this is exactly what we look at in an HR Health Check. We tell you what is missing, what is risky, and what to fix first, in plain English and with no judgement. Ongoing support to keep policies current and handle the tricky conversations is what [HR Protect](/service-plans/hr-protect) is built for, and the [HR Advice Line](/service-plans/hr-advice-line) is there when you just need a quick answer. Book your [HR Health Check](/hr-health-check) or a [discovery call](/discovery-call) and let us get your foundations solid. --- ### Storing HR Records and GDPR: A Small Business Guide - URL: https://kateunderwoodhr.co.uk/blog/legal/hr-records-gdpr-small-business-guide - Published: 2026-01-14T00:00:00.000Z - Category: legal - Tags: gdpr-hr-records, gdpr-compliance-for-small-business, hr-records-retention-policy # Simple records, short policies, good habits ## GDPR for small business: HR records, retention and security Picture this. Your HR data lives in a filing cabinet, a shared drive, and three inboxes. Nobody planned it. It just crept in. CVs, sick notes, old payroll files, leaver records. GDPR for small business is not a tech project. It is three simple questions: what do you hold, why, and for how long? Hazel, our Chief Wellbeing Officer, keeps a flawless log of every biscuit she is owed. If only the rest of us were that organised. ## Quick Answer Box - Do this: know what personal data you hold, why you hold it, and set a retention period for each type. - Avoid this: keeping everything forever, storing sick notes in a shared drive, and having no plan for a data breach. - Write down: a retention schedule, your lawful basis for each record type, and a simple breach and subject access process. ## What UK GDPR actually asks you to do? Two laws set the rules in the UK: UK GDPR and the Data Protection Act 2018. They apply to every employer, big or small. No exceptions. Here is the plain English version of the core principles: - Lawful basis: have a valid reason for each record. - Data minimisation: only keep what you need. - Accuracy: keep records current and correct errors. - Storage limitation: set a clear retention period. - Security: protect data from loss, theft, and snooping. > Expert note: "UK GDPR applies to personal data, meaning any information relating to an identifiable person." > Source: ICO, Guide to UK GDPR. Helpful resource: the ICO's guide has practical checklists for SMEs. See ICO: UK GDPR guidance. ### Why this matters for SMEs? - The UK has around 5.5 million small businesses, making up the vast majority of employers. Source: Department for Business and Trade, Business population estimates 2023. - Half of UK businesses reported a cyber breach or attack in the last year. Source: Cyber Security Breaches Survey 2024, Gov.uk. Translation for you and your team: GDPR for small business is about simple records, short policies, and good habits. Get the basics right and stress levels drop. ## Which HR records to keep, and how long? There is no single set number of years for most HR data. Retention depends on the legal need and how long claims or HMRC checks could arise. So you create a schedule and stick to it. ### Common HR record categories - Payroll and tax records. HMRC sets specific periods. Check the current PAYE guidance on Gov.uk before you fix your timeline. - Statutory pay records. SMP and SSP have their own rules which change. Confirm the latest on Gov.uk. - Right to work checks. Keep for the employment period and a set time after. Follow current Home Office guidance. Get the initial check right to avoid trouble. Our guide to right to work checks helps you avoid the usual traps. - Recruitment records. Keep for a short, set time to handle complaints or queries. Then delete. - Working time and holiday records. Keep enough to prove compliance. Record duties may tighten under the Employment Rights Act 2025. Check the live position before you act. ### Sample retention planner | Record type | Lawful basis | Typical driver | Action | | --- | --- | --- | --- | | Payroll and PAYE | Legal obligation | HMRC rules | Follow current Gov.uk retention period | | SMP/SSP records | Legal obligation | Statutory pay rules | Follow current Gov.uk guidance | | Right to work | Legal obligation | Home Office guidance | Keep for employment plus set period, then delete | | Candidate data | Legitimate interests | Time to respond to queries | Keep briefly, then delete | | Working time/holiday | Legal obligation | ERA and WTR duties | Keep enough to show compliance | Principle to stick to: keep each record only while you have a real reason. Then delete or anonymise. "Just in case, forever" is a risk, not a plan. ## Store HR data securely Hybrid work means staff data sits on laptops, phones, and home Wi-Fi. That is fine if you set a few basics. ### Practical measures for small teams - Strong, unique passwords and multi-factor authentication for systems with staff data. - Full disk encryption on laptops and mobiles. - Access on a need-to-know basis. Payroll is not a team sport. - No staff data in personal email or open shared folders. - Secure disposal. Shred paper, wipe devices. You do not need a huge budget. You do need to know where data lives and close obvious gaps. ## Special category data needs extra care Health records, sick notes, fit notes, and occupational health reports are special category data. So are details on race, religion, and trade union membership. Treat this data with extra care: - Store it separately from general personnel files where you can. - Restrict access to named people only. - Never share health details with the wider team. - Keep it only for as long as needed for the clear purpose. If you manage absence, you are handling special category data. Check where it is kept and who can open it. ## Subject access requests: be ready Any current or former worker can ask for a copy of their personal data. That is a subject access request. They often land during a dispute. Key points to remember: - You generally have one month to respond. Complex cases can extend. Check the current timescales on the ICO site. - The clock starts as soon as the request is made, even in a short email. - You usually cannot charge a fee. Plan now. Decide who leads, where data sits, and how you gather it fast. ## If data goes missing A lost laptop. An email sent to the wrong person. A spreadsheet shared in error. These are personal data breaches. Your response matters. ### Four steps 1) Contain it. Recover devices, reset access, recall emails where possible. 2) Assess risk to the people affected. 3) Report if needed. If rights are at risk, you may need to report to the ICO within 72 hours. See ICO breach reporting guidance. 4) Tell affected staff if the risk to them is high. Log every breach. Even the ones you choose not to report. ## What to write down? Keep it short and useful: - A retention schedule listing each record type, why you hold it, and for how long. - Your lawful basis for staff data, plus the added condition for special category data. - Who has access to what, and how access is removed when someone leaves. - A simple subject access playbook: who leads, where data is, how to export it. - A breach process and a breach log. Two clear pages that people follow beats a 50-page policy nobody reads. ## Common mistakes to avoid - Thinking GDPR does not apply because you are small. - Keeping everything forever to be "safe". - Storing sick notes and health data in open folders. - Guessing how long to keep right to work or payroll records. - No SAR plan until one arrives. - Treating a lost laptop as only an IT issue. ## Final thoughts and next steps GDPR for small business is about good housekeeping. Decide what you hold, why, and for how long. Store it safely. Handle health data with care. Know how to respond to a request or a breach. Nail the retention schedule and the rest becomes manageable. If your HR records live in three places and none of them feel tidy, that is exactly what we sort in an HR Health Check. Want a friendly sanity check first Put a short discovery call in the diary and we will map the gaps. Kettle On, Standards Up. ## FAQs - How long should I keep employee records in the UK? Keep them for as long as there is a clear legal or business need, then delete or anonymise. Check Gov.uk for specific items like PAYE, SMP, and SSP. - Do small businesses need a Data Protection Officer? Most SMEs do not, but you still need someone responsible for data protection tasks. Check ICO criteria for when a DPO is required. - What is a lawful basis for processing employee data? Common bases include legal obligation, contract, and legitimate interests. Special category data needs an extra condition. - How do I handle a subject access request? Acknowledge fast, confirm identity, gather data from agreed sources, and respond within one month. Keep a log. - What counts as a personal data breach? Loss, theft, unauthorised access, or disclosure of personal data. Contain, assess, and report to the ICO if risk to people is likely. - Is Excel or email OK for HR data? Short term, with protection and access limits, maybe. Long term, use a secure HR system with access controls and audit trails. Sources: - [ICO: UK GDPR guidance](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/) - [Gov.uk: PAYE record keeping](https://www.gov.uk/running-payroll/keeping-records) - [Home Office: Right to work checks](https://www.gov.uk/check-job-applicant-right-to-work) - [Cyber Security Breaches Survey 2024](https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2024) - [DBT Business population estimates 2023](https://www.gov.uk/government/statistics/business-population-estimates-2023) --- ### 5 Subtle Signs a Team Member Might Be About to Quit - URL: https://kateunderwoodhr.co.uk/blog/employee-retention/signs-team-member-about-to-quit - Published: 2026-01-09T00:00:00.000Z - Category: employee-retention - Tags: employee-retention, employee-turnover, employee-engagement, people-management, human-resources # Employee retention: 5 quiet signs someone may be about to leave It's January. Your inbox is groaning, the team is back, and a polite resignation has just landed. Here's the hard truth. Employee retention starts long before that email. Most people leave in their head first, paperwork later. So let's jump straight in. Here are the signs to spot early and what to do before you lose good people. Keep reading for a Plain English legal lowdown, fresh data points, and a quick action plan for employee retention that works in real teams. ## Setting the scene: why employee retention starts before a resignation Picture this. Performance is fine. Cameras are off. Ideas dry up. That is a slow leak in employee retention. You can fix a leak if you catch it early. Here's the heart of it. Employee retention is about connection, clarity, and fair treatment. Not perks. Not pizza. Definitely not table tennis. * **Connection**: regular, human 1 to 1s * **Clarity**: goals, growth, and feedback * **Fairness**: pay, process, and workload When any one of these goes quiet, the risk of departure rises. You don't always get a red flag. Sometimes it's just a low, slow fade. A slow drift toward the exit. And here's the twist: high performers often go quiet before they leave. They stop raising issues. They stop asking for things. They've already made peace with going. What looks like stability could actually be detachment. ## 5 quiet signs to watch ### 1) Radio silence creeps in They used to chat, react, and share ideas. Now they deliver tasks and vanish. That is emotional disengagement. It often shows up before performance slips, which makes it harder to catch. **Try this:** * Book a light 1 to 1 with no agenda * Ask: "I've noticed you're quieter. How are things feeling for you right now?" * Follow up within a week with one small win or point of recognition Tip: Don't start with work. Start with *them*. ### 2) No longer volunteering Once proactive. Now they stick to the bare job. It can look like boundaries. Often it signals distance from the team. It's not always laziness, sometimes it's disappointment. **Try this:** * Ask what would make work feel interesting this quarter * Offer a stretch task with support and a clear time cap * Reconnect them with a team or goal they care about ### 3) Work is "fine" and nothing more Deadlines met. No spark. If pride fades, the risk to employee retention rises. Mediocre output from a once-proud performer is a sign. **Try this:** * Ask what makes their work feel meaningful * Remove blockers and celebrate quality, not just speed * Use appreciative feedback: not just "well done," but "here's why this mattered" ### 4) No pushback or challenge Silence in meetings is not alignment. It is apathy. When someone stops caring enough to challenge ideas, they're halfway out the door. **Try this:** * Invite safe challenge: "If you had full say, what would you tweak?" * Rotate meeting roles so more voices shape decisions * Create space for disagreement without it becoming conflict ### 5) The "Totally fine" script You ask how things are. They say, "Totally fine." Your gut says otherwise. That's a script. A signal that it doesn't feel safe or worth it to speak up. **Try this:** * Use better questions: "If you had a magic wand, what would you change in your role right now?" * Offer three choices to make it easier to answer: workload, growth, or process * Reassure them it's not a trap, it's a chance ## Plain English legal lowdown for UK employers This bit protects you and your people. Compliance is good business, and clarity prevents confusion. * **Notice periods**: Follow the contract. Written acceptance of resignation is sensible. Confirm final working day. * **Holiday and notice**: You can place someone on garden leave if the contract allows. Accrued holiday can also be used. * **Pay and records**: Pay all hours worked. Keep clean records of meetings and agreed changes. Confirm handover. * **Exit interviews**: Voluntary, but gold dust for employee retention insights. * **Counteroffers**: Legal, but be careful. Fix the cause, not just the salary. A short-term win can backfire long-term. **Top tip:** Get legal templates in order now. Trying to write one when someone resigns is a stress you don't need. **Helpful links:** * ACAS guidance: [Managing staff and notice](https://www.acas.org.uk/notice-periods) * CIPD factsheet: [Turnover and retention](https://www.cipd.org/en/knowledge/factsheets/turnover-retention-factsheet/) **Data point:** * According to the ONS, job-to-job moves peaked in 2022 as the post-COVID reshuffle boomed. While rates have cooled in 2024, early signals suggest voluntary exits remain high in roles with poor clarity or growth opportunities. ## Step by step: re-engage before they go Here's a fast, five-step plan you can run this month. It is built for employee retention in small teams where time, budget, and headcount are tight. ### 1) Run a 10-minute pulse * Ask three questions: * Do you feel your workload is fair? * Do you feel supported by your manager? * Do you know how to grow in your role? * Use Google Forms, Typeform, or your HR system * Track comments. Trends matter more than scores ### 2) Hold "stay" conversations * Ask: "What would keep you here for another six months?" * Agree one meaningful change you can deliver in two weeks * Keep it casual, no HR jargon, no performance review energy ### 3) Fix one friction point * Find the lowest-effort, highest-impact thing you can tweak * Cut a pointless meeting * Add a weekly team huddle * Make roles clearer in one project * Ask your team: "What's one small thing we could stop doing?" ### 4) Show the path * Share a one-page development snapshot: * Current strengths * Skills to grow * Role or project to aim for * Don't wait for an appraisal cycle. Growth is ongoing. ### 5) Make it easy to talk * Lock in monthly 1 to 1s. Keep the agenda light: wins, blocks, goals. * Avoid cancellations. Consistency builds trust. * Track actions and follow through, trust dies when promises do ### RAG your priorities | Area | Risk | First move | | ----------------- | ----- | ----------------------------------- | | Workload fairness | Red | Rebalance tasks for the next sprint | | Growth clarity | Amber | Share a one-page development plan | | Manager time | Red | Lock monthly 1 to 1s in the diary | | Pay fairness | Amber | Check market rates and bands | | Tools and process | Green | Trim one low-value admin step | **Mini tip:** Ask each team member to RAG their own experience on these five. It sparks fast, honest insight. ## Mythbuster parade * **Myth: Perks fix turnover** **Truth**: Respect, growth, and fair pay drive employee retention. * **Myth: Quiet staff are happy staff** **Truth**: Quiet often means they have checked out. * **Myth: Counteroffers solve the problem** **Truth**: They buy time. Fix the root cause or the issue returns. * **Myth: Exit interviews are too late to matter** **Truth**: Done well, they reveal patterns. Track themes over time. * **Myth: Retention is an HR job** **Truth**: It's a leadership job. Culture is built in the day-to-day. **Expert view:** * "Regular one-to-ones and fair process reduce exits and disputes." – ACAS guidance ## Practical takeaways * Use one good question each week to spot mood shifts * Track small promises and deliver on them * Reward quality work in public, coach in private * Keep exit interviews short, and trend the themes * Invest in simple HR tech to cut admin and free time for people work * Put employee retention on your management agenda monthly * Build accountability: managers own the moments that matter ## How KUHR can help If you want a quick temperature check, our Free HR Health Check is a great start to boost employee retention. We also set up Breathe HR to take the admin sting out of 1 to 1s, holiday, and sickness records. Here's what we offer: * **Outsourced HR support with clear plans**: [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) * **Hands-on, ongoing partner support**: [HR Business Partner](https://kateunderwoodhr.co.uk/service-plans/hr-business-partner) * **HR software set up and training**: [HR Software](https://kateunderwoodhr.co.uk/services/hr-software) * **Free HR Health Check to start now**: [Start here](https://kateunderwoodhr.co.uk/hr-health-check) ## FAQs **What are the early warning signs that an employee will resign?** Watch for silence in meetings, no volunteering, "fine" work, less challenge, and scripted "Totally fine" answers. **How do I improve employee retention fast?** Run a pulse, hold stay conversations, fix one friction point, show a growth path, and follow through. **Should I make a counteroffer to keep someone?** Maybe. Check the root cause first. If it is workload or culture, money alone will not fix it. **What is a stay interview, and how do I run one?** A short chat about what keeps someone here and what would make it better. One change agreed. No performance review vibe. **Do I need to accept a resignation in writing?** Best practice is to confirm in writing with notice dates, handover, and any garden leave terms if used. **Which HR tools help employee retention?** Breathe HR for records and workflows, plus clear 1 to 1 templates and goals. We can set this up for you. **What should I avoid in employee retention plans?** Avoid reactive moves, ignoring warning signs, and throwing perks at deep cultural issues. Retention isn't about rewards, it's about relationships. ## Final thoughts and a pep talk Employee retention is not magic. It is consistent, fair, and human. Small promises kept beat big speeches. It's not about having all the answers. It's about showing up, asking better questions, and following through. Keep the basics strong: * Make time to talk * Make it safe to speak * Make progress visible Kettle on. Standards up. And if you need a hand, we are here. --- ### Employee Benefits and Perks on a Budget for SMEs (2026) - URL: https://kateunderwoodhr.co.uk/blog/employee-retention/employee-benefits-perks-budget-smes-2026 - Published: 2025-12-31T00:00:00.000Z - Category: employee-retention - Tags: sme-employee-benefits, affordable-employee-benefits-for-small-businesses, sme-employee-retention-strategies # Beating the big players without a big-player budget When it comes to employee benefits, small business owners face a problem almost all of them recognise. A larger competitor down the road is dangling a salary you simply cannot match, plus the gym membership, the private healthcare and the bonus scheme that would cripple your cash flow. And you are sitting there wondering how on earth you keep your best people, let alone attract new ones. Good news: it is not all about pay. Surveys keep showing that what people actually want from work is a mix of flexibility, growth, wellbeing and feeling genuinely valued, and a lot of that costs far less than a salary war. So this is the practical, 2026 version. The benefits you must provide by law, the voluntary perks that punch well above their cost, how to pick the ones your team will actually use, and the tax-efficient options worth knowing about. Hazel (our Chief Wellbeing Officer) insists her own benefits package is best-in-class: unlimited naps, a generous biscuit allowance, and a hard line on Monday meetings before 10am. ## Quick Answer Box - Do this: get the legal baseline right first, then add a few well-chosen, low-cost perks your team has told you they value. - Avoid this: copying a generic perks list, offering benefits nobody uses, or letting a salary sacrifice scheme drop cash pay below minimum wage. - Write down: your full benefits package in a clear policy, who is eligible, and the budget for each item. ## Start with the statutory baseline Before you reach for the fun stuff, make sure the legal foundations are solid. Perks on top of a shaky baseline are like a roof terrace on a house with no foundations. The UK statutory baseline for employees includes: - A workplace pension under auto-enrolment for eligible staff, with minimum employer contributions. Check the current thresholds and contribution rates on [gov.uk](https://www.gov.uk/workplace-pensions). - Paid holiday of at least 5.6 weeks a year, pro-rated for part-timers. See our guide on [calculating annual leave for part-time employees](/blog/guides/calculate-annual-leave-part-time-employees). - Statutory Sick Pay for those who qualify, which now starts on day one of absence. See our breakdown of [the UK statutory pay rates for 2026/27](/blog/legal/uk-statutory-pay-rates-2026-27). - The relevant statutory family-leave payments, such as maternity and paternity pay. These are not benefits you "offer". They are the legal floor. Get them right, document them, and then build on top. ## Low-cost, high-impact perks that actually work This is where small businesses can genuinely compete. None of these needs a corporate budget, and all of them rate highly with staff. ### Flexible and hybrid working Still the single most requested perk, and one of the cheapest. Flexibility can be as light-touch as core hours (everyone online 10am to 3pm, flexible around that), compressed weeks, or one or two remote days. It signals trust, widens your hiring pool, and helps people juggle life. Note that the right to request flexible working has been a day-one right since April 2024, and further reform is expected to make requests harder to refuse, so a clear, fair process matters. ### Extra or birthday leave Time off is a powerful, low-cost motivator. Popular options: - a paid day off for birthdays - an extra day or two for long service milestones - one paid wellbeing day a year to recharge It is usually cheaper than a pay rise and tells people you value their rest. ### Wellbeing support and an EAP You do not need full private healthcare to support wellbeing. An Employee Assistance Programme gives staff confidential counselling and practical support for a modest per-head cost, and it is often one of the highest-value-for-money things a small business can offer. See our guide to [an Employee Assistance Programme for small business](/blog/guides/employee-assistance-programmes-eap-guide-smes). Lower-cost touches help too: a walking club, fruit boxes instead of the biscuit tin, or subsidised holistic therapies. ### Recognition Feeling appreciated is free. A genuine thank-you, a shout-out in a team meeting, a small treat after a hard push. Consistent, sincere recognition does more for retention than most owners expect. ### Learning and development Modern staff want to grow. Offering training, mentoring or access to online learning shows you are invested in them, not just their output. It often costs your time more than your cash, and it closes skills gaps at the same time. Our sister training arm [kuhrtraining.co.uk](https://kuhrtraining.co.uk) is built around exactly this. ### Small creative touches Relaxed dress codes when appropriate, time off to attend a child's school play, paid time for volunteering, the occasional Friday treat. Cheap, human, and surprisingly sticky. ## Tax-efficient options worth knowing about A few benefits come with genuine tax advantages for both you and your staff, which stretches a small budget further. - Salary sacrifice schemes, such as cycle-to-work and electric car schemes, let staff give up a slice of gross pay in return for a benefit, often saving tax and National Insurance for both sides. The rules matter, especially never sacrificing below the minimum wage, so read our full guide to [salary sacrifice schemes for small businesses](/blog/guides/salary-sacrifice-schemes-for-small-businesses-incl-ev) and check the current position on [gov.uk](https://www.gov.uk). - Pension contributions are themselves tax-efficient and a meaningful benefit when you contribute above the minimum. Please do not quote specific tax thresholds from memory. They move, and the penalty for getting it wrong lands on you. Always confirm current figures on [gov.uk](https://www.gov.uk/expenses-and-benefits-a-to-z) or with your accountant. ## How to choose benefits people actually value? Here is the mistake I see most often: an owner spends real money on a perk nobody uses, then concludes "benefits do not work". The benefit was fine. The choosing was the problem. A short story makes the point. Tom runs a 9-person studio and proudly introduced a fancy gym discount. Six months later, two people had used it once. When he finally asked his team what they actually wanted, the answer was flexible start times for the school run and a bit more holiday. Both cheaper than the gym deal, both used by everyone. So, the method: - Ask your team. A short, anonymous benefits survey beats guessing every time. - Match benefits to your actual people. A team of new parents wants different things to a team of recent graduates. - Mix financial and non-financial. A well-rounded package beats one shiny perk. - Review every year or two. Tastes and life stages change. - Budget honestly. If you offer something one year, people expect it the next, so build it in. ## Common mistakes (and the fix) - Mistake: adding perks before the legal baseline is right. Fix: sort pension, holiday and statutory pay first. - Mistake: copying a generic benefits list. Fix: ask your team what they value, then choose. - Mistake: spending on a perk nobody uses. Fix: survey first, review usage later. - Mistake: setting up salary sacrifice that drops cash pay below minimum wage. Fix: never sacrifice below the NMW; check current rates on [gov.uk](https://www.gov.uk). - Mistake: offering perks inconsistently and creating resentment. Fix: write a clear policy on what is available and who is eligible. - Mistake: assuming benefits fully replace fair pay. Fix: keep base pay fair and competitive; benefits enhance, they do not rescue. ## What to write down? Put your package on paper so it is fair, consistent and easy to explain: - the statutory baseline you provide (pension, holiday, sick pay, family leave) - each voluntary benefit, with eligibility rules - the budget allocated to each item - how and when staff request or access each benefit - the date of your last benefits review and what your team told you A written policy turns "perks the boss feels like doing" into a benefits package you can stand behind. ## Bottom line - Get the statutory baseline right before adding any perks. - Flexibility, extra leave, wellbeing, recognition and learning are cheap and highly valued. - Salary sacrifice and pension contributions can be tax-efficient, but check current figures on gov.uk. - Ask your team what they want rather than guessing, and review it regularly. - A strong package helps you compete on more than salary, but pay still has to be fair. ## Right, what do you do now? If you are not sure your statutory baseline is watertight, or you want to build a benefits package that actually keeps your people without blowing the budget, that is exactly what we help with on the [HR Advice Line](/service-plans/hr-advice-line) and in an [HR Health Check](/hr-health-check). No judgement, no jargon. Just a clear view of what you must do, what is worth doing, and what to skip. [Book a discovery call](/discovery-call) and we will map it out together. --- ### Return-to-Work Interviews: Why They Matter for SMEs - URL: https://kateunderwoodhr.co.uk/blog/people-hr/return-to-work-interviews-for-smes - Published: 2025-12-17T00:00:00.000Z - Category: people-hr - Tags: return-to-work-interviews, return-to-work-interview-questions, back-to-work-interview # Return to work interviews: the five-minute chat that pays for itself Return to work interviews have an image problem. The name alone sounds stiff and time-consuming. Here is the truth: return to work interviews are short, supportive chats on day one back after any absence. Done well, return to work interviews cut absence, spot issues early, and show your team you noticed they were away. Cheap. Quick. Human. This guide covers why return to work interviews work, what to ask, how to keep them kind, and when a pattern needs a bigger conversation. It pairs with our main guide to [managing sickness absence in a small business](https://kateunderwoodhr.co.uk/blog/guides/managing-sickness-absence-in-a-small-business-uk), so think of this as the close-up on one of the best habits in there. Hazel, our Chief Wellbeing Officer, supports all return to work interviews provided they are held at ground level with optional ear scratches. Priorities. ## Quick Answer Box - Do this: hold return to work interviews on day one back after every absence, using the same simple structure. - Avoid this: skipping return to work interviews when busy or only doing them for absences you feel suspicious about. - Write down: dates, reason, fitness to return, any adjustments agreed, and any follow-up. ## What are return to work interviews? It is a brief chat between an employee and their line manager when they come back from being off. If "interview" feels heavy, call it a return to work meeting or a catch-up. The habit matters more than the label. Ideally it happens on the first day back, and it happens for a one-day absence or a two-week one. Return to work interviews are not a legal requirement, but they are well-established good practice. Teams that run them consistently have a tighter grip on absence than teams that do not. Yep, really. A good return to work interview does four things: - Confirms the person is well enough to be back - Notes the reason for the absence - Updates them on anything they missed - Opens the door to any support they might need ## Why do return to work interviews matter? Because they work, in more ways than people expect. - They cut absence. A brief, friendly chat on return means absence is visible and accountable without being harsh. - They deter casual absence without punishing genuine illness. The message is simple: time off matters to the team, and we will talk about it. - They spot patterns early. Three single days off across a quarter can slide by unless someone joins the dots. Return to work interviews do that. - They surface welfare issues. The migraine might really be stress, caring duties, or a workload issue. You will not know unless you ask, gently. - They create a record. If absence needs a formal route later, early notes keep the process fair for everyone. Here is the kicker small businesses miss: patterns on paper are easier to handle than hunches. Quick fact check: - ONS reports the UK sickness absence rate at 2.6% in 2023, the highest since 2004 (ONS, "Sickness absence in the UK labour market: 2023"). - CIPD's 2023 survey found an average of 7.8 days lost per employee across the year (CIPD, Health and Wellbeing at Work 2023). Those days are real money for SMEs. Return to work interviews help you get some of them back. ## What should you ask in a return to work interview? Keep it simple and consistent. A handful of questions, asked the same way each time, is enough. - How are you feeling now? Are you well enough to be back? - What was the reason for the absence? (Note it, do not pry.) - Is there anything going on we should know about? - Do you need any support or adjustments to get back into things? - Here is what you missed while you were off. - Is there anything you need from me? Notice the order. Open with "How are you?", not "Why were you off?". That choice sets the tone. ## How to keep return to work interviews human, not heavy Plenty of managers worry about this. Fair point. Done badly, it feels like being hauled in front of the headteacher. Here is how to keep it human. - Keep it short. Five to ten minutes is usually plenty. - Keep it private. A quiet corner, not the middle of the office. - Do it for everyone, every time. If you pick and choose, it stops being a process and starts feeling targeted. - Lead with care. Genuine "How are you?" first. The rest follows. - Listen more than you talk. Leave space and you will hear what matters. - Stay calm and neutral. Even if you are frustrated, this chat is not for venting. Consistency is the magic. Return to work interviews delivered the same way for all staff make nobody feel singled out, while genuinely unwell people get the same care as everyone else. ## How return to work interviews link to your absence policy and fit notes Return to work interviews work best inside a clear absence policy. - For short absences, employees usually self-certify. Self-certification covers the first seven calendar days of sickness. - For absences longer than seven calendar days, the employee needs a fit note from a healthcare professional. The interview is the natural time to check the fit note and talk through any adjustments it recommends, such as a phased return. - Statutory Sick Pay now starts from the first day of qualifying absence. We explain this in our guide to [SSP from day one and what the change means for sick pay](https://kateunderwoodhr.co.uk/blog/legislation/ssp-starts-day-one-change-sick-pay). Another reason to keep your absence process tidy and consistent. For the official detail, see: - [GOV.UK guidance on taking sick leave, SSP and fit notes](https://www.gov.uk/taking-sick-leave) - [ACAS guidance on absence from work](https://www.acas.org.uk/absence-from-work) If you are weighing up paying above statutory, read our guide to the [advantages and disadvantages of sick pay schemes](https://kateunderwoodhr.co.uk/blog/guides/advantages-disadvantages-sick-pay-schemes). Your sick pay approach and return to work interviews should work hand in hand. ## When does an absence pattern need a bigger conversation? Return to work interviews are your early-warning system. Sometimes they show that a five-minute catch-up is not enough. If short absences keep recurring, or follow a pattern, have a more structured chat. Think capability or health support, not an instant ticking off. Important legal point: - If there may be an underlying health condition, it could be a disability under the Equality Act 2010. That brings a duty to make reasonable adjustments. - A knee-jerk disciplinary move is risky in that situation. You may need occupational health input or advice before deciding next steps. - The supportive approach should continue, even if the process becomes more formal. ACAS puts it well: > "A return to work discussion can help prevent future absence and identify support" (ACAS, Managing absence). Short, human, useful. ## A short real-life example A small care provider was drowning in short-term absence. Single days here and there. Shifts left short. Reliable staff fed up with covering. The manager started running return to work interviews after every absence, no exceptions, using the same six questions each time. Two things happened. First, casual one-off days dropped, because absences were now noticed and discussed. Second, one person's recurring absences turned out to be a genuine, manageable health issue. With two small adjustments and a proper health chat, that employee became one of the most reliable on the team. Each chat took under ten minutes. ## Common mistakes (and the fix) - Mistake: skipping the chat when you are busy. - Fix: it takes five minutes and saves hours later. Diarise day one back. - Mistake: only doing them for people you are suspicious of. - Fix: do them for everyone, every time. Consistency keeps it fair. - Mistake: opening with "Why were you off?". - Fix: lead with "How are you?". Tone is everything. - Mistake: treating every recurring absence as a discipline issue. - Fix: consider a health condition first and handle Equality Act risk with care. - Mistake: holding the chat but never writing anything down. - Fix: use a simple return to work form so patterns are visible and notes are consistent. - Mistake: not linking the chat to a clear absence policy. - Fix: make sure everyone knows the policy, including self-certification and fit note rules. ## What to write down Your return to work form can be simple. The key is using the same format every time. Capture: - Dates of the absence - Reason given - Whether the person is fit to be back - Any support or adjustments agreed - Any follow-up needed and a review date - Who held the conversation Keep it confidential and stored securely. Health information is sensitive personal data, so treat it accordingly under data protection rules. ## A simple RTW checklist Use this as your run sheet for every return to work interview: - Hold it on day one back, in a private spot - Ask how they are and if they are well enough to be back - Note the reason for the absence, without prying - Ask what would help, and whether any adjustments are needed - Brief them on what they missed - Check the fit note position if the absence was over seven calendar days - Agree any follow-up - Complete the return to work form and store it securely ## FAQs about return to work interviews - Are return to work interviews a legal requirement in the UK? - How long should a return to work interview take? - What questions should be asked in a return to work interview? - Can an employee refuse a return to work interview? - Do you need a fit note for a return to work interview? - Are return to work interviews the same as a disciplinary meeting? ## Bottom line - Return to work interviews are short, supportive chats on the first day back, not formal hearings. - They are good practice, not law, but they reduce absence, deter casual days off, and surface real issues early. - Do them after every absence, for everyone, with the same simple structure. - Link them to a clear absence policy, self-certification, and fit note rules. - If a pattern appears, move to a supportive capability or health conversation, and handle any Equality Act 2010 risk with care. ## Right, what do you do now? If absence is creeping up and you are not confident your managers run return to work interviews well, that is fixable. - Take a free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to see how your absence process stacks up. - Need backup? Our [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) plan gives you policies, templates (including a return to work form) and someone to call before a sticky chat turns formal. - Prefer to talk it through? [Book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) and we will help you get a grip. Kettle on. Standards up. And as ever, take care of your people. --- ### Employment Rights Bill Update – December 2025 - URL: https://kateunderwoodhr.co.uk/blog/legislation/employment-rights-bill-update-december-2025 - Published: 2025-12-16T09:00:00Z - Category: legislation - Tags: employment-rights-bill, uk-legislation, employment-law-updates, hr-compliance, small-business-hr # Employment Rights Bill Update – December 2025 Last updated: 16 December 2025 – The Employment Rights Bill has passed Parliament and is set to become law On 16 December 2025, Parliament passed the Employment Rights Bill, setting the stage for one of the biggest shake-ups in UK employment law for decades. The Bill now moves forward for Royal Assent and will start to come into effect throughout 2026 and 2027. This update explains what is already in place, what has just been confirmed, and what small businesses should have already done or now start preparing for. We will keep this article updated as official start dates are confirmed, so make sure you are signed up to our mailing list for the latest information. ## Part One: What's Been Decided These changes are already law or have confirmed start dates. By now, you should have reviewed your policies, updated your documents, and communicated these changes to your team. ### 1. Flexible Working From Day One Effective 6 April 2024 – Employment Relations (Flexible Working) Act 2023 Employees can now request flexible working from their first day of employment. They can make two requests per year, and employers must respond within two months. What you should have done: • Updated your flexible working policy to remove the 26-week service rule. • Trained managers to handle requests fairly and within the new time limits. • Communicated the change to employees. ### 2. Extended Redundancy Protection for Pregnancy and Family Leave Effective 6 April 2024 – Protection from Redundancy (Pregnancy and Family Leave) Act 2023 Employees who are pregnant or on adoption or shared parental leave now have protection from redundancy for up to 18 months after birth or adoption. What you should have done: • Updated redundancy procedures and selection criteria. • Trained managers and HR teams on extended protections. ### 3. Carer's Leave Act 2023 Effective 6 April 2024 Employees can now take one week of unpaid carer's leave each year from their first day of employment. What you should have done: • Added a Carer's Leave policy to your handbook. • Told your employees about this new right. • Trained managers to approve and manage requests appropriately. ### 4. Tips, Gratuities and Service Charges Effective 1 October 2024 – Employment (Allocation of Tips) Act 2023 Businesses that receive or control tips must pass 100 per cent of those tips to staff, less only tax and National Insurance. You must have a written tips policy and keep records for at least three years. What you should have done: • Written and shared a clear, fair tips policy. • Reviewed your tronc or tip-sharing arrangements. • Trained payroll and management teams on the new requirements. ### 5. Preventing Sexual Harassment in the Workplace Effective 26 October 2024 – Worker Protection (Amendment of Equality Act) Act 2023 Employers now have a proactive legal duty to take reasonable steps to prevent sexual harassment at work. This means prevention and culture-building, not just reacting when something goes wrong. If a tribunal finds that you failed to take reasonable steps, compensation can be increased by up to 25 per cent. What you should have done: • Reviewed and updated your equality, dignity at work and anti-harassment policies. • Delivered regular training to staff and managers. • Ensured leadership sets the right tone and culture from the top. ### 6. Neonatal Care (Leave and Pay) Act 2023 Effective 6 April 2025 Parents whose baby spends at least seven continuous days in neonatal care within 28 days of birth will be entitled to up to 12 weeks of neonatal care leave. Eligible employees will also receive statutory pay. What you should be preparing for: • Updated family-leave and payroll policies. • Checked that your payroll system is ready to handle these payments. • Communicated the new entitlement to staff. ## Part Two: What's Still to Come The Employment Rights Bill has now passed both Houses of Parliament. The following confirmed reforms will take effect from 2026 onwards. ### 1. Statutory Sick Pay Reform Effective April 2026 Statutory Sick Pay will be payable from the first day of absence, and the lower earnings limit will be removed. What to plan ahead for: • Update your absence and payroll policies. • Budget for higher short-term sickness costs. ### 2. Parental Leave and Day-One Rights Effective April 2026 Paternity and ordinary parental leave will become day-one rights, with new flexibility in how the leave can be taken. What to plan ahead for: • Update family-leave policies and payroll systems. • Communicate the new rights to staff. ### 3. Zero-Hours and Casual Contract Reform Expected mid-2026 Employers will be required to offer guaranteed hours that reflect average work patterns, provide reasonable notice of shifts and pay compensation for short-notice cancellations. What to plan ahead for: • Track working patterns. • Review contracts and scheduling systems to ensure fairness and proper notice. ### 4. Predictable Working Patterns (Right to Request) This right, likely to be introduced alongside the zero-hours reforms, will allow workers with irregular hours to request a more predictable pattern. What to plan ahead for: • Keep accurate records of hours and shift patterns. • Watch for further government guidance. ### 5. Fire and Rehire Code of Practice Expected late 2026 A new statutory code will regulate how employers change terms by dismissal and re-engagement. Tribunals will be able to increase compensation by up to 25 per cent if the code is breached. What to plan ahead for: • Review your redundancy and change-management processes. • Avoid using fire-and-rehire without full consultation. ### 6. Trade Union and Collective Bargaining Reforms Phased introduction during 2026 The Bill expands trade-union access rights and simplifies the process for lawful industrial action. What to plan ahead for: • Strengthen consultation and record-keeping procedures. • Ensure managers understand their role in union engagement. ### 7. Redundancy Consultation Rules Expected late 2026 New rules will require earlier and broader consultation in redundancy situations, particularly across multiple sites. What to plan ahead for: • Review your redundancy consultation procedures and documentation. ### 8. Unfair Dismissal Qualifying Period Effective 1 January 2027 The qualifying period for ordinary unfair dismissal claims will reduce from two years to six months. What to plan ahead for: • Review probation and dismissal procedures. • Train managers to handle dismissals appropriately under the shorter timeframe. ### 9. Unfair Dismissal Compensation Cap Effective 1 January 2027 The statutory cap on compensatory awards for unfair dismissal will be removed. Compensation will be based on actual financial loss rather than a fixed limit. What to plan ahead for: • Review your approach to dismissals and settlements. • Update budgets to reflect the increased risk exposure. ## Part Three: What's Been Dropped or Revised ### Worker Status Reform Plans to simplify employment status definitions have been dropped. Continue using the existing employee, worker and self-employed categories and review contracts regularly. ### Right to Disconnect The proposed right to ignore work communication outside working hours has not been included. For now, it remains a matter of company culture, not law. ## Part Four: What Small Businesses Need to Do Now As of December 2025, most of the 2024 and 2025 changes should already be in place. With the Employment Rights Bill now passed, you should take the following steps to make sure you are ready for what's next: 1. Review and update your employee handbook and contracts to reflect all confirmed changes. 2. Make sure managers are trained on flexible working, redundancy protection, carer's leave, tips compliance and the new unfair-dismissal rules. 3. Confirm your family-leave and payroll policies are ready for neonatal care leave and the April 2026 reforms. 4. Start planning for the 2026 and 2027 reforms, including zero-hours contracts, sick pay from day one and the removal of the unfair-dismissal compensation cap. 5. Review your budgets and risk management plans to allow for higher dismissal liabilities and sickness costs. 6. Communicate clearly with your employees to build trust and reduce confusion as the new rights take effect. ## Part Five: Small Business Q&A Do I have to approve every flexible working request? No, but you must consider them fairly and respond within two months. Can carer's leave be refused? It can be postponed if business operations would be seriously disrupted, but it must be allowed within a reasonable time. Is carer's leave paid? No. It is unpaid unless you decide to offer enhanced pay. Can I deduct admin or card fees from tips? No. Since October 2024, deductions other than tax or National Insurance are not allowed. When does neonatal care leave apply? For babies born on or after 6 April 2025 who spend at least seven continuous days in neonatal care within 28 days of birth. Why is the qualifying period for unfair dismissal changing? The Bill reduces it from two years to six months from January 2027 to provide earlier protection. Will unfair dismissal compensation be uncapped? Yes. From January 2027, there will be no statutory cap, and compensation will reflect actual financial loss. What's the difference between predictable working rights and zero-hours reforms? Predictable working rights allow workers to request regular hours. The zero-hours reforms will require guaranteed hours for those who regularly work similar patterns. What other changes are coming in 2026 and 2027? Expect sick pay from day one, guaranteed hours, a fire-and-rehire code, redundancy consultation changes and expanded trade-union access rights. ## Final Thoughts With the Employment Rights Bill now law, the UK is entering a new era of workplace reform. These changes are designed to create greater security, predictability and fairness for workers, but they also bring new obligations for employers. Before you sign off for Christmas, take a little time to check that your policies, contracts and procedures reflect this year's changes and are ready for what's ahead in 2026. And if you are looking at your to-do list and wondering how you will get it all done, why not give yourself the gift of time this Christmas and let KUHR help. Complete our HR Health Check and start 2026 on the front foot. We can review your contracts, policies and practices so you can focus on running your business, not worrying about compliance. Prefer a chat first? Book a call or email hello@kateunderwoodhr.co.uk and we'll take it from there. Good HR isn't about red tape. It's about respect, clarity and communication. We'll be going through each and every one of the new changes in 2026 before they take effect, so you know exactly what's changing, why it matters and what you need to do. Kettle on, standards up, and let's make 2026 the year your people and your business thrive. This article is part of KUHR's Employment Rights Bill 2025 Update Series. We will keep this guide updated as new details are confirmed, so check back or subscribe to stay informed. --- ### Advantages & Disadvantages of Sick Pay Schemes (OSP) - URL: https://kateunderwoodhr.co.uk/blog/guides/advantages-disadvantages-sick-pay-schemes - Published: 2025-12-15T09:00:00Z - Category: guides - Tags: occupational-sick-pay, sick-pay-schemes, employee-benefits, absence-management, hr-policies, statutory-sick-pay, small-business-hr # The Advantages & Disadvantages of Sick Pay Schemes (OSP) **Occupational Sick Pay (OSP)** is sick pay your business chooses to provide on top of — or instead of — the legal minimum. It usually pays more than [Statutory Sick Pay](https://www.gov.uk/statutory-sick-pay) (SSP) for a set period and shows on the payslip as **OSP**. There's no legal duty to offer it; SSP is the statutory floor employees fall back on if you don't. All businesses experience staff absence due to ill-health from time to time. For some, it can be an occasional inconvenience. For others, it can become a headache that compromises the businesses' ability to function. At some point, all business owners must consider whether or not to offer Occupational Sick Pay (OSP on the employee payslip). Maybe you are thinking about this now because your business has grown and you are reviewing your staff benefits. Or perhaps because you are just embarking on becoming an Employer and it's on your list of decisions to make. If you don't offer an Occupational Sick Pay scheme, then your employees will, most likely, be entitled to [Statutory Sick Pay](https://www.gov.uk/statutory-sick-pay) (SSP). That's providing they meet qualifying criteria. You can [read more here](https://www.gov.uk/statutory-sick-pay). There are advantages and disadvantages to an Occupational Sick Pay scheme. Here are three of each. ## OSP on your payslip — what it means If you see **OSP** on a payslip, that's Occupational Sick Pay — the sick pay your employer provides under your contract, as opposed to the statutory minimum. Here's how it compares with Statutory Sick Pay (SSP): | | Occupational Sick Pay (OSP) | Statutory Sick Pay (SSP) | |---|---|---| | Who sets it | You, the employer | UK government | | Legal duty | Optional | Required (if the employee qualifies) | | Shows on payslip as | OSP | SSP | | Typical amount | Often full or part normal pay for a set period | A flat statutory weekly rate | | Defined in | Contract / staff handbook | Legislation | SSP now starts on day one of absence, which changes the cost picture for any OSP scheme sitting on top of it — see [SSP now starts on day one: should you change your sick pay?](/blog/legislation/ssp-starts-day-one-change-sick-pay) and the current [UK statutory pay rates for 2026/27](/blog/legal/uk-statutory-pay-rates-2026-27). If you landed here trying to decode a payslip line, including the mysterious minus-sign "OSP contra" entries, we've written a dedicated plain-English explainer: [What is OSP on a payslip?](/blog/guides/what-is-osp-on-a-payslip) ## 3 Advantages Of An Occupational Sick Pay Scheme: ### A Healthier Workplace Part of being a responsible and desirable employer is how you discharge your duty of care towards all of your employees. One advantage to Occupational Sick Pay is that it helps you to do this by building a healthier workplace. When people suffering from contagious conditions stay away from work, you prevent the wider workforce being affected. ### Prevent Financial Hardship Another advantage to Occupational Sick Pay means you can reduces the fear, stress and anxiety of financial hardship faced by a sick employee. You offer them peace of mind that, whilst they take time off to recover, they will still be able to pay their bills for a defined period of time. ### Facilitating A Positive & Supportive Culture As part of your employee benefits package, an Occupational Sick Pay scheme contributes to a positive and supportive culture. By making your staff feel valued and cared for, you make them less likely to abuse your trust. This is important to both the retention of staff as well as attracting new talent to your business. ## 3 Disadvantages Of An Occupational Sick Pay Scheme: ### Increased Absenteeism There is a risk of your Occupational Sick Pay scheme being abused by unscrupulous employees who think they can get away with taking days off whenever they feel like it. This can be easily addressed with consistently applied, fair and robust absence management policies and systems. ### Cost To The Business This is a crucial aspect to consider and it's worth talking through with your accountant and your HR advisor. Inevitably, people will become unwell. When this happens, you need to have a clear understanding of the full financial impact. For example, some businesses (i.e. shops and restaurants) may be able to manage with reduced staffing for a finite period of time. Others, however, are subject to statutory requirements which may result in the need to employ temporary staff (i.e. childcare providers) in order to remain open. ### Rewarding Poor Health Another disadvantage of sick pay schemes is the flipside of providing a supportive culture is the risk that you are seen to be rewarding ill health. This is particularly relevant where you have multiple employees with varying levels of health and wellbeing. Staff who enjoy good health and rarely take any time off may become jealous of staff who do not have such good health and, as a result, take more sick days, for which they are paid. **Weighing this up for your own team?** A free [HR Health Check](/hr-health-check) will tell you in minutes whether sick pay is one of your gaps, no sales pitch attached. ## In Summary: Weighing up the disadvantages and advantages to a Sick Pay scheme is the right choice for your business relies on the underpinning finances and policies you have in place. It also depends on the day to day operational needs of your business. With robust absence management processes in place, you can negate risks such as frequent short-term absence and abuse of the scheme. However, you need to be able to consistently apply the rules in order to avoid claims of being unfair or discriminating between individuals or groups of employees. ### Need A Little More Help? That's okay, needing help is understandable. The decision to provide OSP is a big commitment and can be a daunting decision to make alone. To find out how we can help you come to a well-balanced decision that is sustainable for your business, book a call with me today! Did you find this blog useful? Think you have fellow business owners that would too? Feel free to share or 'like' using social media buttons to the left. Did you enjoy reading this blog? if so please sign up so you can receive them directly to your inbox each week ... keep your FOMO in check. --- ### Managing Sickness Absence in a Small Business (UK) - URL: https://kateunderwoodhr.co.uk/blog/guides/managing-sickness-absence-in-a-small-business-uk - Published: 2025-12-10T00:00:00.000Z - Category: guides - Tags: absence-management, sickness-absence, uk-employment-law, small-business-hr, attendance-policy # Sickness absence management: the 6.55am "not feeling well" text Picture this. It is 6.55am. A quick text says "not feeling well, won't make it." No detail. Your rota is wobbling, again. This is where sickness absence management really starts. And where a simple, fair system saves your bacon. Here is the rub. If you run absence on memory and goodwill, resentment builds and patterns get missed. Your genuinely poorly star drags themselves in because they are worried about money. Then half the team goes down with the same bug. Let's fix that with a clear process you can stick to. ## Quick Answer Box - Do this: have a clear reporting policy, do return-to-work chats every time, and track absence so you spot patterns early. - Avoid this: managing absence from memory, treating everyone the same regardless of context, or ignoring an underlying health condition. - Write down: your absence and reporting rules, every return-to-work conversation, absence dates, and any trigger meetings and outcomes. ## Sickness absence management: the legal lowdown You do not need to be a lawyer, but a few rules anchor everything else. - Statutory Sick Pay now starts on day one. Following reform, SSP is payable from the first day of absence for eligible staff, not after waiting days. Check the current rate on the [gov.uk Statutory Sick Pay page](https://www.gov.uk/statutory-sick-pay) and consider the cost impact on your set-up. See [gov.uk: Statutory Sick Pay](https://www.gov.uk/statutory-sick-pay) and our guide on sick pay choices below. - Fit notes kick in after seven calendar days. For the first seven days, an employee self-certifies. From day eight you can ask for a fit note. See [gov.uk guidance on taking sick leave](https://www.gov.uk/taking-sick-leave). - It is not just GPs who issue fit notes. Since 2022, nurses, occupational therapists, pharmacists and physiotherapists can issue them. That can speed up a return. - Holiday and sickness are different. If someone falls ill before or during booked leave, they can usually reclassify those days. Payment then follows your sick pay rules, not holiday pay. - An underlying condition may be a disability. If a health problem meets the Equality Act 2010 definition, you must consider reasonable adjustments and handle any capability process with care. See [Acas guidance on absence and disability](https://www.acas.org.uk/absence-from-work). Expert note: - "Employers should set out clear processes for reporting absence and keeping in touch." Source: [Acas, Absence from work guidance](https://www.acas.org.uk/absence-from-work). - "The Bradford Factor should be used with caution and context." Source: [CIPD, Absence management factsheet](https://www.cipd.org). Stats to size the problem: - UK sickness absence rate was 2.5% in 2023, still higher than pre-pandemic years. Source: [ONS, Sickness absence in the UK labour market, 2024](https://www.ons.gov.uk). - Employers reported an average of 7.8 days lost per employee in 2023. Source: [CIPD Health and Wellbeing at Work Report, 2023](https://www.cipd.org). ## Build a simple absence system that everyone can follow You do not need a thick manual. You need a clear, consistent system that people know and managers can run, even on a busy Monday. ### A reporting policy people actually know Make sure everyone knows: - who to contact, and by when. Aim for a phone call to a named manager, not a vague text. - what to say. Expected length and a basic description where appropriate. - how often to keep in touch during longer absences. - when a fit note is needed. - what happens if the process is not followed. Half the "sickie" frustration comes from a fuzzy process, not dishonest staff. Tighten the process first. ### Return-to-work chats, every single time This is your highest-value, lowest-cost tool. A short, friendly chat after every absence: - shows people their absence was noticed - gives unwell staff space to share what is going on - surfaces patterns early - builds a record without it feeling heavy-handed Do them for everyone, every time. Inconsistency is where unfairness, and tribunal risk, creeps in. ### Spotting patterns: triggers and the Bradford Factor A trigger is the point where you have a more structured, supportive chat. It is not an automatic telling-off. Common choices: - a set number of separate absences in a rolling period - a total number of days lost - a scoring method like the Bradford Factor, which weights frequent short absences more than the odd long one The Bradford Factor is optional and must support a conversation, never replace one. Whatever you choose, define it, write it down, and apply it the same way for everyone. ## Short-term vs long-term absence They need different handling. - Short-term, frequent absence is about reliability and patterns. Your toolkit is return-to-work chats, fair triggers and early, honest conversations. Sometimes it flags a hidden issue, like caring duties or a health condition, that you can support. - Long-term absence needs a more careful, supportive process. Keep in reasonable contact, understand the medical picture, consider occupational health, and plan any adjustments and a phased return. Jumping to a capability dismissal without a proper process, especially where disability is in play, is how small firms end up at a tribunal. ## When to call in occupational health Occupational health (OH) is one of the most underused tools for small businesses. OH clinicians assess how health and work fit together. They are neutral. Not on the employee's side, not on yours. Make an OH referral when: - an absence is long-term or the picture is unclear - you need to know if someone is fit to return, and on what terms - you are weighing up adjustments or a phased return - a capability process may be on the table and you need objective medical advice Yes, it costs money. But getting someone back sooner, safely, and with a clear basis for decisions, usually pays for itself. Deloitte's latest UK analysis puts the annual cost of poor mental health to employers at up to £56 billion, with presenteeism the biggest slice. Source: [Deloitte UK, Mental health and employers, 2022](https://www2.deloitte.com/uk). ## The other side of the coin: presenteeism While you worry about people being off, the quieter problem is people being on when they should not be. Presenteeism is coming to work but not being effective. It covers working when ill, staying late for show, and "leaveism", where people use holiday to catch up. The costs are hidden: mistakes, poor calls, low morale, and one contagious person infecting the rest of the team. Cut it by: - making it clear you would rather a contagious person stayed home - checking if your sick pay rules push people to attend while ill - leading by example. Take breaks. Avoid late-night emails. Use your own leave. - spotting disengagement early and having the chat Supportive and consistent are not opposites. The best absence culture is one where ill people rest, chancers know there is a process, and nobody is a martyr. ## A short manager script For a return-to-work chat after a run of absences, keep it warm but clear: "Welcome back, glad you're feeling better. I just want to do a quick return-to-work chat like we do for everyone. How are you doing now? Is there anything going on that we should know about or could help with? I've noticed there have been a few absences recently, so I want to check you're okay, and be clear about what we need on reporting going forward." Note the tone. Not "you've had three days off, explain yourself", but a genuine check-in that still puts the process on the record. ## Common mistakes - Managing absence from memory. If it lives in your head and inbox, you will miss patterns and cannot evidence anything. - Skipping return-to-work chats when busy. That is when they matter most. - Treating every absence identically. A one-off bug and a disability-related absence are not the same. - Going straight to formal action. Especially with long-term or possibly disability-related absence, without OH advice or a proper process. - Ignoring presenteeism. Rewarding "perfect attendance" can push sick people in to infect everyone else. - Inconsistent triggers. Applying rules to some people and not others is unfair and risky. ## What to write down For every absence, record: - the dates and the reason given - whether it was self-certified or covered by a fit note, and keep the note - the return-to-work chat and any actions - any pattern or trigger reached, the meeting and outcome - any adjustments offered or agreed - any OH referral and recommendations In your policy, document your reporting rules, your triggers, how SSP and any company sick pay work, and how you handle repeat and long-term absence. Absence gets messy the moment it lives only in someone's memory. Tip: use HR software like Breathe HR to log absences, trigger alerts, and store fit notes. It saves your brain for the human bits. ## Where this connects Absence links straight into your sick pay choices and your HR basics. If you are reviewing how you handle it, now is the time to review your scheme and the impact of SSP from day one. - [Gov.uk: Statutory Sick Pay](https://www.gov.uk/statutory-sick-pay) - [Acas: Absence from work guidance](https://www.acas.org.uk/absence-from-work) - [CIPD: Absence management factsheet](https://www.cipd.org) ## Right, what now? If your approach is "hope for the best plus a vague memory of who has been off", you are carrying more risk and more cost than you think. And with SSP from day one, the bill lands sooner. - Book an HR Health Check. We will show you exactly where the gaps are in sickness absence management, from reporting rules to fair triggers to long-term handling. - Need quick, expert advice on a live case? Use our HR Advice Line for fast, practical guidance before you act. - Want your policy, contracts and handbook kept current, with templates and hands-on support? Our HR Protect plan is built for that. - Ready to track absence properly and stop the spreadsheet shuffle? Talk to us about getting Breathe HR in place. Manage absence properly and the 6.55am text stops being a source of dread. It becomes a process you can handle. Kettle on. Standards up. ### FAQ - What is a fair sickness absence policy? - Clear reporting rules, consistent return-to-work chats, and set triggers that prompt supportive conversations. Keep records and apply the rules evenly. - How many sick days are acceptable in the UK? - There is no legal number. Many SMEs use triggers such as three separate absences in six months or a total days threshold. The key is consistency and context. - Can you ask for a fit note for short absences? - You can ask from day eight. Before then, employees self-certify. For patterns of short absence, address the behaviour through your trigger process. - Do I have to pay Statutory Sick Pay from day one? - Yes, if the employee meets the eligibility rules. Check the current rate on gov.uk and review your company sick pay to avoid mixed messages. - Can I contact an employee off sick? - Yes, keep reasonable, agreed contact. Be supportive, avoid pressure, and log all conversations. - Should I use the Bradford Factor? - It can help spot frequent short absences, but use it as a prompt for conversation, not a blunt tool. Context matters. Sources: - [Gov.uk: Statutory Sick Pay](https://www.gov.uk/statutory-sick-pay) - [Gov.uk: Taking sick leave](https://www.gov.uk/taking-sick-leave) - [Acas: Absence from work](https://www.acas.org.uk/absence-from-work) - [ONS: Sickness absence in the UK labour market (2023 data)](https://www.ons.gov.uk) - [CIPD: Health and Wellbeing at Work 2023](https://www.cipd.org) - [Deloitte UK: Mental health and employers 2022](https://www2.deloitte.com/uk) --- ### Access to Work Scheme: Support for Disabled Employees - URL: https://kateunderwoodhr.co.uk/blog/people-hr/access-to-work-scheme-support-disabled-employees - Published: 2025-12-03T00:00:00.000Z - Category: people-hr - Tags: access-to-work-scheme, access-to-work-grant-uk, access-to-work-for-employers # Access to Work: the help most small employers do not know exists Picture this. An employee tells you they have a disability or health condition that is affecting their work. Your instinct is spot on: what do you need and how do I help? Often the answer involves the Access to Work scheme. And many small employers have never heard of it. Here is the good news. You do not always have to fund every bit of support yourself. Access to Work is a UK government scheme that helps disabled people start or stay in work. It is under-used because lots of people do not know it exists. This guide explains what Access to Work is, how it links with your legal duty to make reasonable adjustments, and how to support an employee through it without overstepping. Hazel, our Chief Wellbeing Officer, is a strong advocate for an accessible workplace. By which she means a ramp to the good sofa. ## Quick Answer Box - Do this: support the employee to apply to Access to Work, and put your reasonable adjustments in place alongside it. - Avoid this: assuming Access to Work replaces your legal duty, or waiting for a grant before you make simple changes. - Write down: what adjustments were discussed, what was agreed, what was applied for, and what you put in place and when. ## What is the Access to Work scheme? Access to Work is a UK government scheme that provides practical and financial support to help disabled people, and people with a physical or mental health condition, get into work or stay in work. The support is personal to the barriers someone faces. Depending on the situation, it can fund things like: - specialist equipment or software, for example screen-reading software or an adapted chair - a support worker, such as a job coach or a sign language interpreter - travel-to-work costs where someone cannot use public transport because of their condition - communication support for interviews - mental health support through a dedicated support service The exact scope and items covered change over time. The definitive list is always the official one: [gov.uk guidance on Access to Work](https://www.gov.uk/access-to-work). Key point. The support follows the person, not the job. That shapes how the process works. ## Who applies, the employer or the employee? I get this one a lot, so let us be clear. In most cases the employee applies. It is their scheme, their support, and the grant follows them. You are not a bystander. Your role as the employer is to: - make sure the person knows the scheme exists in the first place - support and encourage their application - provide any information the assessor needs from your side - put the agreed workplace changes in place once support is approved So the application is theirs, but the cooperation is yours. The smoothest outcomes happen when an employee feels backed rather than left to fight the system alone. Always check the current process on gov.uk, because applications do get updated. ## How is Access to Work different from reasonable adjustments? This is the big one, so I will not bury it. Under the Equality Act 2010, you have a legal duty to make reasonable adjustments for a disabled employee. Disability here means a physical or mental impairment with a substantial and long-term adverse effect on normal day-to-day activities. That duty is yours. It applies whether or not Access to Work is ever involved. Access to Work is separate and sits alongside that duty. It can help fund support on top of what you are already obliged to do. It does not replace your responsibility to make reasonable adjustments, and you cannot point at the scheme as a reason not to act. In plain English: - Reasonable adjustments are something you must do, by law. - Access to Work is extra help that can fund some of the support, often the more specialist or expensive parts. The two work best together. You handle the everyday adjustments any decent employer would sort out. Access to Work can help with bigger-ticket or specialist items. For more on the broader duty around health and adjustments, see our guide to [managing sickness absence in a small business](/blog/guides/managing-sickness-absence-in-a-small-business-uk). ## Does the employer have to contribute? Sometimes, but it depends. Please do not take a number off a blog and run with it. As a general principle, larger and more established employers may be asked to contribute to some workplace adjustments. Smaller employers, newer employers, and certain types of support are often fully funded. There is also an annual cap on the total award a person can receive, and that figure changes each year. For both reasons, I am not quoting numbers here. Check the current rules and limits on [gov.uk](https://www.gov.uk/access-to-work) before you make any assumptions about cost. ## How do you support an employee's application? Here is a simple, supportive step-by-step that keeps you on the right side of the line. ### Step 1: Have the conversation If an employee discloses a disability or health condition, talk about what they find difficult and what might help. Keep it open and non-judgemental. You are exploring barriers, not interrogating a diagnosis. ### Step 2: Mention Access to Work Plenty of people do not know the scheme exists. Point them to it. Send the gov.uk link and let them know you will support an application. ### Step 3: Make the easy adjustments now Do not let everything wait on a grant. If something is simple and reasonable, do it now. A different chair, a quieter spot, flexible start times. Waiting weeks for funding to provide what you could fix in an afternoon is not reasonable, and it is not kind. ### Step 4: Cooperate with the assessment Once the application is in, an assessment may follow. Provide what is asked of you from the employer side, promptly. ### Step 5: Put the agreed support in place When support is approved, implement it properly and check in to make sure it works. If it looks good on paper but does not help in practice, you adjust again. ## A short example A small marketing agency had a talented designer with a worsening sight condition. The owner worried they could not afford specialist software and kit, and quietly questioned if the role was still viable. They had an honest conversation, pointed the designer to Access to Work, and supported the application. The grant funded the specialist software. The employer sorted the simple stuff straight away, an adjusted monitor setup and a flexible schedule for medical appointments. The designer stayed and kept producing excellent work. The barrier was real. It just was not as expensive to remove as the owner feared. ## Common mistakes (and the fix) - Mistake: assuming Access to Work removes your legal duty. Fix: reasonable adjustments are still your responsibility under the Equality Act 2010. The scheme is extra, not instead. - Mistake: never mentioning the scheme. Fix: tell employees it exists. Many have never heard of it. - Mistake: waiting for a grant before doing anything. Fix: make the simple, reasonable adjustments now and let the scheme fund the bigger items. - Mistake: treating disclosure as a problem to manage rather than a person to support. Fix: lead with what would help. The relationship and the retention both benefit. - Mistake: agreeing adjustments and never checking they work. Fix: follow up. Confirm the support is actually helping. - Mistake: quoting old grant figures or cost-share rules. Fix: check the current position on gov.uk every time. The numbers move. ## What to write down For your own protection, and to show you acted properly, keep a record of: - what the employee told you about the barriers they face - what adjustments you discussed and agreed - what was applied for through Access to Work, and when - what you put in place yourself, and the dates - any follow-up review and whether the support is working Keep this confidential and stored securely, in line with your data protection obligations. Health information is sensitive, and how you handle it matters. ## Bottom line - Access to Work is a UK government scheme that helps disabled people, and people with a health condition, start or stay in work. - The employee usually applies. Your job is to support them and put workplace changes in place. - It is separate from, and additional to, your reasonable adjustments duty under the Equality Act 2010. It does not replace it. - Contribution rules and grant caps depend on the item and your size, and change each year. Check gov.uk. - Make the simple adjustments now rather than waiting on a grant. ## Right, what do you do now? Supporting a disabled employee well is about goodwill and getting the legal side right. The two are easier to get right together. If you have an employee who has disclosed a disability or health condition and you are not sure where your duty starts and ends, our [HR Advice Line](/service-plans/hr-advice-line) gives you somewhere to ask before you act. Or take a free [HR Health Check](/hr-health-check) to see how your wider people processes stack up, then [book a discovery call](/discovery-call) if you would like to talk it through. --- ### Autumn Budget 2025: What it really means for small businesses - URL: https://kateunderwoodhr.co.uk/blog/legal/autumn-budget-2025-what-it-really-means-for-small-businesses - Published: 2025-11-20T09:00:00Z - Category: legal - Tags: budget-2025, employment-law, small-business, tax, national-living-wage, compliance, payroll # Autumn Budget 2025: What it really means for small businesses Kettle on. Cake at the ready. This Autumn Budget was a big one, and surprise, surprise, small businesses have quietly been volunteered. Again. Rachel Reeves has gone hard on tax and "fairness". On the surface, it sounds pro worker and pro growth. Underneath, if you run a small business, you're looking at higher wage bills, higher NI, more compliance, and a bit of sugar sprinkled on top to help the medicine go down. Let's skip the waffle and get straight into what actually hits you if you're a small employer. ## 1. Minimum and living wage – good for people, heavy for your payroll From April 2026, the National Living Wage for adults goes up to £12.71 an hour, with the younger age bands and apprentice rates going up too. If you're in hospitality, care, retail, cleaning, or anything labour heavy, this lands straight in your costs. Wages go up. Holiday pay goes up. Pension and NI go up. The whole lot. And let's be honest. With costs going up, if the minimum wage had stayed where it was, we'd be in a much bigger mess. People simply wouldn't cope. I don't disagree with Rachel on that bit. But it is very "give with one hand, take with the other". You get a pay rise on one side, then frozen tax thresholds and higher business costs on the other. It softens the blow in the headlines, but a fair chunk of that extra pay heads straight back to the Treasury. **What to do now:** - Re run your 2026 wage budget with the new rates and all the on costs. - Look at pay gaps between new starters and supervisors before resentment starts. - Decide what gives. Prices, margins, headcount, hours. Hoping it'll somehow just work out is not a plan. ## 2. Frozen tax thresholds – the quiet squeeze that no one sees coming Income tax and National Insurance thresholds are now frozen out to 2031. In plain English, every time you give someone a pay rise, more of it disappears in tax, or they get dragged into a higher band. Staff feel like they're running hard and staying in the same place. For small businesses, that means: - More people asking for "a bit more" because their take home doesn't match the headline rise. - More awkward talks about net pay, and "why has my tax gone up when my salary only went up a little?" You can't change government tax policy, but you can be clear. Use simple payslip explanations, and be honest that some of the pain is coming from frozen thresholds, not from you being tight. ## 3. Apprenticeships – one of the few real wins for SMEs Finally, some good news. Training for under-25 apprentices in SMEs will be fully funded by the government. That means no training bill for small and medium employers where the apprentice is under 25. On top of that, there's the Youth Guarantee, which puts money into getting 18 to 21 year olds into college, apprenticeships, or paid work instead of letting them drift. Done properly, this is a real chance to build a pipeline of home grown talent without blowing the budget. **What I would put in place:** - Work out where apprentices actually fit. Not "general dogsbody". Real roles. - Set up a basic structure. A clear job description, proper induction, a named mentor, a simple route to progress. - Train line managers on how to manage early careers. They're not mini adults with ten years' experience. Use this well and you get loyal staff who know your business. Use it badly and you get cheap extra hands who leave as soon as they can. ## 4. Salary sacrifice cap – the end of a handy little safety valve From April 2029, the NI saving on pension salary sacrifice will be capped at the first £2,000 of sacrificed pay per person, per year. Anything above that and normal NI will apply. This has been sold as "making the rich pay their fair share". In reality, it also closes down one of the few sensible ways small businesses have had to balance rising costs at the top end. It's been a way to give directors and senior staff a decent pension set-up without hiking salaries to silly levels. For most small businesses: - Lower-paid staff won't notice. They're nowhere near the £2,000 sacrifice mark. - Owner-managers and senior hires will see pension planning become more expensive. - You lose one of the few tools you had to build a competitive package without pushing base pay even higher. On its own, it doesn't kill jobs. Add it to wage rises, rent, insurance, energy, and tax freezes, and it's yet another extra weight on the bar. **What to do:** - Pull a report on who's using salary sacrifice and how much they're sacrificing. - Start talking now about how director and senior packages will look post 2029. - Shift the benefits conversation away from clever tax tricks and towards things that help everyone: flexibility, skills, childcare help, real wellbeing support. ## 5. Business rates – high street gets a biscuit, everyone else squints at the bill Business rates are finally getting some attention. Retail, hospitality, and leisure properties are set to get permanently lower business rates, paid for by higher rates on bigger, high value sites like large warehouses. If you're on the high street in a shop, bar, café, salon, gym, or small venue, this may be the first time in years you see a business rates bill that doesn't make you swear. It won't change your life, but it might stop the bleeding a bit. If you're in a light industrial unit, out-of-town office, or small warehouse, don't expect as much love. This is aimed squarely at the high street. **Next steps:** - Check your draft bill as soon as it lands. Don't guess. - If you do get a saving, decide whether it keeps you standing still, or whether you can invest a bit back into staff, service, or tech. ## 6. Energy and fuel – tiny bit of relief, not a reset **On energy:** The government is taking some of the scheme costs off household bills, which should knock about £150 off the average bill. That's a help for your staff and for very small, home based businesses. It doesn't undo the last three years, but it's better than nothing. **On fuel:** The 5p cut in fuel duty stays in place, and duty is frozen until September 2026. After that, it starts creeping back up. There's also a new road tax plan coming for electric and plug-in hybrid vehicles in future, so EVs will pay for road use too. Details will follow, but the direction is clear. If you run company vehicles, 2026 and 2027 are decision years. Run the numbers properly on diesel versus EV, including fuel, maintenance, grants, future duty, and charging. ## 7. A few other bits that still matter A few quick hits that are worth clocking: - Corporation tax stays where it is, with some tweaks to first year allowances to keep investment attractive. - Tax on dividends, savings, and property income is going up, which will make life more expensive for landlord owners and people who pay themselves in a blend of salary, rent, and dividends. - There's a "mansion style" council tax surcharge coming in for very high value homes. That will hit some owner managers in London and the South East, but not most small business owners day to day. ## 8. What I would do now if I ran your business If I were in your shoes, this would be my list. **Over the next few weeks:** - Re cost 2026 using the new wage rates, tax freezes, and any known rent, rates, and energy changes. - Map out your team. Who are your key roles? Where can work be redesigned rather than just cutting hours? - Decide your stance on apprenticeships. Are you in or out? If you're in, plan it properly, not as a last-minute panic. **Over the next quarter:** - Refresh your pay and benefits story. Clear bands, plain language, no fluff. - Talk openly to staff about tax and thresholds. They'll feel the squeeze, so get ahead of the confusion. - Review salary sacrifice use at senior level and start phasing in whatever your post 2029 reward model looks like. Small businesses will, as usual, adapt. You always do. But don't let this Budget wash over you. The small changes now are what stop the big shocks later. ## 9. The rest of the Budget in a nutshell Very quick, big-picture view: - Biggest overall tax grab we've seen in years, mostly done quietly through frozen thresholds, caps on reliefs, and nudges on wealth and property. - The two child benefit cap is scrapped, which should lift a large number of children out of poverty. Morally, that's a good thing. - Higher taxes on online gambling, sugar, and, soon, vapes. Bingo gets a free pass. Of course it does. - ISAs get nudged towards investment rather than cash, and there's a big push to get more money flowing into UK assets. - Debt is forecast to slowly fall as a share of GDP towards the end of the forecast, thanks to all these extra taxes and tight spending plans. ## 10. What happens next Over the next few weeks, I'll be breaking this Budget down in more detail and sharing practical things you can do now to get ahead of these changes, payroll, contracts, policies, all of it. Because before we know it, the Employment Rights Bill will land as well, and the HR hat that small business owners already wear is going to stay on even longer. That means more time on people issues and paperwork, and less time on sales, service, and actually growing the business. The Buzzing About HR podcast will also be giving you hints and tips on all of this in bite sized episodes you can listen to on the school run or between meetings. So why not subscribe now, so you don't miss a bee. ☕ **Subscribe to the podcast or download the Budget Checklist, stay ahead:** - Listen here → [https://podcast.kateunderwoodhr.co.uk/](https://podcast.kateunderwoodhr.co.uk/) - Want the changes checked against your own payroll? [Book a free HR Health Check](/hr-health-check) --- ### Why Every Small Business Needs an HR Audit (And How to Do One) - URL: https://kateunderwoodhr.co.uk/blog/guides/why-small-business-needs-hr-audit - Published: 2025-11-07T09:00:00Z - Category: guides - Tags: hr-audit, hr-compliance, small-business-hr, employee-lifecycle, hr-health-check, compliance, risk-management # Why Every Small Business Needs an HR Audit (And How to Do One) By Kate Underwood HR & Training – HR Consultancy for Small Businesses ## Introduction "We're too small for an HR audit." I hear this a lot from small business owners. But here's the thing: being small doesn't mean you're exempt from employment law. In fact, small businesses are often at **higher risk** because they don't have in-house HR teams to spot the gaps. An HR audit isn't about catching you out or creating unnecessary paperwork. It's about **protecting your business** from costly tribunal claims, HMRC fines, and compliance issues that can seriously damage your growth. The average employment tribunal claim costs **£28,000** to settle. A single GDPR breach can result in fines up to **4% of your turnover**. National Minimum Wage underpayments lead to **public naming and shaming** plus penalties up to £20,000 per worker. These aren't hypothetical risks. They happen to small businesses every day, often because of gaps they didn't know existed. This guide explains what an HR audit is, why it matters, and how you can audit your own people processes using our free 7-stage Employee Lifecycle Health Check. ## What is an HR Audit? An HR audit is a systematic review of your people processes, policies, and practices to identify: - **Compliance gaps** that could lead to fines or legal action - **Operational inefficiencies** that waste time and money - **Risk areas** where small issues could escalate - **Opportunities** to improve employee experience and retention Think of it like an MOT for your HR function. You're checking that everything works as it should, identifying what needs fixing, and preventing breakdowns before they happen. ### What Does an HR Audit Cover? A comprehensive HR audit examines every stage of the employee lifecycle: **1. Build (Foundation)** - Contracts (employees, contractors, volunteers) - Core policies (discipline, sickness, holidays, equality, data protection, flexible working) - Systems integration (payroll, pensions, HR software) - GDPR compliance (data inventory, storage, retention, deletion) - Pay compliance (National Minimum/Living Wage) **2. Attract (Recruitment)** - Job adverts (inclusive language, salary transparency) - Candidate communication (process, timelines, experience) - Employer brand (careers page, authenticity) - Referral schemes and agency agreements - Recruitment metrics (source of hire, time-to-hire) **3. Select (Hiring)** - Structured interviews (consistency, scoring, documentation) - Reasonable adjustments (Equality Act compliance) - Pre-employment checks (Right to Work, references, DBS) - Offer management (clear terms, coordination) - Interview training (bias awareness, GDPR, legal questions) **4. Start (Onboarding)** - Digital contracts (signing, storage, access) - Day-one induction (health and safety, policies, data protection) - Payroll and pension setup - Probation management (30/60/90-day reviews) - Buddy systems and feedback loops **5. Manage (Performance)** - Absence and flexible working (fair processes, timelines) - One-to-ones (regular, meaningful conversations) - HR and payroll accuracy (monthly reconciliation) - Performance issues (disciplinary and capability procedures) - Wellbeing and safety (risk assessments, grey fleet) **6. Grow (Development)** - Pay structures and equal pay reviews - Performance reviews (useful, completed, documented) - Career paths and development plans - Pay and benefits communication - Engagement surveys and action **7. Change (Exits)** - Leaver processes (handovers, equipment, access) - Final pay and documentation (accuracy, timeliness) - Redundancy and restructure (consultation, selection, documentation) - Exit interviews (insights, trends, action) - Alumni relationships (rehire opportunities, boomerang employees) [Learn more about each stage in our comprehensive glossary →](/hr-health-check/glossary) ## Why HR Audits Matter for Small Businesses ### 1. Legal Compliance Employment law changes constantly. The Good Work Plan, employment status reforms, flexible working regulations, and minimum wage increases all create new obligations. An HR audit helps you: - Identify gaps before they become tribunal claims - Update policies to reflect current legislation - Demonstrate due diligence if challenged - Reduce risk of fines and penalties **Real example:** A tech company with 25 employees had grown rapidly but was still using generic contractor agreements downloaded from the internet. An HR audit revealed that several "contractors" met the legal definition of employees, creating significant tax liabilities and employment rights. Fixing this proactively saved them from an HMRC investigation and potential backdated tax bills. ### 2. Cost Avoidance The cost of **not** auditing far exceeds the cost of auditing: - Unfair dismissal claims: £12,000–£28,000 - Discrimination claims: Unlimited compensation - GDPR fines: Up to £20 million or 4% of turnover - NMW penalties: £20,000 per worker + public naming - Auto-enrolment fines: £400+ per breach - Right to Work penalties: £20,000 per illegal worker An HR audit identifies these risks early, when they're cheap to fix. Updating a contract costs nothing. Defending a misclassification claim costs thousands. ### 3. Operational Efficiency HR audits don't just prevent problems, they **improve how you work**: - Identify manual processes that could be automated - Spot duplicate data entry between systems - Reduce time wasted on last-minute payroll corrections - Improve manager capability through training gaps analysis - Streamline onboarding to reduce time-to-productivity **Real example:** A professional services firm discovered through audit that their HR system, payroll, and pension provider weren't talking to each other. They were manually re-entering every starter, leaver, and salary change three times. Integrating these systems saved 40+ hours per month of admin time. ### 4. Employee Experience Good HR practices improve retention and engagement: - Clear policies reduce uncertainty and stress - Fair processes build trust and psychological safety - Regular feedback improves performance and development - Structured onboarding increases first-year retention by 40% - Career development reduces turnover of high performers The cost of replacing an employee ranges from **30–150% of their salary**. For a £30,000 role, that's £9,000–£45,000 in recruitment, onboarding, lost productivity, and training costs. An HR audit that improves retention pays for itself many times over. ### 5. Growth Enablement As your business grows, your HR foundations matter more: - Investors and acquirers conduct HR due diligence - Missing documentation reduces company value - Compliance issues delay transactions or kill deals - Scalable processes support rapid hiring - Clear structures enable delegation and management layers **Real example:** A growing SME planned a restructure to create middle management roles but discovered through audit that they had no documented pay bands, job descriptions, or promotion criteria. This meant they couldn't defend pay decisions or explain why some people were promoted and others weren't. The audit helped them build a fair framework before the restructure, preventing discrimination claims. ## How to Conduct Your Own HR Audit ### Step 1: Start with Our Free HR Health Check Before investing in a professional audit, identify your priority areas with our free 7-stage Employee Lifecycle Health Check. **What it covers:** - 35 questions across all 7 stages of the employee lifecycle - 5-7 minutes to complete - Instant scoring (Red/Amber/Green) for each stage - Critical questions flagged (contractual, Right to Work, payroll, pay compliance) - Emailed PDF report with your results - Completely confidential (no data saved to database) **How it works:** 1. Answer questions about your current HR practices on a 1-5 scale: - 1 = Not in place at all - 2 = Somewhat in place, but inconsistent - 3 = Mostly in place, still gaps - 4 = Strong and consistent - 5 = Fully in place and works brilliantly 2. Get scored across each of the 7 stages: - **Red** (average ≤2.4): Urgent action needed - **Amber** (2.5–3.4): Some gaps to address - **Green** (≥3.5): Strong foundation 3. Critical questions automatically flag as Red if scored 1 or 2, even if your section average is higher. These cover areas like: - Right to Work checks (£20,000 fines per illegal worker) - National Minimum Wage compliance (£20,000 penalties + public naming) - Payroll and pension integration (HMRC and Pensions Regulator fines) 4. Receive a personalized report identifying your priority areas and recommended next steps. [Take the free HR Health Check now →](/hr-health-check) ### Step 2: Follow Up with a Professional People Management Audit Once you've completed the free Health Check and identified your red and amber zones, a comprehensive People Management Audit provides the detailed validation and action plan you need. **Our People Management Audit includes:** - Comprehensive validation of all HR documentation - In-depth review of contracts and policies - Detailed compliance assessment - Gap analysis and risk evaluation - Professional written report with recommendations - Priority action plan for improvements - Full Employee Personal records check (add £45 per employee) **Cost:** From £499 (Team) or £999 (Director + 2hrs with Kate) **Why do this:** The free Health Check shows you *where* the gaps are. The People Management Audit shows you *exactly what's wrong* and *how to fix it* with a comprehensive written report you can action immediately. This is significantly more affordable than generic HR consultancy audits (£1,500–£5,000) because it's built specifically for small businesses and follows the same 7-stage Employee Lifecycle framework you've already worked through in the free assessment. [Book your People Management Audit →](/discovery-call) ### Understanding Your Results Your Health Check results help you prioritize: **Red Zones (Urgent):** - Legal compliance gaps requiring immediate action - Critical processes missing or broken - High-risk areas that could lead to tribunal claims or fines - **Action:** Fix within 30 days or seek professional advice **Amber Zones (Important):** - Processes in place but inconsistent or poorly documented - Gaps that could become problems as you grow - Areas where you're working harder than necessary - **Action:** Plan improvements within 90 days **Green Zones (Strong):** - Well-established processes working effectively - Good documentation and consistency - Low compliance risk - **Action:** Maintain and review annually ### Common Gaps We See in Small Business Audits From hundreds of HR audits with small businesses, here are the most common issues: **1. Wrong contract types** (50% of businesses) - Using contractor agreements for people who are actually employees - No contracts at all for volunteers - Outdated contracts missing statutory rights (e.g., flexible working) **2. Missing or outdated policies** (65% of businesses) - Discipline/grievance procedures not following Acas Code - No GDPR/data protection policy - Holiday and sickness policies unclear or unwritten - Equality and flexible working policies missing **3. System disconnects** (40% of businesses) - HR, payroll, and pensions don't integrate - Manual data entry causing errors and wasted time - No single source of truth for employee data **4. Poor documentation** (70% of businesses) - Performance conversations happen but aren't documented - Disciplinary issues handled informally without audit trail - No records of training, one-to-ones, or probation reviews **5. Right to Work and pre-employment checks** (30% of businesses) - Checks done but not documented properly - Copies not taken or stored securely - DBS checks missing for regulated activities - References not verified ## What to Do After Your HR Audit Once you've identified gaps, prioritize your action plan: ### Step 1: Fix Critical Issues Immediately Critical issues can't wait. These include: - Missing Right to Work checks → Verify immediately, document properly - NMW underpayments → Calculate arrears, pay workers, review going forward - No contracts or wrong contract types → Issue correct contracts within 30 days - GDPR breaches (unsecured data, no retention policy) → Secure data, create policies - Missing auto-enrolment pension setup → Enroll eligible workers, pay backdated contributions **Need help?** Our HR Protect service provides urgent compliance support for exactly these situations. ### Step 2: Address Amber Zones Within 90 Days Important but not urgent issues should be planned: - Update policies to current legislation - Implement structured interview processes - Create onboarding and probation frameworks - Set up regular one-to-one schedules - Integrate HR and payroll systems ### Step 3: Build Ongoing Compliance Habits HR compliance isn't a one-time fix. Build habits that keep you compliant: - **Quarterly policy reviews** (check for law changes) - **Monthly payroll reconciliation** (spot errors early) - **Annual contract reviews** (ensure terms remain current) - **Regular training** (managers need ongoing HR skills development) - **Document everything** (performance conversations, decisions, processes) ### Step 4: Get Professional Support Where Needed Some areas genuinely need expert help: - Complex restructures or redundancies - Discrimination or whistleblowing concerns - Tribunal claims or formal investigations - TUPE transfers or business acquisitions - Creating bespoke policies for your sector Our service plans provide exactly this: - **HR Advice Line (£175/mo):** Up to 2 hours monthly advice via phone or email - **HR Protect (£299/mo):** Unlimited support, policy creation, on-site visits, full compliance management - **HR Excel (£549/mo):** Strategic HR, engagement programs, performance frameworks, leadership development [Compare our service plans →](/service-plans/hr-advice-line) ## Conclusion: Audit Today, Protect Tomorrow HR audits aren't bureaucratic box-ticking, they're practical business protection. In just 5-7 minutes, you can identify the gaps that could cost you £28,000 in a tribunal claim, £20,000 in fines, or thousands in wasted admin time. The businesses that thrive aren't the ones that avoid HR issues. They're the ones that **spot issues early** and fix them before they become expensive problems. **Take action today:** 1. [Complete our free HR Health Check](/hr-health-check) (5-7 minutes) 2. [Review the glossary](/hr-health-check/glossary) to understand each question in detail 3. [Book a discovery call](/discovery-call) to discuss your results and next steps Your future self (and your bank balance) will thank you. --- ### How to Make Someone Redundant Fairly and Avoid Tribunals - URL: https://kateunderwoodhr.co.uk/blog/legal/make-someone-redundant-fairly-avoid-tribunal-claims - Published: 2025-11-05T00:00:00.000Z - Category: legal - Tags: redundancy-process, fair-redundancy-process-uk, redundancy-consultation-steps # Redundancy process: a calm, fair guide for UK SMEs Picture this. You are staring at the numbers and the room feels smaller than it did last week. You have to start a redundancy process and your stomach drops. Here is the good news. A fair, well run redundancy process protects your business and treats people with dignity. This guide gives you the redundancy process in plain English, with steps you can follow today. ## Quick answer on the redundancy process - Do this: make sure the redundancy is genuine, set a fair pool, score with objective criteria, and consult before any decision. - Avoid this: using redundancy to dodge performance, pre‑deciding outcomes, or skipping consultation. - Write down: the business reason, the pool, the scores, every consultation meeting, and the final decision with pay. Tip: In most tribunal cases the reason for redundancy was fine. The process sank the employer. Get the redundancy process right and you lower risk for everyone. ## Is it a genuine redundancy? A redundancy is genuine only if the work has gone or reduced. In law, that means one of: - the job is no longer needed - the need for that kind of work has reduced - the workplace is closing - the business is closing Redundancy is not a neat fix for conduct or capability. If the real issue is performance, use a performance process. Dressing it up as redundancy is a sham and tribunals spot it. Useful reading: - [ACAS guide to managing redundancies](https://www.acas.org.uk/manage-staff-redundancies) - [GOV.UK redundancy pay and rights](https://www.gov.uk/redundancy-your-rights) ### Before redundancy: sensible alternatives Genuine does not mean inevitable. Show you considered options such as: - reduce overtime or agency spend - temporary cut in hours or short‑time working, if contracts allow - redeployment into a different role - a recruitment freeze - asking for volunteers Even if none work, showing you tried is fair and strengthens your defence. ## Redundancy process step‑by‑step ### Step 1: Identify the pool Decide which roles are affected. That is your selection pool. Do not define it so tightly that it lands on one person by design. If three people do the same work and only two roles remain, your pool is all three. ### Step 2: Set fair, objective criteria If the pool is bigger than the jobs left, you need criteria that are: - objective and linked to the role - evidenced, not a hunch - non‑discriminatory Workable criteria: - skills and qualifications - relevant experience - standard of work and performance backed by data - disciplinary record used with care Avoid anything that punishes a protected group. Last in, first out used alone risks age bias. Scoring absence can hit disability or pregnancy without careful adjustments. ### Step 3: Consult before you decide Consultation is the heart of a fair redundancy process. It must be real, two‑way, and before any final decision. - Under 20 proposed redundancies: no fixed minimum period, but consultation still must be genuine and pre‑decision. - 20 or more at one establishment within 90 days: collective consultation rules apply. Minimum 30 days, rising to 45 days for 100 or more. You must notify using HR1 before consultation starts. Explain the business reason, share criteria, listen to ideas, and consider them. If someone suggests a workable alternative, think it through and respond. Collective consultation and HR1: - [HR1 advance notification form](https://www.gov.uk/government/publications/redundancy-payments-form-hr1-advance-notification-of-redundancies) ### Step 4: Look for suitable alternative employment Offer any suitable vacancies before confirming redundancy. Employees on maternity, adoption or shared parental leave have priority for suitable roles. Use a trial period for new roles so both sides can test the fit. ### Step 5: Confirm decision, notice and pay If redundancy is confirmed after fair consultation, write to the employee setting out: - notice period under statute or the contract, whichever is higher - statutory redundancy pay if they have at least two years' service, based on age, service, and capped weekly pay Always check the current cap and use the official calculator: - [GOV.UK redundancy pay](https://www.gov.uk/redundancy-your-rights) If you plan to require holiday to be taken in notice, your contract must allow it. Now is a smart time to review contract wording. ### Step 6: Offer an appeal There is no hard legal rule to offer an appeal, but ACAS expects fairness. An appeal can catch problems early and it reads well if the case ever reaches a tribunal. ## Risks, protected employees and common mistakes ### Protected employees Extra care is needed for: - anyone pregnant or on maternity, adoption or shared parental leave. They have priority for suitable alternatives. A protected period now runs for 18 months after birth. See our guide: [Maternity and family leave guide](https://kateunderwoodhr.co.uk/blog/legal/statutory-maternity-family-leave-employers-guide) - anyone on long‑term sick leave. They must still be consulted - anyone with a protected characteristic where criteria or selection could discriminate ### Common mistakes and the fix - Sham redundancy that hides performance. Fix: use the performance route. - Pool of one picked to fit the answer. Fix: include everyone doing the same work. - Subjective or discriminatory scoring. Fix: use objective, evidenced criteria. - Deciding first, consulting later. Fix: consult before any decision. - Treating under‑two‑years staff as no‑risk. Fix: discrimination and automatic unfair dismissal need no service. - Thin paperwork. Fix: keep the reason, pool, scores, minutes, offers and decision. ### Settlement agreements A settlement only works through a proper, signed agreement with independent legal advice for the employee. An informal cash top‑up without an agreement does not stop a claim. Get advice before you choose this route. ## Paperwork, pay and what to write down ### Notice, redundancy pay and benefits Set out in writing: - notice period and whether it is worked or paid in lieu - statutory redundancy pay if eligible, and how it was calculated - holiday position, benefits, equipment return, and any agreed support ### Your documentation checklist Keep a clean file with: - the business reason and alternatives considered - the pool and why you drew it that way - the selection criteria and each individual score - minutes of every consultation meeting with points raised and responses - any suitable alternative roles offered and the response - the final decision, notice, redundancy pay calculation, and any appeal outcome This file is your defence. It is cheaper than a tribunal. ## What is changing in 2025 and what to do now ### Employment Rights Act 2025 Two changes matter for SMEs: - Collective consultation thresholds may be counted across the business, not just per site. More employers could fall into collective rules. - Unfair dismissal is expected to become a day-one right. The two-year qualifying period would go for ordinary unfair dismissal. These measures are expected, with detail to follow in regulations. The practical move is simple. Run a fair redundancy process for everyone now, regardless of service. Check ACAS and GOV.UK updates before you act. ### What to do now - Sense a restructure coming up? Book a [Free HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) and sort contracts, wording and risks before you start. - Mid‑process and feeling shaky? Book a [discovery call](https://kateunderwoodhr.co.uk/discovery-call) and we will steady the ship. - Hands‑on help through a live redundancy: our [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) and [HR Advice Line](https://kateunderwoodhr.co.uk/service-plans/hr-advice-line) give you practical support and documents without the panic. Keep it human, keep it fair, and keep your paperwork tidy. Kettle on. Standards up. And as ever, take care of your people. ## FAQs - What is the first step in a fair redundancy process? - How long should consultation last for a small business? - Can I use absence as a selection criterion? - Do I have to offer suitable alternative employment? - What redundancy pay is my employee entitled to? - Do employees have a right to appeal a redundancy decision? --- ### Workplace Conflict Resolution for Small Businesses - URL: https://kateunderwoodhr.co.uk/blog/people-hr/small-business-workplace-conflict-resolution - Published: 2025-10-29T00:00:00.000Z - Category: people-hr - Tags: workplace-conflict-resolution, workplace-mediation-uk, grievance-procedure-uk # Workplace conflict resolution: two good people, one tense team, and you in the middle Picture this. Two decent people who've stopped seeing eye to eye. A misread message. A task landing on the same person again. A comment that came out wrong and never got cleared up. That's where workplace conflict resolution starts for most SMEs. It's normal, fixable, and best handled early, before a wobble turns into a formal grievance. Kettle on. Let's sort it. ## Workplace conflict resolution: quick answer - Catch it early. Small problems are cheap to fix. Old ones are not. - Talk first, informally and privately, before anything formal. - Stick to facts and behaviour, not personalities or gossip. - Try mediation when a relationship has broken down but nobody has done anything serious. - Move to a formal grievance, following the ACAS Code, only when informal routes fail or the issue is serious from the start. - Write a short, factual note every time. Stay fair and impartial throughout. ## What counts as workplace conflict? Conflict isn't all shouting matches. In a small team it's usually quieter than that. It looks like: - Two people who've stopped talking unless they absolutely have to - Passive sniping, eye-rolling, or "jokes" with a sharp edge - One person feeling picked on, left out, or overloaded - A clash over how the work gets done, not only what gets done - A grumble about fairness, favouritism, or someone "not pulling their weight" A disagreement can be healthy. It becomes conflict when it turns personal, lingers, and starts affecting how the team works and feels. ## Why sort it early? Because ignored conflict gets expensive, in ways that don't show up neatly on a spreadsheet. - Productivity drops. People spend energy avoiding each other instead of doing the work. - Morale dips, and it's contagious. A sour mood between two people can flatten a whole team. - Sickness and absence creep up. Stress is a common reason people stay off. - Good people leave. Then you carry the cost and disruption of hiring again. - It can escalate into a formal grievance, and in serious cases into constructive dismissal or discrimination claims. Helpful facts for your business case: - HSE reports 17.1 million working days were lost to work-related stress, depression or anxiety in 2022/23 in Great Britain (HSE, Work-related stress, anxiety or depression statistics in Great Britain 2023). - ACAS estimates workplace conflict costs UK employers around £28.5 billion a year, averaging just over £1,000 per employee (ACAS, Estimating the Costs of Workplace Conflict, 2021). As ACAS puts it, "Sorting out problems early can stop them getting worse" (ACAS guidance). ## Spotting the early signs You often feel it before you can name it. Watch for: - A change in someone's manner: quieter, snappier, or suddenly very formal - People rearranging shifts or tasks to avoid working together - More "little" complaints landing on your desk - A drop in the quality or speed of shared work - The team going tense when two particular people are in the room When you notice it, don't wait for it to blow over. Gently open the door. ## The first conversation: calm, direct, private Most workplace conflict resolution happens here, in an informal chat, long before any procedure is needed. Do this well and you may never need the rest of this guide. Speak to people separately first. A surprise three-way showdown rarely ends well. Keep it private, unhurried, and human. A simple opener works: "I've noticed things have felt a bit tense between you and [name] lately, and I wanted to check in. What's going on from your side?" Then mostly listen. Your job in the first conversation is not to judge or fix. It's to understand and steady the situation. A simple structure: - Acknowledge. "Thanks for being honest with me. I can see this has been weighing on you." - Clarify. "Talk me through what's been happening. When did it start? What's the impact on you?" - Stick to facts. Behaviour and impact, not labels. "She ignored three of my emails" is workable. "She's impossible" is not. - Agree a next step. "Here's what I think we should try next, and I'll check back in with you on Friday." If you want practical phrasing to borrow, the wording in [what great managers say next](https://kateunderwoodhr.co.uk/blog/guides/can-we-talk-what-great-managers-say-next) carries straight across to conflict. ## When to try workplace mediation Sometimes one conversation isn't enough. The relationship has soured, but nobody has actually done anything wrong. Two people who can't find their way back to working together. That's exactly what mediation is for. Mediation is a voluntary, confidential conversation between the two people, guided by a neutral third party. The mediator doesn't decide who is right or hand down a verdict. They create a fair space where both people are heard and help them agree how to move forward. It works best when: - The conflict is about a relationship or communication breakdown, not misconduct - Both people are genuinely willing to take part - You want to repair the working relationship, not just rule on it For mediation to feel fair, the mediator should be neutral. If you manage both people, or you're part of the tension, bring in someone else, another manager, or an external mediator. ACAS has clear guidance on [mediation at work](https://www.acas.org.uk/mediation). ## When to move to a formal grievance Informal first, almost always. But some situations need the formal route, and a few need it from day one. Move to the formal grievance procedure when: - Informal conversations and mediation have been tried and haven't worked, or - The issue is serious from the start, for example alleged bullying, harassment, discrimination, or anything that could be a safeguarding or legal matter At that point, follow a clear, written process in line with the [ACAS Code of Practice on disciplinary and grievance procedures](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures). The Code is the benchmark a tribunal looks at. Following it protects everyone, and ignoring it can count against you if a claim is ever made. A fair grievance process broadly means: the employee puts the concern in writing, you hold a meeting to hear it, the employee has the right to be accompanied, you investigate properly, you give a decision in writing, and you offer the right to appeal. If you're unsure who can come along to that meeting, this guide explains [who can accompany an employee in a disciplinary or grievance meeting](https://kateunderwoodhr.co.uk/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk). Many small businesses get nervous here, understandably. A formal grievance handled badly can turn a fixable problem into a tribunal claim. If you reach this stage, get a second opinion before you act. ## Staying fair and impartial This is the part that protects you. Whatever stage you're at: - Don't take sides, even privately. The moment the team thinks you have a favourite, you've lost their trust. - Hear everyone properly before forming a view. - Keep it confidential. Share only with people who genuinely need to know. - Be consistent. Handle similar situations in similar ways. - Separate the behaviour from the person. You can address what someone did without writing them off. If you're too close to it, or part of the conflict, get someone neutral involved. That's not weakness. That's fairness. ## The manager skills that make the difference You don't need to be a trained mediator. You need a handful of habits: - Listen more than you talk, and prove you heard by summarising it back - Stay calm even when they're not - Ask open questions: "What would a good outcome look like for you?" - Be honest about what you can and can't promise - Follow through on what you said you'd do Most managers were promoted for being good at the job, then expected to referee fall-outs with no training. If your managers find this hard, that's normal, and it's a skill that can be taught. ## What to write down Keep it short and factual. After every conversation, note: - The date and who was present - What was discussed (facts and behaviour, not opinions) - What both people said the issue was - What was agreed, and by when - The date you'll check back in You're not writing a court report. You're creating a fair, honest trail that shows you took it seriously and acted reasonably. If it ever becomes formal, those notes are your best friend. ## Common mistakes checklist - Hoping it will sort itself out. It won't. - Going straight to formal when a quiet chat would have done it. - Taking sides, or being seen to. - Confronting both people together by surprise. - Discussing it loudly, or letting it become office gossip. - Promising one person an outcome before you've heard the other. - Keeping no notes at all, then having nothing to fall back on. - Forcing mediation on someone who hasn't agreed to it. ## A short script you can borrow For the first informal chat: "Thanks for making the time. I've noticed things have felt tense between you and [name], and I care about both of you and about the team, so I wanted to understand it rather than ignore it. Talk me through what's been happening from your side. I'm not here to take sides or hand out blame. I want to find a fair way forward that works for everyone." Then listen. Agree one small next step. Put a date on checking back in. That single conversation resolves more conflict than any policy ever will. ## When to get help? If conflict in your team has reached the formal stage, involves allegations of bullying, harassment, or discrimination, or you're not sure your process would hold up, don't guess your way through it. An [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) will show you where your grievance and conflict handling is solid and where it's risky, before a small fall-out becomes a formal claim. If something is live right now, our [HR Advice Line](https://kateunderwoodhr.co.uk/service-plans/hr-advice-line) gives you a real person to talk it through with, and [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) gives you ongoing backup and tribunal-ready support. Or simply [book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) and tell us what's going on. Conflict is part of working with humans. Handled early, calmly, and fairly, it doesn't have to cost you your best people, your peace, or a small fortune. Kettle On. Standards Up. Until next time, keep buzzing and take care of your people! ### Sources and expert notes - "Sorting out problems early can stop them getting worse": [ACAS guidance on workplace problems](https://www.acas.org.uk/mediation) - HSE, Work-related stress, anxiety or depression statistics in Great Britain 2023: [HSE stress, anxiety or depression statistics 2023](https://www.hse.gov.uk/stress/) - ACAS, Estimating the Costs of Workplace Conflict (2021): [ACAS costs of conflict report](https://www.acas.org.uk/costs-of-conflict) - ACAS Code of Practice on disciplinary and grievance procedures: [ACAS Code of Practice](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures) --- ### Preventing Sexual Harassment: The Worker Protection Act - URL: https://kateunderwoodhr.co.uk/blog/legislation/sexual-harassment-prevention-worker-protection-act - Published: 2025-10-22T00:00:00.000Z - Category: legislation - Tags: worker-protection-act, worker-protection-act-2023-uk, duty-to-prevent-sexual-harassment # Prevent sexual harassment at work before it happens ## How to prevent sexual harassment at work under the Worker Protection Act 2024 Picture this. A team member hints that a customer's "banter" crossed a line. Before October 2024, you might have asked how fast and fairly you reacted. Now the duty flips. Under the Worker Protection Act 2024, you must prevent sexual harassment at work in the first place. That means clear risks spotted, steps taken, and proof you are on it. ## Quick Answer Box - Do this: run a sexual harassment risk assessment, publish a clear policy, train your team, and set up safe reporting routes. - Avoid this: "it does not happen here" thinking, or a dusty policy nobody reads. - Write down: your risk assessment, your policy, who trained and when, reports raised, and actions taken. ## The legal lowdown: your new preventative duty The Worker Protection (Amendment of Equality Act 2010) Act 2024 started on 26 October 2024. It adds a duty on employers to take reasonable steps to prevent sexual harassment of employees in the course of their employment. Two ways this bites: - EHRC enforcement. The regulator can act even if no individual has brought a claim. - Tribunal uplift. If a tribunal upholds sexual harassment and finds you failed to take reasonable steps, it can uplift compensation by up to 25 percent. There is no cap on harassment awards. There is no small business exemption. "Reasonable" scales with your size, resources, and risk. A five-person cafe and a 500-person firm will look different. "We are too small" is not a defence. External resource: - EHRC technical guidance on the preventative duty: [EHRC technical guidance on the preventative duty](https://www.equalityhumanrights.com/guidance/sexual-harassment-and-harassment-work-technical-guidance) ## What "reasonable steps" look like for SMEs? Right, first things first. Reasonable steps are practical, visible, and repeatable. For most small UK employers, that means the following. ### 1) Run a sexual harassment risk assessment - Map where risk sits: customer contact, lone working, late shifts, travel, socials, alcohol, power gaps, probation, junior staff. - Note digital spaces too: WhatsApp groups, Teams channels, DMs, video calls. - Record actions to reduce risk: supervision, buddy systems, manager presence at late events, rules for work socials, safe transport home. Tip: Keep it short and clear. Date it. Review it. That is what the EHRC expects to see. ### 2) Publish a plain English anti-harassment policy - Define sexual harassment in Simple English with examples. - State zero tolerance and outline consequences. - Explain reporting routes. Include a route that bypasses the line manager. ### 3) Train everyone, refresh regularly - Short, scenario-based training for all staff. Managers need extra on handling reports and bystander action. - Refresh at least every 12 to 24 months, or after incidents or team changes. - Track attendance and keep materials. ### 4) Set up accessible reporting routes - Provide at least two routes: named HR contact or owner, plus an alternative senior contact or inbox. - Offer a confidential channel where possible. Be clear about privacy limits. - Tell staff where and how to report, in writing and during onboarding. ### 5) Act on what you hear, promptly and fairly - Acknowledge reports quickly, give next steps, and keep notes. - Investigate impartially. Use an external investigator if there is a conflict. - Follow your disciplinary process correctly. Respect the statutory right to be accompanied. Internal resource: [Who can accompany an employee to a disciplinary meeting](https://kateunderwoodhr.co.uk/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk) ### 6) Consider third-party risk - Customer, client, supplier, or contractor behaviour counts. - Put up signage in customer areas, brief managers on when to step in, and back staff if they refuse service due to harassment. ## Do not forget digital and hybrid work Sexual harassment is not limited to face-to-face contact. It can arrive by text, email, chat apps, DMs, or on camera. A comment that would be out of order across a desk is just as serious at 11 pm in a WhatsApp group. Your policy must cover online behaviour, personal devices used for work chats, and out-of-hours messages. If your team uses group chats, set ground rules. Make reporting routes clear for digital incidents too. This all helps you prevent sexual harassment at work across every channel. External resource: - ACAS advice on sexual harassment at work: [ACAS advice on sexual harassment](https://www.acas.org.uk/sexual-harassment) ## What might change next: Employment Rights Act 2025? This area is moving. Public statements suggest two changes could arrive under an Employment Rights Act in 2025. Treat these as forthcoming and check timing before you rely on them. - "All reasonable steps" could replace "reasonable steps", which is a higher bar. - Clear liability for third-party harassment could return. Practical takeaway: work to the higher standard now. If you already prevent sexual harassment at work using an "all reasonable steps" mindset, you will be ready, and you are stronger today. External resource: - GOV.UK policy updates hub: [GOV.UK policy updates hub](https://www.gov.uk/government/policies) ## Step-by-step: a simple compliance plan - 1) Run a sexual harassment risk assessment and write it up. - 2) Publish a clear anti-harassment policy that covers digital conduct and third parties. - 3) Announce it to the team. Get acknowledgment. - 4) Train everyone. Managers get extra training on handling reports. - 5) Set up at least two reporting routes. One must bypass line management. - 6) Respond fairly to concerns. Investigate and follow your process. - 7) Review and refresh. Update risk assessment, policy, and training on a schedule. KUHR help: - HR Protect keeps your policy, risk assessment, and handbook current: [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) - HR Advice Line for fast, practical answers: [HR Advice Line](https://kateunderwoodhr.co.uk/service-plans/hr-advice-line) - Free HR Health Check to spot gaps: [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) ## Handling a complaint fairly Prevention sits alongside fair process. The person raising a concern and the person named both deserve a fair, impartial approach. Keep it as confidential as you reasonably can. Follow your disciplinary and grievance procedures. And remember the right to be accompanied at formal meetings. Internal resource: [Who can accompany an employee to a disciplinary meeting](https://kateunderwoodhr.co.uk/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk) ## A short manager script If someone reports sexual harassment, the first response matters. Train managers to say: > "Thank you for telling me. I know that was not easy. I am taking this seriously. I will make a note of what you have told me, keep it as confidential as I can, and explain what happens next. You will not be treated badly for raising this, and I will keep you updated." Managers must avoid brushing it off, promising total secrecy they cannot keep, or "having a quiet word" instead of following the process. ## Mythbuster parade: common mistakes - "It does not happen here." Low reporting is common. Silence is not proof of safety. - A policy nobody reads. Training and communication are the real steps. - Skipping the risk assessment. The EHRC expects to see it. - Ignoring third parties. Customer-facing roles face higher exposure. - Treating training as one-and-done. Old slides do not show an active duty. - Botching the process. A shaky investigation can become problem number two. ## What to write down, and why it matters Evidence is your friend. To show you took reasonable steps, keep records of: - Your sexual harassment risk assessment, date, findings, and actions - Your anti-harassment policy and last review date - Who trained, what they learned, and when - Reporting routes and how staff were told - Concerns raised, timelines, and actions taken - Planned review dates for policy, training, and risk assessment If it is not written down, it is hard to prove it happened. ## Where this connects Preventing sexual harassment at work links to your wider basics: a tidy handbook, fair processes, manager training, and simple documentation. Pick the help that fits: - [Who can accompany an employee to a disciplinary meeting](/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk), for when a report turns into a formal process - [HR Protect](/service-plans/hr-protect), the monthly plan that includes policies, training support and hands-on help - [HR Advice Line](/service-plans/hr-advice-line), for quick answers when something has just landed ## Right, what now? The Worker Protection Act 2024 asks a simple question: what have you done to prevent sexual harassment at work? If your honest answer is "not much yet", you are not alone. Let us fix that before a complaint or the regulator forces the issue. Book a free HR Health Check to see what is strong and what needs attention: [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check). Or book a discovery call and we will talk through your risks: [Discovery call](https://kateunderwoodhr.co.uk/discovery-call). Kettle On, Standards Up. Until next time, keep buzzing and take care of your people! --- ### Who Can Accompany an Employee to a Disciplinary Meeting in the UK - URL: https://kateunderwoodhr.co.uk/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk - Published: 2025-10-21T09:00:00Z - Category: legal - Tags: disciplinary-meeting-uk, right-to-be-accompanied, acas-companion-rules, employee-companion-disciplinary-uk, support-person-disciplinary-meeting-uk # Who Can Accompany an Employee to a Disciplinary Meeting in the UK By Kate Underwood HR & Training – HR Consultancy for Small Businesses ## Introduction One of the most common questions I get from small business owners is: who can accompany an employee to a disciplinary meeting? It's a fair question, and one that can cause confusion. A few years ago, [a case in New Zealand made headlines](https://www.theguardian.com/lifeandstyle/2019/sep/13/new-zealand-man-copywriter-clown-redundancy) when an employee brought a professional clown to his disciplinary hearing after being told he could bring a companion. While the UK hasn't reached balloon-animal territory yet, the story serves as a light-hearted reminder of why employers need to know exactly who can attend. This guide breaks down what the law says, what ACAS recommends, and how to manage companions, support people, and witnesses without stress. Whether you're an HR professional or a small business owner, understanding these rules can help you handle sensitive meetings fairly and confidently. ## The legal right to be accompanied Under [section 10 of the Employment Relations Act 1999](https://www.legislation.gov.uk/ukpga/1999/26/section/10), any worker invited to a formal disciplinary hearing has a statutory right to be accompanied. In everyday terms, this means: - The right applies when a meeting could result in disciplinary action such as a warning, demotion, or dismissal. - It applies not just to employees but to workers, including part-time, agency, and casual staff. - A valid companion must be one of the following: - a colleague; - a trade union representative who is certified or trained to act as a companion; or - an official employed by a trade union. There's no automatic right to be accompanied at an investigatory meeting, but many employers allow it as a gesture of good practice. If an employer refuses to allow a legitimate companion, the employee can raise a tribunal claim. Compensation can reach up to two weeks' pay, and the reputational cost may be even higher. ## What ACAS says about companions The [ACAS Code of Practice](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures/html) provides detailed guidance on how companions should behave in disciplinary hearings. (For where the hearing sits in the wider process, see our [UK disciplinary procedure flowchart](/disciplinary-procedure-flowchart-uk).) Their role is to support, not to take over. According to ACAS, a companion can: - address the hearing; - ask questions; - sum up or clarify the employee's case; - confer privately with the employee; and - take notes. They cannot, however, answer questions on behalf of the employee or disrupt proceedings. The purpose is to ensure fairness and emotional support, not to create confrontation. For employers, understanding this balance is key. Allowing the companion to participate appropriately shows transparency and reduces the risk of claims that the process was unfair. ## Accompaniment at an investigation meeting There's no legal right to accompaniment during an investigatory meeting, the statutory right only applies once a meeting could lead to disciplinary action. However, flexibility here can go a long way. You might allow accompaniment if: - the employee is anxious, unwell, or otherwise vulnerable; - English isn't their first language; or - the matter involves sensitive or personal issues. This simple act demonstrates fairness and can prevent grievances later. It also helps maintain trust, which is particularly valuable in smaller teams where relationships matter. ## Who can an employee bring to a disciplinary meeting? The law is quite specific about who qualifies as a companion. Employees may bring: - a colleague from their workplace; - a trade union representative (they don't have to be a union member to ask); or - an official employed by a trade union. If the employee has a disability or a communication difficulty, the employer should consider reasonable adjustments. This might include allowing a support person, interpreter, or another agreed third party. Being accommodating doesn't weaken your authority, it shows professionalism and empathy, two traits that protect both the business and its culture. ## Witnesses vs companions These two roles are often confused, but they serve different purposes. - A witness attends only to provide evidence relevant to the case. - A companion is there throughout to offer support to the employee. The statutory right applies only to the companion. Witnesses usually attend for their specific evidence and then leave once their part is complete. Keeping this distinction clear avoids confusion and keeps the process structured. ## Can an employee bring a parent, partner, or solicitor? There's no automatic right to bring anyone outside the three approved categories. However, an employer may allow it in exceptional cases. Examples include: - if the employee is under 18, a parent or guardian can attend; - if the case involves a regulated profession where a licence or registration might be at risk, a solicitor could be allowed as an exception. Employers who choose to be flexible should make sure their disciplinary policy explains when and why exceptions may apply, and they must apply those rules consistently. That consistency protects against claims of unfair treatment. ## What companions and support people can do A companion's main job is to support the employee, not to lead the meeting. They can: - help the employee stay calm and focused; - ask for clarification if something is unclear; - take notes to ensure accuracy; - request short breaks to confer privately; and - make sure the process feels fair and respectful. They should not answer questions for the employee or take control of the discussion. From an HR perspective, allowing the companion to engage within clear limits can help meetings run more smoothly and keep emotions in check. ## Can a support person speak during the meeting? Yes, but within limits. A support person may ask questions, clarify points, or summarise the employee's position. However, they can't speak on the employee's behalf or make statements that replace their voice. Employers should clarify this boundary at the start of the meeting so everyone knows what's acceptable. It's a simple step that helps avoid tension later. ## What is a "support person"? A support person provides moral and practical help during a meeting. In small businesses without a recognised union, this might be a trusted colleague, mentor, or another agreed individual. Their role is to make the meeting feel balanced and ensure the employee has someone to lean on emotionally. Support people can be particularly valuable in small teams where HR resources are limited. They help demonstrate that the employer is taking care to maintain fairness. ## Tips for employees facing a disciplinary meeting Preparation is key. Here are five simple but effective tips: 1. **Read the invitation carefully.** Understand what the meeting will cover and whether it's an investigation or disciplinary hearing. 2. **Confirm your right to be accompanied.** Let your employer know who you're bringing as soon as possible. 3. **Choose wisely.** Pick someone calm, reliable, and professional, not necessarily your closest friend. 4. **Prepare your points.** Review any evidence and note what you want to say. 5. **Stay professional.** Keep emotions in check and focus on facts. A well-prepared employee helps the meeting stay productive and respectful. ## How to prepare for a disciplinary hearing Many employees search online for "how to win a disciplinary hearing". But the real goal isn't to win, it's to ensure the process is fair, transparent, and well-understood. Employees should gather their evidence, review their company's disciplinary policy, and understand what outcome is possible. Using a companion effectively can help them stay composed and clear. For employers, the focus should be on following procedure and documenting every step. Consistency is what keeps the process defensible. ## Real-life KUHR example A Dorset tech company, let's call them SmartWidgets Ltd, once rang KUHR for urgent help. They'd invited an engineer, Sam, to a disciplinary meeting but forgot to mention his right to be accompanied. Sam asked to bring his cousin, who happened to be a solicitor. Naturally, the employer hesitated. With Hazel, our wellbeing officer, observing, we helped them revise their invite to meet ACAS guidance. Because Sam had mild dyslexia and anxiety, we advised allowing his cousin to attend as a reasonable adjustment, provided he did not act as a legal representative. The meeting went smoothly. Both sides felt respected, communication stayed calm, and, true to form, Hazel brought cake. ## In summary The right to be accompanied exists to keep disciplinary meetings fair, balanced, and transparent. Employees can bring a colleague or trade union representative, and employers should make reasonable adjustments where necessary. Clear communication, documented processes, and a touch of empathy can prevent misunderstandings and protect everyone involved. If you're not sure whether your policy or disciplinary templates meet best practice, get in touch with KUHR, and who knows, Hazel might bring cake. ## Key sources 1. [Employment Relations Act 1999, section 10](https://www.legislation.gov.uk/ukpga/1999/26/section/10) 2. [ACAS guidance on the hearing step & right to be accompanied](https://www.acas.org.uk/disciplinary-procedure-step-by-step/step-4-the-disciplinary-hearing) 3. [ACAS Code of Practice on Disciplinary & Grievance Procedures](https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures/html) 4. [Citizens Advice: Who can accompany you to a disciplinary meeting](https://www.citizensadvice.org.uk/work/disciplinary-meetings/who-can-accompany-you-to-a-disciplinary-meeting/) 5. [The Guardian: New Zealand man brings clown to redundancy meeting](https://www.theguardian.com/lifeandstyle/2019/sep/13/new-zealand-man-copywriter-clown-redundancy) --- ### Salary Transparency and Pay Benchmarking for UK SMEs - URL: https://kateunderwoodhr.co.uk/blog/talent-management/salary-transparency-pay-benchmarking-uk-smes - Published: 2025-10-15T00:00:00.000Z - Category: talent-management - Tags: salary-transparency, salary-transparency-in-job-ads-uk, pay-benchmarking-for-uk-smes # Showing your numbers: should you put pay in the advert? Picture this: you post a great job, the role is spot on, but applications crawl in because your advert says "competitive salary". Most candidates now read that as "we would rather not say". Meanwhile, you feel a knot in your stomach at the thought of putting your rates out there for staff, competitors and your nan to see. This is one of the top questions I get from SME owners: "Do we have to put the salary in?" and hot on its heels, "If we do, how do we know we have the number right?" So here is the straight-talking version. What UK law actually says, what is trend, how to benchmark pay so you are not guessing, and how to steer clear of equal pay trouble. Hazel (our Chief Wellbeing Officer) is fully transparent about her own compensation package: belly rubs, biscuits, and first refusal on any dropped toast. ## Quick Answer Box - Do this: benchmark each role against the market, set a salary band, and decide deliberately whether to publish it. - Avoid this: pulling a number out of thin air, gagging staff from discussing pay, or letting similar roles drift apart in pay for no clear reason. - Write down: how you benchmarked each role, your salary bands, and the genuine reasons for any pay differences. ## What does UK law actually require? Let us clear this up first, because headlines can make it sound scarier than it is. There is currently no general UK law forcing you to publish a salary or salary range in a job advert. Putting pay in the advert is a choice, driven by what candidates expect, not a legal duty. What the law does say matters here: - Gender pay gap reporting is mandatory, but only for employers with 250 or more staff. Most SMEs sit well below that. Check the current threshold and rules on gov.uk before you assume it applies. - The Equality Act 2010 governs equal pay and bans pay-secrecy clauses where the purpose is to uncover pay discrimination. In plain terms, you cannot use a contract clause to stop staff comparing notes when they suspect pay is linked to sex, race or another protected characteristic. Official guidance: [gender pay gap reporting on gov.uk](https://www.gov.uk/guidance/gender-pay-gap-reporting-overview) and [the Equality Act 2010 on gov.uk](https://www.gov.uk/guidance/equality-act-2010-guidance). ## What about the EU Pay Transparency Directive? You may have seen alarming posts about a new EU directive on pay transparency. Here is the calm version. The EU Pay Transparency Directive is EU law that member states are turning into their own national rules. It does not directly bind a purely UK business. So if you employ people only in the UK, it is not a rulebook you have to follow. It is still worth knowing about for two reasons: - If you employ anyone inside the EU, or plan to, it may affect you there. Get specific advice for that. - It is shaping expectations generally. Big employers are moving to published ranges, and candidates increasingly expect it everywhere. Treat the directive as context for where the wind is blowing, not as UK law. Please verify the current transposition timetable before quoting any dates. ## Should you publish salary ranges in adverts? This is a genuine judgement call, and there are real benefits and real risks. Here is the honest balance sheet. ### The benefits of publishing pay - You get better, more relevant applications. People who need more than you can pay self-select out, saving everyone time. - You build trust. Transparency signals confidence and fairness, which matters to good candidates. - You sharpen up your own thinking. You cannot publish a range until you know what the role is actually worth, which drives good discipline. - It supports fairness. Published ranges make it harder for pay gaps to open up quietly between similar roles. ### The risks of publishing pay - Competitors can see your rates. For some roles in tight local markets, that matters. - Existing staff may compare the advertised range to their own pay and feel aggrieved. If a new starter could come in above a loyal existing employee, you need a story for that before the advert goes live. - A fixed range can box you in if a brilliant, more experienced candidate appears. My practical steer for most SMEs: publish a sensible range rather than a single figure, and sort out any internal pay anomalies before you advertise, not after the questions start. ## How to benchmark pay fairly Benchmarking is working out what a role is worth in the real market, so you are not guessing. Underpay and you get fewer, weaker applications and higher turnover. Overpay and you dent your margins. The point is to land the rate right. Here is a method you can use. ### Step 1: define the role properly You cannot benchmark a job title. Write down the actual responsibilities, the skills and experience needed, and where the role sits. A "marketing assistant" doing social media is different to one running paid campaigns. ### Step 2: gather market data from several sources Do not rely on one number. Triangulate from: - salary surveys and industry reports for your sector - current job adverts for similar roles in your area (note the ones that include pay) - recruitment agencies, who know live local rates - professional bodies and trade associations - your own past hiring data The CIPD has useful background on [market pricing and pay benchmarking](https://www.cipd.org/uk/knowledge/factsheets/market-pricing-factsheet/). ### Step 3: adjust for your context Location, sector, business size and the rest of your package all move the number. A strong benefits offer can let you pitch base pay slightly below a corporate competitor and still win. ### Step 4: set a salary band, not a single number Give the role a minimum and a maximum. Bands give you room to reward experience, structure pay rises, and keep similar roles consistent. They also make your next benchmarking exercise far easier. ### Step 5: sense-check against your existing team Before you finalise, look at what your current people earn for similar work. If the new band would leapfrog a loyal existing employee, deal with that now. ## Avoiding equal-pay risk This is the bit that turns a pay decision into a legal one, so it earns its own section. Under the Equality Act 2010, men and women must receive equal pay for equal work, or for work of equal value. Pay differences are fine, but only where they are explained by genuine, non-discriminatory reasons, such as skills, qualifications, experience, performance or location. To keep yourself safe: - Use consistent salary bands so similar roles are paid on the same logic. - Write down the genuine reason for every pay decision, especially exceptions. - Review pay regularly. Gaps usually open up quietly through one-off decisions, not deliberate unfairness. - Never use a contract clause to stop staff discussing pay where the aim is to uncover discrimination. It is unenforceable, and it looks terrible. ACAS has clear guidance on [equal pay](https://www.acas.org.uk/equal-pay). ## A short example Priya runs a 14-person design agency and needs a mid-weight designer. She is tempted to advertise "competitive salary" and haggle later. Instead, she defines the role, checks three local adverts that show pay, asks a recruiter, and looks at a sector survey. The market clusters in a clear range. She sets a band with a sensible minimum and maximum, then notices her existing designer of three years sits near the bottom of it. She nudges his pay up first, then advertises the role with the published range. Result: stronger applications, no awkward "the new person earns more than me" conversation three weeks in, and a written rationale she could defend if anyone ever asked. ## Common mistakes (and the fix) - Mistake: writing "competitive salary" and hoping. Fix: publish a real range, or at least benchmark privately so you are not guessing. - Mistake: benchmarking off a single source. Fix: triangulate from several, including live local adverts. - Mistake: advertising a range higher than a loyal existing employee earns. Fix: sort internal anomalies before the advert goes out. - Mistake: setting one fixed figure per role. Fix: use salary bands with a minimum and maximum. - Mistake: using a contract clause to stop staff discussing pay. Fix: drop it. It is unenforceable where the aim is to uncover discrimination. - Mistake: never reviewing pay again. Fix: revisit benchmarks and internal fairness regularly. ## What to write down Keep a simple, defensible record: - the role definition you benchmarked against - the sources you used and the market range they pointed to - your final salary band (minimum and maximum) for each role or grade - the genuine reason for any pay decision that sits outside the norm - when you last reviewed pay for fairness, and what you found If a pay dispute ever lands on your desk, this is the file that quietly wins it. ## Bottom line - There is no UK law forcing you to publish salaries, but candidate expectations are shifting fast. - Gender pay gap reporting applies only at 250+ staff; the Equality Act 2010 governs equal pay and bans real pay-secrecy gags. - The EU Pay Transparency Directive is context, not UK law, unless you employ people in the EU. - Benchmark every role from several sources, set salary bands, and fix internal anomalies before you advertise. - Write down your reasoning so any pay decision is fair, consistent and defensible. ## Right, what do you do now? If you are about to advertise a role and you are not confident your pay is benchmarked, your bands are consistent, or your internal pay would survive a fairness check, this is exactly the sort of thing we untangle on the [HR Advice Line](/service-plans/hr-advice-line) or pick up in an [HR Health Check](/hr-health-check). No judgement, no jargon. Just a clear view of whether your pay is fair, competitive and safe, and what to tidy up first. [Book a discovery call](/discovery-call) and we will talk it through. --- ### Supporting Employee Mental Health at Work: An SME Guide - URL: https://kateunderwoodhr.co.uk/blog/guides/employee-mental-health-at-work-sme-guide - Published: 2025-10-08T00:00:00.000Z - Category: guides - Tags: employee-mental-health, employee-mental-health-support-at-work, small-business-mental-health-initiatives # Most managers are not therapists, and that is completely fine If the thought of handling mental health at work makes you slightly panicky, you are in good company. Most small business owners want to do right by their people but worry they will say the wrong thing, overstep, or somehow make it worse. So here is the reassuring news. Your job is not to be a counsellor. Your job is to notice, to listen, to make a few sensible adjustments, and to point people to proper support. That is it. And it is entirely learnable. Picture this. A brilliant team member starts missing deadlines, looks exhausted, and goes quiet in meetings. You feel the knot in your stomach, because you care and you also need the work done. Good news. You can help without trying to fix everything. This is your practical guide to supporting mental health in a small business. Spot the signs, handle the chat, cover the legal bits you actually need, and build a culture where people do not have to suffer in silence. ## Quick Answer Box - Do this: notice changes, have a kind and private conversation, signpost proper support, and make reasonable adjustments where they help. - Avoid this: trying to diagnose, trying to fix it yourself, or pretending you did not notice. - Write down: your stress risk assessment, any adjustments agreed, and any support signposted, while respecting confidentiality. ## Why this matters more than you think Mental health problems are common. Around one in four people in the UK experience a mental health problem in any given year, according to [Mind](https://www.mind.org.uk/). In a team of twenty, that is not a rare edge case, it is several of your people this year. It shows up at work regardless of if you address it, as absence, presenteeism, mistakes, conflict, and good people quietly burning out and leaving. Supporting mental health is practical business sense, and it is the decent thing to do for your people. For scale, the [HSE](https://www.hse.gov.uk/stress/) reports that stress, depression or anxiety accounted for about half of work-related ill health in 2022 to 2023, with an estimated 17 million working days lost. As the HSE puts it, "Employers have a legal duty to protect employees from stress at work by doing a risk assessment and acting on it." ## The legal bits you actually need (kept short) You do not need to memorise statutes, but you do need to know three things. - You have a duty of care. The general duty to protect the health, safety, and welfare of your staff includes mental health, not only physical safety. - You should assess stress risk. Work-related stress is a health and safety risk, and you are expected to assess it. The HSE provides a framework for this. If you employ five or more people, you must record your risk assessment in writing. - Mental ill health can be a disability. Where a mental health condition meets the threshold under the [Equality Act 2010](https://www.gov.uk/definition-of-disability-under-equality-act-2010), you have a duty to make reasonable adjustments and not to discriminate. This is why it pays to handle things supportively rather than as a straightforward performance issue. That is the core of it. Get those right and you are most of the way there. ## Spotting the signs You are not diagnosing anything. You are noticing a change from someone's normal pattern. Things to watch for: - More absence, lateness, or unexplained days off - Withdrawal, going quiet, or avoiding colleagues - Irritability, mood swings, or being unusually sensitive - A drop in performance or focus - Tiredness, or looking generally worn down - Working excessive hours and never switching off One of these on its own may mean nothing. A cluster, or a clear change, is your cue to gently check in. Not to confront, not to diagnose, just to ask. ## Having the conversation (without making it weird) This is the part people dread, so here is a simple way through it, drawn from how trained mental health first aiders approach it. - Create the right setting. Somewhere private and unhurried. Check it is a good moment for them. - Ask twice. "How are you?" almost always gets "I'm fine". Follow up: "I've noticed you have not quite seemed yourself lately. Is there anything you would like to talk about?" - Really listen. Do not plan your reply while they talk. Let silences sit. - Avoid assumptions. Do not guess what their condition is or what caused it. Ask, do not tell. - Show empathy, not platitudes. "That sounds really hard" beats "chin up, it will pass". - Keep the focus on feelings and support, not a diagnosis. - Signpost. Point them to their GP, your Employee Assistance Programme, [Mind](https://www.mind.org.uk/), or the [Samaritans](https://www.samaritans.org/). - Follow up. Check in again at a sensible point. One conversation is rarely the whole job. - Keep it confidential. Only share with the person's permission, unless you genuinely believe someone is at risk of harm. Our guide on [what great managers say in tricky conversations](/blog/guides/can-we-talk-what-great-managers-say-next) goes deeper on the wording, and is worth a read before your first one of these. A manager script you can adapt: "I wanted to check in because I have noticed you have seemed a bit weighed down lately, and I care how you are doing. You do not have to tell me anything you do not want to. But if something is going on, I would like to understand what might help, and there is some confidential support I can point you to as well." Notice what that does not do. It does not diagnose, promise to fix everything, or pry. It opens a door. ## Reasonable adjustments that actually help When someone is struggling, small practical changes often make the difference between staying well at work and signing off sick. Ask the person what would help, then consider: - Adjusted hours, a phased return, or temporary flexible working - A quieter or less stimulating workspace - A review of workload, deadlines, or particularly stressful duties - More regular, supportive check-ins - Time off for appointments or therapy - A temporary change of duties during a difficult period If the condition may amount to a disability, these stop being a nice-to-have and become a legal duty under the Equality Act. Either way, asking "what would make this more manageable for you?" is the right starting point. ## Tackling work-related stress at the source Sometimes the kindest adjustment is fixing the thing that is causing the stress. The HSE Management Standards give you six areas to look at: - Demands: workload, pace, and the working environment - Control: how much say people have over their work - Support: encouragement and resources from managers and colleagues - Relationships: positive working, and tackling conflict and bullying - Role: if people understand their role and have conflicting demands - Change: how change is managed and communicated A stress risk assessment means looking at these areas, noting the risks, and recording what you will do about them. The [HSE has free templates and guidance](https://www.hse.gov.uk/stress/) to make this straightforward. Remember, with five or more employees you must record it. Workload, in particular, is the one small businesses underestimate. Surveys consistently put it near the top of the causes of work stress. An honest look at who is drowning, and a bit of reprioritising, can do more than any wellbeing poster. ## Do not forget remote and lone workers If you have people working from home, on the road, or on shifts that rarely overlap with the team, isolation is a real risk. Loneliness is bad for health, and out of sight can become out of mind. Simple things help a lot: - Regular check-ins that are about the person, not only the task - A friendly hello with no agenda - Making sure remote and lone workers get the same perks, recognition, and information as everyone else - Encouraging proper breaks - Creating chances to connect, from virtual coffees to occasional in-person get-togethers ## Building a culture, not only a policy A poster in the kitchen does little. Culture does the work. The aim is a workplace where talking about mental health is as normal as talking about a bad back. - Lead from the top. When owners and managers talk openly and take breaks, others feel allowed to. - Train your managers. Most have never been taught how to handle these conversations. Consider mental health first aid training so at least one person is equipped to spot signs and signpost. - Make support visible. An EAP, your benefits, and external signposts should be easy to find and mentioned often. - Take bullying and harassment seriously. They are a major driver of poor mental health, so deal with them properly and consistently. - Check in regularly. One-to-ones that ask "how are you, really?" catch problems early. ## Common mistakes (and the fix) - Mistake: trying to diagnose or counsel. Fix: notice, listen, and signpost to professionals. Stay in your lane. - Mistake: doing nothing because you are scared of saying the wrong thing. Fix: a clumsy, kind check-in beats silence every time. - Mistake: ignoring workload as a cause of stress. Fix: assess it honestly and rebalance where you can. - Mistake: treating a mental-health-linked dip purely as a performance problem. Fix: consider reasonable adjustments before reaching for a procedure. - Mistake: forgetting remote and lone workers. Fix: build in regular human contact. - Mistake: launching wellbeing once and forgetting it. Fix: keep it visible and ongoing, all year. ## What to write down - Your stress risk assessment and the actions you agreed in writing if you have five or more staff - Any reasonable adjustments agreed, and review dates - Support signposted, while keeping personal details confidential - One-to-one notes that capture wellbeing check-ins, sensitively Keep records factual and respectful. They show you took your duty of care seriously, without turning into a file on someone's health. ## Where to get help Supporting mental health well is part HR, part good management, and part culture. If you want a steady hand on the HR side, our [HR Protect](/service-plans/hr-protect) plan and [HR Advice Line](/service-plans/hr-advice-line) give small businesses ongoing, practical support, including stress risk assessments, reasonable adjustments, and the tricky conversations. If you would like an outside view of how well your business currently supports wellbeing, an [HR Health Check](/hr-health-check) gives you a clear, no-judgement picture of what is working and what to fix first. Or simply [book a discovery call](/discovery-call) and talk it through with a real person. You do not need to be a therapist. You need to notice, care, and point people to the right support. That is enough, and it matters more than you know. --- ### Flexible Working Requests: The Law and How to Handle Them - URL: https://kateunderwoodhr.co.uk/blog/legal/flexible-working-requests-law-how-to-handle - Published: 2025-10-01T00:00:00.000Z - Category: legal - Tags: flexible-working-request, right-to-request-flexible-working-uk, statutory-flexible-working-uk # Someone wants to change their hours. What now? A flexible working request often lands by email on a Tuesday. "Can I drop to four days?" Or "Could I start at ten so I can do the school run?" And your first thought, if you are honest, is somewhere between "I want to keep this person happy" and "how on earth do I cover Fridays?" Flexible working requests are one of the most common things small employers ask us about, and one of the easiest to get wrong if you treat it as a quick yes or no. The law changed in 2024, there is a clear process to follow, and there is more change on the horizon. Hazel, our Chief Wellbeing Officer, requested flexible working ages ago. She now works a four nap week. We are still negotiating the Friday. Let's keep this practical. ## Quick answer - Do this: treat every request seriously, talk it through with the employee, and decide in writing within two months. - Avoid this: ignoring it, saying no on a hunch, or refusing without one of the eight legal business reasons. - Write down: the request, the meeting, your decision, the business reason if you refuse, and any trial period you agree. ## What is a flexible working request? A flexible working request is a formal ask to change the way someone works. That can mean: - different hours, fewer or the same hours arranged differently - different days - a different start or finish time - working from home or a different location - job sharing or part time working It is a request, not a demand. The employee is asking you to consider a lasting change. You are entitled to look at it as a business owner and make a reasonable, informed decision. What you are not entitled to do is wave it away. ## What the law says in 2024 This is the bit that has moved, so even if you think you know the rules, check them. Since 6 April 2024, the right to request flexible working is a day one right. There is no longer a 26 week service requirement. Someone can ask from their first day of employment. Other changes from the same date: - employees can now make up to two requests in any 12 month period, it used to be one - you must deal with a request within two months, including any appeal, unless you both agree to extend - you must consult the employee before you refuse a request - the employee no longer has to explain what effect the change might have on the business or how it could be dealt with Official guidance: [making a flexible working request (gov.uk)](https://www.gov.uk/flexible-working) and the ACAS [Code of Practice on flexible working requests](https://www.acas.org.uk/acas-code-of-practice-on-flexible-working-requests). ### The eight reasons you can refuse You cannot refuse a flexible working request just because you would rather not. You can only turn it down for one or more of eight statutory business grounds: - the burden of additional costs - a detrimental effect on the ability to meet customer demand - an inability to reorganise work among existing staff - an inability to recruit additional staff - a detrimental impact on quality - a detrimental impact on performance - insufficiency of work during the periods the employee proposes to work - planned structural changes to the business These are not magic words. If a request goes to a tribunal, you need to show the ground was genuine and that you actually considered the request, rather than reaching for the nearest reason that sounded plausible. ### What might change next Further reforms have been trailed for 2025. The headline being talked about is that employers may need to show a refusal is reasonable and explain why, rather than simply naming one of the eight grounds. More process around how requests are handled is also expected. This is forthcoming, not in force on the day this is published, and the detail will come through later regulations. The sensible read for a small business is this: get into the habit now of consulting properly and writing down your reasoning, because that is the clear direction of travel. Keep an eye on ACAS news and Gov.uk updates. ## The step by step process Here is the workable version for a small business. ### Step 1: Log the request When a written request comes in, note the date. Your clock to respond runs from there. Two months sounds like a lot until a busy month eats it. ### Step 2: Meet and talk it through You are not legally forced to hold a meeting in every case, but it is almost always the right move, and you must consult before refusing. A short conversation lets you understand what they actually need. Sometimes someone asks for Fridays off when what they really need is a 3 pm finish on Wednesdays for childcare. You cannot find the compromise if you never have the chat. Be careful here. If the request links to a protected characteristic, for example a disability or childcare responsibilities that fall more heavily on women, refusing without proper thought can stray into discrimination as well as a flexible working breach. Requests that follow a return from leave are common, so it is worth reading this alongside our [maternity and family leave](/blog/legal/statutory-maternity-family-leave-employers-guide) guide. A well known case, Thompson v Scancrown t a Manors, 2021, shows how a poor refusal after maternity leave can lead to an indirect sex discrimination finding and a six figure award. ### Step 3: Consider it properly as a business Ask yourself honestly: - can we cover the work, or reorganise it among the team - what does it actually cost us, in money or in customer impact - could a trial period tell us more than a guess could ### Step 4: Offer a trial if you are unsure A trial period is your friend. If you are not sure a four day week will work, agree to try it for, say, three months with a review. It gives you real evidence rather than a hunch, and it shows good faith if it ever comes to a dispute. ### Step 5: Decide in writing Confirm your decision in writing within the two month window. If you say yes, set out the new arrangement and when it starts. If you say no, name the business ground and explain why it applies. If you agree a compromise, write that down too. ### Step 6: Allow a review or appeal There is no separate statutory right of appeal in the legislation, but the ACAS Code expects you to deal with requests reasonably, and offering the employee a chance to respond to a refusal is good practice. It also gives you a second look before anyone reaches for a tribunal form. ## Do not confuse it with time off for dependants This trips small employers up constantly, so it is worth being clear. Flexible working is a lasting change to how someone works. Time off for dependants is something else entirely, short, usually unpaid, emergency leave to deal with an unexpected problem involving a child, partner, parent or someone who relies on the employee. The school rings to say a child is unwell, that is dependants leave, not flexible working. Dependants leave is for the emergency and the immediate aftermath, not an open ended arrangement. The clue is in the word emergency. If the same problem keeps recurring, that is a conversation about a plan B, or possibly a flexible working request, not repeated emergency leave. There is helpful detail in the [ACAS guidance on time off for dependants](https://www.acas.org.uk/time-off-for-dependants). ## Common mistakes and fixes - Mistake: assuming new starters cannot ask. Fix: it has been a day one right since April 2024. - Mistake: refusing on a gut feeling. Fix: you must use one of the eight business grounds, and back it up. - Mistake: missing the deadline. Fix: log the date and diarise the two month limit. - Mistake: refusing without a conversation. Fix: you must consult before you say no. - Mistake: forgetting discrimination risk. Fix: where a request links to disability, childcare or religion, think harder, not less. - Mistake: agreeing verbally and never confirming it. Fix: put the new arrangement in writing so there is no doubt later. ## A manager script you can use If someone asks and you need time to think, you can say: "Thanks for putting that to me. I want to give it proper consideration rather than answer on the spot, so let's grab half an hour this week to talk it through. I'll come back to you in writing once I've looked at how we can make it work." If you need to turn it down, you can say: "I've looked at this carefully and I'm not able to agree it as it stands, because [the business reason]. I want to be straight with you about why. Is there a version of this, maybe a trial or a slightly different pattern, that might work for both of us?" The tone matters. People remember being heard, even when the answer is no. A flat refusal with no explanation is how a request you could have managed turns into a tribunal claim. Refusals handled badly, particularly where they touch childcare or another protected characteristic, have ended in five figure tribunal awards. ## What to write down For every flexible working request, keep: - the written request and the date you received it - notes from any meeting or consultation - your decision and the date you gave it - the business ground and your reasoning if you refused - the terms of any trial period and review date - any agreed change to the contract, confirmed in writing If you offer flexible working informally to some people but not others, write down why, or you risk it looking like favouritism, or worse, discrimination. ## If you are using an HRIS system Use it to: - log requests and the response deadline - store the request, notes and decision in one place - track trial periods and review dates - keep a clean record if a request is ever challenged Flexible working goes wrong when the request sits in an inbox and the decision lives in a manager's memory. ## The upside, because it is not all admin It is easy to read all this and see only risk. Handled well, flexible working is one of the cheapest retention and recruitment tools a small business has. People who can fit work around their lives tend to stay, work harder, and speak well of you. If you are flexible with your team, they are usually flexible with you when you need cover at short notice. That trade goes both ways. ## Bottom line - the right to request flexible working is a day one right - employees can make up to two requests in any 12 months - you must decide within two months and consult before refusing - you can only refuse on one of eight business grounds - more process and a reasonableness test are likely in 2025 reforms - write everything down ## Right, what do you do now? If your flexible working policy still says 26 weeks service, or you have no policy at all and you are handling requests on instinct, that is exactly the sort of gap we pick up in an HR Health Check. We will check what your contracts and handbook actually say, whether your process matches current law, and where the risk is hiding before it becomes a claim. If you would rather talk it through first, book a no pressure discovery call and we will point you in the right direction. Book your [free HR Health Check](/hr-health-check), or arrange a [discovery call](/discovery-call). Day to day questions like these are also exactly what our [HR Advice Line](/service-plans/hr-advice-line) and [HR Protect](/service-plans/hr-protect) support is built for. Kettle on. Standards up. Until next time, keep buzzing and take care of your people! --- ### 7 Common Payroll Mistakes Small Businesses Must Avoid - URL: https://kateunderwoodhr.co.uk/blog/guides/common-payroll-mistakes-small-businesses-must-avoid - Published: 2025-09-30T00:00:00.000Z - Category: guides - Tags: payroll-mistakes, payroll-errors-uk, hmrc-payroll-penalties # The payroll slip-ups that quietly cost you a fortune Picture this. Payday should be smooth sailing. Instead, one wrong tax code or a missed RTI and you have a letter from HMRC, an unhappy employee, or both. Small businesses feel this harder than big employers. Tighter cash, fewer hands, and a team who spot errors fast. The silver lining? Most payroll mistakes are common and totally avoidable. So here is the straight-talking guide to the payroll and expenses errors I see most, and how to stay on the right side of them. Hazel (our Chief Wellbeing Officer) has never once queried her pay, on account of being paid entirely in biscuits. A simpler model, admittedly. ## Quick Answer Box - Do this: pay at least the legal minimum, use correct tax codes, file RTI on time, and only deduct from wages with proper authority. - Avoid this: accidental minimum wage breaches, late HMRC submissions, guessed statutory pay, and deductions without written consent. - Write down: your payroll process, every deduction's legal basis, and a clear expenses policy, then keep the records. ## Paying below the minimum wage (often by accident) This is the big one, because most breaches are not deliberate. The National Minimum Wage and National Living Wage are set by age band and reviewed regularly. Do not rely on a rate you remember; check the current figures on [gov.uk](https://www.gov.uk/national-minimum-wage-rates) before every review. The sneaky ways businesses breach it without meaning to: - Deductions that push pay below the threshold, for example for uniforms, tools or training the job requires. - Unpaid working time, such as time spent on handovers, opening up, mandatory training or security checks. - Salary sacrifice that drops cash pay under the minimum. A scheme can be great and still illegal if it takes someone below the floor. - Forgetting to bump pay when someone moves up an age band on their birthday. HMRC can name and shame, demand arrears and issue penalties, so this is worth a careful annual check. Quick actions: - Audit pay after any deduction. - Add an age-band alert to your HRIS or payroll. - Keep a simple log of unpaid time risks and fix them. ## Wrong tax codes A wrong tax code means someone pays too much or too little tax, and it will land back on your desk eventually. Use the code HMRC provides, update it promptly when they tell you to, and make sure new starters are set up correctly from their starter information. If something looks odd, query it rather than guessing. [gov.uk has guidance on tax codes](https://www.gov.uk/tax-codes). Quick actions: - Use starter checklists for P45, P46 details, and student loans. - Reconcile codes against HMRC notices each month. - Sense-check 0T, BR, or emergency codes before payday. ## Late or incorrect RTI submissions Real Time Information is how you tell HMRC about pay and deductions. In most cases you submit a Full Payment Submission on or before each payday, with an Employer Payment Summary where relevant. Where SMEs trip up: - Submitting late, which can trigger penalties. - Reporting the wrong figures, then having to correct them. - Forgetting to report when there is no pay in a period. Accurate, on-time RTI is a habit. Good payroll software helps, but you still have to run it on time. See [running payroll and RTI on gov.uk](https://www.gov.uk/running-payroll). Quick actions: - Put payday and RTI deadlines in a shared calendar. - Run a pre-payroll checklist with two sets of eyes. - Use EPS for recovery items and nil periods. ## Holiday pay miscalculations Holiday pay goes wrong constantly, especially for staff with variable or irregular hours, where pay is usually based on an average over the previous 52 weeks. Fixed-hours staff are simpler, but enhanced holiday still needs pro rating for part-timers. We cover the whole thing in [how to calculate annual leave for part-time employees](/blog/guides/calculate-annual-leave-part-time-employees). Get the entitlement and the pay rate right, and write down your method. Quick actions: - Document your 52-week averaging method. - Exclude unpaid weeks from the average. - Review bank holiday treatment for part-timers. ## Incorrect statutory pay Statutory Sick Pay, Statutory Maternity Pay and the rest have qualifying rules and set rates, and they change. A few traps: - SSP now starts on day one of absence, which changes the cost picture. See [the UK statutory pay rates for 2026/27](/blog/legal/uk-statutory-pay-rates-2026-27). - Misjudging who qualifies, or paying the wrong rate. - Not accounting for how salary sacrifice can affect statutory pay, since some payments are based on earnings after the sacrifice. Do not quote the rates from memory. Confirm them on [gov.uk](https://www.gov.uk/statutory-sick-pay) each time. Quick actions: - Use eligibility checklists for SSP, SMP, SPP, SAP, and ShPP. - Recheck rates each April. - Keep MATB1 and fit notes filed against the right employee. ## Pension auto-enrolment errors Auto-enrolment duties are easy to let slip when you are busy. Common errors: - Not enrolling eligible staff, or enrolling them late. - Getting contribution levels wrong. - Missing re-enrolment duties, which come round on a cycle. - Forgetting to keep the records that prove you complied. Check current thresholds and duties on [gov.uk](https://www.gov.uk/workplace-pensions) and with your pension provider. Quick actions: - Run an eligibility assessment every pay period. - Diary your re-enrolment date and re-declaration. - Spot-check contribution bases and postponement letters. ## Unlawful deductions from wages This one has real legal teeth. Under section 13 of the Employment Rights Act 1996, you generally cannot deduct money from someone's wages unless: - it is required or allowed by law (such as tax and National Insurance), or - there is a relevant term in their contract allowing it, or - the employee has given prior written consent. So clawing back an overpayment, a cash-register shortfall or a training cost without the right authorisation is an unlawful deduction, and it can be challenged at tribunal. Get written agreement before you deduct, not after. ACAS has guidance on [deductions from pay](https://www.acas.org.uk/deductions-from-pay-and-wages). Quick actions: - Add a fair deductions clause to contracts. - Use signed repayment plans for overpayments. - Keep evidence on file before processing payroll. ## Do not forget expenses Expenses are part of getting payroll right, and they are easy to neglect. When you reimburse staff late or messily, morale dips, people feel they are funding the business out of their own pocket, and your records get tangled, which creates tax risk. To keep expenses clean: - Have a clear, written expenses policy: what is claimable, what evidence is needed, and the deadline to submit. - Reimburse promptly, ideally on a predictable cycle. - Keep receipts and records, and report taxable expenses and benefits correctly to HMRC. See [expenses and benefits on gov.uk](https://www.gov.uk/expenses-and-benefits-a-to-z). - Do not quote specific allowance rates, such as mileage, from memory; confirm the current figures. Quick actions: - Use a simple claim form or app with photo receipts. - Publish mileage, subsistence, and deadlines in one page. - Reconcile and reimburse with payroll each month. ## A short example Sam runs a 12-person café. He introduced a smart new uniform and deducted the cost from the team's first pay packet. Two problems landed at once: the deduction pushed a couple of his younger staff below the minimum wage for that period, and he had no written consent for the deduction in the first place. The fix was not complicated, but it cost him. He repaid the shortfall, added a proper deductions clause to contracts, and now checks pay against the current minimum wage rates every time HMRC updates them. One careful process, and the whole thing would never have happened. ## Common mistakes (and the fix) - Mistake: deductions or unpaid time pushing pay below minimum wage. Fix: check current NMW rates on gov.uk and audit pay after any deduction. - Mistake: using an outdated or wrong tax code. Fix: use HMRC's code, update promptly, query anything odd. - Mistake: late or incorrect RTI. Fix: file the FPS on or before payday, every time. - Mistake: guessing holiday or statutory pay. Fix: follow the proper method and confirm rates on gov.uk. - Mistake: deducting wages without authority. Fix: get prior written consent or a contract clause first. - Mistake: slow, undocumented expenses. Fix: clear policy, prompt reimbursement, kept receipts. ## What to write down Keep payroll defensible with a simple paper trail: - your end-to-end payroll process and who runs it - the legal basis for every deduction you make - the tax codes, hours and rates you used each period - your holiday-pay method and statutory-pay decisions - a written expenses policy and the records behind each claim - proof of pension auto-enrolment compliance If HMRC or an employee ever queries something, this is the file that answers it. Remember too that you must retain payroll records for several years, and from April 2026 employers are expected to keep annual leave and holiday pay records for at least six years. Confirm current requirements on gov.uk. ## Bottom line - Most minimum wage breaches are accidental; audit pay after any deduction. - Use correct tax codes and file RTI on or before payday. - Follow the proper method for holiday and statutory pay, and confirm rates on gov.uk. - Only deduct from wages with proper authority under the Employment Rights Act 1996. - Pay expenses promptly, keep the records, and keep them long enough. ## Right, what do you do now? If you are not confident your pay clears the minimum wage after deductions, your RTI is on time, or your deductions and expenses are properly documented, this is exactly the kind of thing we check on the [HR Advice Line](/service-plans/hr-advice-line) and in an [HR Health Check](/hr-health-check). No judgement, no jargon. Just a clear view of where your payroll is exposed and what to fix first. [Book a discovery call](/discovery-call) and we will run through it with you. --- ### Mandatory Compliance Training UK Employers Must Provide - URL: https://kateunderwoodhr.co.uk/blog/legal/mandatory-compliance-training-uk-employers - Published: 2025-09-03T00:00:00.000Z - Category: legal - Tags: compliance-training-uk, mandatory-employee-training-uk, health-and-safety-training-requirements-uk # Training is the boring bit that keeps people safe Nobody opens a small business because they're excited about compliance training. But the moment you take on staff, you take on a legal duty to provide health and safety training and make sure people are equipped to work safely and lawfully. Get it right and it's quietly invisible. Get it wrong and it shows up at the worst time, usually after an accident or a claim. Here's the plain-English version. What is required, what is sensible, and how to keep it organised so you can prove you did it. Hazel (our Chief Wellbeing Officer) completed her fire-safety induction by walking confidently to the nearest exit, which happens to be the kitchen. We're working on it. ## Quick Answer Box - Do this: give health and safety training to everyone, then add role-specific training based on the real risks of each job. - Legally required: health and safety training (including induction, and fire safety and manual handling where relevant) under the Health and Safety at Work etc. Act 1974. - Strongly advisable: anti-harassment and equality training, given the duty to prevent sexual harassment. - Write down: who was trained, on what, when, by whom, and when the refresher is due. ## Why this matters more than you think Training isn't paperwork for its own sake. It keeps people safe. It keeps you legal. If something goes wrong, it's your evidence that you acted responsibly. The cautionary tales are real. Compliance failures can be extremely costly. The worst incidents often trace back to someone not being trained for the task in front of them. Closer to home, businesses face fines and tribunal claims not because they meant any harm, but because they couldn't show staff had been trained on the things that mattered. The difference between a defensible position and an expensive one is often a training record. ## What the law actually requires The cornerstone is the [Health and Safety at Work etc. Act 1974](https://www.legislation.gov.uk/ukpga/1974/37/contents), backed by the Management of Health and Safety at Work Regulations 1999. Together they require employers to provide the information, instruction, training, and supervision needed to keep people safe at work. The [HSE guidance on health and safety training](https://www.hse.gov.uk/training/index.htm) is the practical reference. In practice, that means, as a minimum: - Induction training for every new starter, covering your workplace, hazards, and emergency procedures. - Fire safety, so people know what to do and how to get out. - Manual handling, wherever lifting or carrying is part of the job. - Risk-specific training for the particular hazards of a role (for example, working with chemicals, machinery, or at height). This duty applies wherever people work, including at home. A hybrid or home-based worker still needs to understand safe working and your emergency expectations. ## The training that depends on your role or sector Beyond the universal health and safety baseline, what is required depends on what your people actually do. Common examples: - First aid. The level of provision depends on your size and risk. Many workplaces need at least a trained first-aider. - Food hygiene. Essential for food businesses, from cafés to caterers. The [Food Standards Agency](https://www.food.gov.uk/) sets out what is expected. - Safeguarding. Required in care, education, and any role working with children or vulnerable adults. - Data protection and UK GDPR awareness. Anyone handling personal data should understand how to keep it secure and how to spot a breach. - Anti-harassment and equality. Not a standalone legal requirement in the same way as health and safety, but now strongly advisable. The duty to take reasonable steps to prevent sexual harassment, introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2024, makes good anti-harassment training one of the clearest ways to evidence those steps. The [ACAS guidance on preventing sexual harassment](https://www.acas.org.uk/sexual-harassment) is a sound starting point. ## Statutory versus mandatory: a quick definition These terms get used interchangeably, so here's the clean distinction. - Statutory training is required by law or by a statutory body. Health and safety training under the 1974 Act is the classic example. - Mandatory training is training your organisation decides is compulsory so staff can do their jobs safely and effectively. It may flow from legislation, official guidance, or your own judgement about a role. The two overlap, and for record-keeping purposes you should track both the same way. The label matters less than the question: can you show this person was trained on what their job demands? ## How to work out what your people need: a step-by-step checklist - Start with your risk assessment. The hazards you identify point straight to the training people need. - List every role and ask: what could go wrong, and what training prevents it? - Separate the legally required (health and safety, sector statutory training) from the strongly advisable (anti-harassment, data protection). - Decide on induction training for new starters and the right refresher cycle for each topic. - Choose the delivery method to match the risk: e-learning for awareness topics, in-person or hands-on for practical skills. - Build a simple training matrix listing who needs what, and when it is due. - Schedule it, deliver it, and record it. - Review the matrix at least annually and whenever roles, risks, or the law change. ## Induction versus refreshers Training isn't a one-and-done event. Induction gets new starters safe and oriented from day one. Refreshers keep that knowledge current as people, equipment, and rules change. How often you refresh depends on the topic and the risk. Fire safety and first aid are typically refreshed on a regular cycle. Awareness topics such as data protection might be annual. The key is to decide the cycle, write it down, and stick to it, rather than waiting for an incident to remind you. ## Recording and evidencing training: the bit that saves you If you can't prove training happened, then for practical purposes it didn't. Recording is the unglamorous step that turns "we definitely covered that" into solid evidence. For each training event, capture: - who was trained - what the training covered - the date it was completed - who delivered it (and any certificate or test result) - when the refresher is due Keep records secure, easy to retrieve, and for long enough to be useful if there is an accident, a claim, or a tribunal. There isn't a single blanket statutory retention period for all training records, but tribunal time limits and any sector-specific rules mean you should keep them well beyond the training date. Check any rules that apply to your sector. Tip: a central register plus certificates saved in one folder beats scattered inboxes every time. ## E-learning versus in-person Both have their place, and the right answer is usually a mix. - E-learning suits awareness-level topics: data protection, anti-harassment basics, general fire awareness. It's efficient, easy to roll out, and the best platforms include a short test so you can evidence understanding, not just attendance. - In-person or hands-on suits practical skills: first aid, certain manual handling, and equipment-specific training where someone needs to physically demonstrate competence. Match the method to the risk and to how you will check the training actually landed. ## Common mistakes (and the fix) - Mistake: assuming "small business" means health and safety training is optional. Fix: the duty applies from your first employee. Provide induction and the relevant risk-based training. - Mistake: training people once and never refreshing. Fix: set a refresher cycle for each topic and diarise it. - Mistake: delivering training but keeping no record. Fix: log who, what, when, and the next due date for every session. - Mistake: forgetting home and hybrid workers. Fix: the duty follows the worker, wherever they work. - Mistake: treating anti-harassment training as optional. Fix: it's strong evidence of "reasonable steps" under the Worker Protection Act, so include it. ## A short example A Hampshire care provider with eight staff was confident its team was "well trained". Then a safeguarding concern was raised, and the question came: can you show every member of staff completed safeguarding and that it was up to date? The training had happened, but it lived in scattered emails and one manager's memory. After that scare, the owner built a simple training matrix: a single sheet showing each person, their required training, completion dates, and refresher due dates, with certificates stored alongside. The next time anyone asked, the answer took thirty seconds and looked thoroughly professional. Same training, far stronger position. ## What to write down Use a simple matrix that shows, for each employee: - the training required for their role - the date each item was completed - who delivered it, plus any certificate or test result - the next refresher due date - where the certificates are stored ## Bottom line - Health and safety training is a legal duty from your very first employee. - What else is mandatory depends on the role and sector, so let your risk assessment guide you. - Anti-harassment and equality training is strongly advisable, not optional, given the duty to prevent harassment. - Record everything. If you can't evidence it, you can't rely on it. ## Right, what do you do now? If you're not sure what training your team is legally required to have, or your records are scattered across inboxes, this is exactly the sort of thing we untangle in an HR Health Check. We map what is required, what is missing, and what to fix first. For getting training organised and tracked properly, [HR Excel](/service-plans/hr-excel) helps you put the systems in place, and [HR Protect](/service-plans/hr-protect) gives you ongoing support when questions come up. You can also keep an eye on broader duties through our guide on the employer's [RIDDOR reporting obligations](/blog/legal/riddor-uk-employer-legal-duty). Book your [HR Health Check](/hr-health-check) or a [discovery call](/discovery-call) and let us make sure your people are safe, legal, and properly recorded. Until next time, keep buzzing and take care of your people! --- ### Applicant Tracking Systems: Smarter Hiring for SMEs - URL: https://kateunderwoodhr.co.uk/blog/talent-management/applicant-tracking-systems-for-smes - Published: 2025-09-03T00:00:00.000Z - Category: talent-management - Tags: applicant-tracking-system, applicant-tracking-system-for-small-business, ats-for-smes # Stop hiring from your inbox ## Applicant tracking system for small businesses: stop hiring from your inbox Picture this. Your last hire lived in your inbox. CVs everywhere. A couple on LinkedIn. One printed and slid across the counter. You meant to reply to everyone. You did not. Two great candidates drifted off after eight silent days. By the end you were not sure who you had spoken to or what you asked. You are not bad at hiring. You are just using the wrong tools. An applicant tracking system gives you one place to run a fair, fast, GDPR-safe process. The software will not fix chaos on its own, but with a tidy process it is your new best mate. Kettle on. Let's make your next hire your best one. ## Quick answer box ### The short version - An applicant tracking system advertises roles, collects applications, screens, schedules, and tracks candidates in one place. - It earns its keep if you hire often, get lots of applicants, or lose people to slow replies. - Software does not make hiring fair by itself. Use consistent criteria and structured interviews. - Watch for bias in any automated screening. The Equality Act 2010 still applies. - Handle candidate data under UK GDPR. Collect only what you need. Say how you use it. Do not keep it longer than needed. - Treat video interviews as real interviews. Test tech. Quiet space. Structured questions. > "Structured, consistent recruitment helps you compare candidates fairly and reduce discrimination risks." - [ACAS Guidance on Recruitment](https://www.acas.org.uk/recruitment) ## What does an applicant tracking system do? ### Core features An applicant tracking system pulls your hiring steps into one tidy place. Typical features help you: - Advertise. Post a role to multiple boards and your own site from one screen. - Collect. Use one standard application form. No more scattered inboxes. - Screen and shortlist. Filter against clear criteria so you focus on the right people. - Schedule. Send invites and let candidates pick a slot. Cut the back-and-forth. - Track and communicate. See stages at a glance and send timely updates so no one is left hanging. ### What it replaces In short, it replaces the inbox and spreadsheet scramble with one clean view of every applicant and where they sit in your process. ## Do small businesses need an applicant tracking system? ### You may not need one if - You hire once or twice a year - You get a manageable handful of applicants per role - Your current process is consistent and you reply fast ### It pays for itself when - You hire regularly or in batches - A single advert pulls in dozens or hundreds of applications - Candidates go cold because replies are slow or missed - You cannot show every applicant was treated the same way - More than one person is hiring and things fall between them The real test is simple. Is your current process costing you time, good candidates, or consistency? If yes, an applicant tracking system is worth a look. If no, skip the software for now. A quick note on choosing. Small-business systems vary in price and features. Pick based on your volume, the integrations you need, the candidate experience, and data handling. Long feature lists mean little if they do not match how you hire. > "The best tool is the one your team will actually use every day." - Kate Underwood, HR Queen Bee, based on client work with UK SMEs ## Run a fair process that stands up A fair, structured process is the bit the software cannot do for you. It matters most. ### Structured criteria and interviews - Start from the job. A clear job description and person spec give you assessment criteria. If you have not nailed those, start with your JD and advert basics. - Score against criteria, not gut feel. Decide essential and desirable criteria before you read a single CV. Rate everyone the same way. - Use structured interviews. Ask each candidate the same core questions and take notes. It makes comparison fair and defensible. - Add a simple task. A short practical test or work sample often beats a second interview. - Do not chase the perfect unicorn. Hire the strong candidate who meets the key criteria and fits how you work. ### Mind UK equality law and GDPR basics - Equality Act 2010. Keep criteria job-related. Be alert to bias, including in any automated CV screening your applicant tracking system offers. Review decisions, do not trust them blindly. See GOV.UK guidance: [Equality Act 2010 - Guidance](https://www.gov.uk/guidance/equality-act-2010-guidance). - UK GDPR. The moment someone applies you hold personal data. Have a lawful basis and a clear privacy notice. Collect only what you need. Keep it secure. Do not store it longer than needed. See the [ICO guidance on data protection in recruitment](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/). #### Video interviews done well - Test the tech first. Camera, mic, connection, and the platform. - Pick the right space. Quiet, tidy, well lit, plain background. - No interruptions. Silence notifications. Phone away. - Keep it structured. Same core questions. Take notes. - Remember they judge you too. Be on time. Be prepared. Be human. - Have a backup. Swap mobile numbers so a drop becomes a quick call. ## Common mistakes and how to fix them ### Mistakes to avoid - Buying software to paper over a messy process - Letting an applicant tracking system auto-screen without checking for bias - Asking for more personal data than needed - Hoarding candidate data indefinitely - Slow, silent communication that loses your best applicants - Winging interviews with different questions for each person - Skipping any practical test - Holding out for a mythical perfect candidate while the team carries the gap ### Fixes and practical help - Map your process. Write the stages, owners, and timings on one page. - Set criteria first. Agree essential and desirable must-haves before you post. - Standardise interviews. Shared questions, shared scoring, shared notes. - Speed up comms. Use templates and booking links to reply within 48 hours. - Tidy the data. Adopt one system and a clear retention schedule. Need a hand? Book a free [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) to test your recruitment process and data handling. Growing fast? Our [HR Excel plan](https://kateunderwoodhr.co.uk/service-plans/hr-excel) gives you templates, structure, and a managed HR system. Want quick advice on a live hire? The [HR Advice Line](https://kateunderwoodhr.co.uk/service-plans/hr-advice-line) is your rapid sense check. Or [book a discovery call](https://kateunderwoodhr.co.uk/discovery-call) and tell us what hiring looks like for you right now. > Where to find up-to-date stats to back your business case: CIPD Resourcing and Talent Planning survey 2024 to 2025 for time-to-hire trends, and ONS vacancy data for applicant supply by sector. Add numbers once confirmed. ## FAQs ### Quick answers - What is an applicant tracking system? - Recruitment software that helps you post jobs, collect and screen applications, schedule interviews, and track candidates in one place. - Do small businesses need an applicant tracking system? - If you hire rarely and keep on top of replies, maybe not. If you hire often or get lots of applicants, it saves time and improves consistency. - Is an applicant tracking system compliant with UK GDPR? - It can support compliance, but you are still the data controller. Set your lawful basis, privacy notice, security, and retention rules. - How do I avoid bias with an applicant tracking system? - Use job-related criteria, structured interviews, and review any automated screening. Document decisions. Follow Equality Act 2010 guidance. - How long should we keep candidate data? - Many employers keep records for around six months after a decision, then delete. If you want to keep details for future roles, get consent. - Can I run video interviews fairly? - Yes. Use the same questions, take notes, and treat it like an in-person interview with the same standards. ## As we wrap up Good hiring is not luck. It is a fair, repeatable process with the right tools doing the boring bits. If that sounds like a relief, you lovely lot are my people. Kettle On. Standards Up. And until next time, keep buzzing and take care of your people! --- ### Why Small Businesses Outsource Learning and Development - URL: https://kateunderwoodhr.co.uk/blog/talent-management/small-businesses-outsource-learning-and-development - Published: 2025-09-03T00:00:00.000Z - Category: talent-management - Tags: ld-outsourcing, outsourced-ld-services, small-business-training-plan # The training plan that lives in a drawer Picture this. You meant to sort learning and development ages ago. There is a budget line. Maybe even a folder. But the plan lives in a drawer, and training only happens the day before an audit or right after something breaks. Good news. L&D for a small team does not have to be fancy or pricey. It has to be deliberate. This guide covers why it matters, three simple delivery options, and a plan you will actually use. Hazel, our Chief Wellbeing Officer, is a big fan of continuous development. Mainly her own. Mainly finding new ways to open the treat cupboard. ## Quick Answer Box - Do this: write a one-page L&D plan and a simple training matrix, then deliver it with a sensible mix of in-house, outsourced and e-learning. - Avoid this: treating training as a one-off event, or only doing it reactively when something breaks. - Write down: who needs what training, by when, how it is delivered, and what you expect to change as a result. ## Why does learning and development matter for a small business? When you are small, every person counts more. One unhappy leaver, one avoidable mistake, one compliance gap hits harder than it would in a large company. That is why L&D earns its place. It pays back in three ways: - Retention. People stay where they are growing. Show a path and invest. Replacing your best person costs in recruitment, lost productivity and slower onboarding. - Capability. Trained people make fewer mistakes, work faster, and need less hand-holding. That frees you up to do the things only you can do. - Compliance. Some training is not optional. Depending on your sector you may have legal duties around health and safety, fire safety, food hygiene, data protection or safeguarding. Getting this wrong is a risk you do not want. That last point links to a bigger topic. For the detail on what is mandatory and how to keep records, see our guide to [essential compliance training for UK employees](/blog/legal/mandatory-compliance-training-uk-employers). ## In-house, outsourced or e-learning: which one? There is no single right answer. Match the method to the topic. Here is the simple version. ### In-house training This is training you deliver yourself, using your own people and knowledge. - Best for: your products, your processes, your systems, your culture. The things nobody outside your business can teach as well as you can. - Watch out for: consistency. If three managers each induct new starters their own way, you get three different versions of how things are done. Write it down so the message is the same every time. ### Outsourced training This is bringing in a specialist provider, trainer or coach to deliver something for you. - Best for: management and leadership development, sector qualifications, anything specialist or one-off, and situations where an external voice carries more weight than an internal one. - Watch out for: cost and relevance. A generic away-day can feel great on the day and change nothing by Friday. Be clear on what you want people to do differently afterwards. ### E-learning This is online, self-paced training on a laptop, tablet or phone. - Best for: standard knowledge topics, compliance refreshers, onboarding, and anything you need to deliver consistently to people on different shifts or sites. - Watch out for: completion. Buying licences is not the same as people finishing the courses. Set deadlines and check progress. E-learning has quietly become the default for a lot of small-business training, for good reasons: - It is usually cheaper than sending people on residential courses, with no travel or cover costs. - It is flexible, which suits part-time staff, carers and anyone who finds a fixed classroom day hard to attend. - It is consistent, so everyone gets the same message and you get a record of who completed what and how they scored. - It can be revisited, so the learning sticks rather than evaporating two weeks later. For most small businesses the answer is not one of these three. Use a mix. Teach what makes you, you. Use e-learning for the standard stuff at scale. Bring in a specialist for high-value or high-stakes topics. Tip from this HR geek: log your training and expiry dates in a simple HR system. Breathe HR does this nicely and saves you chasing spreadsheets. ## Why do so many small businesses outsource L&D? Because building a training function from scratch is a lot of work for a team that is already stretched. Larger firms have an L&D department. You probably have you, plus a to-do list as long as your arm. Outsourcing usually means handing the heavy lifting to a partner: a provider for the e-learning platform and content, and an HR partner to set the strategy, define what good looks like, and keep it on track. You stay in control of the direction. You are just not the one building every course and chasing every completion. This is the sort of thing our [HR Excel](/service-plans/hr-excel) clients lean on us for, the strategic side: what to develop, in what order, and how to track impact. ## How do you build a simple L&D plan? You do not need a fancy document. One page is plenty. Here is a step-by-step you can do this week. ### Step 1: Decide what good looks like For each role, jot down the skills and knowledge someone needs to do it well. Do not overthink it. Three to six bullet points per role is fine. ### Step 2: Spot the gaps Compare where people are now against that list. One-to-ones, appraisals and the issues that keep landing on your desk will tell you most of what you need to know. If the same mistake keeps happening, that is a training gap waving at you. ### Step 3: Build a training matrix A training matrix is a grid. Roles or names down one side, courses or skills across the top, and each cell shows the status: done, due, expired, not needed. It is the single most useful L&D tool a small business can have, because at a glance you can see who is covered and what is about to lapse. ### Step 4: Prioritise You cannot do everything at once. Put anything legally required first, then anything that is causing real pain right now, then the nice-to-haves. Spread the rest across the year. ### Step 5: Choose the method and book it in For each item, decide: in-house, outsourced or e-learning. Then put dates in the diary. A plan with no dates is a wish list. ## A short example A six-person letting agency kept tripping over the same things: inconsistent inductions, a near-miss on an expired fire-safety certificate, and one manager who was ready for more responsibility but had no path to it. They built a one-page plan. Fire safety and data protection went onto e-learning with annual refreshers logged on a training matrix. Inductions were written up once so every new starter got the same version. And the promising manager was put through an outsourced first-line management course. Nothing exotic. Within a year the compliance scares had stopped, onboarding was faster, and the manager who had been thinking about leaving was running a small team and staying put. ## What about funding and the Apprenticeship Levy? A quick word on cost, because it stops people before they start. Larger employers pay the Apprenticeship Levy, which funds apprenticeship training. Smaller employers under the levy threshold do not pay it, but can still access funded apprenticeships through government co-investment. The government covers most of the training cost and you pay a smaller share. Apprenticeships are not just for school leavers. They can be a cost-effective way to build new skills in your existing team. The funding rules change from time to time, so check the current position before you budget. Start here: [gov.uk guidance on funding an apprenticeship](https://www.gov.uk/employing-an-apprentice/get-funding). ## How do you measure whether it worked? "Return on investment" sounds heavy, but for a small business it is mostly common sense. Decide upfront what should change, then look for it. - Did it happen? Completion and pass rates. The basic proof. - Did behaviour change? Fewer errors, fewer repeat questions, faster onboarding, better feedback in one-to-ones. - Did it move the business? Improved retention, better customer feedback, fewer compliance scares, people stepping up into bigger roles. If you cannot point to anything that changed, do not bin training. Check if you trained the right people on the right thing, and whether you supported them to use it afterwards. ## Common mistakes (and the fix) - Mistake: treating training as a one-off event. Fix: plan it across the year and log refreshers on a matrix. - Mistake: only training reactively, after something goes wrong. Fix: use one-to-ones and appraisals to spot gaps before they bite. - Mistake: buying e-learning licences and assuming the job is done. Fix: set deadlines and check completion. Bought is not the same as finished. - Mistake: sending people on a course with no clear purpose. Fix: decide what people should do differently before you book anything. - Mistake: building everything in-house because it feels cheaper. Fix: your time is not free. Outsource the standard stuff and keep your time for the things only you can teach. - Mistake: forgetting compliance refreshers expire. Fix: put expiry dates on the matrix and diarise them. ## What to write down Keep it simple, but keep it. Make sure you have: - a one-page L&D plan with priorities and dates - a training matrix showing who needs what, and what has expired - records of completed training, scores and certificates - a note of what each piece of training was meant to change - your compliance training and refresh schedule, stored somewhere safe and lasting Training that lives in someone's memory does not count when you need to prove it. Write it down. ## Bottom line - L&D matters most when you are small, because every person and every mistake counts more. - Match the method to the topic: in-house for your culture and processes, e-learning for standard knowledge at scale, outsourced for specialist or high-stakes development. - A one-page plan and a training matrix beat a fancy strategy nobody uses. - Smaller employers can access funded apprenticeships through co-investment. Check current gov.uk rules before budgeting. - Decide what should change before you train, then check whether it did. ## Right, what do you do now? If your training is more "panic" than "plan", and you are not confident your compliance refreshers are up to date, that is exactly the sort of thing we untangle for clients. Start with a free [HR Health Check](/hr-health-check). It will flag where your people processes, including development and compliance training, are strong and where the gaps are. Or if you would rather just talk it through, [book a discovery call](/discovery-call) and we will help you build a plan that fits your team and your budget. --- ### How to write a job description that actually works - URL: https://kateunderwoodhr.co.uk/blog/guides/how-to-write-a-job-description - Published: 2025-08-03T00:00:00.000Z - Category: guides - Tags: writing-job-descriptions, how-to-write-a-job-description, job-description-template # The document everyone writes in five panicked minutes Be honest. Nobody ever taught you how to write a job description, so the last one you wrote was probably knocked together at the last minute, half-borrowed from an old one, mostly to stop the recruiter ringing you for the fourth time. You are in good company. In small businesses, the job description is the document everyone needs and nobody loves. It gets written in a rush, used once to fill a vacancy, then shoved in a drawer until the next time. Which is a shame, because a good job description quietly does a lot of work for you long after the hire. It tells people what they are actually here to do. It anchors appraisals. It helps you set fair pay. And if a dispute ever lands, it is one of the few bits of paper that proves what the role genuinely required. So let's write one properly, once, and let it earn its keep. No jargon, no fluff. Kettle on. Let's make it useful. ## Quick Answer Box - A job description describes the job. A person specification describes the person you need. - Keep the structure simple: title, purpose, key responsibilities, reporting line, location or pattern. - Make every "essential" requirement a genuine need of the role, not a wish list. - Write inclusively. Avoid gender-coded or age-coded language to stay clear of Equality Act 2010 risk. - A job description is not legally required, but it underpins recruitment, performance, and pay. - Review it yearly and whenever the role changes. ## What a job description actually does for you It is tempting to see a job description as just a posh job advert. It is much more than that. A well-written one quietly improves four things: - Clear expectations. Most workplace grumbles start with confused expectations. A document that spells out what the role involves is fair to everyone and heads off a lot of "but I didn't think that was my job." - Fair pay decisions. You cannot benchmark a salary sensibly if nobody has written down what the role is. A clear job description lets you compare like with like and avoid over-paying or under-paying. - A backbone for appraisals. Whether you set targets or just talk about direction, the job description is the obvious starting point for "here's what good looks like in this role," and it makes the performance conversations in [what great managers say next](/blog/guides/can-we-talk-what-great-managers-say-next) far easier to ground in fact. - Protection if things go wrong. A job description is not a legal requirement, but it has real value in evidencing the genuine, objective requirements of a role, which matters if a recruitment or performance decision is ever challenged. Get it right and the same document supports hiring, managing, paying, and protecting. That is a strong return for a page or two. ## Job description versus person specification This trips up almost everyone, so let's make it clean. - The job description is about the job. What it is for, what it involves, where it sits. - The person specification is about the person. The skills, experience, and qualities someone needs to do it well. They work as a pair. The job description tells a candidate what they would be doing. The person specification tells you, and them, who is likely to do it well, and gives you fair, consistent criteria to assess applicants against. Keeping them separate matters for fairness too. When your criteria for the person are written down clearly as essential or desirable, you can score every candidate against the same yardstick, which makes your hiring decisions defensible rather than based on a gut feel you cannot explain. ## How to structure a job description Keep it simple and concrete. A clear structure beats a long one every time. - Job title. Plain and recognisable. "Customer Support Advisor" beats "Customer Happiness Ninja." Clever titles confuse candidates and search engines alike. - Purpose of the role. One or two sentences on why this job exists and what it is ultimately there to achieve. - Key responsibilities. A focused list of the main duties, usually five to ten bullets. Use active verbs ("manage", "respond to", "prepare"). Resist listing every tiny task. - Reporting line. Who they report to, and who, if anyone, reports to them. - Location and working pattern. Office, hybrid, or remote, and the hours or days. - A line about scope. Something like "and other reasonable duties in line with the role" stops the description becoming a ceiling, while staying fair. Then, alongside it, your person specification. ## How to write a fair person specification Split your criteria into two columns: - Essential. The things someone genuinely must have to do the job from the start. - Desirable. The nice-to-haves that would make someone stronger but are not deal-breakers. The discipline here is honesty. Every "essential" item should survive the question, "Could a capable person do this job without it, or learn it quickly?" If the honest answer is yes, it belongs in desirable, or nowhere. This is not just tidiness. Over-stuffed "essential" lists quietly screen out good people and can stray into discrimination. Demanding a specific qualification, a set number of years, or "recent" experience can indirectly disadvantage groups protected under the Equality Act 2010 unless the requirement is a genuine need of the role. ## Writing inclusive, non-discriminatory language This is where job descriptions can land you in trouble without you meaning any harm. The [Equality Act 2010](https://www.gov.uk/guidance/equality-act-2010-guidance) protects characteristics including age, sex, race, disability, religion or belief, sexual orientation, gender reassignment, marriage and civil partnership, and pregnancy and maternity. Your wording should never imply a preference linked to any of them. A few practical rules: - Lose gender-coded words. "Strong", "dominant", "competitive", and "rockstar" skew male; "supportive", "caring", and "nurturing" skew female. Describe the work, not a stereotype. - Avoid age signals. "Young and energetic", "recent graduate", or "digital native" can amount to age discrimination. So can "mature" at the other end. - Be careful with "essential" experience. "Must have 10 years' experience" can indirectly disadvantage younger or returning workers. Ask for the skill level, not the years. - Mind physical and availability requirements. Only include things like lifting, driving, or specific hours if the role genuinely needs them, and be open to reasonable adjustments for disabled candidates. - Drop "culture fit" as a vague criterion. It invites bias. Be specific about the behaviours or values you actually mean. For a fuller checklist of inclusive wording, [ACAS guidance on writing a job and person specification](https://www.acas.org.uk/hiring-someone) is a sensible reference. ## Keep it current A job description written once and never touched becomes misleading. Roles drift. Responsibilities move around. Set a simple habit: - Review every job description at least once a year, ideally alongside appraisals. - Update it whenever the role meaningfully changes. - Check it still reflects reality before you re-advertise the role. A current job description keeps appraisals honest, makes pay reviews fair, and is far more useful than a fossil if you ever need to restructure or defend a decision. ## What to write down For each role, keep a single, current document that captures: - Job title and purpose - Key responsibilities and reporting line - Location and working pattern - The person specification, split into essential and desirable - The date last reviewed, so you know when it is going stale Store it where managers can actually find it, not buried in one person's inbox. ## Common mistakes to avoid - Treating the job description as just an advert and binning it after the hire. - Confusing the job description with the person specification, then assessing candidates against vague gut feel. - A wish-list of "essential" criteria that no real human meets, which slows hiring and screens out good people. - Gender-coded or age-coded language that creates Equality Act risk. - Cute job titles that nobody searches for and candidates do not understand. - Letting it go years out of date, then leaning on it in an appraisal or dispute. ## A simple template you can copy > Job title: [Plain, recognisable title] > > Reports to: [Manager's role] > > Location / pattern: [Office, hybrid, or remote; hours or days] > > Purpose of the role: [One or two sentences on why this job exists and what it achieves.] > > Key responsibilities: > > - [Active verb + task] > - [Active verb + task] > - [Active verb + task] > - And other reasonable duties in line with the role. > > Person specification: > > - Essential: [genuine must-haves] > - Desirable: [nice-to-haves] > > Last reviewed: [date] Fill that in honestly and you have a document that pulls its weight across hiring, managing, and paying. ## When to get help A clear job description is the foundation of fair hiring, sensible pay, and confident performance conversations. If yours are out of date, inconsistent across the team, or you are worried the wording could trip an Equality Act problem, it is worth a fresh pair of eyes. An [HR Health Check](/hr-health-check) will tell you whether your job descriptions, recruitment, and documentation hold together or leave gaps. Our [HR Advice Line](/service-plans/hr-advice-line) can sense-check a specific job description before you advertise, and [HR Excel](/service-plans/hr-excel) gives growing teams the documents and templates to do this consistently. Or just [book a discovery call](/discovery-call) and we will help you get your roles written down properly. A job description is not red tape. Done well, it is one of the most useful pages in your business. Kettle on. Standards up. And until next time, take care of your people. --- ### Can an Employer Give a Bad Reference? The UK Rules - URL: https://kateunderwoodhr.co.uk/blog/legal/can-employer-give-bad-reference-uk-rules - Published: 2025-08-03T00:00:00.000Z - Category: legal - Tags: bad-reference-uk, uk-employment-reference-law, giving-a-bad-reference-uk # "Just say I was rubbish" is not a reference policy A reference request lands in your inbox for a former employee you were glad to see the back of, and the real question in your head is: can you give a bad reference, and should you? Part of you wants to be honest. Part of you remembers a vague warning that bad references are "not allowed". So you freeze, or worse, you fire off a quick comment you have not really thought through. Here is the good news: you are allowed to give an honest reference, even a negative one. The catch is that there are rules, and an off-the-cuff comment is exactly where small businesses get caught out. Let us make this simple and practical. ## Quick Answer Box - **Do this:** decide on a reference policy, keep references factual and accurate, and apply the same approach to everyone. - **Avoid this:** off-the-cuff verbal comments, opinions you cannot back up, and anything that gives an unfair overall impression. - **Write down:** who is allowed to give references, what you will and will not include, and the evidence behind anything negative. ## Do you have to give a reference at all? In most cases, no. There is generally no legal duty on an employer to provide a reference. That surprises a lot of people, but it is why so many companies give only a short, factual reference, or sometimes none at all. There are exceptions. Some regulated sectors, such as parts of financial services, require a reference in a particular form. If you work in one of those areas, the rules are stricter, so check your sector before you set a policy. For most small businesses, though, the choice is yours. The practical takeaway: you are not obliged to write a glowing reference for someone who did not earn it. You are also not obliged to write a damning one. You get to decide your approach, as long as you apply it fairly. ## What can an employer legally say in a reference? If you do give a reference, the law expects it to be handled with care. The established principle is that a reference must be: - True - Accurate - Fair - Not misleading as an overall impression That last point matters. You can technically include only true facts and still mislead, for example by mentioning a single complaint while leaving out the context that it was investigated and dismissed. The overall picture has to be fair, not just each individual line. Crucially, you owe a duty of care to two people at once: - The former employee, who could be harmed by an unfair or inaccurate reference. - The new employer, who is relying on what you say to make a hiring decision. Get it wrong in either direction and you can be exposed. Talk someone up who is genuinely unsafe in the role, and the recipient may have a claim. Run someone down unfairly, and the former employee may have one. ## Can you give a bad reference? Yes. A negative reference is lawful if it is accurate, fair and can be substantiated. "Substantiated" is the word to hold onto. If you say someone had performance issues, you should be able to point to the reviews, the records, the conversations. If you say attendance was poor, you should have the absence data. What you must not do is dress up opinion as fact, or let a personality clash leak into what is supposed to be a professional assessment. As ACAS explains in its guidance on [giving references](https://www.acas.org.uk/providing-a-job-reference), a reference should be based on fact and given in good faith. The danger zone for small businesses is the casual, emotional response. The manager who picks up the phone, gets asked about a difficult leaver, and vents. That is where accuracy goes out of the window and risk walks in. ## Where it goes wrong: the risk routes If a reference is inaccurate, unfair or misleading, a former employee may have more than one way to bring a claim: - **Negligence**, if a careless reference causes them loss, such as a withdrawn job offer. - **Defamation**, if it contains untrue statements that damage their reputation. - **Discrimination or victimisation**, if a reference is worse because of a protected characteristic, or because the person previously raised a complaint or claim. The [Equality Act 2010](https://www.gov.uk/guidance/equality-act-2010-guidance) protects people from being treated badly for having done so, and that protection can extend beyond the end of employment. That last one catches people out. If an employee raised a grievance or a tribunal claim and then gets a noticeably colder reference, it can look like payback, even if that was not the intention. ## The off-the-cuff verbal reference trap The single most common mistake we see in small businesses is the unscripted phone call. Someone rings up, a manager who was not expecting it answers honestly, and three sentences later they have said something they cannot evidence and there is no record of what was said. A verbal reference carries exactly the same duty of care as a written one. The difference is you have no proof of what came out of your mouth, and neither does the person who gave it. If a dispute follows, that is a weak place to be standing. The fix is a rule everyone follows: reference requests go to one named person, and anything beyond confirming dates and job title is put in writing. ## Why a short factual reference is often the smart choice Plenty of well-run businesses give only a short factual reference. It confirms: - Job title - Dates of employment That is it. It sounds blunt, but it has real advantages: - It is consistent, so no one can argue they were treated worse than the last leaver. - It is accurate and easy to evidence. - It removes the temptation to editorialise. If a recipient pushes for more, you can politely explain that it is your company policy to give factual references only. That is a perfectly respectable answer, and it protects everyone. This is the same instinct that protects you when you make a job offer in the first place. A clear process beats a warm improvisation, which is why we always recommend confirming the key terms in writing, as we cover in our guide to whether a [verbal offer of employment is contractual in the UK](/blog/legal/verbal-offer-of-employment-uk). ## What to do if you receive a bad reference about a candidate? The flip side: you are hiring, and a reference comes back with something concerning. Do not panic, and do not assume the worst. - **Check the facts first.** Mismatched dates are often an admin error at the old employer, not a lie. Verify before you confront anyone. - **Separate fact from opinion.** "Missed sales targets" is a fact you can weigh. "Lacked enthusiasm" is an opinion that might say more about the referee than the candidate. - **Give the candidate a chance to respond.** A short call to talk it through is fair, and often clears things up. - **Make conditional offers.** Word offers so they are subject to satisfactory references. That way, if a genuine problem emerges before they start, you have room to act. A blank or sparse reference is not, by itself, a red flag. As above, many employers simply have a policy of giving minimal references. Ask the referee about their policy before reading anything into it. ## A short script for the awkward phone call If someone rings asking for a reference you would rather not give in full: > "Thanks for calling. Our policy is to confirm references in writing, and we provide factual information, so job title and dates of employment. If you send your request by email, I will get that confirmed for you." That is polite, professional and entirely defensible. It also buys you time to check your records rather than reacting in the moment. ## What to write down? For your reference process, document: - Your reference policy: factual only, or fuller references, and who decides. - The single named person or role authorised to give references. - A simple template for the factual reference you will give. - A rule that nothing substantive is given verbally; it goes in writing. For any reference that includes negative information, keep: - The specific facts stated. - The evidence behind each point: reviews, records, dates, investigation outcomes. - A note that it was checked for fairness and overall impression before it was sent. If you ever cannot point to the evidence behind a line, that line should not be in the reference. ## Common mistakes - Treating "you cannot give a bad reference" as the rule. You can, if it is accurate and fair. - Letting any manager answer reference calls off the cuff. - Mixing personal feelings into a professional assessment. - Giving a noticeably worse reference to someone who raised a grievance or claim. - Leaving out context so that true facts still create a misleading picture. - Having no policy at all, so every reference is improvised. ## The bottom line You can give an honest reference, including a negative one, as long as it is true, accurate, fair and something you can back up. The real risk is rarely the considered written reference. It is the careless verbal one, the unfair dig, or the reference that quietly punishes someone for speaking up. A simple policy fixes most of this: factual references only, one person responsible, nothing significant said out loud without a written record. If a dispute ever follows a difficult exit, knowing exactly how to accompany and document that process matters too, which is why it is worth understanding [who can accompany an employee at a disciplinary meeting](/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk) before you get there. If your reference process is currently "whoever picks up the phone says whatever feels right", that is exactly the sort of gap we look for in an [HR Health Check](/hr-health-check), or we can talk it through on a quick [discovery call](/discovery-call). Better a five-minute policy now than a claim later. --- ### TUPE Transfers Explained: A Small Business Owner's Guide - URL: https://kateunderwoodhr.co.uk/blog/legal/tupe-transfer-guide-small-business - Published: 2025-08-03T00:00:00.000Z - Category: legal - Tags: tupe-transfer, tupe-regulations-uk, tupe-for-small-businesses # TUPE sounds like a sneeze, but getting it wrong can cost you thousands Picture this. You've won a cleaning contract and you're lining up kit for Monday. Then you find out you might also be taking on the cleaners. TUPE strikes at the exact moment you have a hundred other things to sort. Here's the calm bit. TUPE is there for one reason: to stop employees being treated as disposable when a business or service moves. Once you see what it protects, the rules click into place. This guide explains what TUPE is, when it applies, what you must do, and the slip-ups that trip up SMEs on both sides of a deal. Hazel, our Chief Wellbeing Officer, transferred to KUHR under what she insists were very favourable terms, namely a bed by the radiator. For everyone else, the terms come with paperwork. ## Quick Answer Box - Do this: work out early whether TUPE applies, then inform and consult affected staff before the transfer date. - Avoid this: changing transferred contracts to match your existing team, or dismissing people, because of the transfer. - Write down: who transfers, their existing terms, the consultation you ran, and the Employee Liability Information shared between employers. ## What is TUPE in plain English? TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. The core idea is simple. When the part of a business someone works in moves to a new employer, that person moves with it. They keep their job, their terms and conditions, and their continuous service, as if nothing had changed for them personally. The new employer steps into the shoes of the old one. That means the new employer inherits people, length of service, contractual rights, and liabilities. You cannot quietly leave the awkward bits behind. ## When does TUPE actually apply? There are two routes that trigger TUPE. You need to recognize both. ### A business transfer This is where a business, or a clearly identifiable part of it, is sold or transferred as a going concern. In short, the new owner takes on something that keeps running as the same operation: the people, the customers, the activity. Buying the assets of a working business usually triggers TUPE. Buying the shares in a company usually does not, because the employer stays the same, only its ownership changes. That distinction matters, so check it before you sign anything. ### A service provision change This is the one that catches SMEs by surprise. TUPE can apply when you: - outsource work to a contractor for the first time - switch from one contractor to another - bring outsourced work back in house So if you win a cleaning, catering, IT support or maintenance contract from another provider, you may be inheriting their staff. The same is true if you lose one. For more on whether the people doing your work are even employees in the first place, see our guide on [whether your contractor is really an employee](/blog/legal/is-your-contractor-an-employee). ## What the law says protects employees Once TUPE applies, several protections kick in automatically. - Automatic transfer. Affected employees move to the new employer on their existing terms and conditions. Nobody has to be re-hired or re-offered a job. - Continuity of service. Their length of service carries over, which affects redundancy pay, notice and other service-related rights. - Protected terms. Pay, holiday, hours and contractual benefits transfer across. The new employer cannot simply downgrade them. - Protection from dismissal. A dismissal is automatically unfair if its main reason is the transfer. - Information and consultation. Employees have the right to be informed and, where measures are planned, consulted before the transfer. These sit on top of usual employment rights. They do not replace them. ## The step-by-step process for an SME Whether you are the seller (the transferor) or the buyer (the transferee), the shape of the process is similar. ### Step 1: Confirm whether TUPE applies Do not assume. Look at what is actually moving. Is it a going concern, or a service contract changing hands. If you are unsure, get advice early, because the answer drives everything else. ### Step 2: Identify the affected employees Work out who is assigned to the part of the business or the contract that is transferring. This is not always obvious for people who split their time across roles. Get the list right early. ### Step 3: Share Employee Liability Information The outgoing employer must give the incoming employer the Employee Liability Information. That includes identities, ages, terms and conditions, disciplinary and grievance history, and any claims. It must be provided at least 28 days before the transfer. This is how the buyer learns what it is taking on. See the government guidance on TUPE for the current rules: [government guidance on TUPE](https://www.gov.uk/transfers-takeovers). ### Step 4: Inform and consult Both employers must inform the appropriate representatives of affected employees about the transfer: that it is happening, roughly when, why, and the likely implications. Where either side plans measures, they must consult on those too. Measures are any planned changes that affect people, such as hours, location, or ways of working. You can consult employees directly in some cases. Since July 2024, if you employ fewer than 50 people, or fewer than 10 employees are affected by the transfer, and there are no existing representatives, you may consult directly. Check the latest guidance or [ACAS](https://www.acas.org.uk/tupe). ### Step 5: Complete the transfer On the transfer date, the affected employees become the new employer's staff, on their existing terms. The new employer takes on their rights and the related liabilities from that point. ### Step 6: Manage life after the transfer carefully Resist the urge to tidy up contracts straight away. Changes connected to the transfer are very hard to make lawfully. More on that below. Instead, focus on a clean handover, payroll setup, and a proper welcome meeting. ## ETO reasons: the only real room to move Changes to terms, and transfer-related dismissals, are void or automatically unfair if the reason is the transfer itself. The narrow exception is an ETO reason: an economic, technical or organisational reason entailing changes in the workforce. - Economic: genuine cost pressures that require fewer roles - Technical: a new system or process that changes how work is done - Organisational: a restructure that changes roles or numbers It must entail changes in the workforce, usually numbers or functions. Harmonising the transferred staff's pay to match your existing team almost never qualifies, because the reason is the transfer. This is the single biggest area where well-meaning employers go wrong. For any dismissal, follow a fair process as well. The same fairness rules still apply. Our piece on [why a small business needs an HR audit](/blog/guides/why-small-business-needs-hr-audit) is a useful reminder of how easily process slips when things move quickly. ## Common mistakes SMEs make - Assuming a share sale triggers TUPE. It usually does not. Asset and business sales usually do. Mixing these up leads to the wrong plan. - Forgetting service provision changes count. Winning or losing a contract can move staff. People miss this and inherit or abandon employees by accident. - Skipping consultation. It feels like a formality, but failing to inform and consult can mean a protective award of up to 13 weeks' pay per affected employee. On even a small team that adds up fast. See [ACAS](https://www.acas.org.uk/tupe). - Changing contracts to harmonise. The classic trap. Aligning the new joiners with your existing terms is almost always transfer-related and therefore void. - Dismissing to make room. A dismissal whose main reason is the transfer is automatically unfair, full stop. - Poor Employee Liability Information. As a buyer, vague information leaves you exposed. As a seller, incomplete information can land you with a claim. ## What to write down Good records protect both sides if anything is challenged later. Keep: - a clear note of why you concluded TUPE did or did not apply - the list of affected employees and what they are assigned to - the Employee Liability Information shared, and when - who you informed and consulted, the dates, and what was discussed - any measures planned and the consultation about them - the transferred terms and conditions, captured as at the transfer date - the reason for any later changes or dismissals, and the process followed ## A short script for telling staff Affected employees are usually anxious, so keep the first message calm and clear: > I want to update you on a change that affects your role. The part of the business you work in is transferring to [new employer] on [date]. Under rules called TUPE, you will move across on your existing terms and conditions, and your length of service is protected, so you are not starting from scratch. We will hold a meeting to explain what this means, answer your questions, and consult you properly before anything happens. Nothing changes today, and I will put the key points in writing. Then follow through with the meeting and the written summary. Silence is what breeds rumour. ## Where to get the detail right TUPE rewards employers who plan early and punishes those who improvise. The regulations are technical, the deadlines matter, and the consultation duties apply to buyer and seller alike. If a transfer is on the horizon, or you have just realised one already happened and the paperwork is thin, an [HR Health Check](/hr-health-check) is a sensible first move. We can sense-check whether TUPE applies, who transfers, and what consultation you owe, before it becomes a tribunal claim rather than a tidy handover. If you would rather talk it through first, book a [discovery call](/discovery-call) and we will point you in the right direction. Get TUPE right and a transfer is just a busy fortnight. Get it wrong and it is a very expensive education. --- ### Probationary Periods: Do You Need a Formal Process? - URL: https://kateunderwoodhr.co.uk/blog/people-hr/probationary-periods-formal-process - Published: 2025-08-03T00:00:00.000Z - Category: people-hr - Tags: probation-period-uk, probationary-period-policy-uk, probation-review-meeting-uk # Probation period UK: a plain-English guide for small employers Picture this. The hire looked perfect on paper. Three weeks in, you are not so sure. This is exactly why the probation period UK employers rely on exists. You put time and hope into recruitment. Now there is a nagging question. Settle in slowly, or not the right fit at all? A simple, written probation process turns that feeling into a fair decision. A probationary period is not red tape. Done well, it is your lightest, clearest tool to make a call based on evidence. Yes, you do need a process. No, it does not need to be heavy. ## Quick Answer Box - Do this: set a clear probation length in the contract, give objectives and honest reviews, and write down what you decide. - Avoid this: treating probation as a free pass to dismiss anyone, or doing nothing then panicking at the end. - Write down: the probation length, the objectives, each review, and the final decision with the reasons behind it. ## Probation period UK: what the law actually says Here is the bit most people get wrong. Probation is not a legal concept. There is no statutory probation period in UK employment law. It is contractual, a clause that creates a defined window to assess a new hire. That has two big consequences: - You decide the rules. Length, any right to extend, and what notice applies. Put it in the contract. - Statutory rights do not switch off during probation. This is the part many employers misunderstand. So probation gives you a structured internal process. It does not create a rights-free zone. > "During a probation period, employees should get training, support and feedback to help them do their job well." - ACAS guidance Source: [ACAS, Probation periods](https://www.acas.org.uk/probation-periods) ## How long should a probation period be? There is no legal minimum or maximum. In practice, most employers use three to six months. - Three months suits roles where you can judge core tasks quickly. - Six months suits senior or complex roles where impact takes longer. Pick a period you can defend. Write it into the contract. Then back it up with clear expectations and real reviews. A date with no objectives is useless. Tip from the HR Queen Bee: book review dates on day one. Calendar invites beat good intentions every time. ## Which rights still apply during probation? Read this twice. During probation, employees and workers can still be entitled to: - Protection from discrimination, which applies from day one under the [Equality Act 2010 guidance](https://www.gov.uk/guidance/equality-act-2010-guidance) - Statutory Sick Pay, if they meet the qualifying conditions - Statutory minimum notice, once service triggers it - Pension auto-enrolment, subject to eligibility rules Probation tweaks your internal review process and sometimes the contractual notice. It does not remove core legal protections. Treating probation as "anything goes" is how small businesses stumble into a discrimination claim. ## What about notice during probation? Shorter notice in probation can be sensible if it is not working for either side. Two rules: - The contract must say so. If it does not, normal contractual notice applies. - It cannot go below the statutory minimum once that minimum applies. Check your contract wording before you rely on shorter notice, and confirm any notice in writing. For the statutory minimums that sit under all of this, see our guide to UK rates and thresholds: [UK statutory pay rates for 2026 to 2027](https://kateunderwoodhr.co.uk/blog/legal/uk-statutory-pay-rates-2026-27) and [GOV.UK notice periods](https://www.gov.uk/handing-in-your-notice). ## An important change on the horizon For years, the rough rule was ordinary unfair dismissal protection kicked in after around two years' service. That is expected to change. The Government has trailed plans to make unfair dismissal protection a day-one right, paired with a statutory approach to probation handling. The detail is still being finalised and is not yet law. Treat this as forthcoming, and check current status before you act. Suggested source to monitor: [GOV.UK King's Speech background briefing notes](https://www.gov.uk/government/publications) Practical point: the old "we can let them go easily in the first two years" mindset is fading. A fair, documented probation process protects you, now and later. ## How to run a probation process that actually works You do not need a thick policy. You need a few steps, done well. ### Step 1: Set clear expectations up front Before they start, agree what good looks like. Use the job description. The new starter should know the key tasks, the standards, and how you will assess them. No surprises. ### Step 2: Build an induction plan List what they need to learn and by when. Use a simple sign-off sheet for training with dates. That turns "they should be getting it by now" into visible progress. > "Clear objectives and regular reviews improve new starter performance and retention." - CIPD Onboarding factsheet Source: [CIPD, Onboarding and induction factsheet](https://www.cipd.org/en/knowledge/factsheets/induction-factsheet/) ### Step 3: Hold regular reviews Schedule short check-ins. Week one, month one, and the midpoint works well. Give honest feedback, listen to theirs, and note agreed actions. Most issues are fixable if raised early. Most disasters come from silence. ### Step 4: Offer support If someone is struggling, ask what would help. Training, clear priorities, buddying, or a bit more time. Show you tried to help. That is part of a fair process and part of a good culture. ### Step 5: Make a clear decision At the end, look at the evidence and decide: confirm, extend, or end. Whatever you choose, write it down with reasons. Confirm it in writing. ## Extending or failing probation - Extending: only if the contract allows it. If someone is close, an extension can be fair. Explain what must improve and set a firm date. Give a meaningful period, not a token week. If the contract is silent on extensions, you may not be able to extend, so fix the clause now, not at the deadline. - Failing: base the decision on evidence, not gut feel. Discrimination protection still applies, and day-one unfair dismissal is expected to arrive. If a tough chat could escalate, refresh your rights to companions at meetings: [who can accompany an employee at a meeting](https://kateunderwoodhr.co.uk/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk). Mini-drama from the hive: a café manager forgot to include an extension clause. They tried to extend a failing probation by email anyway. The employee refused, then later claimed the review was unfair. A one-line clause in the contract would have saved weeks of stress. Kettle on, clause added. ## A short script for a probation review To open an honest mid-probation check-in: "I wanted us to take stock of how the first few weeks have gone. There is a lot you have picked up well, and I want to flag a couple of areas to focus on, so you have a clear run at the rest of your probation. Let us talk through what would help, and I will put a short note in writing so we are both clear." Honest, supportive, and on the record. That is the goal. ## What to write down Keep a simple paper trail: - The probation length and any right to extend, stated in the contract - The objectives and standards shared at the start - Notes from each review, including feedback and concerns - Any support or training offered - The final decision, the reasons, and the written confirmation sent to the employee If you ever need to justify ending employment, this file is the difference between a clear decision and an argument you cannot win. ## Mythbuster parade - "Probation lets me dismiss with no process." No. Be fair, document reviews, and follow your contract. - "Under two years is low risk." That thinking is expected to change. Build your process now. - "I can extend any probation." Only if your contract says you can. - "Rights pause during probation." They do not. Day-one discrimination protection applies. ## FAQs - What is a fair length for a probation period in the UK? Three to six months is common. Pick a length you can justify for the role and put it in the contract. - Can I end employment during probation without a reason? You still need a fair, non-discriminatory reason and a basic process. Keep notes of objectives, reviews, support, and your decision. - Can I extend probation if the contract does not mention it? Usually no. Add an extension clause now for future hires. For the current case, take advice. - What notice applies during probation? Whatever the contract says, subject to the statutory minimum once it applies. Check: [GOV.UK notice periods](https://www.gov.uk/handing-in-your-notice) - Do employees get sick pay and holiday during probation? Yes. Statutory rights apply if they meet the conditions. Contractual extras depend on your policy. - Should reviews be monthly or more often? Early and often. Week one, month one, midpoint, and end. Add extras if support is needed. ## Helpful links and resources - [ACAS guidance on probation periods](https://www.acas.org.uk/probation-periods) - [Equality Act 2010 guidance](https://www.gov.uk/guidance/equality-act-2010-guidance) - [GOV.UK notice periods](https://www.gov.uk/handing-in-your-notice) - [CIPD Onboarding factsheet](https://www.cipd.org/en/knowledge/factsheets/induction-factsheet/) ## Need a hand tightening your process? - Get a free sense check: our [HR Health Check](https://kateunderwoodhr.co.uk/hr-health-check) spots missing clauses and messy reviews. - Want ongoing support while you grow? Our [HR Protect](https://kateunderwoodhr.co.uk/service-plans/hr-protect) plan covers contracts, handbooks, and advice. - Scaling fast or need hands-on help with reviews and onboarding? Meet our [HR Business Partner](https://kateunderwoodhr.co.uk/service-plans/hr-business-partner) service and our [Breathe HR setup](https://kateunderwoodhr.co.uk/services/hr-software) to keep everything tracked. - Prefer to talk it through? Book a quick [discovery call](https://kateunderwoodhr.co.uk/discovery-call). We will help you build a probation process that is fair to your people and safe for your business. As we wrap up, keep it human, keep it fair. Kettle On, Standards Up. Until next time, keep buzzing and take care of your people! --- ### Statutory Maternity and Family Leave: Employer's Guide - URL: https://kateunderwoodhr.co.uk/blog/legal/statutory-maternity-family-leave-employers-guide - Published: 2025-07-23T00:00:00.000Z - Category: legal - Tags: statutory-maternity-pay, statutory-maternity-pay-uk, maternity-cover-planning-for-small-businesses # Two words that put small employers in a spin There is a moment most small business owners remember, long before they have given statutory maternity pay a second thought. A valued team member asks for a quiet word, looks a bit nervous, and says "I'm pregnant." You are genuinely pleased for them. About half a second later, a second voice in your head says "how am I going to cover this, and what is it going to cost?" Both reactions are completely normal. The good news is that maternity, adoption and the wider family leave rules are far more manageable than they feel from the spinning-room moment. Most of it is process, and most of the cost is recoverable. This is the employer's how-to. If you just want to look up this year's pay rates, that lives in our [UK statutory pay rates cheat sheet](/blog/legal/uk-statutory-pay-rates-2026-27). Those numbers change every April, so always read the current figure rather than a number in an old blog. Here we focus on the bits that actually trip people up. Notice, cover, pay mechanics, protections and the return to work. Hazel, our Chief Wellbeing Officer, would like it noted that she fully supports parental leave, provided someone is left in charge of the biscuits. ## Quick Answer Box - Do this: get the notice and paperwork right, plan cover early, and keep in touch during leave. - Avoid this: panicking about cost. Most statutory pay is recoverable. Never treat a pregnant employee differently. - Write down: leave dates, the pay you will pay, KIT days used, and any return to work arrangements. ## The leave: what an employee is entitled to A pregnant employee has the right to up to 52 weeks of Statutory Maternity Leave, regardless of how long they have worked for you or how many hours they do. It splits into: - 26 weeks of Ordinary Maternity Leave - 26 weeks of Additional Maternity Leave They do not have to take all 52 weeks, but there is a compulsory minimum. By law a new mother must take at least two weeks off immediately after the birth. It is four weeks if she works in a factory. That part is not optional, for health and safety reasons. The full picture is on [maternity pay and leave (gov.uk)](https://www.gov.uk/maternity-pay-leave) and the practical day-to-day guidance is well covered by [ACAS on maternity leave and pay](https://www.gov.uk/maternity-pay-leave). ### Antenatal care comes first Before any of the leave admin, remember that a pregnant employee is entitled to reasonable paid time off for antenatal care. Appointments, check-ups and classes all count. "Reasonable" includes travel time. The partner of a pregnant woman is also entitled to unpaid time off to attend up to two antenatal appointments. Plan around these rather than grumbling about them. ## Statutory Maternity Pay: how it actually works This is the part people most want pinned down, so here is the mechanism without a figure, because the flat rate moves each April. - Statutory Maternity Pay, SMP, is paid for up to 39 weeks - the first 6 weeks are paid at 90% of the employee's average weekly earnings - the remaining 33 weeks are paid at the lower of a flat statutory rate or 90% of average weekly earnings For the current flat rate, see the [statutory pay rates cheat sheet](/blog/legal/uk-statutory-pay-rates-2026-27) or [gov.uk](https://www.gov.uk/maternity-pay-leave). To qualify for SMP, an employee generally needs around 26 weeks of continuous service by the qualifying week. That is the 15th week before the baby is due. They also need average earnings at or above the Lower Earnings Limit. If someone does not qualify for SMP, they may be able to claim Maternity Allowance through [gov.uk](https://www.gov.uk) instead. SMP is paid by you through payroll like a wage. Maternity Allowance is claimed by the employee from the state. ### The bit that calms nervous owners: you get most of it back This is what too many small employers do not realise. You can reclaim the large majority of the SMP you pay out through your payroll. Smaller employers can usually reclaim an even higher proportion under Small Employers' Relief. So the cash flow stings, but the net cost to the business is far smaller than the headline. Check the current recovery percentages before you budget, because they are set by HMRC and can change. ## Keeping in touch, KIT days An employee on maternity or adoption leave can do up to 10 keeping in touch days without losing their statutory pay or bringing their leave to an end. KIT days are: - entirely optional, on both sides. You cannot insist, and neither can they - agreed in advance - genuinely useful for training, a team day, a handover or easing back in before the official return Used well, KIT days make the return smoother for everyone. Used badly, as a way to drag someone back to "just check a few things", they breed resentment. Keep them light and agreed. ## Redundancy protection, handle with real care It is a myth that you can never make someone redundant during pregnancy or maternity leave. A genuine redundancy can still happen. But this is one of the most heavily protected areas in employment law, and the protection got stronger in April 2024. There is now a protected period running through pregnancy and for 18 months after the birth. During that window, an employee at risk of redundancy must be offered any suitable alternative vacancy ahead of other staff, where one exists. Get the trigger date and the priority rule wrong and a defensible redundancy turns into an automatic unfair dismissal and a discrimination claim. If a redundancy situation touches anyone who is pregnant, on maternity, adoption or shared parental leave, take advice before you act. The same applies to running a fair process generally, which we cover in our guide on [how to make someone redundant fairly](/blog/legal/make-someone-redundant-fairly-avoid-tribunal-claims). ## Adoption leave, it broadly mirrors maternity If you have never dealt with adoption leave, do not assume it is exotic. The main adopter can take up to 52 weeks of adoption leave and may qualify for Statutory Adoption Pay, which works much like SMP. The principle is the same as maternity. The practical difference is timing and unpredictability. Things to be aware of with an employee adopting: - the process is long and emotionally heavy, with assessments and training, often over many months - a match is not final until the agency decision maker confirms it, so announcements can feel risky to the employee - statutory notice rules ask for notice that the real world placement timetable does not always allow, so be flexible - if you enhance maternity or paternity pay, consider enhancing adoption pay to match, for fairness - if a placement falls through at a late stage, an employee who has started leave keeps some leave entitlement. Either way they may be grieving a loss There is good background on the process at [adoption pay and leave (gov.uk)](https://www.gov.uk/adoption-pay-leave). The single best thing you can do is have a clear adoption policy so the employee is not left guessing. ## Neonatal care leave, the newer right The Neonatal Care, Leave and Pay Act introduced a new right from April 2025. If a baby is admitted to neonatal care within the first 28 days of life and stays for at least seven continuous days, eligible parents can take up to 12 weeks of neonatal care leave. Key points: - it is on top of maternity, paternity, adoption and shared parental leave, not instead of it - it is available per child, and can be taken in blocks over a 68 week window from the birth - statutory neonatal care pay is paid at the usual family leave rate, subject to eligibility, and is recoverable like other statutory payments For a family living between a hospital ward and work, this matters enormously. Practically, make sure your payroll can handle staggered blocks of leave. Keep your documentation simple and compassionate rather than bureaucratic. Brief managers to handle it gently. ## When pregnancy or a baby ends in loss This is the hardest section, and the one most policies skip. Pregnancy loss and the death of a baby are among the most distressing things anyone experiences, and how you respond as an employer is remembered for life. A few things to know: - pregnancy and maternity are protected characteristics, and that protection does not vanish the moment a protected period technically ends. Treating someone badly because of a miscarriage can be discrimination. One employer found this when a dismissal after a miscarriage led to a tribunal award including a sum for injury to feelings - Parental Bereavement Leave, sometimes called Jack's Law, gives parents two weeks off following the loss of a child under 18 or a stillbirth after 24 weeks - the Employment Rights Act 2025 is expected to extend bereavement leave to cover pregnancy loss before 24 weeks. This is forthcoming rather than in force, so check the current position before relying on it Beyond the law, the human basics matter more than the paperwork: - reach out. Saying "I'm so sorry" is far better than saying nothing for fear of saying the wrong thing - do not make assumptions about what someone wants. Ask, and listen - be flexible about how and when they return, and about difficult dates later - point them to any Employee Assistance Programme you have ## When someone cannot return after maternity leave Sometimes an employee is not well enough to come back when the leave ends. This is a sensitive crossover between maternity and ordinary sickness, so tread carefully. - keep talking, and understand the medical picture before deciding anything - consider reasonable adjustments and flexible arrangements. The Equality Act 2010 may require adjustments where there is a disability - look at whether a phased return or a temporary alternative role would help - normal sickness and Statutory Sick Pay rules may apply once maternity pay ends, and SSP now starts on day one. See our note on [SSP starting on day one](/blog/legislation/ssp-starts-day-one-change-sick-pay) The cardinal sin is rushing to a decision without medical evidence and a fair process. Take advice if it is heading towards capability or dismissal. ## A step by step for the whole journey - Step 1: when the news comes, congratulate them and start a calm conversation, not a panic - Step 2: confirm the key dates and notice. The qualifying week and leave start for maternity, or matching and placement dates for adoption - Step 3: do a pregnancy risk assessment where relevant, and review it on return - Step 4: work out the statutory pay and check your recovery position with payroll - Step 5: plan cover early, before it becomes urgent - Step 6: agree any KIT days and stay lightly in touch - Step 7: plan the return to work, including a catch up and any phased start - Step 8: keep clean records throughout ## Common mistakes, and the fix - Mistake: panicking about cost. Fix: most statutory family pay is recoverable through payroll - Mistake: treating a pregnant employee differently "for their own good". Fix: that is how discrimination claims start. Consult them - Mistake: getting redundancy protection wrong. Fix: respect the protected period and offer suitable alternatives first. Take advice - Mistake: forgetting holiday keeps accruing during leave. Fix: it does. Plan for it and let it carry over where needed - Mistake: no adoption or neonatal policy. Fix: write one before you need it, not during a crisis - Mistake: silence after a loss. Fix: reach out. Saying nothing causes its own harm ## A manager script you can use When someone first shares the news: "That's lovely news, congratulations. There's nothing for you to worry about on the work side. I'll sort the practical bits, you focus on you, and we'll have a proper chat about timings when you're ready." If you need to talk about cover and dates: "I want to plan this well so it's smooth for you and for the team. Can we put the key dates in the diary, agree how much you'd like to stay in touch while you're off, and talk about how you'd like the return to look? Nothing's fixed, we'll shape it together." ## What to write down For every family leave case, keep: - the notification and key dates. Due date, leave start, placement dates - the leave type and the statutory pay you will pay - the pregnancy risk assessment and any review on return - KIT days agreed and used - cover arrangements - return to work plans, including any phased return or adjustments - in any redundancy situation, evidence that the protected employee was prioritised for suitable alternatives ## Bottom line - up to 52 weeks of maternity leave, with SMP for up to 39 weeks - most statutory family pay is recoverable, so the net cost is smaller than it looks - KIT days keep the connection without ending leave - redundancy protection is strong and now runs 18 months after the birth - neonatal care leave and adoption leave sit alongside maternity, with their own quirks - on loss, the human response matters as much as the policy ## Right, what do you do now? If your maternity policy has not been looked at since the 26 week redundancy rules changed, or you have no adoption or neonatal policy at all, that is exactly what an HR Health Check is for. We will check what your contracts and handbook actually say, whether your process matches current law, and where the risk is hiding. If you would rather talk it through first, book a discovery call. And for the day to day "she's just told me she's pregnant, what do I do" questions, that is precisely what our support packages cover. Book your [free HR Health Check](/hr-health-check), or arrange a [discovery call](/discovery-call). Ongoing questions like these are what our [HR Advice Line](/service-plans/hr-advice-line) and [HR Protect](/service-plans/hr-protect) support are built for. --- ### Working Time Regulations: Getting It Right (UK Employers) - URL: https://kateunderwoodhr.co.uk/blog/legal/working-time-regulations-uk-employers - Published: 2025-07-09T00:00:00.000Z - Category: legal - Tags: working-time-regulations, rest-breaks-at-work-uk, 48-hour-week-opt-out-uk # Rest breaks, the 48-hour week, and the rules people quietly get wrong If you run a small business, the Working Time Regulations are one of those things that sit in the background quietly working fine, right up until they don't. Usually it surfaces as a question you weren't expecting. "Can you make me work twelve days straight?" Or a night-shift worker asking why nobody ever checked they were fit to do nights. Or you, at 11pm, wondering whether the 48-hour week is a hard cap or an average, and whether anyone can actually agree to work more. This is the plain-English version. What the law actually asks of you, the bits people get wrong, and what to write down so a disagreement never turns into a dispute. Hazel (our Chief Wellbeing Officer) is firmly pro rest break. Her view is that 20 minutes minimum should apply to humans and that a nap should count. We're working on her. ## Quick Answer Box - Do this: respect the rest breaks, treat the 48-hour week as a 17-week average, and get any opt-out in writing. - Avoid this: making an opt-out a condition of the job, ignoring night work health checks, or assuming the under-18 rules are the same as everyone else's. - Write down: working patterns, any signed opt-outs, and a record of hours so you can show you are within the limits. ## What the law actually says The rules come from the Working Time Regulations 1998. They set out the maximum hours people can be asked to work, the rest they must get, and extra protection for night workers and young workers. The headline points for a small employer are: - a limit on average weekly working hours - daily and weekly rest - a rest break during the working day - paid holiday - stronger limits for night workers and under-18s None of it is especially complicated on its own. The trouble usually comes from treating one rule (like the 48-hour week) as something it isn't. Official guidance: [gov.uk maximum weekly working hours](https://www.gov.uk/maximum-weekly-working-hours) ## The 48-hour week (it's an average, not a daily cap) This is the one people most often misread. Workers should not work more than 48 hours a week on average. That average is normally measured over a 17-week reference period. So a busy week of 55 hours isn't automatically a breach, as long as it balances out across the 17 weeks. A worker can choose to opt out of the 48-hour limit. The opt-out has to be: - voluntary - in writing - something they can later cancel by giving notice The bit employers get wrong: you cannot make signing the opt-out a condition of getting the job, and you cannot pressure someone into it. It has to be a genuine choice. Always check the current notice period for withdrawing an opt-out on gov.uk before you rely on it. One important exception: night workers cannot opt out of the separate night work limit (more on that below). ## Daily rest, weekly rest, and the 20-minute break Three rest entitlements sit at the heart of the regulations. For most adult workers: - A rest break: at least 20 minutes when the working day is longer than 6 hours. They should be able to leave their workstation and not be on call during it, and it shouldn't be tacked onto the very start or end of the day. - Daily rest: 11 consecutive hours of rest in each 24-hour period. So if someone finishes at 9pm, they shouldn't be starting again until 8am. - Weekly rest: 24 uninterrupted hours off each week, or 48 hours off each fortnight. You don't have to pay for the 20-minute break, and you don't have to provide extra tea or smoking breaks on top. Many employers pay it anyway. Whatever you choose, make it consistent and write it down. Some roles (shift work, jobs a long way from home, round-the-clock cover, genuine emergencies) may qualify for compensatory rest instead, where the missed rest is taken as soon as possible afterwards. The detail varies, so check the rules for your situation rather than assuming an exemption applies. ACAS guidance: [rest breaks at work](https://www.acas.org.uk/rest-breaks) ## Night workers (the part that's easy to forget) If you have genuine night workers, there are extra duties. A night worker is, broadly, someone who regularly works at least 3 hours during the night period (normally 11pm to 6am). For them: - normal night working hours should not exceed an average of 8 hours in any 24-hour period, again measured over a reference period - regular overtime counts towards that limit - they cannot opt out of the night work limit - you must offer a free health assessment before they start night work and on a regular basis after that That health assessment is the one most small employers miss. It doesn't need to be elaborate, but it does need to happen and be recorded. GOV guidance: [night working hours](https://www.gov.uk/night-working-hours) ## Young workers (under 18) get stronger protection Workers over school leaving age but under 18 have tighter limits. As a general guide: - a 30-minute rest break if they work more than 4.5 hours - 12 hours of daily rest - 48 hours of weekly rest - lower weekly hour caps than adults Always check the current under-18 limits on gov.uk before setting a young worker's hours, because they differ in important ways from the adult rules and have a few specific exceptions. GOV guidance: [young people and work](https://www.gov.uk/child-employment) ## Holiday is part of this too The Working Time Regulations are also where statutory paid holiday comes from. The minimum is 5.6 weeks of paid holiday a year, which works out as 28 days for someone working five days a week. Part-time staff get the same 5.6 weeks, pro-rated to their pattern. If you've ever lost an afternoon to that maths, we've written it up properly here: [how to calculate annual leave for part-time employees](/blog/guides/calculate-annual-leave-part-time-employees). And once you've nailed the entitlement, the next puzzle is what to pay for it, which we cover in [how to calculate holiday pay](/blog/guides/how-to-calculate-holiday-pay-uk-2026). And a quick word of warning from a classic small-business trap: if your leave year runs 1 April to 31 March and your contracts say "20 days plus bank holidays", an odd year where a bank holiday falls outside your leave year can leave someone below 28 days without anyone noticing. The fix is to define the entitlement as a total number of days rather than "X plus bank holidays", so the statutory minimum is always met. GOV guidance: [holiday entitlement rights](https://www.gov.uk/holiday-entitlement-rights) ## Keeping records (the bit that's tightening) You're expected to keep adequate records to show you're meeting the limits, particularly the 48-hour week and night work. This is an area to watch. A European court ruling pushed employers towards keeping objective, reliable records of daily working time, and record-keeping duties around working time and holiday are expected to be strengthened further under upcoming reforms. The exact requirements may have moved by the time you read this, so treat record-keeping as something to tighten rather than relax, and check current gov.uk guidance before you rely on a minimum. The practical takeaway doesn't change: if you can't show what hours someone worked, you can't show you stayed within the law. ## A short example Sam manages a small café with a couple of late finishers and one early opener. One employee, Priya, regularly does 50-hour weeks in summer. That's fine as long as her average across the 17-week reference period stays at or under 48, or she has signed a voluntary opt-out. Sam gets the opt-out in writing rather than assuming, and notes that Priya can cancel it. A second employee, Jordan, does the 5am bakery shift, which runs into the night period. Sam realises Jordan counts as a night worker, offers a free health assessment, keeps his average night hours within the 8-hour limit, and notes that Jordan cannot opt out of that limit. Nobody's hours actually changed. What changed is that Sam can now show the rules were followed. ## Common mistakes (and the fix) - Mistake: treating the 48-hour week as a hard weekly cap. - Fix: it's a 17-week average. Look at the average, not a single busy week. - Mistake: making an opt-out a condition of the job. - Fix: it must be voluntary, in writing, and cancellable. - Mistake: forgetting night worker health assessments. - Fix: offer one before night work starts and regularly after, and record it. - Mistake: applying adult rules to under-18s. - Fix: young workers have stronger break and rest entitlements. Check them. - Mistake: "20 days plus bank holidays" wording that can dip below 28 days. - Fix: define holiday as a total number of days so you always meet 5.6 weeks. - Mistake: no records of hours. - Fix: keep enough to prove you're within the limits. ## What to write down For each worker, make sure you can show: - their normal working pattern and contracted hours - any signed 48-hour opt-out, and that it was voluntary - night worker status and the date of their last health assessment - rest break arrangements (and whether breaks are paid) - holiday year dates and entitlement as a total number of days - a record of hours worked, kept long enough to be useful in a dispute ## Bottom line - the 48-hour week is an average over 17 weeks, and opt-outs must be voluntary and in writing - rest breaks, daily rest, and weekly rest are minimums, not nice-to-haves - night workers and under-18s get extra protection that's easy to overlook - statutory holiday is 5.6 weeks, and your contract wording must always meet it - keep records, and expect record-keeping duties to tighten ## Right, what do you do now? If you're not certain your opt-outs are valid, your night work is covered, or your contract holiday wording always hits the statutory minimum, that's exactly the sort of thing we pick up in an HR Health Check. No judgement, just a clear view of what's solid, what's risky, and what to fix first. Book your HR Health Check here: [Free HR Health Check](/hr-health-check) Or if you'd rather talk it through first, [book a discovery call](/discovery-call). --- ### Settlement Agreements Explained for UK Employers (2025) - URL: https://kateunderwoodhr.co.uk/blog/legal/settlement-agreements-uk-employers-2025 - Published: 2025-07-03T00:00:00.000Z - Category: legal - Tags: settlement-agreement-uk, settlement-agreement-for-employers-uk, protected-conversation-employment-uk # The grown-up way to part company without a war: settlement agreements explained Sometimes an employment relationship needs to end, and both sides quietly know it. That is where a settlement agreement earns its place. The senior hire who is the wrong fit. The long-running tension no process will fix. You could grind through a formal procedure and hope it lands cleanly, or you could agree a dignified, certain exit that closes the door on claims and lets everyone move on. That second route is a settlement agreement, and for small businesses it can be one of the most useful tools in the box, as long as you understand how it works. It is also one of the easiest to get wrong, because strict rules decide whether the agreement is worth the paper it is written on. This guide covers what a settlement agreement is, when to use one, how the conversation is protected, what goes inside, and the tax position you must check. Hazel, our Chief Wellbeing Officer, has never knowingly signed anything, on principle. For everyone else, the small print matters. ## Quick Answer Box - Do this: use a settlement agreement when both sides want a clean, agreed exit, give at least 10 calendar days to consider, make sure the employee gets independent legal advice, and put everything in writing. - Avoid this: pressuring someone into signing, skipping the legal advice, or treating a settlement as a shortcut around a fair process you are legally required to follow. - Write down: the proposed terms, the payments and what each is for, the claims being waived, the reference wording, and the confidentiality terms. ## What is a settlement agreement? A settlement agreement is a legally binding contract between you and an employee, usually used when employment is ending, in which the employee agrees to waive the right to bring specified legal claims against you in return for an agreed payment or other terms. If the word "compromise agreement" is rattling around in your memory, that is the same thing under its old name. It was renamed "settlement agreement" in 2013. The attraction for an employer is certainty. Once the agreement is validly signed, the employee cannot later bring the claims they have given up. You buy a clear line under the relationship, and in return the employee usually receives a payment and other terms that make the exit worthwhile for them too. ## When should you use one? Settlement agreements are not for every exit. They earn their place in situations such as: - A sensitive departure where a formal process would be drawn out, painful, or risky for both sides. - A dispute that is heading for a grievance or a tribunal, where an agreed settlement is cleaner and cheaper than a fight. - A redundancy where you want extra certainty beyond the standard process, or want to offer enhanced terms in exchange for a waiver of claims. - A long-running performance or relationship issue where both sides would genuinely prefer to part ways by agreement. A settlement agreement is not a way to dodge a process you are legally required to run. If a fair procedure is needed, a settlement is an alternative route that both sides choose to take, not a trapdoor that lets you skip the fairness. ## How protected conversations and "without prejudice" work To agree an exit, you usually have to raise the subject. The obvious worry is: what if you suggest it, they say no, and then use your approach as evidence that you had already decided to get rid of them? Two principles help here, and they are not the same thing. ### Pre-termination negotiations (the protected conversation) Under section 111A of the Employment Rights Act 1996, an employer can have a pre-termination negotiation, often called a protected conversation, about an agreed exit, and that conversation generally cannot be used against the employer in an ordinary unfair dismissal claim. It is not a magic shield. The protection falls away if there is improper behaviour, such as bullying or undue pressure to sign. And it only covers ordinary unfair dismissal. It does not protect you in claims such as discrimination, whistleblowing or automatic unfair dismissal. So the protected conversation buys you room to talk, not a licence to behave badly. Best practice tips: - Offer at least 10 calendar days for the employee to consider the proposal. - Keep notes, mark them "protected conversation", and stick to facts and options. - Avoid threats or ultimatums. ### The "without prejudice" rule Separately, the "without prejudice" rule means that genuine attempts to settle an existing dispute usually cannot be put before a tribunal. The key difference from section 111A is that "without prejudice" needs an actual dispute already to exist. The protected conversation under section 111A does not, which is why it is useful for opening a conversation before any dispute has crystallised. In plain terms: section 111A lets you start the conversation; "without prejudice" protects settlement discussions once there is a dispute on the table. Get advice on which applies before you speak, because labelling an email "without prejudice" does not automatically make it so. Add "subject to contract" so no one thinks the deal is final until the agreement is signed. ## What makes a settlement agreement legally valid? This is the part you cannot afford to fudge. A settlement agreement only works if it meets the statutory conditions. In broad terms, it must: - Be in writing. - Relate to particular complaints or proceedings, not be a vague waiver of "any and all claims" in the abstract. - Be signed by the employee only after they have received advice from a relevant independent adviser, usually a solicitor, on the terms and effect of the agreement and, in particular, its effect on their ability to bring claims. - Identify that adviser in the agreement, and the adviser must have appropriate professional indemnity insurance. - Confirm that the statutory conditions for that type of agreement have been met. That requirement for independent advice is non-negotiable, and it is there to protect the employee, which in turn protects you: without it, the waiver is not effective. By long-standing custom, the employer contributes towards the cost of that advice, often a set amount. ACAS has helpful guidance on settlement agreements that is worth reading alongside this. Practical extras to include: - A clear offer letter setting out headline terms, marked "without prejudice" or "protected" as appropriate, and "subject to contract". - A reasonable deadline for consideration and a named contact for questions. - Space for the adviser's details and certificate wording. ## What goes inside the agreement? The detail varies, but most settlement agreements cover: - The payments. What is being paid, and importantly what each element is for. Typically a mix of contractual sums, such as notice pay and accrued holiday, and a compensation payment for loss of employment. - The claims being waived. The specific claims the employee is giving up, listed out rather than left vague. - A reference. Often an agreed reference wording is attached, so both sides know exactly what will be said to a future employer. - Confidentiality. What can and cannot be said about the agreement and the circumstances, on both sides. Note there are limits; confidentiality cannot be used to gag genuine whistleblowing or reports to regulators. - Other terms. Things like the return of company property, ongoing obligations, and sometimes an agreed announcement to colleagues. - Repayment or clawback. Limited to clear, fair triggers, such as a breach of confidentiality or a proven misrepresentation. ## The tax position, and why you must check the figure Here is where a lot of employers reach for a number they half-remember and get it wrong. Genuine compensation for the loss of employment can be paid free of tax up to a set threshold, with the balance taxable. But not everything in a settlement is "compensation for loss of employment". Pay in lieu of notice, accrued holiday and other contractual sums are generally taxable in the normal way, regardless of how the agreement is worded. HMRC's Post-Employment Notice Pay rules mean most notice amounts are taxed as earnings. The threshold and the rules on what is and is not taxable do change, and HMRC takes a close interest in how payments are described. So this is a flag, not a figure: do not lift a number from a blog, including this one. Check the current position on gov.uk's guidance on tax on termination payments and take advice before you commit to specific sums. ## Common mistakes employers make - Skipping or rushing the independent advice. Without valid advice, the waiver fails and you have paid out without buying certainty. - Applying pressure. Heavy-handed tactics can amount to improper behaviour, stripping away the section 111A protection. - Vague payment descriptions. If the agreement does not say what each payment is for, you create tax and enforceability headaches. - Assuming the tax-free figure. Quoting a remembered threshold without checking is a classic, avoidable error. - Using it to avoid a required process. A settlement does not cure an unlawful act; discrimination and whistleblowing protections survive. - Forgetting the reference. Leaving reference wording unagreed often causes the next argument, weeks later. ## What to write down Even though the formal agreement is drafted by lawyers, keep your own clear record of: - The proposed terms and any negotiation, ideally on a protected or "without prejudice" basis where appropriate. - The breakdown of payments and what each element represents. - The specific claims being waived. - The agreed reference wording. - Confidentiality and any carve-outs. - Confirmation that the employee received independent legal advice and who from. ## A short example opening line for a protected conversation How you open the conversation matters. Something measured like this sets the right tone: > "I would like to have a confidential, off-the-record conversation with you about your role and how things are going. Nothing is decided, and you do not have to respond today, but I want to be open about exploring whether an agreed way forward might suit us both. If we did go down that route, you would be able to take independent legal advice before deciding anything." No pressure, no ambush, and a clear signal that the employee will get proper advice. That is how you keep the conversation protected and the relationship dignified. ## Where to get this right Settlement agreements sit where HR and the law meet, and the cost of a misstep is high, so this is one to get advice on rather than improvise. Our [HR Advice Line](/service-plans/hr-advice-line) is exactly where employers talk through if a settlement is the right move and how to open the conversation safely, and our [HR Protect](/service-plans/hr-protect) service keeps your wider policies and contracts in good shape so an exit is clean when it comes. If you are not sure a settlement, a formal process, or something else fits your situation, an [HR Health Check](/hr-health-check) is a good place to start, or book a [discovery call](/discovery-call) and we will help you weigh it up. And if the underlying issue is conduct rather than a parting of the ways, our guide to running a [fair disciplinary procedure](/disciplinary-procedure-flowchart-uk) may be the better first read. A settlement agreement, used well, lets two sides part on adult terms with certainty on both sides. Used carelessly, it costs money and buys nothing. The difference is in the process. --- ### How to Calculate Holiday Pay in the UK (2025 Guide) - URL: https://kateunderwoodhr.co.uk/blog/guides/how-to-calculate-holiday-pay-uk-2026 - Published: 2025-07-02T00:00:00.000Z - Category: guides - Tags: holiday-pay-uk, holiday-pay-calculation-uk, overtime-holiday-pay-uk # Holiday pay looks simple. Then someone mentions overtime. Knowing how to calculate holiday pay feels like it should take five minutes. Someone's on holiday, you pay them what you'd normally pay them, done. And for a lot of staff, it genuinely is that simple. The trouble starts the moment hours vary, or overtime creeps in, or you've got someone on a zero-hours contract and you're staring at the payroll wondering what on earth counts as a "normal" week for them. This is the plain-English guide to getting it right. We'll keep the two big ideas separate (how much leave versus how much you pay for it), walk through the regular-hours case, then the variable-hours case, and clear up the bits that trip people up. Hazel (our Chief Wellbeing Officer) gets paid in biscuits regardless of hours worked, which is technically the simplest holiday pay scheme we've ever run. ## Quick Answer Box - Do this: pay normal pay for holiday, use a 52-week average for variable hours, and include regular overtime and commission. - Avoid this: confusing entitlement with pay, paying basic-only when overtime is regular, or using rolled-up pay for the wrong staff. - Write down: how you calculate each person's holiday pay, especially anyone with variable hours or rolled-up pay. ## First, the bit everyone muddles: entitlement is not pay These are two different questions, and almost every holiday pay mistake starts with mixing them up. - Entitlement is how much leave someone gets. The statutory minimum is 5.6 weeks a year. Working that out, especially for part-timers, is its own job, and we've covered it in detail here: [how to calculate annual leave for part-time employees](/blog/guides/calculate-annual-leave-part-time-employees). - Holiday pay is how much you pay them for the leave they take. That's what this guide is about. Keep them in separate boxes in your head and most of the confusion disappears. ## What the law says: a "week's pay" Holiday pay is based on the idea of a "week's pay". When someone takes a week's holiday, they should get a week's pay. Simple in principle. The complication is what counts as a "week's pay" when someone's pay isn't the same every week, and what has to be included in it. Case law has spent years answering that second question, and the short version is: holiday pay should reflect normal pay, not just basic contracted pay. GOV guidance: [calculate holiday pay for workers without fixed hours or pay](https://www.gov.uk/holiday-entitlement-rights) ## Regular hours and pay (the easy case) If someone works the same hours for the same pay each week, holiday pay is straightforward: - a week's holiday is paid as a normal week's pay - a day's holiday is paid as a normal working day No averaging, no spreadsheet gymnastics. Their normal pay is the holiday pay. Done. ## Variable hours or pay (the 52-week average) This is where most people get stuck. If hours or pay vary week to week, you can't just point at "a normal week" because there isn't one. So you work out an average. The method is a 52-week average: - look back over the previous 52 weeks in which the person was paid - ignore any weeks where they got no pay at all (for example a week they did no work) - if you hit unpaid weeks, keep looking further back, up to a maximum of 104 weeks, to find 52 paid weeks - average the pay across those 52 paid weeks to get an average week's pay That average week's pay is what you use for a week's holiday. ### A short example Imagine a zero-hours team member who works on and off through the year. Over the past 52 paid weeks their earnings vary a lot, and there were a few weeks with no work at all. You skip the zero-pay weeks, count back until you've got 52 weeks where they actually earned something (going back up to 104 weeks if needed), add up the pay across those 52 weeks, and divide by 52. That gives you their average week's pay, which is what a week's holiday is worth for them. Always check the current reference-period rules on gov.uk before you run a real calculation, as the figures are exactly the sort of thing that gets refined. One thing that catches people out: the reference period is 52 paid weeks, not simply the last 52 calendar weeks. If someone had a long stretch of unpaid absence, you keep stepping back past those empty weeks until you've collected 52 weeks where money actually changed hands, subject to the 104-week ceiling. If you genuinely can't find 52 paid weeks within 104 weeks (say, a fairly new starter), you use however many paid weeks you do have. The whole point of the averaging is to land on a figure that reflects what this person normally earns, so it isn't distorted by a quiet fortnight or a bumper week of overtime. ## What has to be included in holiday pay This is the question that lands employers in tribunals. Holiday pay should reflect normal pay, which means more than just basic salary if the extras are regular. Generally you should include: - regular overtime (even voluntary overtime, if it's worked regularly enough to count as normal) - regular commission - certain regular allowances and shift premiums tied to the work The principle that came out of the courts is that someone shouldn't be financially worse off for taking holiday than for working. If a chunk of their normal earnings is overtime or commission and you only pay basic during holiday, they effectively lose money by taking leave, and that's what gets challenged. One technical wrinkle to be aware of: the rules historically treated the first 4 weeks of statutory leave (which must be paid at normal pay) slightly differently from the remaining 1.6 weeks (which could be paid at basic pay). Many employers pay all 5.6 weeks at normal pay to keep things simple and fair. This split is an area that has seen reform, so confirm the current position before relying on a basic-rate calculation for part of the leave. ACAS guidance: [calculating holiday pay](https://www.gov.uk/holiday-entitlement-rights) ## Rolled-up holiday pay (back, but only for some workers) Rolled-up holiday pay means adding holiday pay as a separate amount to each payslip, rather than paying it when leave is actually taken. For years this was effectively off the table. Following the 2024 holiday reforms (for leave years starting on or after 1 April 2024) it is lawful again, but only for two groups: - irregular-hours workers - part-year workers For those workers it's calculated at 12.07% of their pay for the hours worked in each pay period, and it must be shown separately on the payslip. Important boundaries: - you cannot use rolled-up holiday pay for staff on normal fixed hours and patterns - 12.07% is the figure tied to the statutory 5.6 weeks; if you offer more leave than the minimum, the percentage changes - even with rolled-up pay, people should still be encouraged to actually take their holiday We go deeper on the 12.07% method and how it differs from entitlement in the [part-time annual leave guide](/blog/guides/calculate-annual-leave-part-time-employees). ACAS guidance: [rolled-up holiday pay](https://www.acas.org.uk/irregular-hours-and-part-year-workers/rolled-up-holiday-pay) ## Bank holidays and holiday pay Bank holidays are a common source of confusion, because they sit at the awkward join between entitlement and pay. There is no automatic legal right to take bank holidays off, and no automatic right to extra pay for working one. Whether a bank holiday is paid leave, an ordinary working day, or a day off comes down to the contract. For pay purposes, the thing to hold onto is this: if a bank holiday is being taken as part of someone's statutory leave, it's paid the same way as any other day of that leave, a normal day's pay for regular staff, or a day at the averaged rate for variable-hours staff. Problems appear when a contract says "20 days plus bank holidays" and then someone works a pattern that doesn't neatly include every bank holiday. If that's you, the cleanest fix is usually to express everything in hours and pro-rata it, which we walk through in the [part-time annual leave guide](/blog/guides/calculate-annual-leave-part-time-employees). ## Holiday pay when someone leaves The final payslip is where holiday pay errors get expensive, because a leaver has every reason to check the maths and, increasingly, the tools to challenge it. When someone leaves, you owe them pay for any statutory leave they've accrued but not yet taken. The calculation is the same one you've used all along, entitlement first (how many days they'd built up by their leaving date), then pay (valued at their normal week's pay, or the 52-week average for variable hours). If they've taken more leave than they'd accrued by the time they go, you can usually only recover the overpayment if the contract specifically allows it, so that clause earns its keep. Two quick pointers. Payment in lieu of untaken holiday on termination is one of the few times it's fine to pay out statutory leave as cash rather than time off. And getting the accrual fraction slightly wrong, or forgetting a carried-over day, is one of the most common triggers for an ex-employee dispute, so it's worth double-checking a leaver's balance rather than eyeballing it. ## Common mistakes (and the fix) - Mistake: confusing entitlement with pay. - Fix: work out how much leave first, then how much to pay for it, separately. - Mistake: paying basic only when overtime or commission is regular. - Fix: include regular overtime, commission, and allowances as normal pay. - Mistake: using a fixed "normal week" for variable-hours staff. - Fix: use the 52-week average, ignoring weeks with no pay. - Mistake: counting zero-pay weeks in the average. - Fix: skip them and look back further (up to 104 weeks) to reach 52 paid weeks. - Mistake: using rolled-up holiday pay for fixed-hours staff. - Fix: rolled-up pay is only for irregular-hours and part-year workers. - Mistake: rolled-up pay buried in the hourly rate. - Fix: show it as a separate line on the payslip. - Mistake: getting a leaver's final holiday pay wrong. - Fix: recalculate accrued-but-untaken leave to the leaving date, and value it at normal or averaged pay. - Mistake: assuming bank holidays are always separate, paid extras. - Fix: check the contract, and treat a bank holiday taken as leave like any other day of that leave. ## What to write down For each person, be clear about: - whether their hours and pay are regular or variable - which method you use (normal week's pay, or the 52-week average) - what counts as normal pay for them (overtime, commission, allowances) - whether you use rolled-up holiday pay, and that it's shown separately - the calculation itself, so you can show your working if it's ever questioned Holiday pay disputes can reach back over previous pay, so being able to show how you arrived at a figure is genuinely worth the few minutes it takes to note it down. ## Bottom line - entitlement is how much leave; holiday pay is what you pay for it. Keep them separate - regular hours and pay: just pay a normal week's pay - variable hours: use a 52-week average, ignoring weeks with no pay - include regular overtime, commission, and allowances as normal pay - rolled-up holiday pay is allowed again, but only for irregular-hours and part-year workers, at 12.07% shown separately ## Right, what do you do now? If you've got variable-hours or zero-hours staff and you're not fully confident your holiday pay is right, that's exactly the sort of thing worth checking before someone else does. We pick this up as part of an HR Health Check, alongside your contracts and pay practices. Book your HR Health Check here: [Free HR Health Check](/hr-health-check) Or [book a discovery call](/discovery-call) if you'd rather talk through a specific case first. --- ### Contracts of Employment: A UK Small Business Guide - URL: https://kateunderwoodhr.co.uk/blog/legal/contracts-of-employment-uk-small-business-guide - Published: 2025-07-02T00:00:00.000Z - Category: legal - Tags: contract-of-employment, contract-of-employment-uk-small-business, verbal-contract-of-employment-uk # "Terry's my mate, he doesn't need a contract" Famous last words, and the reason a contract of employment matters more than most small business owners think. Every small business owner has a Terry. The trusted pair of hands you have known for years, who started "just helping out" and somehow became a fixture. No paperwork, no fuss, all very friendly. Then one day you fall out, or Terry works out his hours have been all over the place, and suddenly "we never needed anything in writing" becomes a very expensive sentence. Here is the good news. Getting contracts right is one of the cheapest, simplest pieces of HR housekeeping a small business can do. Most owners just put it off because it feels formal and a bit awkward. Let's make it simple. ## Quick Answer Box - **Do this:** give every employee AND worker a written statement of employment particulars on or before their first day. It is a day-one legal right. - **Avoid this:** relying on a verbal "we both know the deal", or copying a template you have never actually read. - **Write down:** the core terms (names, start date, pay, hours, holiday, place of work, job title, notice, probation) plus the clauses that protect your business (confidentiality, and any restrictions). ## Do I actually need a contract of employment? Yes, and the law is clearer than most people think. Since 6 April 2020, every employee and worker must be given a written statement of employment particulars on or before the day they start work. This comes from section 1 of the Employment Rights Act 1996, which was tightened up in 2020. You can read the basics on the [gov.uk employment contracts page](https://www.gov.uk/employment-contracts-and-conditions). Two things trip small businesses up here. - It is a day-one right. The old rule that let you wait up to two months has gone. The core terms must be ready before someone starts, not "sometime in their first few weeks". - It applies to workers, not just employees. So your casual bar staff, your zero-hours weekend cover, your occasional helper, if they count as workers, they need a written statement too. Not sure whether someone is an employee, a worker or genuinely self-employed? That distinction matters for tax and rights, and the [Acas guidance on employment status](https://www.gov.uk/employment-status) is a good place to start. ## Contract vs written statement: what's the difference? People use "contract" and "written statement" as if they mean the same thing. They overlap, but they are not identical. - A contract of employment is the whole agreement between you and the worker. It exists the moment someone accepts your job offer, even if not a word is written down. It includes things you both said, things you implied, and things the law reads in automatically. - The written statement of particulars is the legal minimum you must put in writing. It is a defined list of terms the law says you have to set out. In practice, most small businesses sensibly roll the two together into one document: a written contract that includes everything the statement must contain, plus the extra protective clauses we will get to. That way everything lives in one place and nobody is hunting through emails to work out what was agreed. ## What the written statement must include? The statement has to cover a defined list. The main items are: - the names of the employer and the worker - the start date (and, for continuous employment, any earlier date that counts) - pay, how it is calculated, and how often it is paid - hours of work, including which days and whether hours or days vary - holiday entitlement and holiday pay, set out so the amount can be worked out - the job title or a brief description of the work - the place of work (or that the role involves working in different places) - the length of notice each side must give - how long the job is expected to last if it is fixed-term or temporary - any probation period, including its length and conditions - any benefits (not just pay), such as bonuses or perks - any entitlement to paid training, and any training the worker must do but you will not pay for - where to find the disciplinary and grievance procedures A few of these can follow within two months of the start date (for example pensions and collective agreements), but the core terms must be in the day-one statement. The full required list is set out on [gov.uk](https://www.gov.uk/employment-contracts-and-conditions/written-statement-of-employment-particulars). ## Implied terms: the bits nobody writes down Even with a perfect written contract, the law reads in some terms automatically. These "implied terms" exist whether you mention them or not: a duty of mutual trust and confidence, a duty on you to provide a reasonably safe place of work, and a duty on the worker to do the job with reasonable care and follow lawful, reasonable instructions. You cannot write these away. What a good contract does is sit on top of them, adding clarity and the specific protections your business needs. ## The clauses that actually protect your business This is where contracts earn their keep, and where DIY versions usually fall short. The legal minimum protects the worker. These clauses protect you. - Probation period. Lets you assess a new hire properly, often with a shorter notice period during the trial. Note that the upcoming Employment Rights Act 2025 is expected to change unfair dismissal into a day-one right with a "statutory probation" framework, so this area is changing. Treat any reform as expected, not yet in force, and keep an eye on it. - Notice periods. Set clear notice on both sides so you are not left exposed if someone walks out, and so you are not accused of dismissing without proper notice. - Confidentiality. Protects client lists, pricing, supplier terms and anything commercially sensitive, during and after employment. - Restrictive covenants. Clauses that stop a leaver poaching your clients or staff, or setting up in direct competition for a limited period. These are only enforceable if they are reasonable and go no further than needed to protect a genuine business interest. An over-broad "you can never work in this town again" clause will not hold up, so these need drafting with care. - Intellectual property. Confirms that work created on your time belongs to the business. - Deductions. A written agreement allowing lawful deductions (for example, recovering an overpayment or a training cost) is far safer than springing it on someone. If restrictions matter to you, like in a sales business or a consultancy, this is exactly the sort of thing worth getting a professional eye on. A clause that is too greedy is simply unenforceable, which means no protection at all. ## A simple step-by-step for getting it sorted 1. List everyone who works for you. Employees, workers, casuals, the lot. Do not assume "self-employed" without checking. 2. Check who already has written terms. You will often find gaps, especially with long-serving staff who started informally. 3. Decide employment status for anyone unclear. Use the [Acas status guidance](https://www.gov.uk/employment-status) and take advice if it is genuinely borderline. 4. Use a solid, tailored template that covers the full statutory list plus your protective clauses, not a random download. Match it to each role: hours, pay, place of work and any restrictions should reflect reality. 5. Issue on or before day one. Get it signed, keep a copy, and diarise a reminder so new starters never slip through. 6. Review when things change. A pay rise, a promotion or a change of duties is the moment to update terms, in writing. ## Common mistakes small businesses make - Waiting until "things settle down." The statement is a day-one right. There is no settling-in grace period any more. - Forgetting workers. Casual and zero-hours staff are usually workers and need a written statement too. - Treating a verbal agreement as enough. It is binding, but you cannot prove the terms when it matters. - Copying a template without reading it. A contract that contradicts how you actually operate can be worse than nothing. - Letting terms drift. Promotions, pay rises and new duties that never make it into writing create exactly the disputes you were trying to avoid. - Over-egging restrictive covenants. Too broad means unenforceable. You get the awkwardness with none of the protection. ## What the law says if you get it wrong? There is no instant fine for not issuing a written statement. The risk shows up later, and it is twofold. First, the practical cost. Without written terms, almost every dispute becomes a "he said, she said." Notice, pay, hours, holiday, you are arguing from memory, and that is a weak place to defend a claim from. Second, the tribunal cost. If a worker brings a separate successful claim (say for unfair dismissal or unpaid wages) and you never gave them a written statement, the tribunal can add an award on top for the missing statement. It is not a standalone payout, but it stacks on to whatever else they win, and it signals to a tribunal that the basics were not in order. The general framework sits in the [gov.uk employment contracts guidance](https://www.gov.uk/employment-contracts-and-conditions). ## A short manager script If a long-serving member of staff has never had a contract and you are nervous about raising it, keep it light and positive: > "I'm tidying up our paperwork so everyone's terms are clear and in writing. It's nothing to worry about, it just protects both of us and means there's no confusion about pay, hours or holiday. I'll get you a copy to read through, and we can have a quick chat if anything looks off." No drama. Frame it as good housekeeping, because that is exactly what it is. ## What to write down? For every person who works for you, make sure you hold, in writing: - their full written statement covering the statutory list above - the role, hours and place of work as they actually are now - notice periods and any probation terms - confidentiality and any restrictions relevant to the role - a signed and dated copy, stored securely - a record of any later changes to terms, in writing If it only lives in someone's memory or a two-year-old WhatsApp message, it does not really count. ## Where this connects? Contracts rarely sit on their own. The same conversation usually touches sick pay, disciplinary process and how you handle formal meetings. If you are reviewing terms, it is worth looking at your [sick pay schemes](/blog/guides/advantages-disadvantages-sick-pay-schemes) at the same time, and making sure your team knows the basics of a fair process, like [who can accompany an employee to a disciplinary meeting](/blog/legal/who-can-accompany-employee-disciplinary-meeting-uk). Our [HR Protect](/service-plans/hr-protect) service keeps your contracts, handbook and policies up to date and legally sound, so you are never the business scrambling for paperwork when something goes wrong. If you just need a quick sense-check on a specific contract question, the [HR Advice Line](/service-plans/hr-advice-line) is there for exactly that. ## Right, what now? If reading this has made you realise half your team has nothing in writing, or you are not sure your template still matches the law, that is genuinely the most common gap we find in small businesses. It is exactly what we look at in an [HR Health Check](/hr-health-check): what your contracts actually say, where the holes are, and what is quietly exposing you. Or if you would rather just talk it through first, [book a discovery call](/discovery-call) and we will point you in the right direction. Sort the paperwork now, while everyone is still friends. Terry will thank you for it. --- ### Are Verbal Offers of Employment Contractual in the UK? - URL: https://kateunderwoodhr.co.uk/blog/legal/verbal-offer-of-employment-uk - Published: 2025-01-21T09:00:00Z - Category: legal - Tags: verbal-offer-of-employment-uk, employment-law, recruitment, contracts, small-business, job-offers, hr-advice # Are Verbal Offers of Employment Contractual in the UK? "Verbal offers aren't worth the paper they're not written on!", sound familiar? It's something I often hear from small business owners who've offered a job over the phone, then had second thoughts. But can a verbal offer of employment actually form a legally binding contract? The short answer: **yes, it can**. The longer answer, and the one every small business should understand, is that the words you use when offering a job matter more than you might think. ## The Law in Plain English ### Are Verbal Offers Legal? **Yes**, a verbal job offer is legally binding once the candidate accepts it. In UK law, an employment contract doesn't need to be in writing. It exists the moment there's: - An offer - An acceptance - Consideration (usually pay for work) - Intent to form legal relations So if you say, "We'd love to offer you the role at £28,000, starting next month," and the candidate says "Yes," you've just formed a contract. **In practice:** - A verbal offer can be as enforceable as a written one. - Once accepted, the offer can't be withdrawn without notice. - The employee becomes entitled to at least their statutory notice period (normally one week). - Under the Employment Rights Act 1996, a written statement of employment particulars must be provided by day one, but the contract itself can form earlier. Put simply: **spoken words count**. ## When Verbal Offers Backfire Picture this: you've just landed a new client and rush to hire an extra pair of hands. You call your preferred candidate, offer the job, and they accept on the spot. Minutes later, that big contract falls through, and now you can't afford to hire. Too late. Once they accepted, a contract was formed. If you withdraw the offer, it could be a breach of contract, and yes, people do pursue claims. ### Case Study: McCann v Snozone Ltd (2015) After two interviews, Snozone's recruitment agency verbally offered Mr McCann a job at £28,000–£30,000, promising a written contract "by the end of the week." Before that arrived, Snozone changed its mind and withdrew the offer. McCann took them to tribunal, and won. The Employment Tribunal ruled that a binding verbal contract had been formed. Snozone had to pay him one month's salary (about £3,000) plus costs. **The takeaway?** Once a candidate accepts, the offer, written or spoken, is binding. ## Can You Withdraw a Verbal Offer? You can withdraw an offer **before** it's accepted. Once accepted, though, it's legally binding. If you realise the role isn't viable: 1. Give notice immediately and pay for that period; or 2. Negotiate withdrawal, explaining honestly and offering compensation if fair. Trying to deny the offer rarely ends well, especially if emails or recruiters were involved. **In the middle of an offer wobble right now?** This is exactly what the [HR Advice Line](/service-plans/hr-advice-line) is for: a five-minute sanity check before you make (or unmake) the call, from £175/month. ## How Employers Can Protect Themselves ### 1. Be Clear Before You Offer Double-check details before making a verbal offer: - Job title and key responsibilities - Salary and benefits - Start date and location - Working hours and probation period Avoid vague promises like "we'll sort that out later." ### 2. Follow Up in Writing Confirm every offer in writing as soon as possible. This prevents confusion and creates a clear record. Make the written offer conditional on pre-employment checks while you're at it — our guide to [right to work checks](/blog/legal/uk-right-to-work-checks-2026-employer-guide) covers what the 2026 rules require before someone's first day. If you use agencies, agree who can make formal offers and stick to it. ### 3. Delay If You're Unsure It's fine to say, "You're our preferred choice, I'll confirm tomorrow once the budget's approved." That's honest and avoids forming a contract too soon. ### 4. Have a Withdrawal Process If you must withdraw, act quickly and document everything. Offer to cover reasonable costs where appropriate, fairness matters. ### 5. Keep Templates Updated Review your offer letters and recruitment policy. Include a clause stating all offers are subject to written confirmation. Train hiring managers to follow this process. ## For Employees: Can You Trust a Verbal Offer? Yes, but tread carefully. If you've had a verbal offer: - Ask for confirmation in writing straight away. - Note who called, when, and what was said. - Don't resign until you have written proof. If an employer retracts a verbal offer after you've accepted, you can claim breach of contract. Usually, compensation covers the notice period or proven financial loss. ## A KUHR Case Example One of our clients once offered a job over the phone on Friday, only to freeze the role by Monday. They'd already emailed "Welcome to the team!" We advised them to apologise and offer one week's pay for inconvenience. The candidate accepted, and no claim followed. It cost £800, far cheaper than a legal dispute. A timely reminder that even small businesses need structure around offers. Hazel, our office dog, wagged her tail in agreement. ## The Takeaway Verbal offers may feel informal, but they're legally binding once accepted. Before you pick up the phone, check: - Are you ready to commit? - Do you have all the details agreed? - Can you follow up in writing straight away? If not, pause. A little patience now saves a lot of stress later. And if you're unsure whether a verbal offer you've made (or received) is binding, get in touch. KUHR can help you review your recruitment process and create offer templates that protect your business, and your peace of mind. Hazel might even proof-read, if cake's involved. ## Key Sources - [ACAS: Job Offer Templates](https://www.acas.org.uk/job-offer-templates) - [Gov.uk: Employment Contracts and Conditions](https://www.gov.uk/employment-contracts-and-conditions) - Employment Rights Act 1996 - McCann v Snozone Ltd (2015)