Whatever the size of your business, employers need to keep abreast of changes in employment law and avoid the painful and costly experience of an employment tribunal.
As an employer, one of the critical things that you need to think about is employment law, no matter what size your business may be. Employment law not only protects you as a company, but it also protects your employees too. Being aware of employment law and how it can have an impact on your setting is one way that you can limit the chances of having to go through an employment tribunal.
Prior to 2017, the number of employment tribunals were relatively low. This was mainly due to the fact that any employee who wanted to go through the process would have to pay an associated fee. However, in July 2017, there was one notable change. It was then that the Supreme Court ruled that fees charged for an employee to apply for an employment tribunal were deemed unlawful and were removed.
After this ruling, the rise of employment tribunals has been significant. In fact, it is thought that the rise of claims has been as much as 120%. This means that more and more, businesses are finding themselves going through the process.
We all know that an employment tribunal could well be a negative experience, but what some business owners do not realise is the impact it can have on a business as a whole.
To explore this further we have had a look at the main ways that it could affect your setting:-
They can be expensive
There is no escaping it, employment tribunals can be incredibly expensive. You not only need to think about your legal fees during the process but also any potential pay out too. There is also the likelihood that if you go through the process then any future legal insurance that you may want to take out is going to be more expensive for you.
They can lower team morale
The last thing that you will want as a business is to have staff that have low morale. This can lead to problems with productivity as well as poor motivation levels. Think how your staff are likely to feel if they find out that another employee, whether current or past, is taking you to a tribunal. There is a chance that they will rethink working for you, or feel that you are not the right employer for them.
They can make you less appealing to potential staff
When you run a business you are going to want to make sure that you attract the best talent to work for you. However, if you are known to have been linked to an employment tribunal then potential staff are less likely to want to work for you. Not exactly what you are going to want, especially if you want to continue to grow and expand over time.
It could get back to your customers – reputation is key
Not only is it horrible to think that your staff as well as prospective employees are going to think of you in a negative light. But one huge impact of an employment tribunal is that your customers can find out. This may mean that they see you in a bad light, that they are less likely to recommend you and it could therefore have a negative impact in the long run.
Employment tribunals are the last thing that you are going to want affecting your nursery setting.
Understanding your obligations under employment law and keeping up to date with the regular updates and changes can be daunting but we are more than happy to assist and support you with this complex area.
Make sure that you understand employment law and how to best treat your staff. Doing this will result in you having happy employees and ensure you have a reputation of being a great place to work.
As always, please do get in touch if you need any further information.
The Nursery HR People