73% of Small Businesses Admit To Dismissing An Employee Without Following Correct Proceedure
Peninsula Business Services reveals that 7 in 10 small businesses fail to follow correct HR procedures when dismissing an employee. Peninsula warn this could lead to a surge in Employment Tribunals.
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October 11, 2011 (FPRC) -- 73% of small businesses have admitted to dismissing an employee unfairly. 75% of business owners believe employment laws prevent their small business from growing.
Peninsula Business Services questioned 2167 employers to gather the following results:
- 75% of SME's believe that employment laws prevent them from growing their business.
- 82% of employers admit they are not up to date with employment legislation.
- 73% of small businesses have admitted to dismissing an employee unfairly.
Small Businesses are dismissing staff without following correct procedures according to a survey released today by Peninsula Business Services, the employment law consultancy.
Peninsula found that 73% of SME's have admitted to dismissing an employee immediately without following procedures. Owner managers cited that poor performance was the principle reason to dismiss employees. Peter Done, managing director of Peninsula said today, "Dismissing workers without following the correct procedure is a time bomb waiting to happen. At some stage an employee will take you to employment tribunal and if you have dismissed unfairly then there is a good chance that you will lose."
Mr Done continues, "Employees are more knowledgeable now about employment rights than ever before. In recent years the tables have turned and employment laws favour employees’ rather than the employer, unfortunately we see that many managers forget this. You need to make sure your company is up to date with changes in the law and be positive that you have watertight policies and procedures in place to safeguard you and your business."
“It's good to see that the Government are proposing employment tribunal reforms, which could potentially make a difference in combatting frivolous claims; however for many small firms this is too little, too late. If the Government are business friendly then it is time to review employment legislation in the UK and look at sensible ways to cut through the red tape. A fair approach should be sought to provide employees with rights whilst at the same time reduce the procedures that employers have to follow."
Mr Done concludes “I speak to many companies that believe they will never be taken to an employment tribunal, sometimes the sad reality is that an employee can potentially make a lot of money by suing their employer, so my answer is; don't give them the ammunition. If you follow procedures and treat your employees fairly then you have a good chance of not being taken to tribunal, however sometimes even that is not enough. An employment tribunal is won in the workplace not in the courtroom, so make sure you get your procedures in place.”
Notes to Editor:
· The figures were received from 14th September 2011 to 7th October 2011 by speaking to 2167 employers.
· Statistics were made from calls received to the Peninsula Advice Service.
· Small business’s range from 5 -30 employees from a wide spectrum of business’s.
· Peninsula is the UK’s leading employment law consultancy.
· Quotes and comment are provided by Peter Done.
· Peter Done is the managing director of Peninsula, image available upon request.
· For any further clarification please contact Danny Mulcahy on 0161 827 8511.
Send an email to Sammual James McLoughlin of Peninsula Business Services
0161 827 8511
Keywords:
Peninsula Business Services, employment law consultancy, Red Tape
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