Kalderon HR

A £200 shortcut today could become a £20,000 Employment Tribunal tomorrow.

In the last three weeks I have seen at least two cases where small business employers have put themselves in a potentially precarious position. One business made so many mistakes (despite their best intentions) in a letter invitation to a disciplinary, that they were almost an own goal situation had the employee taken them to an Employment Tribunal. The information was shared with me by the employee, not the business, and I was able to identify 13 errors that could have potentially cost the organisation in the long run.

The employee decided they wanted to leave. Which was very lucky for the organisation, however, I wanted to use this week’s blog to highlight the absolute importance of getting simple processes in place – and of course, the importance of getting HR advice.

Now, most small businesses owners don’t deliberately break employment law. It isn’t their intention to do the wrong thing by their employees, and despite the 13 errors in this letter and email, I could see that the business wanted to do the right thing. The issue is if you are starting a small business in car maintenance or chocolate biscuit making, your passion is the car and the biscuit – HR is a business all on its own. It isn’t a quick fix; it is preparedness, managing employee relations, specialist support, understanding employment law and the changes – and most small businesses do not have time in their busy pressured day to understand fully what is required.

Where it can (and does) go wrong, is not the dramatic misconduct, but mostly in a series of small decisions that probably seemed reasonable at the time. Here are five common mistakes where employers have ended up in hot water:

1. “I know they are guilty, so why do I need a process?”

So your employee has definitely done something wrong, you have no doubt at all – there are even 30 witnesses. The mistake is assuming that this gives you the right to skip your process and let them go on the spot. You skip the investigation, call them into a meeting and dismiss them.

It feels reasonable to you because the evidence appears obvious, however, as you know Employment Tribunals will focus not only on what happened, but how the employer handled it. ACAS guidance makes it clear that you are required to investigate and allow your employee to respond to the allegations, as well as providing an appeal process.

Being right isn’t enough, you must be fair.

2. “We’ve never had a grievance policy and no-one has ever complained before.”

Just because you are a small team of say, fewer than 3 employees, doesn’t mean that procedures shouldn’t be in place. If there is no formal grievance procedure then when (or if) your employee raises a concern, then the lack of procedure means they are more likely to feel ignored or pushed aside. There must be a formal process in place, not matter how small your team.

It can come a costly mistake when a dismissed or a resigning employee argues that their concerns were never properly investigated – and failure to do so can influence tribunal findings and compensation.

What feels like a conversation to you may later be treated as a formal grievance by a tribunal.

3. “We treated everybody differently because every situation is different.”

Two managers – one receives a warning and the other who has committed something similar, is dismissed. To the organisation this potentially seems reasonable because, well, you know, everyone is different. However, inconsistent treatment is one of the quickest ways to create a tribunal risk, because employees have the right to know how others were treated in similar circumstances.

Consistency protects employers just as much as employees.

4. “We don’t need policies yet, we are too small.”

Really? I mean…really? As I mentioned earlier just because you have fewer than 3 staff, you are responsible for ensuring that there are policies appropriate for your business – absence, grievance, disciplinary, capability – and a handbook. Don’t set your staff, or yourself, up to fail.

Policies aren’t paperwork – they are evidence trails that demonstrate that you acted fairly and reasonably.

5. “I didn’t write it down, because we are a family business.”

So, there are no meeting notes, no investigation records, no letters and no confirmation of any decisions – because you know, we all trust each other. However, several months later – the tribunal hears two versions of the same event, and you find that you are in position where you have no evidence, but the employee has emails, messages and a detailed timeline.

ACAS guidance recommends maintaining written records of disciplinary and grievance matters, however this should be common sense to any employer.

If it isn’t documented, proving it happened becomes much harder.

Small businesses need to look at HR resources and support within their budget planning – because most Employment Tribunal claims don’t start with a catastrophic decision, they start with shortcuts, a missing policy, an undocumented conversation, a rushed dismissal or an ignored grievance.

In HR, prevention will almost always cost less than cure, and good HR is not about stopping growth; it is about protecting it. Many of these risks can be significantly reduced through simple preparation, clear procedures and timely professional HR advice.

At Kalderon HR, my goal is to provide practical, affordable HR support for small businesses. Because when people feel safe, valued, and treated fairly at work, everyone benefits. Strong workplaces don’t happen by chance; they’re built through thoughtful policies, supportive leadership, and a commitment to doing the right thing. And that’s worth its weight in gold.

Reach out today for a no-obligation 30-minute consultation to discuss your needs, goals, and budget.