First published on Friday, February 14, 2025
Last updated on Thursday, February 20, 2025
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For small business owners, it can be hard to understand all the legal jargon and documentation that comes with HR compliance.
In this article we seek to provide you with some clarity, so you can be sure your business is doing the right thing for everyone. Plus, uncover how HR software can save you from feeling like you’re running through a HR minefield!
For urgent HR and employment law advice give our BrightAdvice team a call today.
What does HR compliance mean?
HR compliance includes the processes and implementation of best practices that guarantees a business is operating according to employment laws and industry regulations.
This not only includes having the relevant documentation and policies in place but also keeping all parties up to date on current legislation and changes to UK employment laws.
The importance of compliance
HR compliance is incredibly important for any business. It helps to keep you out of hot water with the likes of trade unions, government bodies, and employment law tribunals.
But equally important—HR compliance helps to sustain a working environment that protects both you and your employees. Promoting the fair treatment of all individuals and upholding a positive working environment where each person can thrive and grow. Not only will this help in your staff retention efforts, but you will see a positive impact on employee wellbeing and even productivity.
An employer’s HR compliance checklist
To ensure HR compliance throughout your business, there’s a few things to tick off your to-do list.
This comprehensive compliance checklist makes it easy to guarantee you’ve covered the basics:
Create HR documents and policies for both managers and employees to easily access relating to current employment laws.
Check current employment legislation regarding different types of workers, working hours and pay. Align your employment contracts to adhere to these laws.
Train every individual on the legislation and regulations relating to their roles and responsibilities
Implement relevant procedures into everyday business practices such as onboarding, performance management, employee training and development, recruitment and interviewing.
Review the health and safety of your workplace and conduct health and safety audits with the relevant regulatory body. This may require a third-party representative to visit your workplace.
Assess your data protection procedures according to the Data Protection Act 2018. Securely storing your documentation and data.
Keep up to date with changes and amendments to laws and regulations. Seek advice from employment law experts for support.
Conduct audits of your processes over a set period of time to ensure that procedures are still in place and policies are up to date.
Consequences of failing to adhere to employment laws
Failure to do the very basics required of your business could lead to consequences such as employment tribunals, hefty fines, and reputational damage.
For example, in February 2024, over 500+ businesses in the UK were found not to be paying the minimum wage and were ordered to repay their workers in addition to a financial penalty.
This example alone was a clear breach of the National Minimum Wage law which left thousands of workers struggling to make ends meet. The impact of ignoring essential HR legislation goes beyond the reputation of a business but can have significant impact on the lives of workers and their families.
It’s therefore incredibly important to be HR compliant, providing everyone with the rights and protection they are legally obliged to at work. Creating a safe, respectful, equal, and fair workplace.
Afterall, happier employees are more likely to produce greater quality work, boosting morale and increasing their sense of belonging, giving your staff greater ownership over their job role.
How to manage HR compliance without a dedicated HR team
While some businesses may have their own HR team to manage and oversee HR compliance, smaller businesses often do not have the time, resources, or expertise to keep on top of this.
For this reason, HR outsourcing is a common solution for SMEs.
Offering access to HR professionals without the need for the hiring and onboarding of an HR team. HR professionals of all kinds offer HR outsourcing services. From writing HR documents and policies, to providing HR advice and guidance, having the support of a trained professional on your side could make the difference between staying on the right side of the law and falling short of your legal requirements.
HR software for HR compliance
On the other hand, paying a professional to do this work comes at a price. Which, for many small businesses is out of reach.
With tight budgets, the perfect solution for managing human resources processes and functions is to invest in HR software.
Providing a digital solution that can support your teams to stay compliant with employment laws and get simple HR tasks done with ease!
Get peace of mind with BrightHR
BrightHR’s all-in-one solution provides the HR functions you need in one easy to access digital tool.
The HR software provides features such as:
Helping you to complete the time-consuming HR tasks that small businesses often don’t have the time nor resources for.
Plus, e-learning courses and online training are available with the built-in learning management system. Helping you to keep every team member up to date on the latest legislation, industry standards and even health & safety compliance.
Book your free demo today to discover how BrightHR can support you in being HR compliant.
