Small business employers key responsibilities

Are you a small business owner with staff?

Do you want to understand your rights and those of your team so you can build a positive, productive working relationship?

We can help. Here’s our basic guide to the essentials of employment law, designed especially for busy small business owners like you.

Why employment law matters

Running a small business is rewarding, but it’s not without its challenges, especially when it comes to managing people. Employment law can feel like a maze, and with rules often changing, it’s easy to get caught out.

But knowing the basics really matters. Not only does it help you avoid costly mistakes, but it also helps you create a fair, respectful and legally sound workplace. At its core, employment law is about protecting both you and your staff, making sure expectations are clear, and everyone is treated fairly.

Your key responsibilities – A simple overview

Here are some of the key areas all employers need to be aware of:

1. Contracts and terms of employment

From day one, your employees are entitled to a written statement of the main terms of their job. That includes things like:

• Start date
• Pay rate and frequency
• Hours of work
• Holiday entitlement
• Notice period
• Benefits (if applicable)

This helps set clear expectations and gives everyone peace of mind.

2. Right to work checks

Before hiring anyone, you must check that they’re legally allowed to work in the UK.

• For UK and Irish citizens, a valid passport or birth certificate usually does the trick.
• For overseas workers, you’ll need to verify their immigration status and ensure you understand what types and length of work they’re allowed to do in the UK.

You also need to keep a record of these checks. This is not just best practice, it’s the law.

3. Avoiding discrimination

It’s illegal to treat people unfairly because of certain “protected characteristics,” (defined under the Equality Act 2010) and include:

• Age
• Disability
• Gender reassignment
• Marriage and civil partnership
• Pregnancy and maternity
• Race
• Religion or belief
• Sex
• Sexual orientation

Discrimination can happen at any stage – recruitment, during employment, and even after someone has left. It’s not always intentional, so having good training, policies and procedures in place is essential.

4. National minimum and living wage

You must pay your staff at least the legal minimum. As of April 2025, the rates are:

• Aged 21 and over (National Living Wage): £11.44
• Aged 18–20: £8.60
• Aged 16–17: £6.40
• Apprentices: £6.40

Failing to meet these rates could lead to penalties and reputational damage.

5. Working hours and holiday

Most employees must not work more than 48 hours per week on average (calculated on an average of hours over the previous 17 weeks) – unless they’ve signed an opt-out agreement.

You must ensure that workers receive paid holiday.

Staff are entitled to paid holiday of at least 28 days per year if they work a five-day week. This includes bank holidays.

You can provide more holiday entitlement, but you cannot provide less.

Holiday pay must be calculated correctly. For staff with irregular hours, you can “roll up” holiday pay by adding an extra 12.07% to their hourly rate – but it must be shown clearly on payslips.

6. Redundancy

If you ever need to make a role redundant, it’s vital to follow a fair process. That includes giving correct notice and consultation, regardless of how small your team is. Getting it wrong can be expensive and damaging to morale.

7. Parental leave and pay

Maternity, paternity and adoption leave are all protected by law. The rules are complex, so it’s important to stay up to date and make sure your policies reflect current legislation.

Stay on track with expert support

Employment law doesn’t have to be daunting. We can provide everything from compliant contracts and tailored policies to ongoing legal advice on an ad hoc or retainer basis.

Whether you need help with a one-off issue, a contract, a policy, or ongoing support as your business grows, we’re here to make life easier – and help you stay compliant.

Let’s talk.

Contact our Employment team to find out how we can support you and your business today.