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Top employment & HR law tips for new businesses
May 2025
employment law
7 MINS

Starting a new business is exciting, but when it comes to employing people, it’s essential to have the right legal frameworks in place to protect yourself and your employees.

As an employer, you are legally obligated under employment law to comply with legislation like the Employment Rights Act of 1996, the Equality Act of 2010, and the Health and Safety at Work Act of 1974. But where do you begin?

Guided by over 70 years of experience in helping startups stay compliant, our employment lawyers in Newcastle have put together five of the best new business employment law tips so you can get started on the right foot.

1. Learn about the basics of employment law

Employment and HR law outlines the legal rights and responsibilities of employers and employees in a new business. By taking some time out of your day to learn about the basics, you can minimise the risk of disputes, misunderstandings, and tribunals down the line.

Some of the key components of employment law include:

  • Employment contracts
  • The statutory rights of employees (such as pay, holiday, working hours, leave, flexible working, and protection from unfair dismissal)
  • Essential HR policies for businesses (including Health and Safety, Disciplinary and Dismissal, Grievance, and Data Protection Policies)
  • Employment termination procedures

Getting any of these components wrong or failing to adhere to them could lead to damaging consequences like fines, disputes, and claims, which can easily crumble a new business.

For more information, take a look at our guide to employment & HR law.

2. Know the essential HR policies and contracts to provide

From the first day of employment, employers are legally required to provide an employee with a written statement of employment particulars, which details essential terms like pay, hours, holiday entitlement, and notice periods.

While not legally required, new businesses should also ensure they have foolproof employment contracts in place for every new employee, as well as clear and fair HR policies covering everything from anti-bullying and harassment to social media usage.

In addition to providing employees with essential information about their role, expectations, and how the business will approach any concerns or issues, policies and contracts can also protect your business from legal disputes.

Whether you need your current policies or contracts reviewed or you need a legal team to draft them for you, don’t hesitate to contact us, and we will be more than happy to assist you.

3. Prepare to manage workplace issues

An unavoidable part of starting a new business is having to manage workplace issues fairly and legally at all times. Whether this be handling a dispute between employees or managing a breach of confidentiality, any issues must be handled in line with employment law to protect your business.

A few ways to do this include:

  • Documenting everything (you never know when you may need evidence)
  • Following fair processes at all times
  • Listening to employee grievances and taking any necessary and reasonable actions
  • Staying consistent in how you apply your rules and policies

Take a look at our HR solutions available for new businesses, including training sessions covering everything from managing grievance issues to carrying out disciplinary procedures.

For example, our HR Key service provides business owners with insurance protection, tribunal representation, unlimited new business HR law advice, and more, for a fixed monthly fee.

4. Avoid the common legal risks for new business

It’s common for new businesses to fall for legal pitfalls — especially since employment and HR law can be so complex and confusing. Starting a business can be stressful and time-consuming, so mistakes do happen. However, these mistakes often come with costly consequences and may even tarnish a business’s reputation.

Some of the most common legal mistakes we’ve seen new businesses make include:

  • Misclassifying employees as self-employed
  • Failing to provide employees with statutory minimum rights
  • Failing to follow data protection obligations under UK GDPR
  • Not documenting changes to terms and conditions
  • Ignoring legally required HR policies

At Hay & Kilner, our employment lawyers can conduct an audit of your legal paperwork to identify any risks or mistakes. We’ll help you put the right terms, policies, and contracts in place, protecting your business from liability.

Take a look at our law services for businesses.

5. Invest in new business HR law support

Employment law is an ever-changing field with regular updates, changes, and enforcements, but our team of legal experts has been working with startups and new businesses for years, ensuring they stay compliant, fair, and protected at all times.

Whether you need to update your policies, manage an employee dismissal, or draft up flexible employment contracts, grow your business with confidence using legal support and advice from Hay & Kilner.

Get in touch with our legal experts today.

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‘Hay & Kilner’ and ‘Hay & Kilner Law Firm’ are both trading names of Hay & Kilner LLP, a limited liability partnership registered in England & Wales with registered number OC418767. Our registered office is at The Lumen, St James' Boulevard, Newcastle Helix, Newcastle upon Tyne NE4 5BZ and we are authorised and regulated by the Solicitors Regulation Authority (Authorisation number 643191). We use the word ‘partner’ to refer to a member of Hay & Kilner LLP. A list of the members is available at our registered office.