Week 2 – 17 September 2026:“We’re Only a Small Business!” | HR Risks for UK SMEs | Consensus HR – Herts & Beds
“But We’re Only a Small Business!”
When informal HR becomes a business risk
Consensus HR | Hertfordshire, Bedfordshire & Cambridgeshire
Last Thursday, we launched our three-part campaign looking at the HR excuses that can come back to haunt employers.
This week we tackle another three: “We’re only a small business.” “Everyone knows the company rules.” And the particularly dangerous: “Can’t we just sack them?”
But practical does not mean ignoring employment law or abandoning fair processes.
Excuse 4: “We’re Only a Small Business — Surely All This Doesn’t Apply to Us?”
Our answer: Being small is not a general exemption from employment law.
The size and administrative resources of an employer can be relevant in certain circumstances, but SMEs still need to manage employees fairly, consistently and lawfully.
In fact, poor HR can have a disproportionately large impact on a smaller organisation.
One difficult employee situation can consume hours of senior management time. Instead of focusing on customers, sales, operations, cash flow and growth, managers can become absorbed by grievances, investigations, disciplinary meetings, correspondence, sickness issues and potentially legal proceedings.
For an SME, prevention is generally far cheaper than cure.
Excuse 5: “Everyone Knows the Company Rules”
Our answer: Can you demonstrate that?
Where are your policies? When were employees given them? Can they access the current Employee Handbook? When something changes, how do employees know?
Having a beautifully written Employee Handbook sitting in a manager’s drawer is of little practical value. Employees should know where relevant policies can be found and employers should keep appropriate records showing that important information has been communicated.
For businesses using HR systems such as Breathe HR, keeping current documents accessible electronically can make this considerably easier.
Imagine trying to discipline an employee for breaching a company rule. The employee says, “I’ve never seen that policy.” The manager says, “Everyone knows it.” HR asks, “When was it given to them?” Silence.
Excuse 6: “Can’t We Just Sack Them?”
Our answer: Sometimes there may ultimately be a fair reason for dismissal — but process matters.
Depending on the circumstances, an appropriate process could involve establishing the facts, carrying out an investigation, informing the employee of the concerns, allowing them to respond, considering their explanation, following the relevant procedure, considering alternatives or mitigation and reaching a reasonable decision based on the evidence.
The Acas Code of Practice is particularly important in disciplinary and grievance situations.
An employer can begin with a genuine management concern and weaken its position through a flawed process. Where the Acas Code applies, an Employment Tribunal can adjust compensation by up to 25% for an unreasonable failure to comply with it.
Don’t decide the outcome and then try to create the process afterwards.
Comment from Matthew Chilcott — Owner, Consensus HR
But there is an enormous difference between keeping a process straightforward and not following a process at all. When somebody says, ‘Can’t we just sack them?’, my job is to understand what has happened, identify the risks and help the business take the appropriate next steps.
Sometimes slowing a manager down and getting the process right can prevent months of unnecessary problems afterwards. Good HR doesn’t stop managers managing. It helps managers manage properly.”
Matthew Chilcott — Owner, FCIPD, ACEL, BA (Hons)
Next Thursday — the final part
Next week we tackle: “We’ll do the Right to Work check later.” “It’s only an office — we don’t really need Health & Safety.” And perhaps the biggest HR excuse of all: “Nothing has ever gone wrong before.”
Need practical HR support?
Consensus HR supports SMEs across Hertfordshire, Bedfordshire and Cambridgeshire with practical, proactive HR and Employment Law support.
Telephone: 01438 576750
Email: [email protected]
Website: www.consensushr.com
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