Managing risks of employing staff factsheet

Managing risk is an integral part of any well-developed business strategy and managing the risks of employing staff must be an important element.

In recent years, there has been an abundance of new employment legislation in the UK, springing both from UK government and EC Directives, and compensation rates for successful claims have increased.  Publicity given to a number of high-profile claims has contributed to increased employee awareness of their rights and the potential compensation that can be achieved.  As a result, employers have seen substantial growth in the level of litigation in the employment field. 

Employees can bring civil actions for a multitude of employment related acts including unfair and wrongful dismissal, deduction from wages, breach of contract, and discrimination based on race, sex, gender reassignment, pregnancy or maternity, marriage or civil partnership status, sexual orientation, religion or belief, age, and disability. 

The current maximum compensation award for unfair dismissal is as set out under HR Facts and Figures on the Buddy website with potential for an unlimited award in certain circumstances. An employer’s unreasonable failure to comply with the ACAS Code of Practice on Discipline and Grievance Procedures also creates the potential for compensation in unfair dismissal cases, and other claims to which it relates, to be increased by up to 25%, subject to any cap on the award of compensation.