Recruiting a new employee is an exciting milestone for any growing business. Whether you're hiring your first member of staff or expanding an established team, bringing in the right people is often a sign that your business is moving in the right direction.
However, growth also brings new responsibilities and risk. Employment law is an ever-changing area of law and can be complex. Small mistakes made during the recruitment process can lead to costly disputes, unnecessary delays and damage to your business.
At Lamb Brooks, our Employment Law team works with growing businesses to help employers recruit confidently, stay compliant and build strong foundations for future growth.
Here are seven of the most common legal mistakes we see growing businesses make - and how to avoid them.
1. Recruiting Without a Clear Job Description and Person Specification
Before advertising a role, it's important to be clear about what you're actually looking for and how the role you are advertising interplays with other, already established roles. It is therefore advisable for employers to prepare a detailed written job description and person specification. This is a step that is recommended by the Equality and Human Rights Commission Code of Practice.
A job description sets out the job title, description of the job in terms of duties and responsibilities, the outcomes needed to be achieved and the working arrangements.
A person specification is a written description of the ideal candidate for a role, detailing the skills, knowledge, qualifications, experience, and personal qualities that are necessary or desirable to perform all the duties in the job description satisfactorily.
A well-written job description and person specification helps you:
- Attract the right candidates
- Set clear expectations
- Creates boundaries for areas of responsibility
- Demonstrates your objective approach which is not influenced by any discriminatory considerations
- Support performance management in the future
- Reduce misunderstandings once someone joins the business
It also forms part of the employment relationship, so taking the time to get it right can save problems later. Although, these documents should be regularly kept under review and updated from time to time.
2. Discriminating During Recruitment
Recruitment decisions should always be based on skills, experience and suitability for the role.
An employer must not discriminate against or victimise an applicant in terms of who is offered employment, the terms on which employment is offered or by not offering employment. It is also unlawful to harass an applicant because of a protected characteristic.
Questions, comments or decisions relating to age, disability, sex, pregnancy and maternity, gender reassignment, sexual orientation, religion or belief, race, or marriage and civil partnership can expose employers to discrimination claims, even if they are unintentional.
As part of the short-listing process, some employers screen applicants by reviewing any publicly available social media profiles, such as on LinkedIn or Facebook. A developing area that is also increasingly more commonly used as part of this screening process is AI. AI models and tools are only as good or unbiased as the information they are being fed and considering the legal risks, employers should tread cautiously when using them as part of their recruitment processes.
Training recruitment managers in equality and having a robust recruitment policy will help them recognise risk of stereotyped assumptions, score independently and objectively, focus on the role requirements and avoid asking unnecessary questions, such as questions relating to health or childcare.
Reviewing job adverts, interview questions and recruitment processes regularly can help ensure your hiring practices remain fair, consistent and legally compliant.
3. Using Outdated Employment Contracts
Many businesses rely on employment contracts that were created years ago and have never been reviewed or AI documents.
Employment legislation, case law and practice changes regularly, and contracts should evolve alongside your business, not only to be legally compliant, but to also protect the business.
A professionally drafted contract should clearly cover matters such as:
- Hours of work
- Holiday entitlement
- Probationary periods
- Notice periods
- Confidentiality
- Restrictive covenants
- Intellectual property
- Grievance and disciplinary
- Termination obligations
Well-drafted contracts provide clarity for both employers and employees while helping to reduce future disputes and providing your business with an added layer of protection.
4. Forgetting About Policies and Employee Handbooks
An employment contract is only part of the picture.
As your team grows, it's equally important to have clear workplace policies covering areas such as:
- Disciplinary procedure and rules
- Grievance procedure
- Sickness absence
- Health and safety
- Whistleblowing
- Data protection
- Anti-bribery and corruption
- Flexible working
- Family leave
- Equality, diversity and inclusion
- Sexual harassment
- Social media and acceptable use
- AI acceptable use
An up-to-date employee handbook helps managers deal with issues consistently and gives employees confidence that expectations are clear.
Some procedures/policies are legally required, some are legally beneficial to support a defence to litigation, but generally most are practically useful to every business.
5. Overlooking Right to Work Checks
Employers have a legal duty to prevent illegal working and so every employer has a legal responsibility to carry out Right to Work checks before employment begins. This check ensures that recruited employees have the right to live, and the appropriate right to work, in the UK.
Failing to carry out these Right to Work checks correctly can result in significant financial penalties and reputational damage.
The process should be completed consistently for every employee and appropriate records retained throughout their employment.
To minimise the risk of claims for discrimination, employers should carry out appropriate checks for everyone, not just those who appear to be of non-British descent.
6. Leaving Performance Issues Until It's Too Late
Many employers focus heavily on recruitment but give little thought to what happens during the first few months of employment. This is a particular area that is becoming very important, especially with the changes that are being made, including reduction to the eligibility period for unfair dismissal protection to 6 months and removal of the unfair dismissal compensation statutory cap.
From an employer perspective, the purpose of a probationary period is to provide a suitable amount of time in which the employer can assess the suitability of the employee for the role they have been recruited into.
Probationary periods should be actively managed, with:
- Regular review meetings
- Constructive feedback
- Clear objectives
- Training needs identified and addressed
- Reasonable adjustments for disabled employees
- Appropriate documentation and well-kept written notes
Addressing concerns early is often much easier than trying to resolve problems once employment has become established. Having a strong induction and probation period can ensure that the role is right for both the employee and the employer.
In addition, often termination within the probationary period requires a lesser notice period to be given and successfully passing a probation period can be linked to access to benefits.
7. Waiting Until There's a Problem to Seek Legal Advice
Perhaps the biggest mistake we see is businesses only speaking to an employment lawyer after a dispute has arisen.
Whether it's drafting contracts, reviewing policies, managing investigations or dealing with disciplinary issues, early legal advice is almost always quicker, simpler and more cost-effective than resolving issues after they've escalated.
Employment law shouldn't be viewed as a reactive service - it should be part of your wider business strategy and early intervention can save your business costs, reduce the risk of litigation and damage to reputation.
Supporting Your Business as It Grows
Recruitment is just one part of running a successful business. As your organisation grows, employment decisions often overlap with wider commercial considerations, from expanding into new premises to reviewing shareholder arrangements or managing commercial risk.
That's why the Employment Law team at Lamb Brooks works closely with our Company Commercial, Commercial Property and Commercial Dispute Resolution specialists to provide joined-up legal advice through our Business Services Team.
Rather than dealing with isolated legal issues, we help businesses take a proactive and holistic approach - protecting their interests today while supporting sustainable growth for the future.
If you're planning to recruit, expand your workforce or review your employment documentation, our experienced Employment Law team would be delighted to help.
Frequently Asked Questions – Hiring New Staff
Do I legally need an employment contract?
Employees are entitled to receive a written statement of their employment particulars from day one. A comprehensive employment contract provides much greater protection for both employer and employee.
When should I seek legal advice during recruitment?
Ideally before recruitment begins. Reviewing contracts, policies and recruitment processes early can help prevent costly issues later.
How often should employment contracts be reviewed?
Employment contracts should be reviewed regularly, particularly following changes in employment legislation or significant changes within your business.
Can Lamb Brooks support growing businesses on an ongoing basis?
Yes. We work with businesses of all sizes, providing practical employment law advice, HR support, training and ongoing legal guidance. We also offer wider Business Services expertise, allowing clients to access joined-up advice across employment, commercial contracts, property and dispute resolution as their business grows.
