HR compliance basics are the unglamorous foundations that stop one small people issue turning into an expensive, time‑draining problem.
If you do not have employment contracts, a handbook detailing your policies and procedures, completed right to work checks, undertaken training or even have proper records in place, you are relying on luck rather than a defensible position.
When leaders complete our HR ‘Health Check’, we often see the same red flags:
- no up‑to‑date employment contracts or written terms for employees
- no core people policies or procedures (for example disciplinary, grievance, sickness and absence, diversity, equality and inclusion)
- patchy or risky training gaps for managers
- no formal right to work checks
- no clear termination or redundancy procedure
- employee records that are incomplete or do not exist at all
On a good day, nothing goes wrong and this stays under the radar. However, the moment someone raises a concern, becomes unwell, underperforms or leaves on bad terms, those gaps can quickly take over your time and your headspace, and lead to financial consequences.
HR compliance basics: what this means in practice
From an HR perspective, these are not “nice to haves”, they are the foundations of a safe, transparent and scalable business, and importantly a legally compliant one.
In the UK, workers are entitled to a written statement of employment particulars from day one, and most employers turn this into a clear contract of employment so everyone understands their terms and conditions of their employment- including hours of work, pay, holiday entitlement and notice requirements. Without this, disputes over “who agreed what” are much harder to resolve.
Employers must also follow fair disciplinary and grievance processes that reflect the Acas Code of Practice. If they do not, and an employee succeeds at tribunal, any award can usually be increased by up to 25%. A simple, well communicated procedure that is followed dramatically reduces that risk.
Right to work checks are another legal must‑do. The latest Home Office guidance makes clear that employers who carry out the correct checks before someone starts work can usually avoid civil penalties if it later turns out the person did not have the right to work. Failing to check can mean large fines, reputational damage and, in some sectors, loss of licences or contracts.
Under data protection law, employers are expected to keep accurate, secure records about their workers, and to know what they are keeping, why and for how long. Weak or non‑existent records make it much harder to defend a complaint or claim, because there is very little evidence of what actually happened.
Quick checks for leaders: do and don’t
Here are some simple HR checks you can use to see if your foundations are in place.
Do:
- Make sure every employee and worker has a clear written contract or statement of particulars that reflects how they actually work.
- Put in place core policies and procedures covering expectations for conduct, management of performance, management of sickness and absence, family leave entitlements, diversity, equality and inclusion, bullying and harassment, and whistleblowing.
- Train and coach managers on how to effectively use those policies and practices via real conversations, not just to refer to on paper.
- Build proper and robust right to work checks and basic onboarding steps into every hire.
- Keep essential HR and payroll records in one secure, well organised place.
Don’t:
- Assume that “we have always done it this way” will be enough of a defence if a dispute reaches Acas or an employment tribunal.
- Rely solely on informal chats instead of letters, notes of meetings and follow‑up emails- so records.
- Let policies gather dust; if managers have never read them, they will not protect you.
- Delay dealing with concerns because you are unsure of the process. Get advice and support early instead.
One small issue, can quicky escalate to one big snowball.
Imagine a long‑serving employee whose performance dips. There is no clear contract, so their hours and duties are vague. There is no performance or capability policy, so their manager muddles through a series of informal chats with no notes.
Eventually, frustration builds on both sides and the employee raises a grievance, alleging unfair treatment and discrimination. At that point, the business realises there are no investigation notes, no training records for the manager and no consistent process to point to. What started as a manageable performance concern now carries far greater legal, financial and reputational risk.
We see this snowball effect often. The good news is that putting these basic building blocks in place – employment contracts, policies and procedures, training, right to work checks and record‑keeping – is usually far cheaper and less stressful than firefighting a live dispute.
Next steps with Strategic HR
If your HR ‘Health Check’ results have revealed gaps, treat them as a practical to‑do list rather than a reason to panic. Prioritise the highest‑risk basics first: employment contracts, right to work checks, disciplinary and grievance processes, and core policies. Then plan how you will upskill managers and tidy up your records over the next quarter.
At Strategic HR we help employers turn HR compliance basics into a solid, proportionate framework that protects the business without slowing it down, and one on which to build a safe, equitable and legally compliant organisation.
As at November 2025. This article provides general information only and is not legal advice.
