The Small Business Owner’s HR Survival Kit

Let’s face it, most business owners didn’t start out dreaming about staff policies, employment contracts or GDPR rules. But as your business grows and you bring people on board, the ‘people stuff’ quickly becomes one of the most important areas to get right. 

Without the right foundations in place, things can get messy fast, and not just legally. It affects how your team sees you, how confident you feel leading, and how smoothly your business runs day to day. 

So, if you’ve ever thought: 
"What HR stuff do I really need to have sorted?", this is for you. 

Your HR Compliance Survival Kit 

Here’s a simple breakdown of the essentials every small business should have in place to stay safe, legal, and confident. 

1. Employment Contracts (Don’t Skip These) 

Every employee must have a written contract on or before their first day. It’s not just nice to have, it’s a legal requirement . 

Your contract should cover things like: 

• Job title and responsibilities 
• Pay and working hours 
• Holiday allowance 
• Notice periods 
• Place of work 
• Sick pay 
• Disciplinary and grievance procedures 

We highly recommend that you avoid generic contracts from the internet. They might not meet UK legal requirements or suit your business properly and causing you more problems in the long term. 

2. Right to Work Checks (Quick but Important) 

Before someone starts working for you, you must check that they have the legal right to work in the UK. This involves seeing original documents (like a passport), checking they’re valid, keeping a copy in your records. Missing this step can result in fines of up to £20,000 per illegal worker, so it’s worth taking seriously. 

3. Essential Policies (Keep It Simple!) 

You don’t need a massive handbook, but there are a few key policies that help keep your business protected and your team clear on how things work. 

You must have: 

1. Disciplinary and Grievance Policies: These explain how issues or concerns will be dealt with fairly. 
2. Health & Safety Policy: Especially important if you have 5 or more employees 
3. Equality Policy: Shows you’re committed to fair treatment of all your employees 
4. Sickness & Absence Policy: Sets out how to report sick days and what support is available 
5. Flexible or Remote Working Policy: If this is something you can offer, it helps set clear expectations around modern work patterns 

These aren’t just for ticking boxes, they build trust and give you something to fall back on when tricky situations arise. 

4. GDPR and Employee Data (Know the Basics!) 

If you’re storing personal information about your staff (which you are!), you need to follow data protection rules. 

You should have an employee privacy notice, lawful reason for collecting each type of data, a secure way of storing it and a clear policy on how long you keep it. 

We know GDPR can feel like a headache, but we promise it doesn’t have to be complicated. 

What Happens If You Don’t? 

Here’s the truth, skipping HR compliance doesn’t usually cause problems until something goes wrong. Our favourite saying is “It’s all okay ... until it’s not!” And by then, it’s often messy, stressful, and expensive to fix. 

Without the right documents in place, you could face costly legal claims or tribunal hearings, big fines for breaches of employment law, damaged relationships and reputation and having to have difficult conversations with no clear policies to guide you. Getting the basics sorted now can save you time, money and a whole lot of stress later on. 

Ready to Get It Sorted? 

If you’re feeling unsure or overwhelmed, you’re definitely not alone. That’s why we created the Dakota Blue Academy, to give small business owners easy-to-follow guides, ready-made templates, and simple answers to all the “people stuff” in your business. 

Inside, you’ll find: 

Employment contract templates, customisable policy documents, checklists for right to work, onboarding, GDPR templates and step-by-step guides that make compliance easy, not scary.  

Whether you’re recruiting your first employee or sorting things out after years of winging it, we’re here to help you feel confident and covered. 

Your Next Steps 

• Check if all your employees have up-to-date contracts 
• Review if you have the core HR policies in place? 
• Need support? The Academy has everything you need in one place. 

Compliance doesn’t have to be complicated. 
Think of it as your business raincoat, not something you wear every day, but when the storm hits, you’ll be glad it’s there. 

Let’s get you covered. Give Dakota Blue Academy a try. Sign up now for free. After all, at just £29 a month, it costs less than a decent umbrella and protects a whole lot more!