Clear, current, practical
UK HR answers for small businesses
Direct answers to the employment questions owners and managers ask most, checked against current official guidance.
How much does outsourced HR cost for a small UK business?
Outsourced HR can cost from a few hundred pounds per month for core retained support, with the price increasing according to headcount, complexity and the level of hands-on help required. Indie People’s published retained packages currently start at £199 per month. Compare scope, response times, named-consultant access and exclusions—not price alone.
Read the answerDoes a small UK business need HR support?
UK law does not require every small business to employ an HR manager. However, employer responsibilities begin with the first employee, including written particulars, pay, right-to-work checks, health and safety, pensions, data protection and fair treatment. The real question is who has the competence and time to manage those duties consistently.
Read the answerCan you dismiss an employee with under two years’ service?
As at 4 September 2026, an employee normally needs two years’ service to claim ordinary unfair dismissal in Great Britain. That does not make dismissal risk-free: automatically unfair reasons, discrimination, whistleblowing, contractual rights, notice and wrongful dismissal can apply regardless of service. ACAS says the ordinary qualifying period will reduce to six months from 1 January 2027.
Read the answerWhat does the Employment Rights Act 2025 mean for small businesses?
The Employment Rights Act 2025 became law on 18 December 2025, but its measures are being phased in. Changes already operating include day-one paternity and ordinary parental leave, revised Statutory Sick Pay and stronger collective-redundancy remedies. Other measures—including six-month unfair-dismissal eligibility—are scheduled for 2027 and must not be treated as current law early.
Read the answerHow should an employer manage long-term sickness absence?
Manage long-term sickness through regular agreed contact, appropriate medical evidence, consideration of disability and reasonable adjustments, and a documented review process. Do not jump directly to dismissal. If return is not reasonably possible after support and alternatives have been considered, a fair capability process may eventually be appropriate.
Read the answerCan an employer reject a flexible working request?
An employer can reject a statutory flexible-working request only for one or more permitted business reasons. The employer should consult before refusing, consider alternatives and complete the process—including any appeal—within two months unless an extension is agreed. Equality and reasonable-adjustment duties must be considered separately.
Read the answerWhat is a fair redundancy consultation process?
A fair redundancy consultation starts while proposals can still change. Explain the business rationale, affected roles, proposed selection pool and criteria; listen to alternatives; apply objective criteria consistently; search for suitable alternative employment; and confirm decisions, notice, pay and appeal in writing. Consultation must be genuine, not a decision already made.
Read the answerWhen is collective redundancy consultation required?
Collective consultation is generally required when an employer proposes 20 or more redundancies at one establishment within a 90-day period. Consultation must involve recognised trade-union or elected employee representatives and begin in good time. The first dismissal normally cannot take effect until at least 30 days after consultation begins, or 45 days where 100 or more dismissals are proposed.
Read the answerWhat should be included in a UK employee handbook?
A useful employee handbook explains how employment policies work in practice. It commonly covers conduct, disciplinary and grievance procedures, equality and harassment, sickness, annual and family leave, flexible working, health and safety, data protection, IT and communications, expenses and reporting concerns. Clearly distinguish contractual terms from non-contractual policies.
Read the answerWhich HR policies are legally required in the UK?
There is no single statutory list requiring every UK employer to maintain the same standalone HR policies. Employers must provide written employment particulars and comply with duties covering matters such as discipline and grievances, health and safety, equality, family leave, flexible working, whistleblowing and data protection. Some written policies become mandatory only at particular sizes or in particular circumstances.
Read the answer