Welcome to the HR Harbour
This is our central space for practical guidance, free resources and the latest updates from Saltwater HR.
The HR Harbour is Saltwater HR's resource hub for small business owners and managers. Here you'll find practical HR templates, free guides and checklists, plain-English answers to common employment law questions, HR news and guidance on managing people in the real world, not just in theory.
Can I use the templates for my own business? Absolutely. Our templates are written to be editable and suitable for most small businesses. You should always review them to ensure they reflect your company's setup, policies and tone. Please note that the copyright remains with us so please don't sell them on!
What size businesses do you work with? Saltwater HR specialises in supporting small businesses and start-ups, typically those with up to 50 employees. Our services are designed to grow with your business, offering the right level of support as your team develops.
What's included in your HR retainers? All engaged packages include unlimited HR advice. Higher tiers add hands-on administration support, bespoke documentation and ongoing HR system management. You can see full details on our HR Services page.
Do you offer one-off projects or audits? Yes. We work on standalone HR projects such as policy reviews, contract updates, HR software setup, audits and handbooks - ideal if you just need help getting everything in order.
Are your services only available in West Sussex? No, while we're based in Chichester, we support businesses across the South Coast and throughout the UK. Most clients work with us remotely, with in-person support available locally as needed.
What qualifications and experience do you have? Saltwater HR is led by Nicky, an experienced HR and recruitment professional who began her career in recruitment back in 2006. She holds a CIPD Level 5 Associate Diploma in People Management, a Postgraduate Certificate in Employment Law, and is a CQI/IRCA Certified Lead Auditor. Nicky's background spans in-house and consultancy HR roles, boutique recruitment consultancies and volunteer work, giving her wide-ranging experience across different clients, sectors and situations. This means advice is always practical, commercially aware and grounded in real-world experience, not just theory.
I only have a few employees - do I really need HR support? This is one of the most common questions we hear, and the honest answer is: probably more than you think. Employment law applies to your business from the moment you take on your first member of staff, and the risks do not scale down just because your team is small. A tribunal claim, a poorly handled dismissal, or a contract that does not reflect the reality of someone's role can be just as costly for a five-person business as it is for a fifty-person one. In fact, smaller businesses are often more exposed because they do not have the internal resource to spot problems early.
You do not need a full-time HR department. What you do need is someone you can call when something comes up, documents that are legally compliant and up to date, and the confidence to manage your people fairly and consistently. That is exactly what Saltwater HR is designed to provide; flexible, affordable support that fits around a small business, without committing you to more than you need.
I already have access to an HR helpline through my insurance, HRIS or membership, why should I use Saltwater HR instead? Bundled HR helplines can seem like a convenient safety net, but there are some important differences worth knowing about.
Most helplines operate on a call-centre model — you ring a number, speak to whoever is available, and start from scratch every time. There is no continuity, no one who knows your business, and advice that is often heavily scripted to protect the provider rather than genuinely tailored to your situation. Many employers find they get cautious, generic answers when what they actually need is a straight, practical steer.
Saltwater HR works differently. You have a named consultant, someone who knows your team, your contracts, your history, and your risk appetite. The advice you get is honest, specific to your circumstances, and built around what is actually right for your business. We also go beyond advice; we can draft documents, manage processes alongside you, represent your interests, and flag issues before they become problems.
If your current arrangement is working well for you, that is genuinely fine and we will tell you so. But if you have ever come off a helpline call feeling none the wiser, or found yourself second-guessing generic advice because it did not quite fit your situation, it might be worth having a conversation with us. The first call is always free.
Do I need an employment contract for every member of staff? Yes, in the UK, all employees and workers are legally entitled to a written statement of employment particulars from day one. This includes part-time, fixed-term and zero-hours staff. Getting this right from the start protects both you and your team, and is one of the first things we help businesses put in place.
What HR documents does every small business need? At a minimum: a contract of employment for every member of staff, a disciplinary and grievance procedure, a holiday policy, and a health and safety policy (if you have five or more employees). An employee handbook is strongly recommended as your business grows. We offer an HR audit if you want to find out where your gaps are.
What's the difference between an employee, a worker and a self-employed contractor? Understanding employment status is one of the most important and most misunderstood areas of employment law for small businesses, so it is worth getting to grips with the three main categories.
Employees work under a contract of employment and have the full range of employment rights, including unfair dismissal protection, statutory redundancy pay, maternity and paternity rights, and much more. Most people you take on in a regular, ongoing role will be employees.
Workers have a more flexible arrangement, typically casual, zero-hours or irregular work, but still have key legal rights including National Minimum Wage, holiday pay, rest breaks and protection from discrimination. They do not have the full suite of employee rights, but they are not without protection either.
Self-employed contractors sit outside employment law in most respects and are responsible for their own tax and National Insurance. However, and this is where businesses get into difficulty, the label you put on someone does not determine their actual status. If someone works exclusively for you, follows your instructions, works set hours, and is integrated into your business in practice, a tribunal or HMRC may well find they are a worker or employee regardless of what their contract says. This is the basis of IR35 (off-payroll working rules), which affects businesses engaging contractors through personal service companies and can result in significant tax liability if status is incorrectly assessed.
Misclassification is one of the most common and costly mistakes small businesses make — the consequences can include backdated tax and National Insurance, holiday pay claims going back several years, and employment tribunal claims. If you are unsure about the status of anyone working for or with your business, it is well worth taking advice before a problem arises rather than after.
How do I handle a disciplinary fairly? You need to follow a fair process; this means investigating the issue, giving the employee written notice of the concern, holding a formal meeting where they can respond, and giving them the right to be accompanied. Skipping steps, even with good intentions, can make a dismissal unfair. We can guide you through the process or manage it alongside you.
How much notice does an employer have to give to terminate employment? The legal minimum notice periods are: one week for employees with one month to two years' service, then one week per year of service up to a maximum of 12 weeks. So an employee with five years' service is entitled to at least five weeks' notice. Your contracts may give more than the legal minimum but you cannot give less. Employees also have a minimum notice obligation to you, which is one week once they have passed their probationary period, unless their contract states otherwise. Always check the contract first.
What are the rules around zero-hours contracts? Zero-hours contracts are legal in the UK and can work well for genuinely flexible or irregular work. However, workers on zero-hours contracts still have rights, including National Minimum Wage, holiday pay, and rest breaks. You cannot prevent a zero-hours worker from working for another employer (exclusivity clauses are banned). Be careful about using zero-hours contracts where there is actually a regular, predictable pattern of work — tribunals have found employment status in those situations, which brings with it a much wider range of rights. If you are unsure whether a zero-hours arrangement is right for your business, it is worth getting advice before you commit.
Can I ask a job applicant about their health or disability during recruitment? Generally, no. Under the Equality Act 2010, you cannot ask questions about health or disability before making a job offer, with very limited exceptions, for example, to ask whether someone needs reasonable adjustments for the interview, or to establish whether they can carry out a function that is intrinsic to the role. Asking about health too early in the process is one of the more common recruitment mistakes and can leave businesses exposed to discrimination claims. Once a conditional offer has been made, you can ask relevant health questions but you must handle the responses carefully.
What is Statutory Sick Pay and when does it apply? Statutory Sick Pay (SSP) is the minimum amount you must pay eligible employees when they are off sick. Following changes introduced by the Employment Rights Act 2025, SSP is now payable from the first day of absence - the previous three waiting days have been abolished. This is a significant change for small businesses and means that short-term sickness absences are now more costly to manage than they were before.
The current rate is £116.75 per week (April 2026). To qualify, an employee must earn at least the Lower Earnings Limit (currently £123 per week) and have been sick for four or more consecutive calendar days including weekends. SSP is paid for up to 28 weeks. After that, if the employee remains unable to work, you will need to consider your long-term sickness absence process.
You can choose to offer a more generous contractual sick pay scheme but you cannot offer less than SSP. If you have not reviewed your sickness absence policy since the changes came in, it is worth doing so to make sure it reflects the current legal position.
Can I refuse a holiday request? Yes, you have the right to refuse a holiday request, but you must give the employee at least as much notice as the length of the holiday requested. So if an employee asks for two weeks off, you need to give at least two weeks' notice of refusal. You should have a clear holiday request process in your handbook and apply it consistently. Common legitimate reasons for refusal include operational need, other staff already being on leave, or a particularly busy period. You cannot refuse holiday requests in a way that prevents an employee from taking their full statutory entitlement across the leave year, if that happens, you may be required to allow it to carry over.
How do I manage long-term sickness absence? Long-term sickness absence (generally defined as four weeks or more) needs careful, compassionate and legally compliant management. Key steps include: maintaining regular, supportive contact with the employee; obtaining a fit note and, where appropriate, an occupational health report; understanding the medical position and likely return-to-work timescale; considering whether any reasonable adjustments could facilitate a return; and following a fair process before making any decision about continued employment. If the employee has a condition that amounts to a disability under the Equality Act, you have additional obligations. Dismissing someone for long-term sickness without following a thorough process is one of the most common causes of unfair dismissal and discrimination claims. We would always recommend taking advice before reaching that stage.
Is there a maximum temperature for the workplace — and what about a minimum? There is no legal maximum workplace temperature in the UK, which surprises many people. However, employers have a general duty under health and safety law to maintain a reasonable working temperature and a comfortable working environment. The Health and Safety Executive recommends a minimum of 16°C for most workplaces (13°C where the work involves physical activity), but there is no equivalent upper limit. In practice, if temperatures become uncomfortably high you should carry out a risk assessment and consider reasonable measures such as fans, flexible working hours, relaxing dress codes, or rest breaks. It is worth having a heat policy in place before the summer rather than reacting in the moment.
Do I have to give employees bank holidays off? Not automatically. There is no statutory right to time off on bank holidays in the UK, what matters is what the contract says. Many contracts state that employees are entitled to statutory holiday "plus bank holidays", in which case you must give them off (or pay in lieu if they work them). Others state a total number of days inclusive of bank holidays. Check your contracts carefully and make sure they are consistent. If you require staff to work bank holidays, for example in hospitality or retail, make sure your contracts are clear on this and that the enhanced pay or time off in lieu arrangements are documented.
Can I monitor my employees' emails or activity? Yes, but within limits. You can monitor emails, internet use, phone calls and computer activity, but you must be transparent about it. Employees should be told what monitoring takes place, why, and how the data will be used; this is usually set out in an IT or monitoring policy. Covert monitoring is very rarely justified and carries significant legal risk under UK GDPR and the Human Rights Act. Even where monitoring is disclosed, you should only collect data that is proportionate and necessary. If you do not have a monitoring policy, it is worth putting one in place before you need to rely on any evidence gathered.
What checks do I need to do before someone starts work? As a minimum, every employer in the UK must carry out a right-to-work check before employment begins. Beyond that, depending on the role, you may also need to: take up references; carry out a DBS (Disclosure and Barring Service) check for roles working with children or vulnerable adults; verify professional qualifications or memberships; complete a medical questionnaire (after a job offer has been made); and check driving licence validity if the role involves driving. You should also ensure you have a signed contract in place and that the employee is set up on payroll correctly before they start. Getting the pre-employment process right avoids problems later.
What is a right-to-work check and how do I do it? A right-to-work check is a legal requirement for all UK employers before a new employee starts work. Its purpose is to confirm that the person has the legal right to work in the UK and to reduce your exposure to a civil penalty if it later emerges they did not. For British and Irish citizens, you can check an original passport or birth certificate plus evidence of National Insurance number. For non-UK nationals, the process depends on their immigration status, many will use the Home Office online checking service, which generates a share code the employee provides to you. You must retain a copy of the documents checked and the date the check was carried out. Checks must be done before the first day of work, not retrospectively. If you are unsure about a particular situation, for example a visa with conditions attached, take advice before proceeding.
Do employees have the right to request flexible working? Yes. Since April 2024, employees have the right to request flexible working from day one of employment. Employees can make up to two requests in any 12-month period. Flexible working can include changes to hours, times of work, or location (such as working from home). You must deal with any request in a reasonable manner and respond within two months. You can only refuse a request on one or more of eight specific business grounds set out in law. You do not have to agree to every request, but you do need to consider each one properly and give clear reasons if you refuse.
Can I refuse a flexible working request? Yes, but only on specific grounds. The eight lawful reasons for refusal are: the burden of additional costs; a detrimental effect on the ability to meet customer demand; an inability to reorganise work among existing staff; an inability to recruit additional staff; a detrimental impact on quality; a detrimental impact on performance; insufficiency of work during the proposed working hours; or planned structural changes to the business. You cannot refuse simply because you prefer people to be in the office, or because it has always been done a certain way. Refusals should always be documented with clear reasoning. Employees who feel their request has not been handled properly can raise a grievance or bring a tribunal claim.
What is a settlement agreement and when should I use one? A settlement agreement is a legally binding contract between an employer and an employee that settles any potential employment claims, usually in exchange for a financial payment. The employee gives up their right to bring tribunal claims in return for an agreed sum, which is often (though not always) tax-free up to £30,000. Settlement agreements are commonly used when ending employment by mutual agreement, resolving a grievance or dispute, or where a dismissal process might otherwise carry legal risk. The employee must receive independent legal advice before signing and the cost of this advice is typically covered by the employer. A well-drafted settlement agreement gives both parties a clean break and certainty. If you are considering one, take advice early - the timing and approach matter.
Can I pay someone in lieu of notice? Yes. Payment in lieu of notice (PILON) means paying the employee their notice pay as a lump sum rather than requiring them to work their notice period. Whether you can do this depends on whether there is a PILON clause in the contract. If there is, you can invoke it at any time. If there is not, making a payment in lieu is technically a breach of contract — though in practice it is often agreed mutually and the employee accepts it. Since April 2018, all PILON payments — whether contractual or not — are subject to tax and National Insurance. Garden leave (where the employee stays on the payroll but does not come in to work) is an alternative worth considering if you have concerns about confidentiality or client contact during the notice period.
Should all my contracts have restrictive covenants? Not necessarily but for some roles they are worth considering. Restrictive covenants are clauses that limit what an employee can do after they leave, such as preventing them from joining a competitor, poaching your clients, or approaching your staff. To be enforceable, covenants must be reasonable in scope, geography and duration - courts will not enforce blanket or excessive restrictions. They also need to be included at the start of employment (or supported by fresh consideration if added later). For senior roles, client-facing positions, or anyone with access to sensitive information or key relationships, well-drafted covenants can be valuable protection. For a warehouse operative with no client contact, they are unlikely to add much. We would recommend taking a role-by-role approach rather than using the same contract for everyone.
Can I pay rolled-up holiday pay to all my employees? Since April 2024, rolled-up holiday pay has been reinstated as a lawful option for workers with irregular or part-year hours, such as those on zero-hours contracts or casual arrangements. It means adding an additional 12.07% to each payment to account for holiday pay (for employees on statutory holiday allowance), rather than paying it when leave is taken. However, rolled-up holiday pay is not suitable for all employees. For those with regular, fixed hours and a standard contract, it is still best practice to pay holiday pay when leave is actually taken. Using rolled-up pay for all staff regardless of contract type could cause problems and is worth reviewing with an HR adviser to make sure your approach is compliant.
