Outsourced HR is when a business uses an external HR professional to manage its people processes instead of employing an in-house HR team. This can include contracts, policies, employee issues, recruitment support and ongoing HR advice, helping businesses stay compliant while accessing expert support when needed.

A HR retainer is an ongoing agreement where you pay a fixed monthly fee for access to expert HR support. Unlike one-off projects or hourly billing, a retainer gives you consistent, reliable support whenever you need it.

For your business, this means you have access to professional HR advice, guidance and tailored support on a continuous basis—without the cost and commitment of hiring an in-house HR team. It also allows for better planning and budgeting, as your HR costs are predictable each month.

In short, it’s like having your own HR department on hand, but in a more flexible and cost-effective way.

Many businesses wait until a problem arises before seeking HR advice, but early support can help prevent costly issues. HR guidance is particularly valuable when hiring your first employee, managing performance concerns, or introducing formal workplace policies as a team grows.

Yes. Even small businesses must follow employment law requirements relating to recruitment, contracts, disciplinary processes, and dismissal procedures. Without clear documentation and consistent processes, employers can face disputes or employment tribunal risks. Professional HR support helps reduce these risks and supports fair decision-making.

Strong HR practices help create clarity, consistency, and fairness regardless of business size. Clear expectations, documented processes, and compliant employment practices support staff confidence, reduce misunderstandings, and help organisations operate more effectively as they grow.

Outdated or incomplete HR documents can leave your business exposed to employment disputes. We help small businesses by reviewing, updating, and drafting compliant contracts, staff handbooks, and HR policies, so you meet all your legal requirements.

Inconsistent handling of employee issues can demotivate staff and increase legal risk. LeoHR guides you through consistent, legally compliant performance management and disciplinary processes, providing documentation, guidance, and support every step of the way.

Lack of clarity or equity in pay can lead to dissatisfaction, staff turnover and discrimination claims. LeoHR supports employers with market-aligned pay structures, benefits guidance, and clear communication, helping you attract and retain talented employees.

An employment tribunal is a legal process where disputes between employees and employers are formally resolved. Common issues include unfair dismissal, discrimination, wage disputes, or breaches of employment rights.

Small businesses can face a tribunal even if mistakes were unintentional - for example, failing to follow proper disciplinary procedures or keeping incomplete records.

Tribunals focus less on intent and more on whether employers acted fairly, consistently, and in line with the law. That’s why having clear processes, accurate documentation, and professional guidance is so important.

How Leo HR helps:
We support employers by reviewing policies, advising on disciplinary or grievance processes, and helping ensure decisions are defensible and compliant, reducing the risk of costly disputes and reputational damage.

ACAS (the Advisory, Conciliation and Arbitration Service) helps resolve workplace disputes. They may contact an employer if an employee raises a potential employment tribunal claim, as part of Early Conciliation before legal action begins. At this stage, businesses often consider settlement agreements or negotiated resolutions and may seek HR support to manage the process correctly and reduce risk.

What is the Fair Work Agency?

The Fair Work Agency brings together several enforcement bodies into one central organisation responsible for monitoring key employment rights, including:

• National Minimum Wage compliance

• Holiday pay and statutory payments

• Agency worker protections

• Labour exploitation enforcement

• Worker rights investigations

By consolidating enforcement into one agency, the government aims to make investigations faster, more coordinated, and more accessible for workers raising concerns.

What Has Changed for Employers?

The biggest change is not new rules - but stronger enforcement.

The Fair Work Agency has enhanced powers to:

• Investigate complaints directly

• Conduct workplace inspections

• Require access to employment records

• Recover underpayments for workers

• Issue financial penalties and enforcement notices

• Pursue action where employers fail to comply

In practical terms, employers may now face earlier intervention and closer scrutiny where processes or records fall short.

The Risk for Employers

Many employment breaches are not intentional - they arise from outdated contracts, incorrect holiday pay calculations, inconsistent processes, or simple misunderstandings of complex legislation.

However, under the new enforcement model, even unintentional errors can result in:

• Repayment of wages or holiday pay

• Financial penalties

• Formal investigations

• Reputational impact

• Management time spent responding to enforcement action

For small and growing businesses especially, these situations can become costly and disruptive very quickly.

The key question is no longer “Are we trying to do the right thing?” but:

“Can we evidence that we are doing the right thing?”

Most tribunal claims arise from everyday management decisions rather than deliberate wrongdoing.

Common triggers include:

• Dismissing an employee without a fair process

• Poor or missing documentation

• Inconsistent treatment between employees

• Incorrect handling of grievances or complaints

• Discrimination risks during recruitment or management decisions

• Lack of clear communication or warnings before dismissal

Tribunals often focus on whether an employer followed a reasonable and fair process — not just the final decision itself. Having clear procedures and documented evidence is essential.

Employers must provide a safe, supportive working environment and comply with health and safety regulations. This includes monitoring workloads, addressing stress and mental health concerns, providing access to support services, and documenting all actions taken.

Structured support, regular check-ins, and reasonable adjustments show that wellbeing is a priority. Maintaining records of meetings, actions, and decisions helps protect the business if concerns escalate or are reviewed externally.

In most cases, employers must have a fair reason for dismissal and follow a reasonable process. The five potentially fair reasons for dismissal are:

• Conduct (for example, misconduct or gross misconduct)

• Capability or performance (where an employee is unable to perform their role to the required standard)

• Redundancy

• A statutory restriction (where continued employment would break the law)

• Some Other Substantial Reason (SOSR), which can cover situations such as business reorganisations or irretrievable breakdowns in working relationships

The circumstances of each case will differ, and employers should ensure they follow a fair procedure before making any decision to dismiss. Failure to do so could increase the risk of an employment tribunal claim.

If you're considering dismissing an employee, seeking HR advice at an early stage can help ensure the process is handled fairly and in line with employment law.

1) Children are safe

2) They are making progress

Sounds easy doesn’t it!

How a setting achieves those two things requires a lot of time, attention, organisation and a very strong leadership. We understand this from first hand experience and can support you and your team to deliver a high quality service to the families you serve.

A psychologically safe workplace encourages open communication, early reporting of wellbeing concerns, and fair, confidential handling of issues. It reduces risk of stress-related claims and improves engagement and productivity.

In England and Wales, employers are not generally required to give employees a pay rise each year unless:

• The employment contract states that pay will increase.

• A collective agreement requires a pay increase.

• An employee's pay would otherwise fall below the National Minimum Wage or National Living Wage.

Many employers choose to review salaries annually to remain competitive, reward performance and support employee retention, but there is usually no legal obligation to increase pay.

There is also no legal requirement regarding how much a pay rise should be. Some employers choose to increase pay in line with inflation, while others base increases on factors such as business performance, employee performance, market rates, skills, responsibilities and affordability. In some years, businesses may decide not to award pay rises at all, provided pay remains compliant with minimum wage legislation and any contractual obligations.

When considering pay increases, employers should ensure decisions are fair, consistent and free from discrimination. Having a clear approach to pay reviews can help manage employee expectations and support positive employee relations.

If you're unsure how to approach pay reviews or salary increases, Leo HR can provide practical advice tailored to your business.

Based in Salisbury, Wiltshire but can serve all across England & Wales. If in-person meetings are not feasible, we can connect via email, calls, Teams or Zoom.

Getting started is simple. Reach out through our contact form or schedule a discovery call—we’ll walk you through the next steps and answer any questions along the way.

An initial consultation provides an opportunity to understand your business, current challenges, and level of HR support required. You’ll receive practical guidance, clarity on next steps, and recommendations tailored to your organisation, with no obligation to proceed further.

An HR audit is a structured review of your current HR documents, processes and practices to identify any gaps, risks or areas for improvement.

It helps ensure your business is compliant with employment law and that HR systems are working effectively in practice, not just on paper.

A disciplinary process is a formal procedure used by employers to address concerns about an employee’s conduct, behaviour, or performance.

It typically involves investigating the issue, holding a meeting with the employee, and deciding on an appropriate outcome, which may range from a warning to dismissal.

Following a fair and consistent disciplinary process is important to reduce the risk of disputes or tribunal claims.

A capability procedure is used when an employee is unable to meet the required standards of their role, usually due to performance concerns or ongoing ill health.

The process involves identifying the issues, providing support or reasonable adjustments where appropriate, and giving the employee an opportunity to improve before any formal action is taken.

Managing capability fairly helps ensure decisions are reasonable and supported by evidence.

A settlement agreement is a legally binding agreement between an employer and an employee used to resolve a dispute or bring employment to an end on agreed terms.

It usually involves a financial payment in return for the employee agreeing not to pursue legal claims.

Settlement agreements must meet specific legal requirements, including the employee receiving independent legal advice before signing.

ACAS (Advisory, Conciliation and Arbitration Service) is an independent organisation that provides guidance on employment rights and workplace relations.

ACAS is often involved when workplace disputes arise, particularly through Early Conciliation - a process that gives employers and employees the opportunity to resolve issues before a tribunal claim is made.

Employers may be contacted by ACAS if an employee is considering a claim, including in situations involving dismissal or settlement discussions.

Breathe is a cloud-based HR software platform designed to help businesses manage employee information, holidays, absence, documents and other key HR processes in one secure location.

Yes. Leo HR is an Accredited Breathe Partner, meaning we have completed Breathe's partner accreditation programme and can introduce clients to the platform and provide support where required.