Advice from an HR Consultant in Wellingborough

Your business is growing, your team is delivering, and everything seems to be running smoothly. But beneath the surface, some common working arrangements could be exposing you to legal and financial risks.

As a trusted HR Consultant in Wellingborough, I often see businesses unintentionally creating liabilities through informal setups. Here’s a quick review of three arrangements that seem efficient—but could cost you more than you expect.

1. The Reliable Worker Who “Isn’t on the Books”

They show up every week, know your customers, and deliver consistently. You’ve kept things informal to avoid paperwork—but that simplicity could backfire.

The risk:

• Regular work creates legal obligations, even without a written contract.
• If they request holiday pay or leave unexpectedly, you could face claims for missing employment rights.

The solution:

• If they work regular hours under your direction and only for your business, UK law likely classifies them as an employee.
• A simple employment contract provides clarity and legal protection for both sides.

2. The Long-Term Contractor Who Works Only for You

They invoice through their own company but follow your schedule, use your systems, and couldn’t easily hand their role to someone else. They’re part of your team in practice—but not on paper.

The risk:

• If they operate like an employee, they may be legally entitled to employee rights.
• This includes protection from unfair dismissal, redundancy pay, and backdated holiday entitlement.

The solution:

• Review the actual working relationship.
• If they lack genuine independence, consider reclassifying them as an employee or worker with appropriate documentation.

3. The Flexible Worker with No Written Terms

They’re great for busy periods or short-term projects. Everyone understands the arrangement—but nothing is written down.

The risk:

• Without written terms, the law may default to stronger employment protections than you intended.
• You could be liable for notice periods, holiday pay, or other entitlements.

The solution:

• All workers are legally entitled to written terms from day one.
• A short agreement covering pay, hours, notice, and expectations doesn’t need to be complex—just clear and fair.

How to Stay Compliant and Protected

As your business evolves, so do your working relationships. Here’s how to keep things legally sound:

• Assess the reality of each role
  If someone works regular hours, takes direction, and can’t easily be replaced, they’re probably an employee.
• Match documentation to the role
  Employees need full contracts and rights. Workers need basic protections. Genuine contractors should control their own work.
• Review regularly
  What starts as freelance or project work can quietly become employment. Regular reviews help you stay compliant.

Need Help from an HR Consultant in Wellingborough?

At East Midlands HR, we help businesses structure their people arrangements properly from the start. Whether you're unsure about a contractor’s status or need to formalise flexible roles, we’ll review your setup and put the right documentation in place.

📞 Get in touch for a confidential review of your working arrangements.
Let’s make sure your business is protected as it grows.