Is it a legal requirement to have a seperate HR Dept?

Discussion in 'Employment & HR' started by jegams, Nov 12, 2013.

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  1. jegams

    jegams UKBF Newcomer

    1 0
    Dear fellow members,
    We are into manufacturing dresses and I am in the process of re-organizing the company structure.
    Our company has grown well over the past years and we now have more than 40 full time employees across different calibre - from Office staff to factory workers.
    My question is - " Is there any legal requirement that we must have a separate HR department once you have more 'X' amount of employees?

    Could you kindly share your knowledge or put me in the right direction please?
    Much obliged.

    Jay
     
    Posted: Nov 12, 2013 By: jegams Member since: Nov 12, 2013
    #1
  2. Steve Sellers

    Steve Sellers Verified Business ✔️

    4,048 1,210
    Hi Jay, there is no legal requirement.

    The question is, with 40 staff members, do you need a full time HR Officer? (thats not a leading question)

    Whats more cost effective - outsourcing Vs another wage?
     
    Posted: Nov 12, 2013 By: Steve Sellers Member since: Aug 7, 2011
    #2
  3. Chris Ashdown

    Chris Ashdown UKBF Legend

    12,404 2,605
    With this expansion you will soon have to consider Pensions so need to look up the new laws

    If you join the federation of small businesses you get good legal advice and employment law advice for I think about £150 per year

    Alternately Karl on here could give you good advice

    Karl Limpert
    Consultant/Advocate
    Employment Law Clinic
    Phone: 020 3397 2979
    Fax: 020 3397 3933
     
    Posted: Nov 12, 2013 By: Chris Ashdown Member since: Dec 7, 2003
    #3
  4. sjbeale

    sjbeale UKBF Legend

    1,215 212
    There is no legal requirement to have an HR department, but with 40 members of staff you may have a requirement from time to time for HR advice and there are many providers out there who could provide telephone and/or email advice with varying costs and varying ability.

    However most do not provide any on site support with meetings and documentation eg contracts, employee handbooks, job descriptions, etc which you also may need from time to time. As a start an HR provider should review your existing documents to ensure that they are up to date and a call centre provider will not do that. So choose your HR provider carefully. I would be happy to provide a quote.

    As Chris Ashdown has pointed out pension auto enrolment is looming for small and medium sized businesses from January 2014 on a sliding scale for implementation according to the number of staff. It takes a long time to plan and implement so I would advise to start well in advance of your staging date because if you miss that you will be faced with a hefty fine. I am now starting to help clients with this process as many don't know where to start.
     
    Posted: Nov 13, 2013 By: sjbeale Member since: Jul 8, 2005
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  5. Newchodge

    Newchodge UKBF Legend

    16,065 4,535
    I would agree with the posts above. There is definitely no legal requirement to have an HR department, but HR advice is essential, preferably before an issue arises, thereby keeping real issues to a minimum. At least you need effective contracts, policies and procedures, which should be regularly reviewed to ensure they meet current legislation and best practice. As others have mentioned the new pensions requirements can be a nightmare, and need looking at well before your own firm's implementation date.

    If you would like a quote for any of this, please feel free to drop me a pm.
     
    Posted: Nov 13, 2013 By: Newchodge Member since: Nov 8, 2012
    #5
  6. Conglomer Group

    Conglomer Group UKBF Newcomer

    75 3
    Hello, No legal requirement for human resource department but you must have Environmental, Health, Safety department as it is supportive for manufacturing sector for employees whether you have low budget or not.
     
    Posted: Nov 13, 2013 By: Conglomer Group Member since: Nov 9, 2013
    #6
  7. Newchodge

    Newchodge UKBF Legend

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    You don't need a department for this, but you must have proper policies and procedures for Health and Safety
     
    Posted: Nov 13, 2013 By: Newchodge Member since: Nov 8, 2012
    #7
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  8. Conglomer Group

    Conglomer Group UKBF Newcomer

    75 3
    well health and safety is part of our business, just like other operations. Health and safety affects production, quality and you financial results ultimately. So it should be managed in the same way as other aspects of your business.
     
    Last edited: Nov 13, 2013
    Posted: Nov 13, 2013 By: Conglomer Group Member since: Nov 9, 2013
    #8
  9. Jeff Nev

    Jeff Nev UKBF Contributor

    219 24
    Hello,

    Yes as seems to be the consensus it is not a legal requirement. How big is your business?

    As Chris suggested, getting legal advice is always good as it covers you. I use Employer Advice just to check I am doing everything right, more as a precaution really. They do have a free guide which may include something you're looking for: employeradvice.org.uk/free-guide/

    But depending on how many staff you employ it may not be legally necessary but could help you running your business.

    Hope this helps!
    Jeff
     
    Last edited: Nov 15, 2013
    Posted: Nov 15, 2013 By: Jeff Nev Member since: Nov 14, 2013
    #9
  10. eldirect

    eldirect UKBF Newcomer

    42 4
    Nope, it isn't a legal requirement like the health and safety. Choose a supplier carefully and compare costs as well as what service you receive. Advice at the right moment can be crucial. Many companies like mine at EL Direct offer insurance with their HR products to cover you in the event of an employment tribunal, the costs and awards i'm sure you are aware can be staggering.

    So to conclude, not a legal requirement, but a really sensible one!
     
    Posted: Nov 15, 2013 By: eldirect Member since: Jun 19, 2013
    #10
  11. Steve Sellers

    Steve Sellers Verified Business ✔️

    4,048 1,210
    :eek::eek::eek::eek: I thought save as for discrimination cases damages & costs were capped in the ET. :D
     
    Posted: Nov 15, 2013 By: Steve Sellers Member since: Aug 7, 2011
    #11
  12. eldirect

    eldirect UKBF Newcomer

    42 4
    They are! but they aren't exactly capped at £2k are they! And i'm not sure your solicitors bill is capped!

    a £10k solicitors bill you don't have to pay because you are insured is always a handy thing to have if it's not too expensive!

    http://www.justice.gov.uk/tribunals/employment/claims/making-a-claim

    Average claims - depending on which piece of the page you read £5-10k awards, average!! Not money many want to have to find :)
     
    Posted: Nov 15, 2013 By: eldirect Member since: Jun 19, 2013
    #12
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