This phrase is one of the most dangerous assumptions in any business. It is especially true if you are running a family farm on trust and goodwill alone.
A significant number of farming and rural businesses are family run enterprises. In many of these cases the only employees are members of the family. These arrangements create a unique working environment from an employment law perspective.
However, this uniqueness does not translate to different employment law rules. In a family environment it is easy to take a lot on trust and this can lead to an attitude of apathy towards your employment law duties. When there is a personal relationship, it is easier to work via handshake deals and verbal agreements.
But what if something goes wrong?
If there is a dispute, and proper employment law processes have not been followed, small businesses may face a degree of liability that can destroy more than family relationships. Where the line between professional and personal life is blurred, this can lead to long-running disputes, serious financial difficulties and in the worst-case scenarios, destruction of all you have worked so hard to build. It is therefore important to remember: when dealing with family all employment duties and protections remain the same!
This means that the usual obligations such as providing a statement of employment particulars, maintaining compliance with the Working Time Regulations, and complying with the National Minimum Wage all remain. A comprehensive list of policies and procedures should also be maintained.
It may seem that the administrative burden of compliance is too weighty, but prevention is always better than cure, and by being aware of key rights, you will save time, money and heartbreak in the future. For example, do you know what employment status your family and workers would have if considered from an employment law perspective?
In employment law there are three classes of people: employees, workers, and self-employed. The protection afforded to each category is not the same.
For example, employees have the majority of protections but knowing the difference between an employee and a worker is not clear cut and there are similarities between each status. In addition, not all relationships appear to fit neatly into the 3 available categories. This means that in employment law terms, each employment relationship is judged on three key factors: control, personal service and substitution. This in turn is judged on the nature of each individual relationship rather than that which is stated on the contract.
Which staffing approach you take will depend on both the nature of the business and staffing needs, but making sure you make the right choice will be crucial. If you know what you want to achieve but do not know how best to achieve it, give our Employment Team a call. We can help you navigate the complexities of status to create a workforce that works for your business and your needs.
If you are unsure whether your current arrangements are compliant, or want to ensure your business is properly protected, our Employment Team can help you put the right structures in place. Call our Employment Team at Ware & Kay Solicitors on York 01904 716000, Wetherby 01937 583210 or Malton 01653 692247 or email law@warekay.co.uk.
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