Small businesses 'afraid' to discipline employees

The UK's smallest businesses worry about disciplining staff and fear they will be sued, according to a study by employment law firm Peninsula.

It emerged that 48 per cent of small business owners avoid disciplining workers, amid fears of being taken to a tribunal and forced to pay out thousands from the company accounts.

Head of employee relations at Peninsula, David Price claimed that small business owners are convinced that the law is on the side of the employee and are scared to deal with workplace problems.

Mr Price says small business owners must ensure they follow "fair procedures" and ensure that employment contracts are properly produced.

"All employers need to ensure that they issue a statement of main terms in a contract for employment, produce a clearly defined job description and reiterate expected standards and behaviours," he added.

According to the government, employment tribunals are judicial bodies who settle disputes between business owners and employees.