Run a small business, no HR staff, managers or fellow directors - how can you still effectively discipline staff ?

Any employer is under a duty to deal with disciplinary matters quickly, efficiently and effectively. However, this can be an issue for smaller business where there are perhaps less than ten employees. This can mean that there are no HR staff, no line managers and just the owner of the business dealing with all of the daily issues.

What does the law require in disciplinary issues?
The law requires that the employer carries out an effective investigation and establishes the facts before deciding how to proceed. If it is decided to proceed further then the next step is a disciplinary hearing. Normally, in larger organisations, the investigation and disciplinary hearing will be carried out by a different person. Further, if the matter proceeds to an appeal then then a third person is normally required.

How can a smaller employer overcome these obstacles?
There is nothing to prevent the owner of the business from carrying out all three roles. In considering any claim for unfair dismissal, an employment tribunal will always consider the size and resources of any organisation. Therefore the owner could carry out all three parts of the procedure so long as he did so fairly and consider all issues properly.
This is however far from ideal and any tribunal may ask what other options were considered. One option could be to train a member of staff to deal with the investigation staff of the proceedings and make a decision as to whether the matter should proceed further. This is far from ideal as it may lead to resentment amongst the staff and the business owner may not want to delegate such a role to a member of his staff.
A better option will be for the owner to deal with the investigation and disciplinary issue himself and then get a third party to consider the appeal. This could be for example the company accountant or a friend of the owner or his spouse. It will be imperative that, if this option is considered, that the person has full authority to make whatever decision they feel appropriate and that this is confirmed to them in writing.

Can the Company use an external person to oversee and carry out the process?
If the owner does not want to use friends and or family he can hire the services of an employment solicitor or HR consultant to oversee matters. Indeed, this person can be given authority to make any decision on behalf of the Company.

What do I need to do as a small employer if a disciplinary matter arises?

• Send the member of staff home for the day. Tell them they are not being suspended and are to come back to work the following day once you have considered the matter. 
• In this day formulate your plan for dealing with the matter. If you need legal advice then seek it.
• Ensure that you have disciplinary procedures and that these are up to date.
• Carry out an investigation and speak to whoever you need to so as to establish the facts.
• If necessary hold a disciplinary hearing. Tell the member of staff the issue in writing and confirm if dismissal is an issue. Remember they can be accompanied to this meeting.
• Hold the meeting and take notes. Make the decision and advise the employee of the outcome and the reasons in writing. If necessary advise of the right of appeal.
• If there is an appeal again they can be accompanied and notes should be taken. Confirm the outcome and the reasons in writing.

Summary
There is no reason why a smaller employer should not be able to discipline staff just as effectively as a larger employer. All that is needed is a plan of action and some common sense.

The views here are not meant as specific legal advice in relation to any particular staffing issue. If in doubt always seek legal advice.

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