In order to protect the rights of both employer and employee there are two areas of essential business documentation that all employers, however small, need to have. These are:

• Contracts with Terms and Conditions of Employment: All employees have to have these documents, signed by both employer and employee on, or within a short time of, their appointment. Many serious problems arise for employers when they want to make even minor changes to their employee’s job duties or working requirements and they refuse because the allowance of such variation is not on their contract. Employers need to anticipate the need for future job flexibility (if they think they may need this) and ensure it is clearly stated at interview and in the contract.
• Staff Records: Staff records need to comply with Data Protection requirements but companies need to have important staff information in their records. Their application forms and CVs need to be filed, but also should a annual update of any training  or qualifications undertaken be added to their records, together with appraisal information (if undertaken) though these should be open to employee inspection and signed by both parties. Records of any grievance or disciplinary information should be kept though only for the length of time written into the disciplinary policy (for example if the policy says information about a warning after a relatively minor incident will be kept for 6 months, then such documentation should be removed after that time.)