Small and medium-sized enterprises (SMEs) must seek professional advice on employment law, according to one expert.
Belinda Webb, spokesperson for the Federation of Small Businesses, said this week that SMEs struggling to find the time to properly address such legal issues should consider seeking outside help.
"One of the biggest reasons that members join the FSB is that we offer a 24 hour legal helpline and a huge majority of those calls are to do with employment law and staff matters," she said.
She added that it was more important for SMEs to consider the implications of employment than larger companies as the financial risks and possibility of cutting staff numbers was higher.
"It's not just important; it's absolutely vital that the law is adhered to, because it saves further problems down the line," she concluded.
A study earlier this year by the Employment Tribunal Service found that the number of claims such as unfair dismissal brought by employees for the year ending April 2007 had risen by 15 per cent from the previous year.
