Businesses that fail to heed employment law properly could end up paying up to £70,000 to former employees if they lose an employment tribunal.

Speaking at the Elite Travel Group conference in Bournemouth this weekend, Broomhall and Co senior partner Steve Broomhall said payments have been rising over the years. He urged companies to take the time to ensure their procedures are in order to avoid costly settlements.

“When we’re doing business for clients, one of the biggest areas for us is employment issues as it is these that can catch you out. It is not difficult to get your procedures right; it is mundane, it is boring, but it is easy. The basis of anything to do with employment law is to make sure the process appears fair,” said Broomhall.

He said new employees should be issued with contracts detailing the terms and conditions of their employment. Any redundancies made should also be made fairly to ensure former employees do not file a claim for unfair dismissal.

Broomhall said all of these measures should be seen as part of the process of ensuring a company’s business procedures are in order and can be demonstrated to be so should a firm find itself facing a tribunal.