HR Horror Stories: 6 Mistakes Small Businesses Make and How to Avoid Them
When you’re running a small business, an employee calling in sick before a disciplinary hearing or raising a concern about a colleague can leave you unsure what to do next. You want to be fair, but you also have a team to manage and a business to run.
Some of the HR mistakes small businesses make begin with an understandable decision. A manager wants to address repeated absence, keep things informal or move a difficult situation forward, but overlooks something that later causes problems.
With Halloween approaching, we’re looking at six workplace scenarios that can become much more difficult when assumptions take the place of a conversation. Each one raises the same question: what would you do?
1. The Disciplinary That Went Ahead Anyway
An employee is invited to a disciplinary hearing. Just before the meeting, they call in sick with stress and anxiety.
Their manager is frustrated. Time has been set aside, the paperwork is ready and other people have rearranged their diaries. Convinced the employee is trying to avoid the meeting, they decide to press ahead.
“We’re going ahead, with or without them.”
But nobody has spoken to the employee about their health or checked whether they are well enough to take part. The timing may raise questions, but it does not answer them.
What would you do?
Contact the employee and rearrange the hearing. Talk about whether any support or changes to the arrangements would help them participate, even while they are off sick. Depending on the circumstances, medical advice about their fitness to attend may help, with their permission.
If they remain unable to take part, get advice before deciding how to proceed. A hearing can sometimes go ahead without the employee, but that decision needs careful consideration. They should be told and given an opportunity to submit a written statement.
The lesson: Calling in sick does not automatically stop a disciplinary process, but the employee must still have a fair opportunity to put their side across.
2. The Complaint That Came Back to Haunt Them
An employee tells their manager that a colleague keeps making jokes at their expense. The team has always enjoyed a bit of banter and the manager hopes a little reassurance will settle things.
“I’m sure they don’t mean anything by it. Try not to take it personally.”
A few months later, a formal grievance lands on their desk. Other employees had noticed the behaviour too, but nobody had addressed it. The employee who first spoke up now feels that their concerns were dismissed.
What might have been addressed earlier has become harder to resolve, with trust in the manager affected as well.
What would you do?
Listen to the employee, ask for specific examples and make a record of what they have raised. Understanding what was said, how often it happened and who was involved will help you decide what action is appropriate.
An informal conversation may be suitable in some cases. More serious concerns may need a formal investigation from the outset, so follow your procedures and get advice if you are unsure.
Keep the employee informed and follow up afterwards. Silence does not necessarily mean the behaviour has stopped.
The lesson: Calling something banter does not settle whether it is acceptable. Taking a concern seriously when it is first raised gives you a better chance of addressing it properly.
3. The Sickness Pattern That Hid a Bigger Problem
An employee has been off sick several times over the past few months. Their absences often fall on Mondays or Fridays, leaving colleagues stretched and the manager struggling to arrange cover.
The manager can see a pattern and is beginning to lose patience.
“This keeps happening when we’re busiest. It’s time for a warning.”
But nobody has asked whether an underlying health condition, work pressure or another difficulty is affecting the employee’s attendance. The absence record shows when they were off, but it does not explain why.
What would you do?
Review the record and arrange a conversation with the employee. Explain your concerns, ask about the reasons for their absence and follow your absence management procedure before deciding what happens next.
Consider whether occupational health or other medical advice would help, with the appropriate consent. If a disability is involved, consider what reasonable adjustments may be required. If caring responsibilities emerge, check whether a different type of leave or support is relevant.
Genuine sickness and suspected dishonesty need different approaches. If there is evidence that the employee has been dishonest, investigate it through a fair process rather than relying on the pattern alone.
The lesson: A pattern of absence is a reason to ask questions. It is not, by itself, proof that someone is taking advantage.
4. The Grievance That Grew to 16 Pages
An employer opens their inbox on Monday morning to find a 16-page formal grievance. It includes legal terminology, references to employment legislation and allegations of serious wrongdoing.
It is a daunting start to the week. As the manager reads through it, they notice repeated points, vague accusations and very little detail about what actually happened. They suspect the employee has used AI to help write it.
“Surely we don’t have to take all this seriously if ChatGPT wrote it?”
The temptation is to focus on how the document was produced. But that can distract from the concerns the employee is trying to raise.
What would you do?
Read the grievance to identify the actual complaints. Ask the employee to clarify what they are alleging, provide specific examples and explain the outcome they are seeking.
Follow a fair grievance procedure, investigate where needed and provide a written outcome with the opportunity to appeal. You can group repeated allegations into clear issues, provided you address the substance of the complaint.
Whether AI helped draft the document does not determine whether the concerns are valid. The facts still need to be established.
The lesson: A long grievance is not automatically a strong one, but suspected AI use is no reason to ignore it. Focus on what happened and what needs to be addressed.
5. The WhatsApp Messages That Wouldn’t Stay Buried
A manager is finding an employee situation difficult. Rather than discussing their concerns through the appropriate channels, they exchange WhatsApp messages with another manager.
The conversation becomes increasingly personal, with sarcastic comments and observations they would not want the employee to read.
“It’s only WhatsApp. It’s private, isn’t it?”
Months later, the employee raises a grievance and submits a subject access request, asking for the personal information the business holds about them. Those messages suddenly feel much less private.
What would you do?
Recognise that work messages containing the employee’s personal information may fall within the scope of the request. This can include relevant messages held on personal phones on the business’s behalf.
Get advice on what information needs to be searched for, reviewed and disclosed. A subject access request gives someone access to their personal information, rather than an automatic right to every complete conversation. Other people’s privacy and any relevant legal exemptions also need to be considered.
Make sure managers understand that professional standards apply when discussing employees, whatever platform they use. Concerns should be recorded factually and handled through the appropriate process.
The lesson: A personal phone or private chat does not automatically put work messages beyond reach. Write about employees with the same care you would use in a formal email.
6. The Curious Case of the Missing Contract
An employee has worked for the business for several years. Everything seems fine until a disagreement arises about their working hours, holiday entitlement and notice period.
The manager is confident that the paperwork will clear things up.
“It’s all in their contract. We’ll just check what they signed.”
Nobody can find it. The employee has no copy either and an old template does not match what they remember agreeing. What should have been a straightforward check has become a disagreement about the terms themselves.
What would you do?
Start by establishing what was agreed and whether anything has changed. Review offer letters, emails, payroll records and working arrangements alongside the employee’s account.
A contract can exist through verbal agreement, written correspondence or conduct. The absence of a signed document does not remove the employee’s contractual or statutory rights.
Once the position is established, document it accurately. Make sure employees receive the required written details of their employment terms, keep those details up to date and store records securely where authorised people can find them. Avoid simply issuing an old template and assuming it reflects the existing agreement.
The lesson: A missing contract does not mean there is no contract. It can, however, make proving what was agreed considerably harder.
Preventing Your Own HR Horror Story
These situations have something in common. A manager is trying to deal with a problem, but makes a decision before understanding the full picture.
Taking time to ask questions, check your procedures and keep an accurate record can make a considerable difference. It helps you decide what is fair, what support may be needed and whether the situation requires a more formal approach.
You do not need to have every answer yourself. Recognising when to get advice is part of managing the issue well.
At Dakota Blue Consulting, we help business owners and managers work through difficult employee situations with clear, practical advice that takes account of the people involved and the needs of the business.
If you’re unsure how to handle an HR issue, talk to our team about what’s happening and how we can help.
