People compliance made practical for UK small businesses

HR, payroll, policies, training, records - it's a lot to keep straight when people management sits alongside everything else. This checklist helps you sense-check your compliance basics, spot gaps and start building people processes you can stand behind. 

Running a small business means wearing a lot of hats. HR is often just one of them.

But when it comes to people compliance, getting the basics right is not optional. It protects your business, supports your people and gives you confidence that you are doing things properly.

That is where Breathe comes in.

We are not just here to help you manage holiday requests or store documents. We are here to help you build solid, defensible people processes that stand up when it matters most.

Because compliance is not about ticking boxes. It is about being able to evidence what you have done, when you did it and why. If you cannot evidence it, you do not really have it.

A practical people compliance checklist for UK small businesses

Use this checklist to sense-check where you are today. It is designed to help you:

• Spot gaps in your people compliance

• Strengthen core HR and employment processes

• Feel more confident that your practices are built on firm ground

For each area, ask:

• Are we doing this properly?

• Could we evidence it if we needed to?

If the answer is “not sure”, that's your starting point.

What the checklist covers

This free checklist breaks people compliance into clear, everyday areas:

• Hiring and right to work

• Pay, payroll and working time

• Holiday and absence management

• Health and safety and workplace welfare

• Equality, fair treatment and people processes

• Pensions and statutory benefits

• Data protection and HR record security

Please note: This checklist is intended as general guidance for UK small businesses and is not a substitute for legal or professional advice. Employment law and people compliance requirements can vary depending on your organisation, sector and specific circumstances.

If you are unsure how the law applies to your business or need tailored support, we recommend speaking with one of our trusted Breathe Partners. They can offer practical HR and health and safety advice that reflects how your organisation actually works.

A practical compliance checklist for UK small businesses 

Hiring and right to work

Getting hiring right protects your business from day one.  

☐ We carry out compliant Right to Work checks before employment begins 

☐ We securely store dated evidence of every check

☐ We issue written particulars on or before day one

☐ We update contracts and confirm changes in writing when terms change 

Evidence you should have:

• Copies of Right to Work checks

• Signed contracts and written particulars

• Version-controlled documents showing updates

• Clear records of contractual changes 

How Breathe supports you:

• Secure document storage in one central place

• Structured onboarding workflows so nothing gets missed

• Digital acknowledgements and e-signatures

• A clear audit trail of what was issued and when 

Pay, payroll and working time 

Pay errors are one of the fastest ways to lose trust or face risk.

☐ We’re confident we meet National Minimum Wage requirements

☐ We accurately record working hours

☐ We maintain clear payroll and pay records

☐ We calculate holiday pay correctly, including variable pay where relevant

☐ We provide payslips to employees 

☐ We have updated our Statutory Sick Pay policy to reflect that, as of April 2026, SSP is payable from the first day of sickness absence, with no minimum earnings threshold 

☐ We are aware that, as of April 2026, the Fair Work Agency can inspect and enforce correct payment of minimum wage, SSP and holiday pay 

Evidence you should have: 

• Time and attendance records

• Holiday pay calculations

• Payroll reports and pay history

• Clear documentation of pay decisions 

• Updated SSP policy reflecting day-one entitlement and the removal of the lower earnings limit 

How Breathe supports you: 

• Accurate leave tracking linked to working patterns

• Centralised employee records

• Reporting to support audit trails

• Integration with payroll providers to reduce manual errors 

• Absence management tracks sickness from day one, helping support accurate SSP records 

Holiday and absence management 

Leave and sickness need to be fair, consistent and well recorded.

☐ Employees receive at least 5.6 weeks’ statutory leave

☐ Entitlement is correctly calculated, including for irregular hours

☐ We keep accurate sickness and absence records

☐ Statutory Sick Pay is managed correctly

☐ As of April 2026, we keep adequate records of statutory annual leave entitlement, leave taken, carry over and holiday pay calculations and retain these for at least six years 

☐ We understand employee rights for maternity, paternity, adoption and shared parental leave

☐ We understand employee rights to carers leave and time off for dependants

☐ We document family leave requests and approvals clearly

☐ We carry out pregnancy risk assessments where required 

Evidence you should have:

• A clear leave policy

• Family leave policies

• Leave request and approval records

• Pregnancy risk assessments where applicable

• Documentation of statutory entitlements

• Absence logs

• SSP records and calculations

• Records of return to work conversations 

• Holiday and holiday pay records retained for at least six years, including entitlement, leave taken, carry over and pay calculations 

How Breathe supports you:

• Automated leave entitlement calculations

• Track absence and family leave consistently

• Real-time absence tracking

• Clear reporting and audit history

• Manager visibility to support fair decisions 

• Holiday records are stored centrally with a clear audit trail, supporting the six-year record-keeping duty
• Sickness absence can be logged by employees in just a few taps, helping ensure accurate records from day one

Health and safety and workplace welfare 

A safe workplace is a legal duty and a moral one. 

 ☐ We have employers liability Insurance

 ☐ We have emergency evacuation plans

 ☐ We have up-to-date, documented risk assessments

 ☐ We carry out pregnancy risk assessments where required and review them during pregnancy

 ☐ We provide relevant health and safety training

 ☐ We record incidents and near misses

 ☐ We maintain a current fire risk assessment in line with HSE guidelines

☐ We have trained Fire Marshals

☐ We have trained emergency First Aiders

☐ We have and AED device (Automated External Defbrilator)

☐ We have a LifeVac (Anti choking device)

☐ We have appointed a competent person responsible for Health & Safety

☐ We display the Health & Safety law poster with appointed people

☐ We have arrangements to manage contractors and visitors safely on site 

Evidence you should have:

• Risk assessment documents

• Records of any workplace adjustments

• Training completion records

• Incident logs and follow-up actions

• Documented safety policies 
  
  

How Breathe supports you:

• Store and manage risk assessments securely

• Track training completion

• Record incidents in one central place

• Capture policy acknowledgements from employees 

Equality, fair treatment and people processes

Fairness isn’t just good practice. It’s essential protection.

☐ We have up-to-date anti-discrimination and harassment policies

☐ Employees complete relevant training, including sexual harassment prevention

☐ Managers follow a clear disciplinary and grievance process

☐ We can evidence consistent and fair decision-making

☐ We have a clear process for managing flexible working requests

☐ Managers understand that employees can request flexible working from day one and requests are to be handled within two months. 

☐ Our whistleblowing policy explicitly covers sexual harassment as a standalone protected disclosure

☐ We understand that the protective award for failure to collectively consult on redundancies has increased to 180 days' pay

Evidence you should have:

• Current policies

• Flexible working policy and documented requests

• Training records

• Meeting notes and investigation records

• Signed outcome letters

• Clear documentation showing consistency 

• An up-to-date whistleblowing policy that references sexual harassment
  
  

How Breathe supports you:

• Centralised employee records

• Secure note storage

• Performance and review tracking

• Access to essential compliance e-learning like sexual harassment for Managers & employees

• Document requests and outcomes in employee records 

• Distribute updated policies to all employees and track read receipts and training to evidence awareness 

Pensions and statutory benefits 

Auto-enrolment duties don’t disappear, even in small teams. 

☐ We meet our auto-enrolment obligations

☐ Contribution records are accurate and up to date

☐ Employee communications are documented

☐ Opt-outs are properly recorded 

Evidence you should have:

• Enrolment records

• Contribution history

• Opt-out documentation

• Employee communications

How Breathe supports you:

• Organised employee records

• Clear reporting

• Secure document management

• A central record of statutory communications 

Data protection and HR record security 

People trust you with their personal data. You need to handle it with care. 

☐ Employee data is stored securely

☐ Access is permission-based and controlled

☐ We follow clear data retention policies

☐ We can respond promptly to a Data Subject Access Request 

Evidence you should have:

• Privacy notices

• Access logs

• Retention schedules

• Documented DSAR responses 

How Breathe supports you:

• Secure cloud-based storage

• Permission-based access controls

• GDPR-conscious system design

• Centralised documentation for faster responses 

Staying up to date with UK employment law

Employment law evolves regularly. Staying informed helps you make confident decisions and avoid unnecessary risk.

☐ We stay informed about changes in UK employment law

☐ We review policies and processes when laws change

☐ Managers know where to find reliable guidance when questions arise

☐ Utilise advice from gov.uk and Acas. 

☐ We are aware of the Fair Work Agency, which as of April 2026 brings enforcement of key employment rights under one roof, including minimum wage, holiday pay, SSP and record-keeping

☐ We are confident that our records and processes could withstand an inspection by the Fair Work Agency

Evidence you should have:

• Updated policies

• Documented policy reviews

• Records showing employees received updated policies 

• A clear understanding of how recent employment law changes affect your business and what you have done to address them 

How Breathe supports you:

• Centralised policy storage with version history

• Easy distribution of updated policies to employees

• A single place for people documentation and guidance 

• Breathe keeps your contracts, policies, holiday, sickness and records in one place, making it straightforward to stay organised, evidence decisions and respond confidently if questions arise