Is your working arrangement actually legal?

Your business is growing. People are showing up, delivering, and making things happen. It all feels like it’s workingand that’s brilliant.

But here’s the quiet risk: the way you’ve set up those working relationships might not be legally sound. And if that’s the case, it could cost you financially, reputationally, and emotionally.

We see this all the time. Good people, doing good work, in arrangements that felt simple and flexible at the start… but haven’t kept pace with how things have evolved.

So here’s a quick, no-judgement look at three common setups that seem efficient but could be exposing your business to risk:

The regular person who “isn’t on the books” They’re reliable, consistent, and know your customers inside out. But there’s no formal contract, just a mutual understanding. The reality: regular hours and control over their work often mean they’re legally an employee, even if you didn’t intend it. A simple employment contract can protect both sides and bring clarity fast.

The long-term contractor who works only for you. They invoice through their own company, but they follow your schedule, your methods, and couldn’t easily hand their role to someone else. If they’re working like an employee, the law may see them as one. That means potential claims for holiday pay, redundancy, and unfair dismissal. It’s time to review how things actually work and make sure the documentation matches reality.

The flexible worker with no clear terms. They jump in when needed, help with projects, and everyone’s on the same page, except nothing’s written down. Without written terms from day one, the law may default to stronger protections than you intended. A short, clear agreement covering pay, hours, and notice periods is all it takes to stay compliant and fair.

Here’s the golden rule: If someone works regular hours, takes direction, and can’t easily be replaced, they’re probably an employee. And if they’re a worker or contractor, they still have rights. It’s about matching the paperwork to the reality.

At Starfish People HR, we help businesses structure their people arrangements properly from the start or review what’s already in place with fresh eyes. If you’re unsure whether your setup is legally sound, let’s talk. I will help you protect your business and do right by your people.

Drop us a message for a confidential review. No jargon. No judgement. Just clarity.

Call me on 01243 967961 or email [email protected] to get started.

Or if you prefer a virtual chat? Book a FREE 30-minute consultation with me in the
Starfish People Virtual Meeting Room by using the link or scanning the QR code below.