The Small Business PR Nightmare Playbook: Mistakes That Lead to a Crisis
Before running my own businesses, I worked for a few large international companies and a few small businesses. The difference in professionalism was staggering. At the big firms, there were clear policies, structured HR teams, and a level of leadership that (mostly) knew what they were doing. In contrast, some of the small businesses… let’s just say it was a different experience altogether. (I’m not judging, my businesses are small and I’m far from perfect ha ha.)
I once saw an intern referred to as “Intern One”, another employee crying from outright bullying from the owner because there was no HR to step in, and a boss’s completely unqualified kid hired as Director of Marketing, while secretly messaging me for help because, bless him, he had no idea what he was doing.
Now, on the other side of things, I’ve had small businesses reach out to me for crisis PR help when these exact issues spiral into a public disaster. A Glassdoor exposé, an ex-employee’s viral TikTok of being fired in the most unprofessional way possible, or even a poorly handled customer complaint can implode a company’s reputation overnight. And the most annoying part? Most of these crises were entirely preventable.
Even though you’re a small business and not as newsworthy as the Amazons of the world, social media means you face the exact same risks of public humiliation. Employees don’t need a journalist to take interest in their story anymore. They can create a video themselves, which can go viral and be seen by more people than a newspaper article ever could. And unlike a traditional news piece, a viral video has emotion, a one-sided opinion, and an audience that thrives on drama.
The result? Thousands of people will jump to conclusions based on a single video, leaving one-star reviews, slamming you online, and outright refusing to shop with you, all before you’ve even had a chance to respond.
So whether you’re a small business owner trying to avoid a PR disaster, or an employee wondering if something feels legally or ethically off, here’s your go-to guide on the common mistakes that lead straight into a crisis and what to do instead.
What’s Covered in This Guide:
Forcing Employees to Leave Fake Glassdoor Reviews – Why pressuring employees to write glowing reviews is unethical, illegal, and ultimately backfires.
Mandatory Team Selfies with the Boss – Why forced participation in a boss’s LinkedIn photo-op is a red flag for workplace culture.
The Viral TikTok Firing – How unprofessional dismissals lead to public backlash and potential legal claims.
Forcing Employees into Social Media Content – The legal and ethical risks of making employees participate in workplace TikToks and Instagram Reels.
The Boss Acting Like Buying Lunch is a Charitable Act – When free sandwiches are used as PR cover for deeper workplace issues.
Unpaid Overtime and Unspoken Expectations – The legal risks of pressuring employees into working beyond their contracted hours.
Responding Badly to Negative Reviews – Why businesses should handle criticism professionally instead of retaliating or faking five-star reviews.
Silencing Former Employees with Bad NDAs – The legal limits of NDAs and why trying to control ex-employees’ opinions often backfires.
Posting About ‘Company Culture’ While Employees Are Miserable – How overly polished LinkedIn posts can backfire when the truth comes out.
Ignoring Health and Safety Until It’s a Public Issue – The dangers of cutting corners on workplace safety and the legal consequences of ignoring risks.
Hiring Friends and Family Without Clear Boundaries – The issues with workplace favouritism and how it damages morale and credibility.
Treating Freelancers Like Employees – The legal risks of misclassifying freelancers and expecting them to act like full-time staff.
Mishandling Employee Grievances – Why ignoring workplace complaints can lead to whistleblowing, lawsuits, and PR nightmares.
1. Forcing Employees to Leave Fake Glassdoor Reviews
The Problem:
A one-star Glassdoor review appears, and suddenly, panic sets in. The boss begs the team to “balance it out” with five-star reviews or, worse, outright pressures employees into writing glowing feedback. Some offer incentives… a free lunch, a bonus, or an early finish. Others take a more direct approach: “It would be a shame if that bad review stopped us getting new clients… we all need job security, don’t we?”
What confuses me, I’ve worked for many businesses and felt no urge to leave a Glassdoor review. I’d only consider it if it was a truly awful experience to try and save others, which is exactly why most Glassdoor reviews are negative. I asked some of my friends and none of them have ever left a Glassdoor review except one who got offered a free Starbucks for providing a 5* review. So, when I see a company with a high number of short, vague five-star reviews, I’m immediately suspicious. Those "great team!", "nice place to work!" reviews have “boss made me do it” written all over them.
Let’s be honest… if you truly had a five-star working experience, you’d actually put effort into the review to be detailed and share compliments.
So you’re telling me, an ex-employee is taking the time to create a Glassdoor account (which is so beyond fiddly, annoying and long-winded) just to write “good people”, I’m sorry - I don’t buy that.
Legal Reality (UK):
Employment Rights Act 1996 – Employees cannot be forced to provide false statements or endorsements.
Consumer Protection from Unfair Trading Regulations 2008 – Businesses must not engage in unfair commercial practices, including misleading marketing.
For Employees:
If you’re pressured to write a misleading review, document the request. You have the right to update or remove your review at any time, and forced participation could be reported to the Advertising Standards Authority (ASA) or Trading Standards.
For Employers:
Manipulating reviews is unethical and illegal. If your workplace is genuinely great, employees will leave positive reviews on their own. If they’re not, the solution isn’t damage control, it’s fixing the workplace issues that caused the review in the first place.
Why This Backfires:
Employees can update their reviews after leaving and expose that they were forced to write a positive one. A company with a flood of identical five-star reviews looks suspicious, and once a real negative review appears, it shatters credibility.
2. Mandatory Team Selfies with the Boss
The Problem:
The boss insists on group photos for personal social media like their LinkedIn or Instagram, not because it benefits the business but for self-promotion. Employees feel pressured to participate, knowing that refusing could make them look like they’re “not a team player.”
From my experience, many business owners genuinely believe they have an incredible workplace culture. But when I’ve spoken to employees, the reality is often very different. Some have joked that they force a smile in these photos just to keep their job security intact. That alone should be a red flag. Deep down they know these selfies are simply a business owners ego boost “look how great I am, I have a team and they love me!”or sadly, they just want to get paid.
Legal Reality (UK):
Data Protection Act 2018 – Using an employee’s image without consent could breach data protection laws.
Human Rights Act 1998 – Employees have the right to privacy. If social media participation is not in their contract, they have every right to decline.
For Employees:
If you feel pressured into appearing in company social media content, you have the right to decline. If refusal results in negative treatment, such as fewer shifts, being excluded from opportunities, or facing hostility… this could be considered workplace bullying or, in extreme cases, grounds for constructive dismissal.
For Employers:
If employees are uncomfortable being in content, don’t force them. Instead, introduce a formal media consent form, giving them a choice upfront. If participation is essential (e.g., for public-facing roles), make it clear in contracts from day one.
Why This Backfires:
Employees who feel pressured into performative workplace content often talk about it after they leave. A LinkedIn post showing a “happy team” means nothing when ex-employees expose the reality of toxic culture on TikTok, LinkedIn or Glassdoor. Just imagine the embarrassing moment when an ex-employee produces a TikTok explaining how they have been forced to be in photos, and share those photos on a video. It’s key to remember in 2025, everyone has the access to reach millions now… And topics like this, often succeed.
3. The Viral TikTok Firing
The Problem:
An employee is dismissed in a highly unprofessional manner, maybe it’s done publicly, via text or email, or in a way that’s unnecessarily humiliating. They record the conversation and share it online, and suddenly, the comments are flooded with legal advice on how to take you to an employment tribunal and figuring out which business it is.
Legal Reality (UK):
Employment Rights Act 1996 – Employees with two years’ service are protected from unfair dismissal.
Employment Tribunals – An employee who feels they were unfairly dismissed can take legal action, and if successful, the employer could face financial penalties and reputational damage. (More on employment tribunals here)
For Employees:
If you think you’ve been dismissed unfairly, you have the right to challenge it through an employment tribunal. The first step is early conciliation through Acas, which must be started within three months minus one day of your dismissal.
However, if you have worked for less than two years, your chances of winning an unfair dismissal claim are low. Employees typically need at least two years of continuous service to claim unfair dismissal, unless:
The dismissal was due to discrimination (protected under the Equality Act 2010, e.g., based on race, gender, disability, age, pregnancy, etc.).
You were dismissed for whistleblowing (reporting illegal or unethical activity).
The dismissal violated your statutory rights, such as refusing to work beyond legal limits or asserting your right to minimum wage or holiday pay.
If your claim is eligible, it’s important to understand the risks:
Bringing a claim is free, but in rare cases, if the tribunal finds it was vexatious or had no reasonable chance of success, you could be ordered to pay the employer’s legal costs.
If your claim is successful, you could be awarded compensation based on your earnings, but the maximum compensatory award is typically capped at 52 weeks’ gross pay or £89,493, whichever is lower.
If discrimination is involved, there is no compensation cap, and payouts can be significantly higher.
Before making a claim, it’s wise to seek legal advice or guidance from Acas or Citizens Advice to assess the strength of your case.
For Employers:
If you don’t have an in-house HR team, businesses like Peninsula offer HR support to ensure you follow proper dismissal procedures. A mishandled termination can lead to costly legal battles and reputational damage.
Key steps to avoid legal and PR risks:
Never dismiss an employee via text, email, or scheduled Zoom, these methods increase the risk of them recording the conversation and making it public.
Plan the conversation carefully, stick to legal guidelines, and document everything. A lack of documentation can work against you in tribunal proceedings.
Be prepared for financial consequences. Defending an unfair dismissal claim can cost between £2,000 to £5,000 in legal fees, and if you lose, compensation awards can be substantial.
By handling terminations professionally, legally, and respectfully, you reduce the risk of an ex-employee turning to social media or a tribunal to expose the situation.
Why This Backfires:
If a dismissal is handled poorly, it can easily go viral, attracting employment lawyers, media attention, and thousands of people in the comments telling the employee to take legal action, will go and leave hundreds of 1-star reviews etc. A simple, private conversation done professionally could avoid a PR nightmare.
4. Forcing Employees into Social Media Content
The Problem:
Employees are pressured to appear in Instagram Reels, dance on TikTok, or participate in “fun” content for the company’s social media pages. While this might seem like harmless team culture, not every employee wants to be part of the marketing strategy.
Some employees are directly told they must participate, while others fear they’ll be seen as difficult or not a team player if they refuse. It often starts as "just one quick video", but before they know it, they’re unpaid extras in a never-ending corporate reality show.
When This is Acceptable:
For certain industries, such as social media agencies, marketing firms, or influencer-driven brands, appearing in content may be an expected part of the job. However, in these cases, it should be clearly stated in the employment contract so employees know what they are signing up for.
Legal Reality (UK):
Data Protection Act 2018 – An employee’s image is considered personal data. If they do not give explicit consent to be filmed or photographed, using their image without permission could be a breach of data protection law.
Employment Contracts – If social media participation is not explicitly stated as a job requirement, an employee is under no obligation to take part.
For Employees:
If appearing in company social media content is making you uncomfortable, you have the right to refuse. If refusal leads to negative consequences, such as being excluded from opportunities, receiving fewer shifts, or facing hostility, you may have grounds for a constructive dismissal claim.
For Employers:
If social media participation is important to your brand, make it part of the employment contract from day one for relevant roles. Otherwise, introduce a media consent form so employees can opt in voluntarily rather than feeling pressured. If employees hesitate, take that as a sign to respect their boundaries.
Why This Backfires:
What starts as "team bonding" can quickly turn into "I was unpaid talent in my boss’s influencer career." Employees who feel exploited often speak out publicly once they leave.
5. The Boss Acting Like Buying Lunch is a Charitable Act
The Problem:
A boss posts on LinkedIn about buying lunch for the team, acting like it’s a massive gesture of generosity, while employees are underpaid, overworked, and dealing with real workplace concerns that remain unaddressed.
It often comes with a caption along the lines of:
"At [Company Name], we always put our people first!"
"Lunch on me today because I appreciate my amazing team!"
"A little thank you for all the hard work lately!"
Meanwhile, the reality in the office is quite different, staff are mentally and physically drained, dealing with unreasonable workloads, or even having trouble paying their bills.
Legal Reality (UK):
Employment Rights Act 1996 – Employees are entitled to fair wages and reasonable working conditions. A free sandwich does not override an employer’s legal obligation to pay employees fairly and treat them well.
Health and Safety at Work Act 1974 – Employers have a duty of care to protect employee well-being, which includes ensuring that excessive workloads or financial stress are not harming employees.
For Employees:
A free sandwich doesn’t override low pay, poor treatment, or excessive workload. If workplace issues persist, raise them internally, or if necessary, seek external advice from Acas or Citizens Advice. Do not let minor perks distract from bigger problems.
For Employers:
If your business is paying employees fairly and treating them well, great… but don’t use a free lunch as a PR stunt or a substitute for proper compensation. Also just consider how cringe it is to mention you’re paying for your team online when this happens across 95% of businesses without the urge to post about it. It will make your team feel like the only reason you treated them is for your own content.
Genuine appreciation is shown through:
Lunches without a camera
Competitive salaries
Reasonable workloads and work-life balance
Professional development opportunities
Bonuses and actual financial incentives
If a company constantly boasts about small, one-off perks instead of improving workplace conditions, employees will see through it—and so will the public.
Why This Backfires:
When ex-employees publicly expose the reality behind these posts, it completely undermines the company’s credibility. Nothing screams "performative leadership" more than a CEO bragging about buying lunch for their staff while employees are quietly looking for new jobs.
6. Unpaid Overtime and Unspoken Expectations
The Problem:
The "we hustle!" startup culture normalises excessive unpaid overtime, making employees feel guilty for leaving on time. I have personally experienced this myself, the co-owners making out anyone not working until 7pm+ is just lazy when we officially finished work at 5:30pm. I remember I had a dinner planned with friends at 6:30pm and felt so uncomfortable leaving the office at 5:50pm to get there on time. I never experienced this weird guilt-tripping feeling at large businesses, you’d get the odd employee who would stay late to prove themselves but certainly no guilt for leaving at a reasonable time.
At a startup, instead of an official policy, it becomes an unspoken rule, some employees start staying late, and soon, it’s expected from everyone.
Employees might hear things like:
"We’re all passionate here, no one watches the clock!"
"It’s just part of the industry."
"We’re a family, sometimes we need to go the extra mile."
The reality? It’s unpaid labour.
Legal Reality (UK):
Working Time Regulations 1998 – Employees cannot be forced to work more than 48 hours per week unless they voluntarily sign an opt-out agreement.
National Minimum Wage Act 1998 – If unpaid overtime brings an employee’s total pay below minimum wage, the employer is breaking the law.
For Employees:
If you are being pressured to work beyond your contracted hours without pay, you have the right to refuse. If your employer creates a culture where leaving on time is frowned upon, keep records of the hours you are expected to work, this could form the basis of a wage claim or an unfair treatment complaint. Also, consider how unfair is your boss being, is it the very rare occasion that you are asked to work a little later but they’re relaxed with appointments, you finishing early other days?
For Employers:
Respect contractual working hours. If overtime is genuinely needed, pay for it. If you’re relying on unpaid extra work to keep the business running, the problem isn’t your employees, it’s your business model. You may notice a big difference in attitudes from Gen-Z, once 5pm hits the clock, they’re offline. It’s a big difference between other generations but that’s how they are overall, but you have to remember they’re technically doing nothing wrong, it’s just different from pre-covid office times.
Why This Backfires:
Employees eventually burn out or quit, and when they do, they take the truth with them. Exposing unpaid overtime culture can destroy a company’s reputation overnight.
7. Responding Badly to Negative Reviews
The Problem:
A bad Google or Glassdoor review comes in, and instead of handling it professionally, the business lashes out. This could be:
Publicly arguing with the reviewer.
Sending an aggressive email demanding the review be removed.
Telling employees to “downvote” or counteract it with fake five-star reviews.
This is not damage control, it’s making the situation worse.
Legal Reality (UK):
Defamation Law – While businesses can take action against false and malicious claims, reviews that reflect genuine experiences are protected as free speech.
Consumer Protection from Unfair Trading Regulations 2008 – Faking positive reviews or pressuring customers/employees to alter their feedback is illegal.
For Employees:
If you’ve been asked to downvote or fake a review, you can refuse. If your employer retaliates for this, you may have grounds for an unfair treatment claim.
For Employers:
A negative review is not a crisis, it’s feedback. Respond professionally, address the concern, and if the complaint is legitimate, fix the issue internally. Trying to bury criticism only amplifies it. If you believe the review is fake, unfair or just a lie. You can report it to Google, or email the person politely and just, and figure it out private and hope they do the right thing.
Why This Backfires:
The Streisand Effect, the more you try to silence criticism, the more attention it gets. Screenshots live forever.
8. Silencing Former Employees with Bad NDAs
The Problem:
A business realises that multiple employees have left on bad terms, so in a panic, they start handing out NDAs like confetti. The goal? Prevent ex-employees from speaking publicly about their experience.
Not a good sign if you feel you need to do that, ha ha.
But NDAs don’t work that way—they cannot legally cover:
General workplace grievances (e.g., low pay, bad management, toxic culture).
Illegal activity (e.g., harassment, discrimination, wage violations).
However, there are legitimate reasons to use NDAs. In rare cases, they are appropriate when employees have access to genuinely confidential business information, such as trade secrets, client data, or privileged legal matters.
For example, at Honest London, we work with high-profile public figures, and in certain situations, an employee might need access to sensitive client information. In those cases, an NDA is necessary and justified.
Legal Reality (UK):
Employment Rights Act 1996 – Employees can legally discuss their workplace experiences, as long as they are not breaching confidential business information.
Equality Act 2010 – NDAs cannot be used to silence discrimination or harassment claims.
Whistleblowing Protection (Public Interest Disclosure Act 1998) – Employees cannot be prevented from reporting illegal or unethical activity.
For Employees:
If you are pressured into signing an NDA before leaving, read it carefully. If it attempts to silence legal or ethical concerns, it may not be enforceable.
For Employers:
An NDA should only cover genuinely confidential business matters—not an attempt to control what former employees say about their experience. If you have to silence people, the problem isn’t them—it’s your workplace.
Why This Backfires:
The moment an ex-employee says, "I was forced to sign an NDA," the business looks ten times worse.
9. Posting About ‘Company Culture’ While Employees Are Miserable
The Problem:
A business constantly posts on LinkedIn about how amazing, supportive, and happy their team is, complete with team bonding photos, “we’re like a family” captions, and employee appreciation posts.
Meanwhile, the reality behind the scenes? Staff are underpaid, overworked, and quietly plotting their exit.
Then, someone actually quits—and instead of staying silent, they post a TikTok exposing what it was really like working there. They might stitch the company’s post with:
• “This you?”
• “What they post vs. what actually happens.”
• “When your boss pretends to care about employee well-being but makes you cry in meetings.”
It’s not quite ‘cancelled’ territory, but it is deeply embarrassing for the business. It’s one thing to lose an employee; it’s another to have them mock you publicly while thousands of viewers pile on in the comments.
Legal Reality (UK):
Employees can legally contradict corporate posts with their own experiences, provided they aren’t sharing confidential business information.
If the employer tries to force ex-employees to take content down, it could attract even more attention and risk whistleblowing claims if the content is exposing genuine wrongdoing.
For Employees:
If you’ve left a toxic workplace and want to share your experience, you are within your rights to discuss your time there, as long as you don’t breach confidentiality agreements or make defamatory statements.
However, if you go public, be mindful of the risks. While your grievances might be completely valid, future employers may hesitate to hire someone who publicly slags off their old workplace. They might think:
“What if they do the same to us?”
“Is it worth the risk hiring someone who might put us on blast the second they leave?”
That’s not to say you shouldn’t speak out, but consider how you frame it. If you plan on staying in the same industry, there’s a way to share your experience without looking like someone who would torch every bridge on the way out. Keeping it factual and professional (with just the right amount of pettiness, if needed) will help you avoid unintended career consequences.
For Employers:
Instead of performative LinkedIn posts, focus on actually improving your workplace culture:
If your team is truly happy, you won’t need to convince people online. They’ll naturally share their positive experiences.
If you feel the need to oversell the culture, ask yourself why. Are employees genuinely engaged, well-paid, and supported, or are you just trying to manage external perception?
Don’t create a “we’re all happy here” narrative if it isn’t true. It will only make things worse when employees publicly contradict it.
Why This Backfires:
One TikTok exposing workplace hypocrisy can reach more people than a polished LinkedIn post ever could. Employees today know their power, if a company paints a false picture of what it’s like to work there, they will call it out.
And when the internet senses dishonesty, they don’t let it slide.
10. Ignoring Health and Safety Until It’s a Public Issue
The Problem:
A business cuts corners on health and safety, either to save costs or because they think “we’ve never had an issue before.” Instead of proper risk assessments and compliance, they take a “we’ll deal with it if it happens” approach.
I totally relate to how complicated this stuff is. When we got our office, I Googled everything about what we legally needed, and I was terrified of breaking any rules. I ended up buying so many fire extinguishers because I didn’t know which ones were required. Turns out, I didn’t need any—the building already had it covered.
Then, during our inspection, I found out:
We had too much alcohol in the office, which I didn’t even know was a thing. (It was from a social media client who sent us products for shoots—ha ha.)
I wasn’t allowed paracetamol in the first aid box. Who knew pain relief was a no-go?
So, yes, I get how overwhelming health and safety compliance can be. But winging it isn’t an option—especially when people’s safety and your legal liability are on the line.
This can include:
No proper fire exits or emergency procedures.
Ignoring hazards (exposed wiring, unsafe machinery, dangerous working conditions).
Refusing to provide PPE or ignoring industry safety requirements.
No mental health support for employees in high-pressure environments.
Overworking staff to dangerous levels, leading to exhaustion-related mistakes.
It all seems fine—until someone gets injured, a whistleblower exposes the conditions, or a legal complaint is made.
Legal Reality (UK):
Health and Safety at Work Act 1974 – Employers have a legal duty of care to provide a safe working environment for their employees.
The Management of Health and Safety at Work Regulations 1999 – Employers must carry out risk assessments and act on identified risks.
Employment Rights Act 1996 – Employees cannot be dismissed or punished for reporting health and safety concerns.
Whistleblowing Protection (Public Interest Disclosure Act 1998) – If an employer is failing to protect employees, workers have the right to report concerns without retaliation.
For Employees:
If your workplace is unsafe, report it internally first. If your concerns are dismissed, you can escalate the complaint to the Health and Safety Executive (HSE) or your local authority. You cannot legally be fired for raising safety concerns.
If you experience mental health issues due to overwork, you can discuss reasonable adjustments with your employer. If they refuse and your health deteriorates, you may have grounds for a constructive dismissal case.
For Employers:
A workplace injury, mental health crisis, or safety violation going public is a PR and legal nightmare. Instead of waiting for something to go wrong, take preventative action:
Conduct regular safety checks and risk assessments.
Ensure fire exits, first aid stations, and emergency procedures are up to date.
If you operate in a high-risk industry, provide proper PPE and safety training.
Don’t ignore mental health concerns—overworked, burned-out employees are more likely to make mistakes and take legal action.
Why This Backfires:
It only takes one viral video or an employee filing a complaint for the issue to spiral into an investigation, negative press, and possible legal action.
11. Hiring Friends and Family Without Clear Boundaries
The Problem:
Small businesses often hire friends, family members, or close acquaintances without proper contracts or defined roles. What starts off as "helping each other out" quickly becomes unprofessional, unstructured, and full of conflict.
Some common issues include:
Favouritism and preferential treatment, leading to resentment from other employees.
Blurred lines between work and personal life, making disagreements more personal.
Lack of accountability, as it becomes difficult to discipline or fire friends and family.
Other employees feeling undervalued or excluded.
It seems fine at first—until it causes team dysfunction, morale issues, and even potential legal risks if employment laws aren’t followed properly.
Legal Reality (UK):
Employment Rights Act 1996 – All employees, including friends and family, must have a proper contract with defined terms.
Equality Act 2010 – Treating family or friends more favourably than other employees could lead to discrimination claims.
For Employees:
If you work at a business where the boss’s family or friends are treated differently, you have the right to raise concerns internally. If this affects your pay, opportunities, or job security, it could be considered unfair treatment or discrimination.
For Employers:
If you choose to hire people you know, set clear expectations, written contracts, and formal policies to avoid conflict. Ensure all employees—related or not—are treated equally in terms of promotions, salaries, and disciplinary actions.
Why This Backfires:
When employees see blatant favouritism, it destroys morale. A toxic work environment leads to high turnover and negative Glassdoor reviews exposing the unprofessionalism.
12. Treating Freelancers Like Employees
The Problem:
A business hires freelancers but treats them like full-time employees, expecting them to:
Work set hours as if they’re staff.
Be available on demand, even outside agreed working times.
Join team calls and pretend to be an employee when dealing with clients.
Follow internal rules and processes, despite not being on payroll.
Some businesses even restrict freelancers from working with competitors or demand exclusivity, despite them being self-employed.
Legal Reality (UK):
IR35 Legislation (Off-Payroll Working Rules) – If a freelancer is being treated like an employee, HMRC could classify them as a worker, forcing the business to pay backdated taxes and employer National Insurance contributions.
Employment Rights Act 1996 – If a freelancer is controlled in the same way as an employee, they may be entitled to employment rights such as holiday pay and sick leave.
For Freelancers:
If you’re being treated like a full-time employee without any of the benefits, you may have the right to challenge your employment status. If your client is imposing set hours, restrictions, or excessive control, this could put them in violation of IR35 regulations.
For Employers:
Freelancers are not employees—if you need someone full-time with full control, hire them as an actual employee. Otherwise, respect their flexibility, independence, and agreed contract terms.
Why This Backfires:
If a freelancer reports the business to HMRC, the company could face fines, tax penalties, and potential legal claims for misclassification.
13. Mishandling Employee Grievances
The Problem:
In any business, you’re bringing a bunch of strangers together to work toward a common goal, so of course there are going to be issues. People have different personalities, different ways of working, and sometimes, just don’t get along.
And look, most of us love a bit of drama, just not when you’re the one responsible for sorting it out.
I sometimes reminisce about some of the exciting gossip at the offices I worked at… someone kissing someone at the Christmas party, a scandalous resignation, or a mystery lunch thief. But now, from a business perspective, workplace disputes are a nightmare.
So far, in my own businesses, touch wood, I’ve never had to deal with one. But I’ve handled grievances as a manager in other businesses, and I’ve had clients come to me for PR help when these situations spiral into a crisis.
A business that dismisses, downplays, or outright ignores complaints about workplace issues… like bullying, discrimination, toxic management, or unfair treatment, is asking for trouble.
Instead of properly investigating concerns, many small businesses make huge mistakes like:
• Telling employees to “work it out themselves.”
• Dismissing complaints as “drama.”
• Retaliating against employees who raise issues.
This doesn’t just create a bad workplace, it opens the business up to legal action.
Legal Reality (UK):
Equality Act 2010 – Employers must take workplace discrimination, harassment, and unfair treatment seriously.
Employment Rights Act 1996 – Employees cannot be fired or punished for raising valid concerns.
Acas Code of Practice – Employers must follow fair disciplinary and grievance procedures.
For Employees:
If your complaints are ignored or you face retaliation for speaking up, you have the right to:
Escalate the issue internally (e.g., through HR or a formal grievance process).
Seek external help from Acas, Citizens Advice, or an employment lawyer.
For Employers:
Take all complaints seriously and document the process to show you’re handling concerns fairly. If necessary, bring in external HR consultants to ensure a neutral and professional approach.
Why This Backfires:
Employees who feel ignored or mistreated don’t stay quiet forever. Many take legal action, share their experiences on social media, or go to the press—causing a full-blown PR and legal crisis.
Final Thoughts
Running a small business isn’t easy, I completely relate. The reality is, most business owners aren’t trying to create a toxic workplace or ruin employees’ lives. We’re all just trying to keep things moving, manage the unexpected challenges, and survive day to day with the hurdles of the cost of living crisis, recessions, and everything else thrown our way.
Everything I’ve covered here comes from my own experiences working in businesses, managing teams, and helping clients navigate crises. None of this is about shaming small business owners (except the owners doing the forced team selfies, stop that), it’s about helping you avoid the kind of mistakes that can spiral into a reputational and legal disaster.
A lot of workplace issues don’t start with bad intentions, but poor handling can escalate them quickly. Employees don’t just wake up one day and decide to trash their old workplace online, it’s usually the result of being ignored, mistreated, or dismissed when they raised concerns.
The best thing any business owner can do? Stay ahead of problems before they turn into crises. Treat employees fairly, communicate properly, and when mistakes happen (because they will), handle them the right way.