The UK jobs market is continuing to cool, with the number of vacancies falling to 707,000 in the three months to July, the lowest level outside the pandemic since late 2014. The latest figures from the Office for National Statistics also showed that the number of payrolled employees fell by 78,000 over the year to June.

For small businesses, the figures suggest that recruitment may become a little easier in some sectors, although the picture is far from uniform. Rising employment and operating costs are making some employers more cautious about taking on staff, while businesses are also reporting uncertainty about the wider economic outlook.

Wage growth is slowing too, although pay is still increasing faster than inflation. If you are thinking about recruiting, it may be worth taking advantage of a less competitive market but don't assume that weaker demand means you can automatically offer less. Good candidates will still expect competitive pay and flexibility, particularly for hard-to-fill roles.

The reforms are not yet in force, and the Government is still deciding important details, including the reference period used to calculate guaranteed hours and the threshold at which workers would qualify.

This matters particularly to small businesses in sectors such as hospitality, retail and care, where variable hours are common. If you use zero hours or low hours workers, now is a good time to look at how many hours they actually work and how much flexibility your business genuinely needs. The final rules are expected to be introduced through regulations after the consultation process.

A security worker won £8,320 for unfair dismissal after his employer incorrectly treated him as having resigned while he was on unpaid leave to resolve childcare difficulties. He had worked for the business for more than nine years and had agreed unpaid leave after his childcare arrangements broke down.

The employer subsequently recorded him as a leaver, despite him never having resigned and without telling him that his employment was being terminated. When he later contacted the business about returning to work, he was told he would have to go through the recruitment process again.

The tribunal found that the employer had no reasonable basis for concluding that he had abandoned his job. It also criticised the complete absence of a dismissal procedure: there had been no warning, disciplinary meeting or right of appeal. The tribunal accepted that the employee had contributed to the situation by failing to maintain contact for several months, reducing his compensation by 35%, but said the greater responsibility lay with the employer.

If an employee disappears or fails to maintain contact, don't assume they have resigned. Resignation has to be a definite act, not something you assume. Check the facts, contact them, clarify their intentions and, if you are considering ending their employment, follow a fair process.

After a further incident, three directors decided to dismiss her the following day. However, the tribunal found that there were conflicting accounts of what had happened and that the employer had carried out “no real investigation” before making the decision. There had been no disciplinary hearing at which the employee could respond properly to the allegations.

The tribunal accepted that there had been genuine concerns about her behaviour, and her award was reduced because her conduct contributed to the dismissal, but that did not make the dismissal fair. The employee received £6,147 for unfair dismissal and £4,986 in notice pay.

A short, proportionate investigation and a proper disciplinary meeting are usually far less costly than defending an unfair dismissal claim, and don’t have to take long.