Definition

Human resource management (HRM) legislation and techniques refers, in an APC context, to the employment law and people-management practices governing a surveying firm's relationship with its employees, covering recruitment, contracts, working time, equality, disciplinary procedures and termination. RICS Rule 4 (Respect) requires members to treat others with courtesy; Rule 5 (Responsibility) requires regulated firms to operate as responsible employers. A principal unaware of employment law obligations is exposed to tribunal claims and regulatory censure.

Why this matters for Ethics, Rules of Conduct & Professionalism

  • All surveying firms must comply with employment legislation; ignorance is not a defence and does not prevent an Employment Tribunal claim.
  • RICS Rule 4 (Respect) requires members and firms to treat all people, including staff, with courtesy, consideration and respect.
  • Discriminatory practices breach the Equality Act 2010 and can constitute a RICS conduct matter.
  • Practice principals must demonstrate awareness of employer responsibilities, not just client-facing duties.

Key principles

Core employment legislation

The principal statutes include: the Equality Act 2010, prohibiting discrimination on nine protected characteristics; the Employment Rights Act 1996, governing unfair dismissal, redundancy and written employment particulars; the Working Time Regulations 1998, setting limits on hours and rest; and the National Minimum Wage Act 1998. Firms must also comply with the UK GDPR and Data Protection Act 2018 when processing employee personal data.

Contracts of employment and written statements

All employees are entitled to a written statement of employment particulars from day one, setting out the job title, start date, pay, hours, holiday entitlement and notice periods. Failure to provide it is a breach of the Employment Rights Act 1996 and can increase any tribunal award. Employment contracts should also address confidentiality, intellectual property and post-termination restrictions where relevant.

Disciplinary and grievance procedures

Every firm must have written disciplinary and grievance procedures complying with the ACAS Code of Practice. Failure to follow a fair procedure before dismissal can increase compensation by up to 25 per cent. The basic steps are: investigation, written notification, a hearing with the right to be accompanied, a written decision, and a right of appeal.

Equality, diversity and inclusive practice

The Equality Act 2010 requires firms to avoid discrimination, harassment and victimisation on any of the nine protected characteristics. Selection in recruitment must be based on objective, job-related criteria, avoiding questions about protected characteristics. RICS expects regulated firms to promote diversity and inclusion actively, reflecting Rule 4 (Respect).

Relevant RICS guidance and legislation

  • Equality Act 2010 — prohibits employment discrimination on nine protected characteristics.
  • Employment Rights Act 1996 — governs unfair dismissal, redundancy and the written statement of employment particulars.
  • Working Time Regulations 1998 — 48-hour week limit, rest breaks and minimum annual leave.
  • RICS Rules of Conduct (effective 2 February 2022) — Rules 4 and 5 engage directly with how firms treat their employees.
  • ACAS Code of Practice on Disciplinary and Grievance Procedures — the standard for fair workplace procedures; tribunals take account of compliance when assessing awards.

Ethics and Rules of Conduct angle

HRM engages Rule 4 (Respect) directly: the obligation to treat people with courtesy applies inside the firm as much as externally. Rule 5 (Responsibility) requires regulated firms to operate responsibly as employers. A firm that tolerates bullying or discriminates in pay or promotion is acting inconsistently with RICS values. At Level 3, candidates must advise on a specific HRM scenario, not merely list legislation.

APC-style Q&As

Q (Level 1)Name two pieces of employment legislation a surveying practice must comply with when managing staff.

The Equality Act 2010, which prohibits discrimination on protected characteristics including sex, race, age and disability, and the Employment Rights Act 1996, which governs unfair dismissal, redundancy and the written statement of employment particulars. The Working Time Regulations 1998 and National Minimum Wage Act 1998 also apply.

Q (Level 1)Which RICS Rules of Conduct are most relevant to how a firm manages its employees?

Rule 4 (Respect) requires all people, including staff, to be treated with courtesy, consideration and respect. Rule 5 (Responsibility) requires regulated firms to act as responsible employers who comply with their legal obligations and maintain a culture consistent with professional standards.

Q (Level 2)A junior surveyor in your team raises a formal grievance alleging that a senior colleague has made repeated derogatory comments about her on grounds related to her sex. How should the firm handle this?

The firm must follow its grievance procedure in accordance with the ACAS Code: acknowledging the grievance without delay, appointing an impartial investigator, conducting a thorough investigation, communicating a reasoned conclusion in writing, and offering a right of appeal. If the allegation is substantiated, the senior colleague's conduct must be addressed through the disciplinary procedure. The conduct may also constitute harassment under the Equality Act 2010, potentially leading to an Employment Tribunal claim and a RICS conduct investigation under Rule 4.

Q (Level 2)Your two-person surveying practice is growing and you are about to hire your first employee. What HRM steps should you take before their first day?

Before day one I should: prepare a written statement of employment particulars (Employment Rights Act 1996); have ACAS-compliant disciplinary and grievance procedures in place; carry out a right to work check; register as an employer with HMRC; set up PAYE; enrol the employee in an auto-enrolment pension scheme where applicable; and ensure the selection process complied with the Equality Act 2010. I should also consider registering with the ICO as a data controller for employee records.

Q (Level 3)A senior partner in your firm wishes to make a long-serving employee redundant to reduce costs, but the employee happens to be the only woman in the team and has recently returned from maternity leave. What risks does this create and what process should the firm follow?

(example) The timing creates a serious risk the redundancy could be automatically unfair or discriminatory: selecting an employee shortly after maternity leave raises a strong prima facie case of sex discrimination under the Equality Act 2010. The firm must demonstrate selection based on objective, non-discriminatory criteria applied consistently across a fairly defined pool. I would advise consulting an employment solicitor and following a proper redundancy process: defining the pool, applying objective criteria, consulting individually, considering alternatives, and offering suitable alternative roles. Proceeding without this process exposes the firm to uncapped compensation and potential RICS conduct proceedings under Rule 4.