For Irish SMEs, compliance isn’t a “nice to have” - it’s the law. Yet too many HR teams still lean on spreadsheets, paper files, or scattered folders, which makes it easy for mistakes to slip through. And when mistakes happen, the Workplace Relations Commission (WRC) has the authority to step in.
When inspectors arrive, they don’t just ask questions - they look for proof from up to 130 evidence items that demonstrate your HR practices are compliant.
This includes:
- Written terms of employment - issued within the legal timeframe, including core terms
- Working time records - accurate logs of hours, breaks, and leave
- Leave entitlements - proof that statutory leave, such as Statutory Sick Pay, Parents’ Leave, and Domestic Violence Leave, is correctly implemented
- Policy documents - up‑to‑date handbooks and signed acknowledgements from staff
- Training and certifications - records showing mandatory training are current
- Performance and dismissal documentation - evidence that procedures are fair and defensible
As our recent research found, producing these evidence items when an inspector demands them is a widespread challenge among Irish SMEs. Up to half say their records are incomplete or outdated, meaning most are at risk of falling into compliance pitfalls.
To learn more, you can download HRLocker’s Irish SME HR Report 2025
Pitfall 1: Inaccurate Time & Attendance Records
Tracking hours and breaks sounds simple, but in practice, it’s one of the easiest areas to get wrong. Paper timesheets go missing, spreadsheets aren’t updated, or managers forget to log changes. When records are spread out across different systems, SMEs struggle to show inspectors a clear, reliable picture of who worked when.
Evidence items inspectors look for:
- Timesheets or digital logs of hours worked
- Records of rest breaks taken
- Proof that records are accurate and up to date
The risk: Fines, disputes, and loss of credibility if records don’t stand up to inspection
The fix: A straightforward time‑tracking system helps. HRLocker’s Clock‑in and Out and Attendance Tracking functions automatically keep attendance records up to date, so you don’t have to chase missing timesheets or worry about errors when inspectors call.
Pitfall 2: Missed Leave Entitlements
Managing leave isn’t just about holidays anymore. Alongside annual leave, sick leave, and TOIL, employers now need to handle a growing range of statutory entitlements - from domestic violence leave to medical care purposes and parent’s leave. Without a clear system, requests get overlooked, calculations go wrong, and policies are applied inconsistently, leaving SMEs exposed.
Evidence items inspectors look for:
- Records of leave taken and payments made
- Documentation of different leave categories (holiday, sick, TOIL, domestic violence, medical care, parent’s leave)
- Policies showing how entitlements are communicated to staff
The risk: Costly employee claims and reputational fallout from failing to honour entitlements
The fix: Having everything tracked in one place makes compliance easier. HRLocker’s Leave Management module records absences, calculates pay, and keeps entitlements clear, so you can show inspectors exactly how policies are applied.
Pitfall 3: Lost or Outdated Policy Documents
It’s one thing to have contracts and handbooks in place — it’s another to keep them organised and up to date. Too often, policies end up scattered in email threads, saved in random folders, or (even worse) left sitting on someone’s desk. When that happens, SMEs struggle to show inspectors the right version of a document, and employees lose confidence in what rules actually apply.
Evidence items inspectors look for:
- Written terms of employment, including core terms, issued within five days of starting
- Current employee handbooks and policies
- Proof of staff acknowledgements (signatures or digital confirmations)
The risk: WRC penalties and employee mistrust when policies aren’t clear or accessible
The fix: HRLocker’s Document Management tool makes life easier by centralising storage and adding version control. Contracts, policies, and acknowledgements live in one secure hub, always current and easy to find when you need them.
Pitfall 4: Poorly Tracked Certifications & Training
Training records aren’t just a box‑tick - they’re proof your workforce is safe and compliant. Yet in many SMEs, certificates get spread out between inboxes and filing cabinets, renewal dates slip by unnoticed, or refresher courses aren’t logged properly. When inspectors ask for proof, missing or expired records can quickly become a serious liability.
- Training certificates and completion records
- Logs of refresher courses and renewals
- Documentation showing compliance with health and safety requirements
The risks: Financial penalties, safety hazards, and costly liability claims if training and records aren’t current
The fix: Automated reminders and training logs keep things simple. HRLocker’s Certification Tracking tool tracks qualifications, automatically flags upcoming renewals, and allows employees to upload their own certificates and qualifications. In short, it ensures your workforce stays compliant without the scramble.
Pitfall 5: Inconsistent Performance Review Documentation
Performance reviews are meant to guide growth and set expectations, but without consistent documentation, they can leave employers exposed. Details might be disorganised in managers’ notebooks, feedback shared informally, or disciplinary steps left undocumented. When disputes arise, the absence of a clear paper trail makes it hard to defend decisions.
Evidence items inspectors look for:
- Records of performance reviews and feedback discussions
- Documentation of disciplinary actions and improvement plans
- Proof that dismissal procedures followed fair processes
The risks: Expensive unfair dismissal claims and damaged employee relations.
The fix: A structured system makes reviews easier to manage. HRLocker’s Performance Appraisals software captures feedback, goals, and outcomes in one place, creating a clear audit trail that’s fair, defensible, and inspection‑ready.
The Simple Solution
Avoiding these pitfalls isn’t about piling on more paperwork - it’s about making everyday HR tasks easier to manage and harder to get wrong. When records are spread across spreadsheets, inboxes, and filing cabinets, mistakes are almost inevitable. But when everything lives in one safe and secure place, with reminders and reports built in, compliance becomes part of the rhythm of your business rather than a scramble when inspectors call.
That’s where platforms like HRLocker come in. By centralising contracts, policies, and training records, automating leave tracking, and surfacing compliance metrics through dashboards, HR teams can stay ahead of inspections without the stress. Instead of chasing paperwork, you gain visibility, confidence, and the reassurance that your HR house is always in order.
Why you should dodge compliance pitfalls
When HR teams get compliance right, the benefits go far beyond avoiding fines. Employees feel reassured that their rights are respected, boards gain confidence in the organisation’s governance, and regulators see a business that takes its obligations seriously.
For SMEs, this isn’t about chasing paperwork - it’s about creating smoother processes, stronger trust, and more time to focus on people and growth. By moving away from manual files and spreadsheets and leaning on digital systems that keep records centralised, up to date, and accessible, compliance becomes part of everyday practice rather than a stressful scramble.
To learn how your HRIS can help you stay ahead of gender pay gap & auto-enrolment changes, download our FREE Guide and make compliance one less thing to worry about this year!
