Dave is quite correct!
Employment legislation is a very complex field, lots of companies have no real idea of what they are doing and gain advice from websites and forums such as this meaning that they very frequently land themselves in front of a tribunal when an employee invokes their rights.
In the past I have have tried to to warn you about the dangers of relying on websites (even govt sites) and forums, and other business practices that leave a little to be desired, which you have chosen to ignore, probably due to the real costs that must be incurred when you become an employer.
I will offer no further advice, as I do not have all the details to hand, other than this, find yourself a decent HR company, ensure that they have indemnity insurance, be 100% honest with them, warts and all!
Look at your pricing structure, and ensure that your prices reflect the very real costs of the business, get help and advice from professionals in HR and Health & Safety, this will of course cost real money, most of your competion will not pay these costs, sure their websites will state that they follow all legislation, but most have no real idea of their legal obligations.
This mistake, or one made in the future, could have huge financial implications, for you and your company, your insurance may refuse to pay out because you did not follow the regulations, added to the fact that just recently the fines were increased, you could be very well find yourself having to find any settlement yourself, plus no doubt, a huge increase in your liability premium.
AS the economy worsens, these types of problems will only increase, as staff will do all they can to protect their own positions, in all recessions claims against employers rise sharply, any employer should take this into account.
Regards,
Rob