In small businesses HR is often pushed to the bottom of the pile. You can't justify a HR role, either full time or part time, and you think that employing an external HR consultant will be expensive. So it often falls on one or two of the managers, or even a secretary, to take charge of HR issues, employment records, documents and compliance. As Julia Roberts famously said in Pretty Woman... "BIG mistake!".
If you're giving HR a low priority - as many small business owners do, at least until there's a problem - then you are definitely missing a trick. Employees can be your biggest asset or your worst nightmare. So, aside from the legal compliance issues, here's what you should be thinking about: