The 5 Most Common Hiring Mistakes Employers Make

It was a regular workday morning at a small company when an unexpected visitor arrived, a labor inspector. By the end of the day, the business owner was holding an official order for a temporary shutdown along with a hefty fine. What was the reason? And what prompted the inspector to issue such a decision?
Improperly maintained records and missing employment contracts for several workers led to the ruling, and the company felt the consequences for the next six months.
Many businesses, especially those growing quickly, tend to follow the logic of “we’ll deal with it when we have to.” But labor law doesn’t work that way. It doesn’t care whether you knew or not. It demands that your business align with it.
Here are the five most common mistakes:
Incomplete — or completely missing — employment contracts
Verbal agreements and informal arrangements don’t hold up legally.
No records of working hours or time off
Without accurate documentation, an employer has no way to prove compliance with the Labor Law.
Ignoring deadlines for legal documents and registrations
Late entries into official systems can cost more than an employee’s gross salary.
Poor understanding of employee rights — sick leave, breaks, time off
Often overlooked due to a lack of knowledge, but the consequences for employers are very real.
Hiring foreign nationals without complete documentation
From permits to residency, not a single paper can be missing.
At Dragon HR, we combine legal expertise with practical HR knowledge to help employers avoid these challenges entirely.
In today’s complex legal landscape, the best protection is knowledge — and a partner who has it.

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