Hiring Your First Employee
Posted: Friday June 29 2018
By: Abbie Coleman
Starting a business can be a daunting but exciting time and so can taking on staff, so to make it easier here are the what to know’s, the checklists and what we can offer to help make things easier for you.
Hiring Your First Employee
When you are expecting a new employee for the first time, there are 7 things you must do.
- Decide how much you are going to pay that employee. You must pay your employee at least the National Minimum Wage https://www.gov.uk/national-minimum-wage-rates
- Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
- Check if you to apply for a DBS check if you work in a field that requires one.
- Get employment insurance and upon hiring your first employee, as an employer you need employers’ liability insurance.
- Send details of the job including terms and conditions in writing to your employee, such as an offer letter.
- Tell HM Revenue and Customs (HMRC) about your new employee but registering yourself as an employer. This can be done up to 4 wees before you pay your new staff.
- Check if you need to automatically enrol your staff into a workplace pension scheme.
- Register with ICO https://ico.org.uk/for-organisations/data-protection-fee/
Taking on a new Employee
Taking on a new employee is something to be celebrated, making sure you have all the necessary procedures, policies and documents in place is essential, to a positive employer/employee relationship, while being legally compliant.
The Checklist: The Contract and Handbook
- Every employee should be issued with a Statement of Terms within 2 months of their start date. This is usually contained in a Contract of Employment and it must be compliant with s.1 Employment Rights Act 1996. https://www.legislation.gov.uk/ukpga/1996/18/section/1
- The contract should
- be tailored to your business but still meet all the requirements of a legally enforceable contract.
- should set out the employment conditions, rights, responsibilities, and duties. The contract must be followed until it ends, for example when notice is given by either party or when the employee is being dismissed, place of work, wages and hour etc.
- Should be signed by both parties – whilst this isn’t a legal requirement it helps if a dispute ever arises if it was signed at the time.
- Contrary to popular belief a written, an employment contract does not need to be written to be legally enforceable. You can verbally enter into a contract of employment. (you must still provide the written section 1 statement within 2 months though)
- Terms of a contract can be made up of many different documents such as emails, letters, offer letter, contract and other documents where the terms are discussed. We always suggest ensuring everything is in a written contract to avoid any ambiguity in the working relationship.