7 Things you need to do when employing staff for the first time

You are normally considered to be an employer, once you start deducting tax and National Insurance contributions from your employee’s wages or salary.

1.      National Minimum Wage

Before employing someone, decide on what you are going to pay them.  They have to be paid at least the National Minimum Wage.  It does not matter how small you are- The National Minimum Wage is the minimum pay per hour that almost all workers are entitled to. 

2.      Legal Right to Work in the UK

Besides the normal employment, checks that are done, all employers have an obligation to check if the people they are employing have the legal right to work in the UK. 

3.      Criminal Record Bureau (CRB) now known as Disclosure and Barring Service (DBS) Checks

Depending on the role you are employing a person in, you may be required to carry out a DBS check.  For example, if you are going to employ someone to work with children, or be involved in security.

4.      Employer’s Liability Insurance

The moment you employ someone, you need to get Employer’s Liability Insurance.  The policy will have to cover you for at least £5 million and should be taken out through an authorised assurer.  This covers you for the scenarios for when an employee is injured or becomes ill because of the role they fulfil.

5.      Written Statement or Contract of Employment

The moment you employ someone, you have to provide them with a written statement or contract of employment.  A written statement isn’t a contract of employment, but will include the main conditions of employment.

A written statement will be issued if their contract will last at least a month or more.  A contract of employment will be issued, if you now you will be employing someone permanently or for a certain duration of time.

They both need to include:

-        Business name

-        Employee’s name and job title

-        Start date

-        Whether any period of continuous employment is taken into consideration

-        When and how much they will be paid

-        Hours of work and if it includes weekends or not

-        Holiday entitlement

-        Location of work and whether they might have to relocate

-        If there is an end date to the contract, when this will be

-        Notice periods

-        Collective agreements

-        Benefits

-        Who to go to for grievance and disciplinaries

The following is not covered in the written statement, but will have to be included in the employment contract:

-        Sick pay and procedures

-        Disciplinary and dismissal procedures

-        Grievance procedures

6.      Registering as an Employer

All employers will have to register with HM Revenue and Customs (HMRC) before the first payday.  Most employers should be able to register online.  You will not be able to register more than 2 months before you start paying people.

7.      Automatic Enrolment

Employers will have to provide a workplace pension for all eligible staff by 2018.  You will have to enrol and make an employer’s contribution for all staff who qualify.  Dependent on the number of people on your payroll, your enrolment date could be staged.

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