You’ve put in the late nights, you’ve created a great client base and now you’re swamped and in need of staff as your business grows- first employee time congratulations!
However, hiring employees isn’t always as simple as you would expect. It is crucial to get the right basics in place before you place that first job advert, to minimise any legal or financial risks to your business later along the line.
Make sure, before you start recruiting, you cover off these key elements to hiring the right way not just the quick way;
Make sure you carry out reference checks for your new hire. In particular, if the person will be working with vulnerable adults or minors, you will be required to carry out a DBS check (previously CRB). You are also required to confirm your employee’s legal right to work in the UK through requesting (and taking a copy) of their UK passport or work visa.
Employment Contract and Employee Handbook
You will need to have a contract of employment in place. Employers are legally obligated to provide written particulars of terms and conditions of employment to the new employee within 2 months of the start date. The contract should cover;
- the business’s name
- the employee’s name, job title, start date
- how much and how often an employee will get paid
- hours of work
- where an employee will be working
As well as the principal statement, a written statement must also contain information about:
- how long a temporary job is expected to last
- the end date of a fixed-term contract
- notice periods
- collective agreements
- who to go to with a grievance
- how to complain about how a grievance is handled
You may also wish to have an employee handbook drafted to give the company stance and general process on all things employment related- such as how your company would manage absence, expected behaviours and any health and safety information. It is also a great way to make employees feel engaged and welcomed into your company.
Don’t forget the P45!
If this isn’t your employee’s first ever job, they should be bringing with them a P45 from their previous employer. This is a form that provides important information regarding how much the person has already been paid in the tax year and how much tax was deducted as well as a tax code. This is crucial to know, as it will enable you to know how much tax you (or your payroll provider) should take off their monthly pay.
Know your resources
Although it may seem daunting, there is plenty of information available on hiring staff. https://www.gov.uk/growing-your-business/hire-and-train-staff this website is a great first start and ACAS (advisory conciliation and arbitration service) is another free service that provides some templates and general advice on employment matters.