It can be an exciting time as a business owner when you are taking on your first employee. However, there are many factors to consider before doing this, and there are also plenty of details you need to sort out.
You will need to ensure that you do everything legally, or you could find yourself in some trouble further down the line, and you may want to seek expert legal advice on employment law first. Below are some factors you will need to consider that can ensure you are prepared to employ people in your business and that everything is done within the law.
Register As An Employer
You will need to register with HMRC as an employer, so you can ensure all taxes and NI contributions are done correctly. You should already have done this, as you need to register as an employer when you set up the business, even if it is only you and nobody else working.
Provide A Statement Of Employment
You will need to provide a statement of employment for your new employee that will provide them with the conditions of employment. You need to give this if someone is going to work for you for a month or more, and you must provide this within two months of them starting work.
A Contract Of Employment
You will also need to provide a contract of employment for your first employee, and you need to ensure that this is legally binding. There are many free online templates that you can use and customize for your business, but you may also wish to seek legal advice. You can find an outsourced small business HR consultant to assist you with this task and ensure your contract is valid and legal.
Check Your Business Insurance
You are also going to have to check your business insurance and ensure that it is valid as your business circumstances are changing. You may need to update your policy to cover your employees in the event of an accident or something else happens in the workplace. You can find yourself in a world of trouble if you do not have adequate insurance and an unforeseeable event occurs at your place of work.
Paying Your Employees
You will also need to make sure that you create a payslip for your employee that shows all the necessary details. They need to see their total earnings, personal information, and what deductions are made and for what. You may also require the assistance of an accountant for the payroll side of your business. Using an outsourced professional service such as Avensure can ensure it is done according to the laws and legislation in place.
Know Your Employees Entitlements
As an employer, you must provide specific things for your workers that they are entitled to by law. Some of the things that they must have include:
- Holiday Pay
- Sick Pay
- Maternity Leave
- Paternity Leave
- Work Breaks
- Adequate Training
- Health & Safety Training
The above is only the tip of the iceberg, and there is much more to prepare when employing someone for the first time. Use a reputable company’s services to help you ensure you do everything legally and provide an excellent working environment for your new employee.
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