There are several legal requirements of a business start-up if you want to employ additional people. If you are ready to expand from a sole-trader or partnership here’s our quick-start guide on the essentials you need to employ staff in your business and ensure you’re legally compliant.
Right to Work in the UK
Checks should be made that the potential employee has the right to work in the UK by examining ID such as a birth certificate, driving licence or passport, and for foreign nationals, checking their Visa status aligns with their right to work in the UK. Copies of these documents should be retained by the employer and signed and dated as being a true copy of the original document seen. Find out more about checking a job applicant’s right to work.
Contract of Employment
When an employee accepts an unconditional offer of employment, this is where the employment contract starts regardless of whether a writing contract is yet in place. Written contracts with the terms and particulars of employment must be provided within two months of the employment start date.
If a business wishes to change the right of employment, the this must be stated in writing and signed by the employee in order to reserve the right to make changes. This can typically form part of the employment contract. Any changes to employment must then be agreed in writing and co-signed by the employee. Click for more information about employment contracts.
Minimum Wage
Employers must pay the minimum wage as set by Government which varies according to age. Workers may also be entitled to sick pay, maternity and paternity pay, parental leave, and annual leave. Find out the latest Government minimum wages rates here.
Registering for PAYE
Registering with HMRC as an employer for tax purposes and be ready to operate PAYE (Pay As You Earn) system whereby tax and national insurance contributions are taken from an employee’s salary and paid to HMRC. Register as an employer here.
Workplace Pension Scheme
Eligible workers need to be opted into a workplace pension scheme where contributions are paid. Working hours must also meet the requirements of the Working Time Directive and must not exceed a 48 hour working week, unless the business has the written, signed consent from an employee that states they are willing to undertake additional hours above the maximum 48 in a week. More information about setting up and managing a workplace pension.
Disciplinary Policy & Procedure
A business also needs to have disciplinary rules and procedures in place to protect against unfair dismissal. These rules and procedures must be followed if a disciplinary matter arises and is best practice to follow the Acas Code of Practice of Disciplinary matters. More information about disciplinary proceedings.
Protection from Discrimination
Finally a business must protect its works from discrimination of the protected characteristics in the Equality Act 2010. These factors must not affect any aspect of employment including pay, promotion, flexible working, and training and development opportunities. Find out more about employee rights against discrimination.
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