Employing someone for the first time? Here’s how to get it right!

12 November 2024

Question

I am Dave – I have a small business and I did everything myself until recently when it all got too much for me.  I have realised that to help with the work I need to take on my first employees.  This will be a great help but I am worried that I don’t really know what I am supposed to be doing other than paying them.  I want to be a fair employer and do things correctly but it all seems very daunting and I need some professional advice please. Where do I start?

Answer

Well Dave, you have come to the right place as we have a team of experts at Phillips, ready and willing to help you.  I am afraid there really is a lot to take on board when you first employ people but with the right help in place it can be quite straightforward.  I will broadly outline the main points and then you can let me know which aspects you need more help with.

  1. You need to have employer liability insurance in place to protect yourself and your business before taking on any employees. Check your public liability insurance to make sure it extends to employer liability cover.
  2. Before employing anyone at all you must check that they have the right to work in the UK, that it is a current right and that they can provide evidence of this. You must keep a record so you can prove that you have done this before they do any work at all for you.
  3. On day one of employment, you must provide written terms of employment setting out the terms and conditions upon which they are employed. This will be their contract of employment and needs some thought as to what you wish to include in it.
  4. To make sure that the contract is fair and reasonable you will need to have some basic knowledge of employee rights and regulations. A major pitfall will be if you are unaware of the rules relating to minimum wage, holiday pay, working hours/breaks, sick pay and notice periods. You will also need to detail any required probation period.
  5. You have an obligation to deduct tax and employee National Insurance from all wages at source. You may also need to set up an employee pension scheme so that you can automatically enrol your employees into it. You will need sufficient understanding of this in order to advise the employees of their rights and obligations. You should also consider whether you wish to offer the employees any other non-statutory benefits.
  6. You must ensure that as an employer, you take steps to protect your employees from discrimination, harassment and victimisation and ensure equal pay and treatment in the workplace. You will also need a fair and transparent process for dealing with any grievances or any disciplinary issues. Having clear policies in place is advisable and will assist both you and your employees to understand what your respective rights and obligations are.
  7. Think also about family friendly policies which may not impact you initially but which you will need to familiarise yourself with in due course if they do arise. This could include flexible working, pregnancy and maternity, adoption, paternity and parental leave, all of which have rules in place, so do take advice if one of these scenarios arises. You may also have to deal with leave for employees dealing with an emergency relating to a dependent or bereavement.
  8. Training must also be something that you consider at the outset of employment, as it is necessary to put a clause into the contract of employment to say whether there will be any compulsory training needed for the role. If so, the contract must state whether the employee may have to pay for any training themselves.

 

As you take this exciting new step for your business, know that you’re not alone—our team at Phillips is here to ensure your success as an employer. Hiring your first employees can feel overwhelming, but with the right legal guidance, you can build a strong foundation that protects both you and your team. From ensuring legal compliance, to drafting bespoke employment contracts and developing effective workplace policies, we’re here to simplify the process so you can focus on growing your business.

Contact Phillips today for expert, personalised support, and let us help you create a workplace that’s not only compliant, but also welcoming and fair for your employees.

Email: [email protected], call 01256 460830, or contact the team directly:

Gill Brown

Jacqueline Kendal

Sarah Filsell

Katie Butler

Contact Us

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