HIRING WORKERS: Setting people on can seem like a routine matter. But, getting this part wrong can cost a business lost time and profitability.
To others, it can seem like a big deal and complicated if this is the first time you are employing someone.
But, there are a handful of things you must complete when you hire your first employee. All employers have legal rights and responsibilities.
Employing staff for the first time is not only about recruiting suitable employees. You may also need to provide adequate training for your new staff member.
Part of learning how to employ someone includes dealing with absence levels at work. Limiting a high turnover of employees is also part of successful business management.
The task of hiring your first employee is only the beginning. The next step is understanding how to avoid too many employee dismissals. Taking on someone also means handing over some business responsibilities to them.
But, you must understand your duties and obligations once you become an employer. Following these 7 steps of hiring is the safest way to stay away from employment tribunal claims.
Steps to Employing Staff for the First Time
Note: The guide to employing or hiring staff for the first time is also available in Welsh Language ‘Cyflogi staff am y tro cyntaf‘.
1. Employee Legal Right to Work
The first step of staff recruitment is finding a suitable candidate. An employer then has the responsibility of checking that the prospective employee:
- Has the legal right to work in the United Kingdom.
- Meets the requirements of any employment checks necessary for their position (e.g. working with children).
2. Disclosure and Barring Service Check
You may need to apply for a Disclosure and Barring Service check. The new DBS checks replaced the old Criminal Records Bureau (CRB) checks.
This is most relevant if your new staff member will be working in a field that requires it. Examples include being around vulnerable people or those with security risks.
3. Employee Job Description and Contract
You should send full details of the job to your employee, including the terms and conditions. This information must be in writing.
Employing staff for the first time means you must also give them a written statement of employment (if you will employ them for one (1) month or longer).
4. Paying Your Staff the Correct Amount
As a rule an employer decides how much to pay their employees. But, they must receive no less than the current National Minimum Wage rates.
You must provide each staff member with a payslip. It should detail their gross pay, net pay, and any deductions for income tax, pension, and NIC.
The implementation of the Real Time Information regime came to force in 2013. That means you must also submit payroll data to HMRC any time you pay your employees.
5. Employment Insurance
In most cases, you will need employment insurance. Becoming an employer means you need to get adequate Employers’ Liability insurance. This helps to cover the business from workplace health and safety claims made by staff members.
6. Contact HM Revenue and Customs
You must contact HM Revenue and Customs and register as an employer. Ensure this gets done up to four (4) weeks before you start paying your new employee wages.
7. Workplace Pension Schemes
You may need to set up automatic enrolment in a workplace pension scheme when you start hiring new staff members.