Employment - New Employee Guide.

There may come a time in your business when you feel it is appropriate to take on an employee.

This doesn’t have to be as daunting or as complicated as you imagine!

Once you have found the right candidate that you think will fit into your business well and will be an asset to the firm, there are some basic steps for most first time employers to follow which will help the smooth running of recruitment.

You should firstly check that the person you wish to employ are legally allowed to work for you in the UK, if your checks have been completed and you are satisfied you are employing someone eligible to work for you then you move on to the next step.

If you are going to employ this person for longer than a month, within the first two month period you need to supply your employee with a statement of employment. This MUST contain various information.

The information required is :- legal name of company and working address for employee, legal name of employee, job title, date employment commenced, pay, holiday entitlement, working hours.

Also then in your statement of employment you should also give your employee the information on policies and procedures under the following headings :- Period of employment, sickness, injury and sick pay, notice period, period of employment, pensions and grievance procedures including dismissal and disciplinary action!

If as an employer you fail to provide this information you may find yourself at a tribunal!

Another factor to consider for a first time employer is how much to pay your employee? You will have to take into consideration the age of your worker and the type of job that they are doing. You MUST then pay them at least the minimum wage for their criteria.

If the person you are employing is NOT a family member, you as an employer need to have an employers’ liability insurance policy also. Your policy must be taken out with an authorised insurer and it is up to you to check that they are authorised and your policy must be to the value of at least £5 million. Ideally your Insurance certificate should then be on display but if not it must be available to Health and Safety Inspectors should they ask to see it. If not you could be looking at daily fines for not having the correct insurance, and a further fine for not making your certificate available upon request.

Now finally you are up and running and have the correct and relevant paperwork in place the final step is to make you sure your employee is registered correctly and you pay them correctly for the first time! In most cases once you take on your first employee YOU will need to register as an employer with HM Revenue and Customs, this will enable you to make the correct deductions from your employees’ wages ! This including PAYE (pay as you earn) and National Insurance contributions. You will only need to make PAYE deductions if your employee earns over a certain amount of money. Once this has all been done you MUST give a written statement / wage slip etc. of all the deductions taken from this person’s wage.

It may seem like a minefield at the beginning and lots of information to take into consideration when starting but hopefully following these basic first few steps will help guide you through the process a whole lot easier!


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