Thinking of hiring your first employee? Here’s what you need to know:

Employment Contracts: Before hiring an employee, you must provide them with a written statement of employment particulars on or before their first day of employment. This document outlines key terms and conditions of employment, including job description, pay, working hours, holiday entitlement, and notice periods. It’s also a very good idea to have a job description, which means your new employee knows what is expected from them from day 1.

National Minimum Wage (NMW) and National Living Wage (NLW): As an employer, you are legally obligated to pay your employees at least the NMW or NLW, depending on their age and employment status. These rates are reviewed annually, so stay updated to remain compliant.

Right to Work Checks: Verifying that your prospective employee has the legal right to work in the UK is crucial. Use ACAS guidelines and carry out right to work checks before they start, and keep copies of relevant documents as part of your records?

Tax and National Insurance Contributions (NICs): As an employer, you are responsible for deducting income tax and NICs from your employees’ salaries through the Pay As You Earn (PAYE) system. You must also pay National Insurance Contributions for your employees (known as employers NI). A good accountant can advise you on this and how to run payroll.

Workplace Pensions: Under auto-enrolment legislation, you must enrol eligible employees into a workplace pension scheme and make minimum contributions to their pension pots. Compliance with pension regulations is mandatory and failure to do so can result in penalties.

Statutory Benefits and Entitlements: Your employees are entitled to various statutory benefits, including statutory sick pay (SSP), statutory maternity pay (SMP), statutory paternity pay (SPP), and statutory holiday pay. Make sure you know what these entitlements are (it’s a very good idea to have policies in place for these things: policies are often contained in an “employee handbook”).

Health and Safety Obligations: Employers have a legal duty to ensure the health, safety, and welfare of their employees at work. Conduct risk assessments, provide necessary training, and implement appropriate measures to maintain a safe working environment.

Discrimination and Equality: UK law prohibits discrimination in the workplace on grounds of age, race, gender, disability, religion, or sexual orientation. Ensure your recruitment and employment practices adhere to these principles to avoid legal repercussions.

Employee Rights: Employees in the UK have various rights, including the right to minimum notice periods, protection against unfair dismissal, and the right to request flexible working arrangements. It’s a good idea to familiarise yourself with these rights to foster a positive and legally compliant work environment. The ACAS code of practice is a free UK Government resource and a good place to start.

Legal Obligations and Employer Responsibilities: Finally, understand that as an employer, you have a range of legal obligations and responsibilities towards your employees. Stay informed about changes in employment legislation and seek professional advice when necessary to ensure compliance and mitigate risks.