Six things you need to do when employing staff for the first time

​When taking on an employee, business owners assume a raft of responsibilities that they must meet in order to comply with the law.

If you are taking on an employee for the first time, you must:

  • Decide how much to pay your employee. You must pay your employee at least the National Minimum Wage
  • Check if your employee has the legal right to work in the UK. You may have to do other employment checks as well
  • Apply for a DBS check (formerly known as a CRB check) if you work in a field that requires one, e.g. with vulnerable people or in security
  • Get employment insurance. You need employers’ liability insurance as soon as you become an employer
  • Send details of the job (including terms and conditions) in writing to your employee You need to give your employee a written statement of employment if you’re employing someone for more than 1 month
  • Tell HM Revenue and Customs (HMRC) by registering as an employer - you can do this up to 4 weeks before you pay your new staff

There are support structures in place to help employers meet the additional financial costs they incur by taking on staff.

You may be able to reduce the amount of National Insurance you pay with the Employment Allowance. Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000. This is called the ‘Employment Allowance’.

Check that you are paying your worker the National Minimum Wage here:  National Minimum Wage calculator for employers.

These responsibilities form just some of the ‘red tape’ issues that employers have to deal with. For information on other issues such as complying with trading standards, licensing laws and health and safety rules, visit the Buckinghamshire Business First support tool and click on ‘Red Tape’.

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