Taking on your first employee does not have to be daunting

Though the thought of employing someone for the first time could deter some businesses from growing, employees can be your business’s best asset and any hurdles to overcome along the way are worth it.

Last week’s Buckinghamshire Business First newsletter highlighted research that suggested that too few SMEs were pursuing growth. One thing that can hold back both sole traders and SMEs from pursuing growth is the responsibility of taking on employees and all that this entails. With employment such a boost to the local and national economy, the welfare of those employed, and the business doing the hiring, it is important to alleviate any concerns business owners have over hiring for the first time.

In fact with just a little reading you can become well versed in your roles and responsibilities, leaving you to go about growing your business with fewer things to worry about. With that in mind, the following information is designed to bring peace of mind to any sole trader about to employ their first member of staff, and to provide a helpful reminder to those already employing staff of the duties they face.

Once you take on an employee, you suddenly take on many legal responsibilities. You name it, you’ll have to take care of it. Handily, you name it and you’ll find information about it on Buckinghamshire Business First’s Workforce Support tool.

Firstly, before hiring anybody you need to ensure they are legally allowed to work for your company. Checking whether somebody has the right to work in the UK is a must, while health checks and criminal record checks must be carried out for certain kinds of employment.

You will also need to comply with workplace pension rules. These rules have changed recently to mean that every employer must automatically place every employee of theirs on a workplace pension scheme, a practise known as auto-enrolment. You will also need to become familiar with the ins and outs of payrolls to ensure that you are paying your employees correctly and deducting the correct amount of tax and national insurance contributions from employees’ pay packets. Follow government guidelines to ensure you meet your obligations.

Ensuring the health and safety of your employees is another must. Having a first aid kit in the workplace, keeping an accident log and providing rest and relaxation areas for staff are good starting points, but putting in place and enforcing guidelines to prevent harassment, bullying, discrimination and overworking are other areas that need to be covered. You also must have employer’s liability insurance to cover injuries or illnesses suffered as a result of work and are legally required to record accidents and illnesses in the workplace. The Health and Safety Executive (HSE) provides comprehensive guidance on your responsibilities as an employer.

Contracts of employment are another area to get right. All employees have a contract with their employer that sets out their terms, employment conditions, rights, responsibilities and duties. You should think about the rate of pay you are going to be able to offer too as it will need to be competitive to attract the best candidates.

From time to time disputes will pop up between you and your employees, and you are legally required to set up a grievance procedure to accommodate this eventuality. The same goes for any disciplinary action you may have to take.

Every member of staff is entitled to at least 28 days of holiday per year. Rules around when holidays can be taken and how many days can be taken at once should be made clear to employees from the outset of their employment.

If the unfortunate situation arises where you have to make an employee redundant or fire them, there are rules you must abide by here too.

While not a legal requirement, drafting a set of employee guidelines outlining what is expected of staff in the workplace is a sensible idea. Holding performance reviews every six to twelve months will also ensure both you and your employee have the time to talk about in the ins and outs of the job and can highlight any problems that may have arisen.

Although there are a fair few things to take care of when employing somebody, it is best to get your head around it all sooner rather than later. You will find that once you are well-read on these matters, they don’t seem so daunting.

You can also call our expert business support officer who can talk to you about all the help available for your business. Give us a call on 01494 568941, or email her at BusinessSupport@bbf.uk.com.

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