Employing your First Person
Employing Your First Employee
Taking on your first employee is a big step. It's usually a positive sign that your business is growing, but it can also feel a little daunting.
What do you need to have in place? What are your legal responsibilities? And how do you make sure you protect your business while giving your new employee a good start?
The good news is that it doesn't have to be complicated.
Here is our practical checklist to help you get the essentials right from the beginning.
Before your employee starts
1. Be clear about the job
Decide what you need your employee to do, their responsibilities and the skills and experience required.
A clear job description will help you recruit the right person and set expectations from the outset.
2. Prepare a contract of employment
You must provide the legally required written statement of employment particulars by the relevant statutory deadlines, with the principal statement provided no later than the first day.
We recommend issuing a properly drafted contract of employment before the employee starts. A good contract provides clarity, protection and flexibility for your business.
3. Check their right to work in the UK
You must carry out the appropriate right to work check before employment starts.
Follow the prescribed checking process and retain the required evidence. Depending on the individual's circumstances, this may involve an online check rather than copying a passport.
4. Set up payroll and pensions
Make sure you have the appropriate PAYE arrangements, can provide payslips and understand your workplace pension responsibilities.
You must also pay at least the applicable National Minimum Wage or National Living Wage.
See Employment Facts for further information.
5. Arrange Employers' Liability insurance
Most businesses employing staff are legally required to have Employers' Liability insurance. Check that appropriate cover is in place before employment begins.
Put the right HR arrangements in place
6. Establish your policies and procedures
You need appropriate disciplinary and grievance procedures, together with clear rules covering areas such as holidays, absence, conduct and workplace standards.
Our HR Policies and Procedures section provides guidance and templates, including resources to help you create an employee handbook.
7. Set up an employee file
Keep relevant employment records, including contracts, personal and payroll information, right to work evidence and important correspondence.
These records must be managed securely and in accordance with data protection requirements.
See Employee Files.
Alternatively, YourHR.space provides an online system for maintaining employee records and managing day-to-day HR administration.
8. Plan their induction
A good induction will help your new employee settle in, understand the business and become productive more quickly.
Use an induction checklist to cover essential information, including their role, company rules, working arrangements, health and safety, and performance expectations.
See Training and Development for further guidance.
Once they're working for you
Your responsibilities don't end when your employee starts!
You'll need to manage holidays, absence, performance, conduct and other situations that arise during employment. You'll also need to keep employment records, contracts and policies up to date.
YourHR.guide provides practical guidance, forms and templates to help you manage these situations as your business grows.
Our advice: Get the basics right from the outset. A little time spent putting good HR arrangements in place now can save considerable time, money and problems later.
For a more detailed plan, visit Step by Step HR.