Getting ready to hire your first employee is a sign that your business has grown beyond the capabilities of one person – a huge milestone for any small business. However, this accomplishment comes with new challenges and responsibilities. Expanding your team introduces fresh perspectives and skills to your business, but the process of employing someone involves careful planning and adherence to legal requirements to ensure a successful integration into your business.
This guide aims to navigate you through the essential steps of hiring a new employee as a small business in the Harlow and Essex area.
Legal Responsibilities Before You Hire
There are several crucial steps that the government requires businesses take before hiring employees for the first time. To be able to pay your staff, you must first register as an employer with HMRC and set up PAYE (pay as you earn) to ensure you’re deducting the correct amount of tax and National Insurance. As a small business, these things can usually be done quickly online. It is also a legal requirement to have employer’s liability insurance. As an employer, you should familiarise yourself with these elements of employment law:
• The National Minimum and Living Wage
• Working Time Regulations (working hours, breaks, holiday entitlement)
• Employment contracts and employee rights
Creating the Job Role and Hiring the Right Candidate
The key to hiring the right candidate is crafting a clear, enticing job description. Your job description should outline:
• Key responsibilities
• Required skills and qualifications
• Working hours and location
• Salary and benefits
For businesses based at Harlow Business Centre or similar premises, you might also highlight the benefits of your workplace environment, such as free parking, security, or being part of a thriving local business community. Once you have a listing, promote your vacancy on relevant job boards, social media, and local networks.
Carry Out Legal Checks
Before finalising employment, UK employers must conduct essential legal checks:
• Right to Work Verification: Confirm the candidate’s eligibility to work in the UK by inspecting original documents like passports or biometric residence permits. Retain copies as evidence.
• Disclosure and Barring Service (DBS) Checks: For roles involving vulnerable groups, assess whether a DBS check is necessary to ensure the candidate’s suitability.
• Health and Safety Compliance: Conduct workplace risk assessments and implement necessary safety measures to uphold a secure working environment.
• Reference and Employment History Verification: Obtain and review references to validate the candidate’s qualifications and experience.
• Data Protection Adherence: Handle all personal information in line with the Data Protection Act 2018, ensuring confidentiality and security.
These steps are vital to comply with UK employment laws and foster a trustworthy workplace.
Issuing a Contract of Employment
Once you’ve selected the right candidate, it’s essential to formalise the employment relationship with a contract. In the UK, while employment contracts can be verbal or written, providing a written statement of employment particulars is a legal requirement.
Your Ongoing Responsibilities
As a UK small business employer, ongoing responsibilities include:
• Payroll Management: Accurately calculate and process wages, ensuring compliance with minimum wage laws, and deduct appropriate taxes and National Insurance contributions.
• Pension Enrolment: Monitor staff ages and earnings to determine eligibility for automatic pension enrolment, manage opt-ins and opt-outs, and maintain accurate records.
• Health and Safety Compliance: Conduct regular risk assessments, implement necessary safety measures, and maintain a safe working environment in accordance with the Health and Safety at Work Act 1974.
• Employee Rights and Benefits: Ensure adherence to statutory entitlements such as holiday pay, sick leave, and parental leave, and stay updated on employment laws to maintain compliance.
• Record Keeping: Maintain accurate records of employment contracts, payroll, tax filings, and compliance documents for the required periods.
Regularly reviewing these responsibilities helps mitigate legal risks and fosters a positive workplace environment.
Final Thoughts
Hiring your first employee can feel like a leap, but with the right preparation, it can also be a turning point for your business. Harlow Business Centre is home to a variety of businesses who have made that step and thrived, supported by a collaborative community and flexible workspace options.
If you’re growing your business and looking for the ideal base, discover our available units or get in touch to see how we can support you.