Checklist for employing and managing staff
If you employ staff you must, by law, have employer’s liability insurance in place. Don’t risk a fine by not having this compulsory insurance. You can get a quote for employer’s liability insurance here.
Make the job offer properly
Make the job offer in writing and make sure you include:
- the offer of employment
- the job title
- any conditions that apply, such as satisfactory references or completion of satisfactory probation period
- the pay, hours, benefits, pension arrangements, holiday entitlement, place of employment, etc
- the starting date
- length of probationary period, if any
- what the person needs to do next eg returning a signed acceptance of the offer, advising when they can start, etc.
A range a range of employment documents suitable for use by businesses based in England, Wales or Scotland
is available from Clickdocs. These documents have been prepared
primarily for use in small businesses with due regard to the prevailing
employment laws.
Issuing employment contracts
Within 2 months of starting work you should provide your employee with a written statement of employment (an employment contract) which should contain:
- your business name
- the name of the employee
- the date their employment started
- how much you are paying them
- frequency of payment eg weekly or monthly
- normal working days/hours, and any requirements for these to differ
- normal place of work, and any requirements for it to differ
- holiday entitlement
- sick leave and sick pay entitlement
- notice period to terminate the employment
- your disciplinary and grievance procedures
Get an employment contract suitable for permanent, fixed-term or temporary employees, which meets the requirements of UK Employment legislation.
Note that a full working week is currently limited to 48 hours. Employees can agree to opt out of this working time limit but must not be contracted or made to work more than 48 hours on average over a 17 week period.
Paying your employees
You must pay your employees at least the national minimum wage rates and should not count any tips they may receive as part of their wages.
The rates are usually increased in October each year. From 1 October 2011 the minimum wage rates are as follows:
- £6.08 an hour for workers aged 21 and over (up from £5.93)
- £4.98 an hour for workers aged 18-20 (up from £4.92)
- £3.68 an hour for workers aged below 18 who are no longer of compulsory school age (up frpm £3.64)
HMRC
HMRC has information on the PAYE aspects of taking on a new employee that includes an introduction to PAYE schemes, the paperwork involved and how to avoid employing an illegal worker.
Operating a payroll
If you employ staff you need to pay them, deduct the correct tax and National Insurance contributions from their wages, and provide them with an itemised pay slip. You can opt to buy and operate your own payroll software or consider using an outsourced payroll service. We work with WKH Chartered Accountants who offer Now Let's Get Started visitors a free 3 month trial of their payroll service. Call them on 0800 018 0590 and quote 'Now Let's Get Started' to find out more.
HMRC has a really useful web page on what to consider when choosing an in-house or an outsourced payroll service.
If you opt to run your own in-house payroll software, choose one from the HMRC list of accredited payroll products.
If your business was set up after 22 June 2010 and you're NOT in London,the South East or Central England you will be exempt from paying class 1 NI contributions for each of your first 10 employees, up to a maximum of £5000. Detailed information on the NIC Holiday scheme, including how to apply, is available on the BusinesLink website.
From 2012 employers of all sizes must enrol their staff in a company scheme or the new National Employment Savings Trust (Nest).
Looking after the health and safety of your employees
If you employ people you need Employers Liability Compulsory Insurance and you must display the certificate in your workplace. See the Employers liability compulsory insurance guide from hse.
For more information or to get a quote for employers liability insurance visit our business insurance centre.
You are also responsible for the health and safety of your staff, provide free health & safety training appropriate to their job, and for VDU users provide free regular eye tests. For more information on staff health & safety see:
Find more information on working temperature regulations, rest break regulations, guidance for staff who work alone, and providing personal protective equipment PPE and first aid regulations in the workplace.
A checklist of how to comply with health and safety law in the workplace
Health and safety training for your staff
Understanding paid and unpaid leave entitlements
Record time off
For each member of staff you must keep a record of all absences, the length and reason for absence, and whether it was paid or unpaid. YouManage small business edition is an online tool that makes it easy to keep a record of HR issues and absence recording . If you have 6 or more employees it's a cost-effective employee managementsolution that gives you
access to a complete suite of legislative guidance and employee
management and reporting tools. Get more information and try Youmanage for free here.
Holiday pay
The minimum amount of paid annual leave for full-time employees is 5.6 weeks (28 days for a 5 day week). You can include bank and public holidays as part of this allowance and do not have to give these days in addition. This allowance should be pro-rated for part-time employees. Acas has a useful guide to holidays and holiday pay that includes how to calculate holiday pay for your staff.
Other paid time off
You must allow "reasonable" paid time off to your employees for activities which include:
- attending antenatal appointments, if pregnant.
- carrying out duties or receiving training as a safety representative
- carrying out duties as a pension scheme trustee
- looking for another job or arranging training for future employment if you have made them redundant
- for young people, studying or training leading to a relevant qualification
Unpaid time off
For some activities you are not obliged to pay your staff, but you must allow them time off, the main ones being:
- family emergencies
- jury service
- acting as a school governor
Things to watch out for when employing people
Don’t discriminate
Don’t make choices (ie discriminate) at any time during the recruitment, employment, promotion or termination process on the grounds of:
- age
- gender
- disability
- race
- religion
- sexual orientation
- hours worked
- religion
- beliefs
- marital status
The new Equality Act became law in October 2010 and specifies what you need to do to make your workplace a fair environment and to comply with the law. This PDF guide from the Government Equalities office will help you understand the new provisions which are effective from 6 April 2011
Check the candidate legally entitled to work in the UK
You should check the entitlement to work in the UK of every worker you plan to employ - regardless of their race, ethnic or national origin, colour or nationality. As a general rule, citizens of the UK, Channel Islands, the Isle of Man, Ireland, EEA and Swiss nationals are eligible to work in the UK. Business Link has a comprehensive section on how to check eligibility to work in the UK, that includes information on documentation and work permits.
HMRC has information on how to avoid employing an illegal worker.
Know how to handle requests for flexible working
You must give serious consideration to requests to work flexibly, from employees who:
- have worked for you continuously for at least 26 weeks and
- are parents of children under 17 or of disabled children under 18
- or have responsibility for caring for adults.
BusinessLink has more information on your legal obligations and guidance on how to consider and respond to flexible working requests.
Checklist for employing and managing staff
If you employ staff you must, by law, have employer’s liability insurance in place. Don’t risk a fine by not having this compulsory insurance. You can get a quote for employer’s liability insurance here.
Make the job offer properly
Make the job offer in writing and make sure you include:
- the offer of employment
- the job title
- any conditions that apply, such as satisfactory references or completion of satisfactory probation period
- the pay, hours, benefits, pension arrangements, holiday entitlement, place of employment, etc
- the starting date
- length of probationary period, if any
- what the person needs to do next eg returning a signed acceptance of the offer, advising when they can start, etc.
A range a range of employment documents suitable for use by businesses based in England, Wales or Scotland
is available from Clickdocs. These documents have been prepared
primarily for use in small businesses with due regard to the prevailing
employment laws.
Issuing employment contracts
Within 2 months of starting work you should provide your employee with a written statement of employment (an employment contract) which should contain:
- your business name
- the name of the employee
- the date their employment started
- how much you are paying them
- frequency of payment eg weekly or monthly
- normal working days/hours, and any requirements for these to differ
- normal place of work, and any requirements for it to differ
- holiday entitlement
- sick leave and sick pay entitlement
- notice period to terminate the employment
- your disciplinary and grievance procedures
Get an employment contract suitable for permanent, fixed-term or temporary employees, which meets the requirements of UK Employment legislation.
Note that a full working week is currently limited to 48 hours. Employees can agree to opt out of this working time limit but must not be contracted or made to work more than 48 hours on average over a 17 week period.
Paying your employees
You must pay your employees at least the national minimum wage rates and should not count any tips they may receive as part of their wages.
The rates are usually increased in October each year. From 1 October 2011 the minimum wage rates are as follows:
- £6.08 an hour for workers aged 21 and over (up from £5.93)
- £4.98 an hour for workers aged 18-20 (up from £4.92)
- £3.68 an hour for workers aged below 18 who are no longer of compulsory school age (up frpm £3.64)
HMRC
HMRC has information on the PAYE aspects of taking on a new employee that includes an introduction to PAYE schemes, the paperwork involved and how to avoid employing an illegal worker.
Operating a payroll
If you employ staff you need to pay them, deduct the correct tax and National Insurance contributions from their wages, and provide them with an itemised pay slip. You can opt to buy and operate your own payroll software or consider using an outsourced payroll service. We work with WKH Chartered Accountants who offer Now Let's Get Started visitors a free 3 month trial of their payroll service. Call them on 0800 018 0590 and quote 'Now Let's Get Started' to find out more.
HMRC has a really useful web page on what to consider when choosing an in-house or an outsourced payroll service.
If you opt to run your own in-house payroll software, choose one from the HMRC list of accredited payroll products.
If your business was set up after 22 June 2010 and you're NOT in London,the South East or Central England you will be exempt from paying class 1 NI contributions for each of your first 10 employees, up to a maximum of £5000. Detailed information on the NIC Holiday scheme, including how to apply, is available on the BusinesLink website.
From 2012 employers of all sizes must enrol their staff in a company scheme or the new National Employment Savings Trust (Nest).
Looking after the health and safety of your employees
If you employ people you need Employers Liability Compulsory Insurance and you must display the certificate in your workplace. See the Employers liability compulsory insurance guide from hse.
For more information or to get a quote for employers liability insurance visit our business insurance centre.
You are also responsible for the health and safety of your staff, provide free health & safety training appropriate to their job, and for VDU users provide free regular eye tests. For more information on staff health & safety see:
Find more information on working temperature regulations, rest break regulations, guidance for staff who work alone, and providing personal protective equipment PPE and first aid regulations in the workplace.
A checklist of how to comply with health and safety law in the workplace
Health and safety training for your staff
Understanding paid and unpaid leave entitlements
Record time off
For each member of staff you must keep a record of all absences, the length and reason for absence, and whether it was paid or unpaid. YouManage small business edition is an online tool that makes it easy to keep a record of HR issues and absence recording . If you have 6 or more employees it's a cost-effective employee managementsolution that gives you
access to a complete suite of legislative guidance and employee
management and reporting tools. Get more information and try Youmanage for free here.
Holiday pay
The minimum amount of paid annual leave for full-time employees is 5.6 weeks (28 days for a 5 day week). You can include bank and public holidays as part of this allowance and do not have to give these days in addition. This allowance should be pro-rated for part-time employees. Acas has a useful guide to holidays and holiday pay that includes how to calculate holiday pay for your staff.
Other paid time off
You must allow "reasonable" paid time off to your employees for activities which include:
- attending antenatal appointments, if pregnant.
- carrying out duties or receiving training as a safety representative
- carrying out duties as a pension scheme trustee
- looking for another job or arranging training for future employment if you have made them redundant
- for young people, studying or training leading to a relevant qualification
Unpaid time off
For some activities you are not obliged to pay your staff, but you must allow them time off, the main ones being:
- family emergencies
- jury service
- acting as a school governor
Things to watch out for when employing people
Don’t discriminate
Don’t make choices (ie discriminate) at any time during the recruitment, employment, promotion or termination process on the grounds of:
- age
- gender
- disability
- race
- religion
- sexual orientation
- hours worked
- religion
- beliefs
- marital status
The new Equality Act became law in October 2010 and specifies what you need to do to make your workplace a fair environment and to comply with the law. This PDF guide from the Government Equalities office will help you understand the new provisions which are effective from 6 April 2011
Check the candidate legally entitled to work in the UK
You should check the entitlement to work in the UK of every worker you plan to employ - regardless of their race, ethnic or national origin, colour or nationality. As a general rule, citizens of the UK, Channel Islands, the Isle of Man, Ireland, EEA and Swiss nationals are eligible to work in the UK. Business Link has a comprehensive section on how to check eligibility to work in the UK, that includes information on documentation and work permits.
HMRC has information on how to avoid employing an illegal worker.
Know how to handle requests for flexible working
You must give serious consideration to requests to work flexibly, from employees who:
- have worked for you continuously for at least 26 weeks and
- are parents of children under 17 or of disabled children under 18
- or have responsibility for caring for adults.
BusinessLink has more information on your legal obligations and guidance on how to consider and respond to flexible working requests.