When it’s time to make the big leap and hire your very first employee, there are many things that need to come into play.
Not only is this a huge step for your business, but it can also be a huge stress when it comes to getting the legal and ethical side of things sorted out. Hiring an employee means taking on a lot of responsibility, as you’ll now have the livelihood of your employee to think about.
To help make things a little clearer, we’ve put together some tips and tricks for hiring your first employee and what you need to think about when taking that next step for your business.
Checking eligibility of your chosen candidate
One of the first things you should do before offering your chosen candidate the role is to check their right to work. To do this, you must ask for legal documents, whether that is an NI number or a work visa. The candidate needs to be able to prove that they have the right to work before you can legally employ them.
If you are unsure as to what documents prove a person’s right to work, then you can head to gov.co.uk and use their ‘right to work’ interactive tool, to check whether a certain document can be used as proof of the right to work in the UK.
Ensure you have a legally binding contract of employment
To draw up a contract, all you really need is a template in a word document. You can then alter the template to match your own terms and conditions.
Once your contract has been created and you are happy with everything that has been included, it’s best practice to have a solicitor look over it and make sure everything is OK from a legal standpoint. This contract is there to protect both you and your new employee, so it’s important to get it right!
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Sorting out vital tax changes
The HMRC has a number of guides on registering to become an employer, something you need to do when making your first hire. This allows you to get your PAYE reference number, which will be vital to have when it comes to paying your employees.
You will need to make sure that your PAYE is set up so that you are able to pay tax and national insurance on your employee’s behalf. Without this, you could be putting yourself and your new employee at risk.
Ensure you are fully insured
As an employer, you become responsible for the health and safety of your employees whilst they are working within your business. This means you need to protect your business against liability for any injuries or health concerns that may arise as a result of being employed by you.
There are plenty of established insurance companies that offer employer liability insurance, such as:
- AXA Business Insurance
- Direct Line for Business
You can also use popular comparison sites to compare different employer insurance providers against your specifications.
Once you have the legal side of hiring an employee started, your accountant will be able to help with the payroll and tax side of things. All you need to do is ensure you have ticked all the boxes before hiring an employee and then continue to enjoy building your new team!
Just hired your first employee and now looking for a home for your business? Why not get in touch to join the Accelerate Places community!