Six steps to follow before employing your first member of staff
If your business is experience growth and the workload is becoming too much for to handle you may be considering employing your first member of staff. Before you start to employ staff it is vital to check that you comply with the six points that this blog post will be taking you through.
These points are listed on the Direct Gov website and are in place to ensure that you are following the correct procedures before employing someone.
1. Paying your employee
Deciding how much to pay someone is vitally important. You must pay your employee at least the National Minimum Wage all workers are entitled to this by law. The rate of minimum wage you need to pay will depend on the employee’s age and if you are employing an apprentice you will have another rate of pay which is considerably lower than that of your average employee. The current rates of minimum wag can be found on the Direct Gov website.
2. Right to work in the UK
Before employing your member of staff you need to ensure that they have the legal right to work in the UK. If the employee has a registered UK passport and is also a British Citizen then they will have the right to work in the UK, if not you will need to follow further instructions to find out if they are able to work. These steps can be carried out at the Direct Gov website.You may have to also carry out other employment checks to ensure that it is legal for your employee to work at your business.
3. DBS Check
As the employer you will have to apply for a DBS (Disclosure and Barring Service) check which was formally known as a CRB check. You will only have to do so if you work in a field that requires one for example if you are working with vulnerable children, or working in a profession such as security. As the employer you can receive the DBS applicant form from DBS or an umbrella body. As the employee you need to give the form to the applicant to fill in and return along with documents proving their identity. You then need to send the form back to the DBS or umbrella body, the applicant will then receive a certificate as the employer you need to ask to see this certificate. More information on the process can be found here.
4. Employment Insurance
As an employer you will need employers’ liability insurance ready for the moment that you employ somebody. Your policy must cover you for at least £5 million and be from an authorised insurer. Failure to ensure that you are properly insured can result in a fine of £2,500 for everyday found that you are not covered. Displaying or providing your employers’ liability insurance certificate to inspectors is also a necessity if you fail to provide it you can be fined £1,000. You can employ a insurance broker if you need further advice or support when purchasing employers’ liability insurance.
5. Written statement of employment
You must provide your employee with a ‘written statement of employment particulars’ if their employment is due to last a month or more. It isn’t a contract but should include terms and conditions of employment for the employee. This doesn’t need to be provided straight away, but it does need to be presented to the employee within 2 months of their start date. You can find a list of details that the statement must include by clicking here.
6. Register as an employer
Lastly you will have to inform HM Revenue and Customs that you are becoming an employer. You need to make sure that you register before the first pay day it can take up to two weeks to register. You will not be able to register more than two months before you start paying people. You can also register online which can be done here.
To find out more about employment and employment procedures, get in touch with one of our Project Engagement Officers or visit our support finder.