When you become an employer for the first time and take on a new employee, there are important checks you must make. Here are eight key steps that you should consider.
1. Decide how much to pay your employee: Almost all workers are legally entitled to the National Minimum Wage. The National Living Wage is higher than the National Minimum Wage - workers get it if they are over 25. See National Minimum Wage and National Living Wage rates.
2. Carry out pre-employment checks: You should carry out an initial identity check on workers and verify their references and qualifications. You may also wish to include health checks as part of your recruitment process. See pre-employment checks.
3. Check if your employee has the right to work in the UK: You must check whether your employee is legally entitled to work in the UK. See ensure your workers are eligible to work in the UK.
4. Check if you need to apply for a criminal records check: Certain types of employment (eg security or working closely with children or adults in vulnerable situations) require an AccessNI criminal records check. See AccessNI criminal records checks.
5. Get employment insurance: You will need employers’ liability insurance as soon as you become an employer. This insurance enables businesses to meet the costs of damages and legal fees for employees who are injured or fall ill at work through the fault of the employer. See employers’ liability insurance.
6. Send details of the job in writing to your employee: Once you have chosen your new employee, you should send them details of the job in writing. This should set out the main terms and conditions of the job. You also need to give your employee a written statement of employment if you're employing them for more than one month.
7. Tell HM Revenue & Customs (HMRC) you are an employer: If you employ someone, you will need to register as an employer with HMRC. See registering and getting started with PAYE.
8. Check if you need to automatically enrol your employee into a workplace pension scheme: All employers will have to provide workers with a qualifying workplace pension over the next few years. The official date for beginning this process depends on how many people your business has on its payroll. Read more on automatic enrolment into a workplace pension.
Structure your business
Name your business
Register your business
Choose your premises
- How to employ staff for the first time
- National Minimum Wage and National Living Wage rates
- Carry out pre-employment checks
- Ensure your workers are eligible to work in the UK
- Get employers' liability insurance
- Issue a written statement of employment
- Set up your payroll and register for PAYE with HMRC