Seven steps to employing staff | NatWest

 

 

Seven key steps

Hiring new members of staff can be a challenging process, even for those that have recruited people in the past. However, when you're a new business owner, the idea of employing someone, deciding on a suitable wage and playing the role of boss can be a daunting prospect.

Our seven key steps will help you ensure all legal bases are covered, and that all parties are fully aware of the conditions of employment.

1 - Decide how much to pay someone

You must pay your employees at least the National Minimum Wage or National Living Wage. To be eligible for the National Minimum Wage, employees must be of school leaving age. For the National Living Wage they must be at least 25. Employers must ensure all wage regulations are adhered to.
 

Current wage rates

 

2 - Check legal right to work in the UK

Employees must have the legal right to work in the UK - you may have to do other employment checks as well. It is an employer's responsibility to check that an employee can work in the UK, failing to verify this can result in significant financial implications such as substantial fines.

3 - Disclosure and Barring Service (DBS) check

Check if you need to apply for a Disclosure and Barring Service (DBS) check (formerly known as a CRB check) if you work in a field that requires one eg with vulnerable people. Only employers and licensing bodies can request a DBS check.

4 - Get employment insurance

You need employers' liability insurance as soon as you become an employer. This will protect you against the cost of compensation claims that could arise from employee illness or injury sustained when working for you. Failure to arrange this cover could result in a hefty fine - as much as £2,500 for every day you operate without the insurance being in place.

5 - Send a written statement of employment

You need to give your employees a written statement of employment (including terms and conditions) if you're employing them for more than one month. All employees are entitled to receive such a statement within two months of starting their job.

6 - Notify HM Revenue and Customs (HMRC)

Tell HMRC by registering as an employer - you can do this up to four weeks before you pay your new staff. Before you pay a new employee, you have to follow a series of steps to ensure that you and your employee are correctly registered by following the steps on the Gov website.
 

Registering a new employee

 

7 - Workplace pension scheme

Check if you need to automatically enrol your staff in a workplace pension scheme. All employers in the UK will be required by law to provide a workplace pension for eligible staff by 2018, though many companies already have to provide such a pension. You can find the key steps to enrol employees on the Gov.uk site.
 

Steps to enrol

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Further help

The HMRC website has a wealth of information to help you with tax questions

HMRC website

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