Checklist for First-time Employers

Introduction The following checklist sets out the tasks that employers need carry out when they appoint a staff member for the first time. It also covers employers' ongoing legal responsibilities to comply with data protection legislation, avoid discrimination and provide statutory employment rights such as sick pay, parental leave and holiday entitlement.
This checklist is for employers who are appointing an 'employee', meaning someone who will be working under a contract of employment. However, workers who are not hired under a contract of employment have many of the same rights as employees.
Employment legislation is a complicated area and this checklist is intended as a starting point only. Employers should always seek professional advice where necessary.
When the employee is first appointed
Get employers' liability insurance Employers' liability insurance is a legal requirement and must be in place when the new employee begins work. It must be from an authorised insurer and provide cover of at least £5 million in the event of an employee being injured or becoming ill as a result of their employment.
Register as an employer with HMRC New employers must register with HMRC in advance of their employee's first payday so that they can pay tax and National Insurance contributions on the employee's behalf.
Set up a payroll New employers need to establish a payroll system to take care of salary payments and report required information to HMRC. Many employers use payroll software to organise this task, but some choose to hire a payroll service to do it for them.
Provide a pension auto-enrolment scheme for eligible employees Employers must provide an auto-enrolment pension scheme for employees who are aged between 22 and the state pension age, and who earn more than £10,000 per year.
Arrange an induction for the new employee An effective induction should welcome the new employee to the workplace and give them the information they need to do their job safely and effectively.
Provide health and safety training Employers have a legal duty to provide employees with adequate health and safety training. This should include information about any health and safety risks associated with their role, which the employer should already have identified by carrying out a workplace risk assessment. Employees must also be informed about workplace procedures for minimising the risks, including emergency procedures in the event of fire or other serious dangers.
Give the new employee a written statement of employment particulars All employees must receive a written statement of employment particulars on or before their first day at work. The written statement is a legally binding document that must include specific information about the terms and conditions of employment.
Employers' ongoing legal responsibilities
Non-discrimination and equality Under the Equality Act 2010, employers must not discriminate against employees or job applicants on any of the following grounds:
Gender.
Race (colour, nationality, ethnic or national origin).
Age.
Being married or in a civil partnership.
Being pregnant or having a child.
Disability.
Religion or lack of religion.
Transsexuality.
Sexual orientation.
Data protection regulations Employees and job applicants provide employers with a range of personal data, such as their names, addresses, age, qualifications, employment history and health conditions. When collecting, storing or using personal data, employers must comply with data protection regulations. In particular, employers must:
Provide employees and job applicants with clear information about what personal data they collect from them and what their purpose for collecting it is.
Ensure that their collection and use of personal data is limited to what is necessary for the stated purpose.
Keep personal data accurate and up to date, and ensure that they do not keep it for longer than necessary.
Allow employees and job applicants to view the personal data that is held about them on request, and to correct it or have it erased in certain circumstances.
Ensure that personal data is stored securely.
Statutory employment rights Employers must:
Pay at least the National Minimum Wage (for employees aged 24 or under) or the National Living Wage (for employees aged 25 or over).
Only make deductions from wages where there is a legal requirement or a contractual right or other written agreement to do so.
Provide the statutory minimum level of paid holiday.
Provide the statutory minimum length of rest breaks.
Not require an employee to work more than 48 hours on average per week unless they choose to opt out of this right.
Not penalise an employee for 'whistleblowing' - reporting wrongdoing in the workplace.
Not treat an employee less favourably if they work part time.
Provide statutory sick pay.
Provide maternity, paternity and adoption leave and pay.
Respect minimum notice periods - usually one week per year of service up to a maximum of 12 weeks.
Not dismiss an employee without good reason or without following proper disciplinary procedures.
Allow time off for emergencies.
Consider employee requests for flexible working fairly and not penalise an employee for making such a request.
Provide statutory redundancy pay.
Most of these rights are effective from the first day that an employee starts work. Others, such as flexible working requests and redundancy pay, only apply after a specific length of continuous employment.
Contact Ashored for help and support with your payroll.