If you are a business owner looking to take on employees for the first time, read our handy guide below, to understand your legal obligations.
Registering as an employer with HMRC and setting up a PAYE scheme
All UK employers must register as an employer with HMRC. Once you have registered as an employer and set up a PAYE scheme, you can begin producing payslips for your employees. If you are a Quartz customer we will do this on your behalf, saving you time and admin hassle.
Did you know that you must register as an employer, even if you are only employing yourself? Find out more about our Director Payroll service by clicking here.
Arranging a Workplace Pension Scheme
As an employer, it is your legal duty to have a workplace pensions scheme set up for your employees to be enrolled in should they meet the auto-enrolment criteria. An employee may choose to voluntarily opt into the pension scheme, even if they don’t meet the criteria for auto-enrolment.
Our team can support you with this, through our Quartz Payroll and Auto Enrolment Service.
Preparing a written statement of employment particulars
Your employee must be provided with a written statement of employment particulars, or contract of employment, on or before their start date. This should include details of:
- Date Agreement was drafted
- Information of both parties; name/address
- Date contract commences (and end date if fixed term)
- Probationary period
- Notice period
- Job title
- Salary and pay frequency
- Overtime rate (if applicable)
- Hours of work
- Holiday (and any requirements on holiday and allocation percentage)
- Any mandatory training (if applicable)
- Any other benefits (if applicable)
- Collective Agreements
Our team can help you calculate the holiday entitlement and salary for contract purposes, should you need it.
Researching and selecting an employer’s Liability Insurance
Employers Liability Insurance is a legal requirement for UK employers. Having a policy in place will help provide compensation, should an employee become ill or injured as a result of their work. We recommend you speak to a specialist insurance provider to ensure you have the right cover for your business.
Pay at or above National Minimum Wage
The amount you may pay your employee may vary depending on their age. The National Minimum Wage (for ages 22 and under) and the National Living Wage (for ages 23+) are reviewed by the Government each year. For the current minimum wage rates, please click here.
Check the employee’s legal right to work in the UK
As with any employee, you are required to make basic document checks to ensure that anyone you intend to employ has the legal right to work in the UK. This includes checking the employee’s passport and proof of address (for example a utility bill or driving license) and visa documentation (where applicable).
More information on checking your employee’s right to work in the UK can be found on the HMRC website or by clicking here.
If you want to find out more about how the Quartz service can support your business, simply contact the team on 020 3137 44 08, or email info@quartzpayroll.co.uk.