The employment checklist for new businesses

Ensure you get the right people for your business by carefully constructing job adverts. Outline what the position will involve and how much experience the candidate should have. 

Establishing a recruitment process and then carrying it out is a large enough task in itself. See some top tips for best practice on establishing an effective recruitment process here.  

Also be careful not to be discriminatory – it’s not as simple as it sounds. For example, asking for a recent graduate may indirectly discriminate against older individuals. It is advisable to try and have a diverse interview panel that can provide varied opinions when making hiring decisions. Improving your understanding can also help with this; you can find out more about different types of discrimination here. 

Policies and procedures play a very important role in providing guidance to employees. They help staff understand what you expect of them. A strong policy can also assist you in avoiding disputes further down the line as you will be able to argue that the behaviour or conduct expected from an employee is clearly outlined. 

It can also reaffirm a company’s commitment to working against forms of workplace discrimination. This includes anti-bullying and harassment policies, which are highly attractive to external candidates. 

The hours you expect your staff to work will depend on your business. However, you should remember that the law strictly says that adult workers cannot work more than 48 hours per week on average unless they sign an opt out agreement. 

Also remember that they are entitled to a minimum rest period of 11 consecutive hours in each 24-hour period.  

If you intend to hire young workers remember that people under the age of 18 are not usually permitted to work more than eight hours a day or 40 hours per week. 

When considering holiday allowance remember that almost all fulltime workers are legally entitled to 5.6 weeks paid holiday per leave year. This can include bank holidays but there is not a stand-alone entitlement to take bank holidays off. You can always give more than the minimum if you choose to, however you should fully consider the demands of your business. 

The guidelines surrounding holiday entitlement for part hour and irregular workers is due to change in 2024. Read up on the changes here so that you are prepared. 

The pay you will provide to your workforce will be based on several factors, such as the experience or qualifications you expect them to have. However, you should bear in mind that you cannot legally pay them below the current national minimum wage rates, which change every April. 

Failure to provide at least the minimum wage can lead to a fine from the HMRC alongside being publicly named and shamed. Bad news for a company just starting out. 

Your employees will expect to be paid on time and you should have a system in place that will make sure this happens. It is unlawful for unauthorised deductions to be made from an employee’s wage and the affected staff member can make a complaint to an employment tribunal if the situation is not rectified quickly.  

You can invest in software that will help you with this alongside managing other HR related requests, such as holidays. 

This may sound obvious, but many companies can fall into the trap of not hiring enough people to do the job, meaning that the employees they do have need to work longer hours in order to keep up with the workload. This can increase the level of stress on a workforce, cause them to become less productive and potentially lead to them seeking employment elsewhere. 

Remember that having to continuously replace staff members can be a very costly and time-consuming exercise. You should consider how many people your company will need to function properly and be prepared to reevaluate this going forward. 

The UK right to work checks process was updated in 2021 to reflect the post-Brexit employment landscape. The updated process includes the requirement for employers to check the immigration status of their employees, standardising the checks for both EU and non-EU nationals. 

The use of physical documents has been replaced by an online service to verify an individual's right to work, making the process more streamlined. Employers are now also required to keep records of their employees' right to work status throughout their employment. These changes aim to ensure compliance with immigration laws and prevent illegal working in the UK. 

When taking on a new employee, you must provide a written statement of terms and conditions on or before day one of their employment. This needs to detail the main terms and conditions of employment, such as the start date, holiday entitlements and notice periods required to terminate the employment. 

Consider what training your staff will need when they start their jobs. Is there any specific software they may need more information on or processes they will need to get used to?  

Inductions can also be a useful way of reaffirming company policies to members of staff, informing them of general health and safety procedures and reiterating the consequences of misconduct.