Employment laws can be daunting. Knowing just where to begin as a new employer, with every business having a unique way of operating, equally so. That’s why we’ve created our 5-step guide on things to consider when employing new people.
- Employment status– The first step is to understand who you are taking on. Will they be an employee, a worker or a self-employed contractor? What’s the difference between a worker and an employee? A worker has more autonomy, however both are entitled to receive the minimum wage and holiday pay. Self-employed contractors trade as a company and are therefore responsible for their own tax and national insurance contributions. They have no entitlement to holiday or sick pay.
- Written terms of employment– It is a legal requirement that an employer provides written terms of employment within the first two months of an employee starting. This can be in either the form of a contract or a letter underlining the basic terms under which the staff is employed.
- Do you want a probation period? On average probation periods last between 3 to 6 months and allow employers to assess how well staff are performing. During this period the terms of employment will typically include a ‘break-clause’ allowing employment to be terminated with a very short notice period. However, this will always be subject to fair procedures being in place.
- Holiday pay entitlement– Holiday pay is equivalent to a day’s pay and is calculated as days worked per week x 5.6. So-called zero hour contracts however work differently, with days and hours varying. Failure to pay holiday pay or correctly calculate entitlement can result in a claim for unlawful deduction from wages.
- Sick leave and the right to sick pay– There is no legal requirement to provide full pay for staff on sick leave, unless your contract states that you will do so, hence the importance of getting them right. However, you should note that those who currently earn on average £113 per week are entitled to statutory pay, subject to rules that will apply at the time.
If you would like to learn more then do read our blog on elXtr’s website here: http://ow.ly/IwQc30dz6IP or get in touch and we will be delighted to help wherever we can.