CP8PP7 Business figures shaking hands on a puzzle Photograph: David Crockett Photography/Alamy Stock Photo
It’s a landmark moment, when you hire your first full-time employee. But many one-man-bands procrastinate – worried about red tape, the inordinate cost and stress of bringing someone on board – or pile in without considering either the legal or strategic ramifications.
According to CV-Library founder and managing director Lee Biggins, knowing how much resource you can commit to the employee search is key.
“Firstly ask yourself: do you have the time to work through the hiring process entirely by yourself? Do you need help from a recruiter or can you do it online? Exploring your options and networking with other entrepreneurs for advice can be a great help,”
Getting that job advert right is key, he adds. “That involves really thinking about the key skills that you need to help drive your business forward, and listing these out within the job description.”
And then comes various legal and regulatory hurdles. You are legally obliged to provide the employee with a written statement of “particulars”, such as start date, pay day, rate of pay, holiday entitlement, notice requirements, how to raise a grievance. This must be done with two months.
“It is better to incorporate these particulars in to a properly drafted contract of employment. You can send this out with the job offer, i.e. before they start, to avoid any confusion,” says Jo Yeates, head of employment at Hethertons Solicitors.
Protection can be provided in relation to things like confidentiality, intellectual property, your customer list, and accidental overpayments. You can include flexibility such as a requirement to work overtime, or clauses enabling you to adjust their duties, their workplace etc as the business grows. “A well-drafted contract gives a business much more protection and flexibility than the statement of particulars,” says Yeates. “Employers should not skimp on contracts – it’s like building a house on sand.”
Then you should register as an employer with HM Revenue & Customs before the first payday, according to experts at Palmers Solicitors. You must, of course, check that the potential employee is allowed to work in the UK. This is a complex but vitally important consideration. Many nationalities can work freely in the UK without the need to make an application to UK Visas and Immigration. These include 30 European Economic Area (EEA) member states countries plus Switzerland, according to Migrate UK managing director Jonathan Beech.
But what are the implications of Brexit? Well, at the moment, all EEA member states (except Croatia) and Switzerland can work and may continue to do so through the Brexit discussions. At some point, the UK government will release confirmation of a cut-off date for when these countries will need to comply with UK immigration law.
“In this case, it is important to keep track of when your prospective and current employees first entered the UK and listen out for future government announcements,” adds Beech. “Numerous EEA & Swiss workers who have resided in the UK for more than five consecutive years are currently applying for Permanent Residency and British Nationality. You can still employ these workers without them having this status, they just wish to plan ahead and cement their future in the UK.”
If the employee does not hold any of the above nationalities and is a non-EU worker, they may be entitled to work through having a certain immigration status in the UK. All employers can check the potential employee’s status by requesting sight of their passport and/or Biometric Residence Permit (BRP).
“In each case, any restrictions to work will be shown on the visa or BRP. If in any doubt, the Employer Checking Service (ECS) can be contacted. This service aims to provide employees with confirmation to whether the individual has the right to work and whether there are any time restrictions,” Beech adds.
Finally, if the prospective employee doesn’t have the right to work in the UK then they could possibly be sponsored under the Points Based System. This is particularly useful for technical or senior vacancies. “It is important that the skill and pay level of the job meets minimum levels set by the government. Under this route the employee could have work approval granted within three months,” says Beech.
So, plan from the offset and do you due diligence. It’ll save a hundred and one headaches in the long run. Good luck.
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