Taking someone on to work for you can be a very stressful event, and along with everything that has to be considered, e.g. Heath and Safety and Employers Insurance, plus getting the payroll set up and running smoothly might feel like a real headache.

To ease the process, we suggest the following steps should be followed when taking on a new employee:

  1. Legal right to work in the UK.
    As an employer, you are legally required to make sure the people you employee have the right to work in the UK. Anyone born here can work here, but certain visas have very firm restriction and although it may be uncomfortable, you have to ask.
  2. Agree terms.
    You and your potential employee must agree terms, such as the amount you’ll pay (watch out for the minimum wage), what days they’ll work, holidays, etc.
  3. On day one.
    On the day that they start they’ll pass you their previous P45. If it was issued in the previous tax year or if they don’t have one they have to complete a New Starter Checklist. You then pass this information to your payroll department or external provider along with a note stating how much they are getting paid and what their regular working pattern is.
  4. Pension.
    You have to give your employee the details of your pension scheme so they can decide whether or not to join. You cannot comment on the scheme or give any guidance as to whether to join or not, you cannot be seen to have influenced your employee in any way. We can help with general ad vice about the Auto-enrolment process if you are unsure.
  5. Put it in writing.
    You are legally required to give your employee a written statement showing the basics of their employment within 2 months of them starting to work for you. This isn’t a contract of employment, but it must show who they are being employed by, their job title/description, start date, pay rate, pay period, hours they will work, (including Sundays, nights and overtime), holiday entitlement and where they will actually work from.
  6. Put them on the payroll
    When your payroll is due to be run advise your payroll department or external provider about the hours they’ve worked or the pay they’re due. You are legal required to pass the payslips we prepare to your employee; they have to be able to check the amount they are being paid. Under Real Time Submission requirements, it is very nearly impossible to go back and amend a payslip and we would always recommend that you don’t, so getting it right the first time is incredible important.

All of this can sound very daunting but don’t let it put you off. We’re here to help anyway we can, we will always advise on sick pay, holiday entitlement and other statutory requirements and won’t let you fall short of the law.

For any payroll queries please call our payroll team on 01642 244 090.