Taking on first employee - anything I have missed?

[Wing Commander]

Hi all

I am about to take on my first employee, hopefully. I am the early stages of sorting it all out but wanted to get it written down and see if there was anything I am missing.

Up until now, I have used sub-contractors to fulfill my business needs, but things have outgrown this and I need to start taking on some permies. So, areas I need to cover off, in no particular order, are:

Contracts
Employers Liability Insurance
Registering with HMRC as an employer
Auto-enrollment for Pensions


Contracts - what is the best way of wrapping this up? I would have thought I need to buy in help to sort this, but can I get a "standard" one and take it somewhere to be modified to the specific role? Can I or do I play a role in its creation? The position I am taking on is for a Domestic Cleaner, if it makes any difference.

Employers Liability Insurance - should be just a case of getting quotes and purchasing. Simple as that?

Registering with HMRC - again, I think this should be quite straightforward.

Auto-enrollment for pensions, doing payroll etc. All this I am hoping to solve/make manageable on my own by using Xero with Payroll. I do not currently have an accountant as things have been straightforward enough to manage on my own up till now, but think I am at the stage that a pro taking over would be a good move, and they can link in to my Xero account.

So what other things do I need to consider? Anything on the above that I have missed or oversimplified?

Thanks

[Wing Commander]

Yes, I am sure we need to go this route, and would rather have a robust method to avoid/reduce bad employees and their effects, rather than artificially strange the growth of the business.

The business has grown significantly, and it only shows signs of continuing, but at an increased rate. I need to get this sorted at some point, so might as well grab it now and get it done properly. It will be easier now at this size rather than when it is 5x or 10x as big.

I am willing to pay for the contracts to be drawn up but if there is a "usual" way of doing it whereby an industry template is used and then it is modified to the specifics of the company, then that makes sense. I cannot see it being something that needs to be taken back to nothing, for each and every contract. There has to be similarities which span all businesses.

Thanks for your help so far! Much appreciated

[DSLiverpool]

I pay an HR company £100 a month for 12 staff, I’m sure for 1 you could get a one off deal to get set up legally and correctly.

[Insurancejon]

FYI when you say you were previously using sub contractors, were these labour only sub contractors?

If the latter the you should of had the employers liability insurance back then.

It's not how you pay people that makes them employees......it's having them under your control that does

[iphonedyou]

Insurancejon said:

FYI when you say you were previously using sub contractors, were these labour only sub contractors?

If the latter the you should of had the employers liability insurance back then.

It's not how you pay people that makes them employees......it's having them under your control that does

Great. Not much use in answering the OP's question, mind.

OP - you will want an Employee Handbook in addition to the contract. It doesn't have to be a weighty tome, but should operate alongside the contract. It can be updated as and when required, amongst other things sets out expected behaviours / workplace rules, and is generally your point of reference for day to day matters.

[Campagnolo]

Good luck!

[w1bbles]

I would also include a job description so it’s clear to both employer and employee what is/isn’t in scope for the role.

With that, a contract and an employee handbook you should have most bases covered.

[doogle83]

We went with NEST pensions for auto enrollment and it all syncs in with Xero nicely. They give you all the relevant templates and communication you need to give to employees as well.

For a simple contract maybe look at something like rocketlawyer and see if that'll meet your requirements.

[Wing Commander]

DSLiverpool said:

I pay an HR company £100 a month for 12 staff, I’m sure for 1 you could get a one off deal to get set up legally and correctly.

That is a good idea. I am drawing up a list of places to contact and I will buzz them all a call next week to discuss. Just need to get my ducks in a row with regards to what I am asking

Thanks

[Wing Commander]

Insurancejon said:

FYI when you say you were previously using sub contractors, were these labour only sub contractors?

If the latter the you should of had the employers liability insurance back then.

It's not how you pay people that makes them employees......it's having them under your control that does

You have shone light on my woeful memory. Yes, I do currently have EL cover. I assume that typically the policies are the same for Labour Only SCs and also employees??

Thanks

[Wing Commander]

iphonedyou said:

Great. Not much use in answering the OP's question, mind.

OP - you will want an Employee Handbook in addition to the contract. It doesn't have to be a weighty tome, but should operate alongside the contract. It can be updated as and when required, amongst other things sets out expected behaviours / workplace rules, and is generally your point of reference for day to day matters.

Yeah, that is something that is on my list. Does it need to be drawn up professionally, to cover things off legally, or is it more of a company specific document that I can draw up based on my experience and common sense?

Thanks

[Wing Commander]

doogle83 said:

We went with NEST pensions for auto enrollment and it all syncs in with Xero nicely. They give you all the relevant templates and communication you need to give to employees as well.

For a simple contract maybe look at something like rocketlawyer and see if that'll meet your requirements.

Excellent - thanks!