What do you need to consider when employing staff?

Being an employer means certain legal duties.  This guide covers the key areas you need to become familiar with, to ensure you are fully compliant with the law.

Employment contract

It’s important to have a contract in place between you and your employees.  This outlines your terms of employment and required notice period etc.

You should also consider any employment related policies that may be required, such as Health & Safety and Data Protection.

Pension

You are required by law to operate a workplace pension, many of our clients use Nest as this is a government approved scheme and free to operate.

Your workforce will need to be assessed and any employees that are eligible must be enrolled in your pension scheme.

Those who are eligible will be aged at least 22 but under state pension age and earning more than £10,000 a year from you.

The pension contributions are 3% by the employer and 5% by the employee.

Pension contributions are calculated each time your payroll is run.  The payment is collected monthly by Nest using a direct debit mandate.

Paid holiday

All employees are entitled to paid leave, this is normally based on 28 days per year (4 weeks off, plus the 8 Bank Holidays).

When an employee is salaried you simply pay the same amount all year and keep a log of days off which are deducted from the holiday pot.

If employees are paid overtime then the holiday calculations can be a little different.  We are happy to help you keep track of the available holiday pot, if required.

Sick Pay

If your employees are unwell and unable to work then they could qualify for statutory sick pay (SSP).

The current rate is £95.85 per week and is paid by you, as the employer, for up to 28 weeks.

SSP is paid when the employee is sick for at least 4 days in a row (including non-working days).  During Covid some of the SSP could be reclaimed from HMRC.

Maternity / Paternity Pay

If your employee has a baby then they could qualify for Statutory Maternity Pay (SMP) or Statutory Paternity Pay (SPP) through the payroll.

The SMP payments are refunded to you from the government, SPP payments are not.

Employment Law

There are certain laws regarding discrimination and health & safety which you should familiarise yourself with.

ACAS provides free advice on these areas and many others – https://www.acas.org.uk/

Summary

Of course at a4c we will be preparing the payroll, pension calculations and providing payslips etc, however we are not HR advisors and therefore the advice provided above is to help point you in the right direction so that you can then seek out the necessary support required.

As always feel free to get in touch if you have any further questions.