Skip to content
Small Business UK

Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

  • Subscribe Now
  • facebook
  • x
  • linkedin
  • YouTube
  • Start
    • Start a New Business
    • Startup Funding and Grants
    • Sole Trader
    • Banking
    • Getting Online
  • Run
    • Customer Engagement
    • Employing & Managing Staff
    • Insurance
    • Marketing
    • Payments
    • Accounting
    • Tax
  • Grow
    • Funding Your Business
    • Grants
    • Alternative Finance
    • Import & Export
    • Buying & Selling a Company
  • News
  • Get Small Business Funding
  • Memberships
    • Business Essentials
    • Pro
    • Earn with us
  • More
    • Popular Topics
      • Advice
      • Business Loans
      • Business Management
      • Crowdfunding
      • Funding
      • Ideas & Planning
      • International Business
      • Franchising
      • Legal Advice
      • Office & Homeworking
      • Payroll
      • Productivity
      • Setting up a Company
      • Success Stories
      • Technology
      • Work Life Balance
    • Guides
      • Whitepapers & Downloads
      • Partner Content
      • Business car leasing
      • Small business insurance
    • Business Tools
      • Compare business bank accounts
      • Making Tax Digital
      • Website Checker
    • Partners
      • British Small Business Grants
      • Events
      • Masterclass Series
      • Smart Energy GB
      • The Start-Up Series
    • Multi-Media Content
      • Galleries
      • Podcasts
      • Videos
  • Start
    • Start a New Business
    • Startup Funding and Grants
    • Sole Trader
    • Banking
    • Getting Online
  • Run
    • Customer Engagement
    • Employing & Managing Staff
    • Insurance
    • Marketing
    • Payments
    • Accounting
    • Tax
  • Grow
    • Funding Your Business
    • Grants
    • Alternative Finance
    • Import & Export
    • Buying & Selling a Company
  • News
  • Get Small Business Funding
  • Memberships
    • Business Essentials
    • Pro
    • Earn with us
  • More
    • Popular Topics
      • Advice
      • Business Loans
      • Business Management
      • Crowdfunding
      • Funding
      • Ideas & Planning
      • International Business
      • Franchising
      • Legal Advice
      • Office & Homeworking
      • Payroll
      • Productivity
      • Setting up a Company
      • Success Stories
      • Technology
      • Work Life Balance
    • Guides
      • Whitepapers & Downloads
      • Partner Content
      • Business car leasing
      • Small business insurance
    • Business Tools
      • Compare business bank accounts
      • Making Tax Digital
      • Website Checker
    • Partners
      • British Small Business Grants
      • Events
      • Masterclass Series
      • Smart Energy GB
      • The Start-Up Series
    • Multi-Media Content
      • Galleries
      • Podcasts
      • Videos
  • Subscribe Now
Home » Running a Business » Legal advice » What you need to know when recruiting for the first time

What you need to know when recruiting for the first time

Recruitment of the right staff is vital

Ben Lobelby Delphine Hintz5 September 2016

Here, Ruth Hayward looks at the business and legal considerations small businesses should make when recruiting their first member of staff.

Recruiting for the first time can be a complex and daunting process. Therefore, it is vital to make sure you do everything properly. Here is some advice on what needs to be done when recruiting staff.

Be fair in your recruitment practices

Per the Equality Act 2010, recruitment processes cannot discriminate against anyone from what is known as a ‘protected characteristic’. These include a person’s race, gender, sexuality, age or any disability they may have. This means your job advertisements and any supporting documents you produce to guide candidates in their applications, such as the person specification and the job description, cannot exclude anyone who would be suitable for the role from making an application.

In addition, how you go about recruiting the candidate cannot be discriminatory. Discrimination can unintentionally take places at times though. This is known as Indirect Discrimination, and can happen when part of the role applies to everyone, but disproportionately affects some applicants over others.

Check their immigration status

An employer is also legally required to make sure any new hire has the right to work in this country. If an employer doesn’t, and it turns out there is an issue with that new member of staff’s right to remain or there are restrictions on what employment they can undertake, the employer can be fined up to £20,000 for each illegal employee they have unknowingly employed. Employers who have knowingly employed an illegal worker, meanwhile, face criminal prosecution, which can include sanctions ranging from a fine up to and including a custodial sentence.

Undertake other checks

You may also need to conduct other checks depending upon the industry you operate in. For example, Disclosure and Barring Service (DBS) checks are both necessary and legally required for those working in certain sectors. This is particularly true where the employee’s truth-worthiness is of the upmost importance, such as in the financial services sector, or where the employee would be working with children and vulnerable adults.

Be clued up on employees’ rights

Employees automatically have a number of employment rights on their first day. These include the right to receive payslips, non-discrimination rights, maternity rights and the right to written terms of employment. Employees are also entitled to at least the National Minimum Wage, a minimum number of holidays and, if their employment is terminated, a minimum notice period.
As an employee’s length of service with the company increases, they will continue to gain further rights, including maternity pay and increased protection against unfair dismissal. Thus, it is vital you have put all the correct measures in place, as breaching an employee’s rights could have very costly and damaging consequences. These can include employment tribunal claims and being investigated by regulating bodies.

Put contracts of employment and staff handbooks in place

Another way to protect your business is to ensure Contracts of Employment and staff handbooks are in place and set out clear standards and procedures. For example, clauses within a Contract of Employment can be set out to protect confidential information, intellectual property rights and company property, as well as instituting non-compete periods for those who are leaving the company.

Furthermore, clear rules, regulations and standards of staff behaviour can be put in place with the creation of a Staff Handbook. These can also be used to make clear any workplace procedures, such as health and safety policies and grievance procedures, too.

Register as an employer and take out employers’ insurance

Before you first pay your new staff member, you also need to register as an employer with HMRC. Registration takes up to two weeks and can be done via the gov.uk website. Furthermore, you also need to get an employers’ liability insurance policy from an authorised insurer that offers at least £5 million-worth of cover before you become an employer. It is very important you do this as you can be fined £2,500 for every day you aren’t properly insured, plus an additional £1000 if you don’t display your insurance certificate or make it available to inspectors when asked.

Making sure that all of the above is done correctly is of the upmost importance when recruiting any new staff member. Not only does it set the tone and give new employees the right impression of the organisation, but it also protects the business too.

If you are in any way unsure about what needs to be done when recruiting staff for the first time, I would highly recommend you speak to a legal professional who specialises in employment law as they will be able to help you and ensure you are doing everything that is legally required.

Ruth Hayward is a specialist employment law solicitor at MHHP Law. 

Further reading: Making the decision to recruit as a small business

Tagged: Recruitment
Ben Lobel

Delphine Hintz

Ben Lobel was the editor of SmallBusiness.co.uk from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR. More by Delphine Hintz

Related Topics

Recruitment

Related Stories

Legal advice

Business Companion launch invaluable free guide to Contract Law Basics

This new guide from Business Companion will help navigate contract law and secure the future of your small firm

Legal advice

Which job title is right for you?

Your job title should never be based on your own view, and how comfortable you feel being referred to by a certain position

Employing & managing staff

Five areas of UK employment law businesses must be aware of

Before taking on any employees, it’s important to grasp the basics of employment law. In this piece, we look at what you need to know

Legal advice

10 employment law changes that you should know about

Kate Palka, employment and commercial solicitor from The Legal Director, talks us through current and future employment law changes

Helping you grow your business is our number one priority, if you would like to take your business to the next step just sign up!

sign up now

Related Stories

Legal advice

Business Companion launch invaluable free guide to Contract Law Basics

This new guide from Business Companion will help navigate contract law and secure the future of your small firm

Legal advice

Which job title is right for you?

Your job title should never be based on your own view, and how comfortable you feel being referred to by a certain position

Employing & managing staff

Five areas of UK employment law businesses must be aware of

Before taking on any employees, it’s important to grasp the basics of employment law. In this piece, we look at what you need to know

Legal advice

Using an NDA in your small business

NDAs or non-disclosure agreements are becoming increasingly common. When should you use them? And are they even enforceable?

SmallBusiness.co.uk provides advice and useful guides to UK sole traders and small businesses. Our goal is to help owner managers and entrepreneurs to start, run, grow and succeed in business, helping turn your business idea into a profitable business.

Further Information

  • Contact Details
  • Privacy Policy
  • Terms & Conditions
  • Blog
  • About this Website
  • Media Packs
  • Contributor guidelines
  • Small Business Whitepapers

Manage my preferences

  • Edit preferences

Contact us

  • +44(0) 207 846 1378

Address

  • Stubben Edge
  • 77 Cornhill
  • London
  • EC3V 3QQ