So you’ve decided that the time is right to employ someone. You may even have the person in mind and allocated them a corner of your desk. How do you make sure that everything is in place without spending a fortune on expensive legal fees?
As a bare minimum in the UK, you must have Employers’ liability insurance, register with the HMRC, provide written term and conditions (normally in the form of a contract of employment), request evidence of their right to work in the country and consider any health & safety issues. And, of course, pay them a salary!
Employers’ liability insurance can usually be arranged with whoever handles your other business insurances. As an alternative, your home insurance provider may be able to help. We work with a specialist insurer for small businesses.
Written terms and conditions or a contract must be agreed within 2 months of the employee starting. Remember big is not always beautiful when it comes to contracts. Wordy is not always wonderful. Stick to the basics and make sure they are written in clear English. The contract must contain reference to the job title, salary, hours of work, start date, notice periods and usually includes other information like place of work and your expenses policy. A brief outline of the grievance and disciplinary procedures is also a good idea – even if it only refers to current ACAS guidelines. You can add to them later, but ACAS provide an excellent start point. Even small businesses – maybe especially small businesses – should consider including a non-solicitation clause to prevent employees from running off into the sunset with your clients or fellow employees.
A full checklist for small businesses is available via our website or contact us directly.
We’d love to hear your comments, thoughts or questions. Please leave some feedback for us!
Human Resources outsourcing used to be only for large corporates trying to reduce their headcount and cost bases. Nowadays, many smaller companies are waking up to the fact that having a specialist external HR resource available on tap can be more practical and deliver better value than maintaining a generalist function in-house.
It’s not that revolutionary: outsourcing finance and IT is an established precedent, even among relatively small companies. There are very few business owners and managers who can handle all the financial and technical complexities of running a business and fewer still who would attempt to. We believe HR is the next obvious candidate for outsourcing because:
- It’s better for you: Free up your time to focus on your core business by delegating some or all of the day-to-day aspects of managing your workforce to an outsourced HR function.
- It’s better for your staff: Demonstrate your commitment to your employees by providing a blue-chip HR function, whatever the size of your business.
- It’s better for your managers: Outsourced HR services can be a real lifeline for managers. When you’re in the thick of it, there is often no-one you can turn to at work to vent your frustration, concerns or just bounce ideas off. An external HR manager can be that person – independent, objective and supportive – to guide you through difficult situations.
- It’s better for your finances: Reduce your costs by only paying for services when you need them, working with HR experts who have handled many similar situations across a wide variety of business models and industries.
- It’s better for your business: You have peace of mind knowing that your business is compliant with current and changing Human Resources and employment legislation and best practices.
Outsourcing some or all of your Human Resources functions to a team of professionals who can provide both tactical and strategic support makes good commercial sense. Consider what capability you have at present within your organisation and choose a provider who can demonstrate a solid understanding of your individual HR needs. Look at the figures – it may cost much less than you expect!
I’ve never been a massive fan of companies that sell using fear. Rounding everyone up and scaring the bejesus out of people whilst serving them tea and biscuits in a hotel off the M4 never really appealed to me. We even buy our car insurance from a talking Meerkat now so things have clearly moved on.
Engaging companies to be better prepared for what may be around the corner, now that’s a different kettle of fish.
A Human Resource audit may seem like something big companies do who have lost sight of the day to day management of their employees, its really not. Its not just about ensuring you have the right paperwork in place (although clearly some of it is). I genuinely believe it’s about aligning the people with the business. It’s normally a really small piece of work, but it can help mitigate future problems and provide a greater insight into how companies attract, retain and motivate their key assets, their people.
Scared, I hope not. Intrigued I hope so.
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