Employment comes with both its positives and negatives. Everyone has heard of a horror story at some point relating to a previous staff member, but this shouldn’t put you off.
When first starting out as a small business, having to recruit your first employee will come with many questions, such as:
- How do you go about hiring the right person?
- How do you get the best out of someone performance wise?
- How do you sort out an employment contract?
The list can seem endless, so Gorilla Accounting are here to help answer these questions and shed some light.
1. Dismissal of an employeeWorst case scenario, but is essential you understand. You’ll quickly understand the person you recruit will be completely different to the interview. Unfortunately, not all recruitment works out well, so you have to dismiss. Dismissing an employee has to come with a solid reason, which can be backed up with evidence. A Dismissal comes with regulations to ensure you are being fair. These regulations include:
- Informing the employee of the problem at hand
- Holding a meeting to discuss the problem
- Allowing the employee to be accompanied
- Deciding on appropriate action
- Allowing the employee the opportunity to appeal
2. NoticeDismissal has to come with notice. Employees are entitled to one week notice if you would like to dismiss them. However, this does not apply to everyone. Employees who have been employed for two years are entitled to two weeks’ notice and then continues to increase by one week per year up to a maximum of twelve weeks. Notices can also be extended with an agreement between both the employer and employee.
3. WagesIt is against the law to deduct an employee’s wages unless you are legally required to do so, i.e. tax purposes. You are also permitted to deduct should you have contractual right to do so. This is usually documented in a separate written contract signed by the employee.
4. Holiday EntitlementEmployees are entitled to use holiday as leave from their first day on the job. If you as an employer are unsure about what your employee’s holidays should be then you can calculate it on the HMRC Website.
5. Maternity LeaveEmployees are eligible to take up to 52 weeks maternity leave. The earliest the employee can take maternity leave is 11 weeks before the baby’s due date. However, if the baby is born early, the maternity leave starts the day after the birth and the employee must provide evidence of the child’s date of birth, either in the form of birth certificate or a document that is signed by either the doctor or midwife.
6. Agency WorkersAgency workers are entitled to the same basic standards of employment, including notably pay and holidays.
You can now become the best employer you can be! For more information on how to run a Limited Company, we recommend reading our Contractors guide to setting up a Limited Company.
For any further questions, or to learn how useful appointing an accountant can be, contact us using the details below.
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