A Brief Guide To Employing Staff

Engaging staff for the first time can seem daunting. This guide highlights the main points that you need to take into account. It is not, however, intended to be comprehensive and, in particular, there may be international issues to consider. You should therefore seek further advice, as required.

Establish the fundamentals

You should consider carefully whether you will be engaging the individual as an employee or as a self-employed person - and who should be engaging them, for example, a company (and if so whether a service company or an operating company), a trust or an individual.

Employment status is important for a number of reasons, including the individual's tax position and legal rights. In particular, certain important statutory rights (for example, the right not to be unfairly dismissed and the right to maternity leave and pay) apply only to employees. The category of 'worker' sits somewhere between employment and self employment (but does not include individuals who are genuinely in business on their own account). Increasingly, rights are being granted to such individuals.

It can be difficult to determine whether an individual is employed or self-employed - and the content of the contract is not conclusive. If you have any concerns about this, you should seek further advice. The guidance in this note assumes that you will be engaging an employee.

Recruit the right people in the right way

Job descriptions and interviews

It is often useful to draw up a job description to help prospective candidates assess themselves for the job. Ensure the skills and knowledge required relate precisely to the needs of the role, and avoid anything that suggests you might be discriminating (for example, using phrases like 'recent graduate' could discriminate against older people). This also applies to job advertisements.

An interview is usually the best way to judge whether someone is suitable for the job. You should ensure that preparations are made to assist disabled applicants (e.g. ease of access) and avoid questions about protected characteristics (for example, the person's marital status, or their plans to have children), which could be discriminatory.

References and other pre-employment checks

Though not a legal requirement, it is common (and advisable) to insist that your future employee provides you with satisfactory references from previous employer(s).

You should apply to the Disclosure and Barring Service (DBS) for a criminal record check if the work the employee is to do means that you are eligible to apply for one. For further information see the guidance at https://www.gov.uk/government/publications/dbs-check-eligible-positions-guidance.

There are various organisations that provide more thorough pre-employment screening services (for example, identity, media and credit checks) and we can provide further details on request. You...