May 2017

Legal eagle
I'm frequently asked by small
business owners for guidance
on what they must do from a
legal and practical perspective
when taking on new staff. I take
them through a checklist.
Background checks
Most important is checking an
employee’s legal right to work in
the UK. Also consider criminal
record checks, references and
professional qualifications.
Restrictive covenants
Make sure the person is not
subject to any clauses in their
old contract that stop them
working for you (commonly
known as "non-competes"). You
could be liable for inducing a
breach of contract.
Contract of employment
Ensure both parties sign an
employment contract and keep
it on file. Make sure it complies
with the minimum legal
requirements and provides
adequate protection for you,
the employer.
Hire power
Employment lawyer Amy Cunningham
explains what a small business must
consider when hiring new people
Employee handbook
You should have a basic staff
handbook and give a copy to
the employee on their first day.
There are a few policies that are
required by law and others that
are highly advisable.
Payroll
Obtain a P45 from the
employee's previous
employer. Consider
whether to outsource
your payroll function.
HMRC
When an organisation takes on
its first employees, it should tell
HM Revenue and Customs by
registering as an employer.
36 LOVEEAST
Insurance
Companies need employers’
liability insurance as soon as
they become an employer. The
policy must cover the employer
for at least £5 million and
come from an authorised
insurer.
Pension
Every employer with at
least one member of
staff now has new duties
with respect to pensions,
including enrolling those who
are eligible into a workplace
pension scheme.
Data Protection Act registration
Under data protection law, you
may have to provide details of
how your organisation handles
personal data about staff.
Other practical matters
Don’t forget to plan an
induction, arrange for the
relevant IT hardware and
software, and update your
website.
CUNNINGHAM LEGAL
Please get in touch for a
free initial consultation
amy@cunninghamlegal.co.uk
020 3858 3922 / 07539 397596
cunninghamlegal.co.uk