So your business has grown to such a level you can no longer do it on your own. You’ve explored all options and the most sensible one is to take on your first employee!
There are many things you need to consider and we will run through them in this article.
What will it cost me?
So if you have used subcontractors in the past then you will likely be looking at paying a slightly lower rate. If you haven’t then you don’t have anything to gauge it on. You must however meet the national minimum wage.
Do I have to employ them full time?
Not if you don’t need to. There has been lots of bad press about zero-hours contracts but the bad press was actually about the abuse of such contracts. They are not illegal and can be very useful for a first time employer.
What about holiday pay?
Holiday pay is a legal requirement so you have to provide it to employees even if on zero-hours contracts. Perform a calculation here.
What about insurances?
You should look at taking out employers liability insurance and also considering professional indemnity insurance and public liability insurance too.
Any other legal requirements?
The employee needs a contract of employment. There are lots of places to find one online or you can get one from a HR Consultant or a Solicitor. You also need to run a payroll and provide your employee with payslips. Your accountant should be able to help you with this part.
Taking on your first employee is a scary time but get everything right and they can really help you. Use support where you can to make the most of the new situation.