Thursday 4 February 2010

Small Businesses and HR: In the Begining...

As a new business start-up, hiring the first employee is a big step. many regulations and law affect the hiring, firing, and work of employees. If you employ other people you will have to meet the requirements of employment law, and be responsible for paying wages, tax national insurance contributions, and working tax credits when applicable.

Having recently helping to set up a business; Spanish Translations UK; I have had to consider the commotion that goes hand in hand with employing new people. In the current economic climate jobs have become a rare commodity, and therefore making it easier for employers to find good people to take on. That was the easiest part for me, there were plenty of people who wanted the positions that i had to recruit for, and the most difficult factor was selecting the best ones.

Once opting for the preeminent applicants I was then responsible for putting employment contracts in place. The Employment Rights Act 1996 stipulates exactly what subject areas must be covered in the statement, which includes the obvious, such as; the name of the employer and employee, the date that the employment began, rate and frequency of pay, hours of work, holiday entitlement, job title, and a description of the duties, as well as other details. Legal advice from professionals for matters such as these is recommended because employment legislation changes frequently, which can have an impact on the type of information that must appear in the statement.

Once the employment contract has been sorted, and work commences, you get to the part where you need to pay your employees - arghhhh! For this, I, again decided to consult an expert, because the last thing that you want is the Inland Revenue chasing you, or your employees. This is where it became a bit tricky for me, as some of my employees had other jobs, but as many of them were students they will still earning under the personal allowance band, so it was important to use the correct tax code; hence why using a professional was the correct choice.

On top of employment contracts and the payment of salary, as a small business you need to ensure that you keep employment records; of individuals and collective data, as well as certifying that employees work legal hours, and take breaks in line with the law.

Then as time goes on more HR issues can occur, which employers need to be strident about, issues that could possibly arise include maternity or paternity rights, discrimination in the work place, or health and safety concerns. Staying in check with the law is essential, and as a small business employer it is important to protect yourself.