Knowledge

Employing people

If you are going to employ people you have to take into consideration that an employee is someone engaged to work for you under a “contract of service” (Employment Contract), which can be written, oral, implied or a mixture of all three. An employment contract comes to existence when an applicant accepts your offer for a full time, part-time, casual or temporary job.

You become an employer automatically if you take someone on to work for you under a “contract of service” (Employment Contract). In most cases, before employing the first worker, you need to register as an employer with HM Revenue and Customs (HMRC).

As an employer you have certain obligations to meet, among others:

– To check if a potential employee is entitled to work in the UK.
– To give an employee a written statement with employment details within 2 months after his starting work.
– To operate the PAYE (Pay As You Earn) system on the payments made to your employees if their earnings are at or above the Lower Earnings Limit (LEL), which is £97 a week or £421 a month or £5,044 a year for the tax year 2010-2011.

– To comply with the National Minimum Wage (NMW) regulations.
– To meet the Time Working Regulations.
– To discuss and agree with your employees all changers to their employment contracts.

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