Employment law essentials: What every employer must be aware of...
As an employer, understanding your responsibilities is crucial to ensure compliance with employment legislation. This summary outlines some of your key obligations, though it is essential to seek further information when facing specific situations or dealing with other employment-related matters. When you register with ThePayTeam, you gain access to specialized HR and employment law advice, providing valuable support in managing your workforce.
- Written Employment Contract By law, you are required to provide a written contract to your employee on their first day of work, preferably before they start. Upon registration with us, you can access a variety of employment contract templates for your convenience.
- Employment Status It's imperative to inform us about all payments and avoid classifying any worker as self-employed. For detailed guidance on this subject, refer to our dedicated advice page.
- Insurance Notify your household insurer about employing a worker to obtain coverage for Employers and Public Liability. Typically, there is no extra charge for this, but be cautious of policies that might offer duplicate coverage.
- National Minimum Wage (NMW) Your employee's gross hourly rate must not fall below the NMW. If you require more information, feel free to ask us for details.
- Payslips and P60 Your employee has the right to receive a payslip on every payday and a P60 form each year. We will provide these documents, and it is your responsibility to pass them on to your employee.
- Holidays All employees, including part-timers and temporary workers, are entitled to 5.6 weeks of paid holiday per year, equivalent to 28 days for those working 5 days a week. Typically, this includes 20 days of annual leave and 8 bank holidays.
- Pension At some point, you may need to enrol your employee into a pension scheme. Our team will guide you through the available options, and you must provide a letter after the first payday, which we can help you prepare.
- Sick and Maternity Leave Ordinarily, you are not obligated to pay for the first three days of sick leave, unless you agreed to enhanced sick pay in the contract. Statutory Sick Pay (SSP) starts from the 4th consecutive day of absence, and if eligible, your employee is entitled to £109.40 per week, which is your responsibility as the employer. In the case of pregnancy, your employee is entitled to 52 weeks of maternity leave, and for 39 weeks of this period, she is eligible for Statutory Maternity Pay (SMP), with the full cost of SMP payments covered by HMRC.
- Leavers In most cases, your employee will be entitled to a specific notice period (or payment in lieu if you choose an immediate termination). It is generally permissible to request the utilization of outstanding holiday entitlement during the notice period or provide payment for unused holidays with the final pay. Additionally, redundancy pay may be due, depending on the length of service (minimum 2 years) and the reason for termination.
- Illegal Workers Employing an illegal worker is a criminal offense, so it's crucial to ensure your employee is authorized to work in the UK. For further details, visit www.gov.uk (employing people).
Remember, staying informed and seeking expert advice will enable you to navigate employment law successfully and maintain a fair and compliant working environment for your employees.
