Welcome to Workline UK.  On the rest of the Workline site you will see your Employees, Workers and Freelancers employment rights, which are your legal obligations to them.  In these two ‘Employers Information’ sections we give you additional information to help you run your small business, as of course employing staff can be complicated!

If you would like help with these employment issues, so you can concentrate on your areas of expertise, please talk to our HR Consultancy Service – The HR Kiosk – click here.

Useful information for your business:

Post a job for £99 at Monster.co.uk – Business-to-Business (B2B)

Post a job for £29 at fish4jobs

ACAS have a 2-part Advisory Handbook called ‘Employing People: a Handbook for Small Firms’ – http://www.acas.co.uk/index.aspx?articleid=924

And BusinessLink publish the ‘No Nonsense Guide to Government Rules and Regulations’ when setting up your business – at http://www.businesslink.gov.uk/StartingaBusiness+files/1553NNG2006.pdf?r.t=INTPUBLICATION&r.l=1073793551

If you are still a sole-trader, have you considered becoming a Limited Company – There are many advantages in doing this, both financially and for marketing purposes, but also there are disadvantages with a higher administrative burden.  There are organisations that can help you take care of the tax and administration burden – Have a look at the Crunch website that gives you a simple way to create and manage invoices, expenses, payments and tax returns, leaving you to concentrate on your areas of expertise.

Employing different Types of staff -

You can employ staff in a variety of ways (see ‘Am I an Employee, Self-Employed, a Freelancer or a Worker’) but this can be complicated.  Here is more information on:

• Fixed Term contracts. The employment rights of those employed on PAYE Fixed Term Contracts continue to move closer to the rights of those on PAYE Permanent contracts; and often there is practically little difference.  The law gives criteria for when you can give someone a fixed term contract rather than a permanent one.

Recent legislation ensures that those on Fixed Term Contracts have equal treatment, when compared to those on permanent contracts.  For details of what this means look at the main Workline site (click here) or click here for information from ACAS - http://www.acas.org.uk/index.aspx?articleid=1585

In addition, from 10th July 2006 Employees on Fixed Term contracts who have been employed on successive fixed term contracts consecutively for a period of 4 years or more, have a right to ask their Employers for a statement confirming that they are now on a permanent contract.

• Employing Overseas Workers. The various rules and regulations governing employing workers from overseas underwent significant change in 2008 and 2009 and no doubt there will be more changes in this area with a new Conservative Government. From 29th February 2008 the Asylum and Immigration Act was changed so that Employers who employ someone subject to immigration control, who is not entitled to undertake the work in question, will be liable to pay a civil penalty and it will be a criminal offence to ‘knowingly’ employ an illegal migrant.  All employees who start work on or after 29th February 2008 will need certain documents checked and copied before their employment can start.

Where the prospective employee has only limited leave to be in the UK, employers should repeat the checks at least once every 12 months until the employee can produce documents indicating that they can remain permanently in the UK.

An employer who employs an illegal worker without carrying out all the necessary checks will be liable to a civil penalty of up to £10,000 for each person that they illegally employ.  Criminal conviction for knowingly employing an illegal worker will carry the potential of an unlimited fine and/or prison sentence of up to 2 years.

The Home Office has issued two codes of practice to help employers comply with this legislation.  Further information can be found here: – http://www.bia.homeoffice.gov.uk/workingintheuk

and http://www.workpermit.com/uk/highlyskilledmigrant_program.htm

Making a job offer and Employment Checks

The BusinessLink website has a useful document about this topic in their ‘Employing People’ (‘Taking on Staff’, ‘Paperwork’, ‘Making a job offer and pre-employment checks’) section – click here http://www.businesslink.gov.uk

It is important you follow the new 2008 legislation (as above) that requires Employers to check that ALL new Workers have a legal right to work in the UK.  See this link for more information - http://www.ukba.homeoffice.gov.uk/employers

Also,  it will always be in your interest to take up references for new Employees. ACAS’s advisory booklet on Recruitment and Induction contains information on references and making the job offer and can be viewed here http://www.acas.org.uk/index.aspx?articleid=744

The Contracts and Statements you need to give your employees

As an Employer you have a legal entitlement to give your Employees a Written Statement of their main employment terms, within 2 months of their start.  You are legally allowed, in this Statement, to refer to other documents, elsewhere, for information on aspects of their employment.  A company handbook is a good place to put this additional information (although you are not legally obliged to have one).

Employment forms to use and Personnel records to keep

You are also legally required as an Employer to keep certain Personnel  records and the following ACAS guide explains what is required and what you need to consider – click here -  http://www.acas.org.uk/index.aspx?articleid=717

Pay and Pension obligations, Benefits and Incentives

Pay -

BusinessLink has advice on setting the right pay rates, the National Minimum wage, your Pay obligations (sick pay, holiday pay, maternity pay for example) and PAYE and National Insurance in their Employing People section (‘Pay and Pensions’, ‘Paying Your Staff’) – http://www.businesslink.gov.uk

ACAS also produce advisory guides on Pay – click here http://www.acas.org.uk/index.aspx?articleid=1366

Pensions -

Organisations employing over 5 people have a legal obligation to offer access to a Stakeholder Pension.  See the ACAS guidance here - http://www.acas.org.uk/index.aspx?articleid=889 and also the Pension Service have information on Stakeholder Pension Schemes and what this means to a business owner  – here http:www.thepensionservice.gov.uk/employer/home.asp

Benefits and Incentives -

Benefits are generally a good way to attract and retain staff, which are not related to productivity – e.g. occupational pension schemes, extra holiday or maternity leave/pay entitlement, health insurance/other health benefits, flexible working, company cars etc.

Incentives can either be financial (bonuses, share options, profit related schemes) or non-financial (awards, vouchers, gifts) and can be a good way to improve productivity.

See Part 2 for further information on

• What Employment Policies do I need
• Employee Representatives, Trade Union recognition and the Legal requirements to Consult your staff
• Problems at Work – Dismissals and Disciplinaries and Grievances
• Managing Absences and Sickness/Attendance
• Giving References to previous Employees
• Your Insurance needs and obligations

Image by vgm8383

If you work in the UK Media Industries and have a question about this or any other topic, please e-mail us at workline@freelanceadvisor.co.uk

If you are an Employer and need ongoing professional help with any staff/freelance issues then talk to us at The HR Kiosk (click here) - a Human Resources Consultancy for small businesses – you can retain us for as much time as you need.

Please note that the advice given on this website and by our Advisors is guidance only and cannot be taken as an authoritative interpretation of the law. It can also not be seen as specific advice for individual cases. Please also note that there are differences in legislation in Northern Ireland.