Startup Revolution

Once you go down the route of employing staff you must follow employment guidelines.

Employment law is a huge area covering all manner of issues. Here is a basic overview of the key issues.

Contract of Employment

A contract of employment may be in writing but does not have to be, it can be a verbal contract.  An employer must provide any employee who has been employed for over a month a written statement of employment particulars. This must be provided within two months of the employee starting work even if the employee will only be employed for two months.

"An employer must provide any employee who has been employed for over a month a written statement of employment particulars."

A written statement of employment particulars should include:

• Employer’s name
• Employee’s name
• Job title and job description
• Date of commencement of employment (including whether any previous employment counts as continuous employment with the employer)
• Place of work (including details of any other places the employee may be expected to work and details of the employer’s address)
• Rate of pay (per hour)
• Frequency of pay (weekly, monthly etc)
• Hours of work
• Holiday entitlement
• Sick pay arrangements
• Pension policy
• Notice periods (both from employer and employee)
• Disciplinary procedure
• Grievance procedure
• Details of any collective agreements which affect the contract of employment
• Whether the employment is permanent, fixed term or temporary

Precedents for written statement of employment particulars can be found at www.businesslink.gov.uk

National Minimum Wage

From 1^st October 2011 the rates are as follows:-

• £6.08 for people aged 21 and over;
• £4.98 for people aged 18-20 (inclusive);
• £3.68 for people aged 16-17 (inclusive); and
• £2.60 for apprentices under 19 or in the first year of apprenticeship.

For further information go to www.direct.gov.uk

Holiday entitlement

From 1 April 2009 a worker is entitled to 5.6 weeks paid holiday per year.  A person working full time, 5 days per week is entitled to 28 days paid holiday per year.  A person working part time, 3 days per week is entitled to 16.8 days paid holiday per year. The maximum entitlement under the employment legislation is 28 days paid holiday per year so a person working 6 or 7 days per week would still only be entitled to 28 days. Employers can increase this entitlement.

The key points about holiday entitlement are as follows:

• Bank and public holidays can be included in the minimum entitlement of 5.6 weeks paid holiday per year
• Employers may control when employees take holiday
• The entitlement to take holiday commences as soon as work commences
• When employment ceases an employee is entitled to be paid for any holiday entitlement which he has accrued but not taken.

Sick pay

There are two different types of sick pay:

• Statutory sick pay
• Company sick pay

To be eligible for statutory sick pay an employee must:

• Have commenced work under the contract of employment
• Be incapable for work for at least four days in a row (these days only include the day the employee usually works)
• Earn an average of at least £102.00 per week
• Inform the employer that they are incapable of working.

From 6 April 2011 the standard weekly rate of statutory sick pay is £81.60. Statutory sick pay is payable by the employer on the employee’s normal payday. It is not payable for the first three days of sickness.

Employers must keep a statutory sick pay record.  This must include:

• Employee’s name and National Insurance number
• When the period of statutory sick pay began
• When the payment/s were made and for how much
• Details of any periods where statutory sick pay was not paid together with reasons.

Employees must provide medical evidence if they are incapable of working for more then seven days.  Employees can self-certify for periods of seven days or less.  This must include the following information:

• Employee’s name and National Insurance number
• Date of first day of sickness
• Date of last day of sickness
• Last day they worked before their sickness
• The nature of their sickness

Employers can offer a company sick pay scheme. This may be more generous than statutory sick pay but cannot be less so.

For more information on statutory sick pay go to www.hmrc.gov.uk

Starting out in business? Take a look at our Starter and Starter Plus packages, plus you can compare all StartUp Revolution's packages here.

Related StartUp Revolution products:

• Advert design from £25
• Copywriting services £35 per hour
• Call handling from £420

Click here to find out more.

For the latest start up books see our business books pages.

   How To Manage  Business Start Up 2012 Secrets of The Wealth Accelerators

Share this post