What exactly does a right to work check involve?

You must check the person has permission to work in the UK before their first day, using either the Home Office online service with a share code, or by examining acceptable original documents in their presence and keeping a clear dated copy. The online route is now the norm for most people who do not hold a British or Irish passport, since physical documents have largely been replaced by eVisas. Keep the record for the whole employment and for two years afterwards.

Do I have to set up a pension straight away?

You must assess every worker from their first pay period and enrol anyone who meets the age and earnings criteria into a qualifying scheme, paying the minimum employer contribution. Even if nobody qualifies, you still have to complete a declaration of compliance with the Pensions Regulator by the deadline, and fines apply for missing it. Staff who are not automatically enrolled can ask to join. Set the scheme up before you need it rather than in the week the assessment falls due.

Can I take someone on as self-employed to keep things simple?

Only if they genuinely are self-employed, which depends on how the relationship actually works rather than on what you both agree to call it. If you control what they do and when, they must do the work personally, and there is an ongoing expectation of work, they are almost certainly a worker or an employee whatever the paperwork says. Getting this wrong exposes you to back-dated holiday pay, unpaid minimum wage, PAYE liabilities and penalties. Take advice if it is borderline.

What happens if the person does not work out?

Unfair dismissal protection generally requires two years' service, so there is more flexibility early on — but not unlimited flexibility. Discrimination claims need no minimum service at all, nor do dismissals for whistleblowing or for asserting a statutory right. Follow a fair process regardless: raise concerns, give a chance to improve, keep notes, and pay the correct notice and accrued holiday. A short, documented process protects you far better than an abrupt ending you cannot explain later.

Hiring Your First Employee Checklist

Taking on your first employee changes what your business is legally required to do. You become responsible for right to work checks, payroll and real time reporting to HMRC, employers' liability insurance, a workplace pension and a safe place to work — and several of those obligations bite before the first payday, not after it. None of it is difficult, but the penalties for getting it wrong are disproportionate to the effort of getting it right. Use this checklist to work through it in order.

Start four to six weeks before their first day

The sequence matters. Registering as an employer with HMRC and getting a PAYE scheme running is not instant, and you cannot legally run a payroll without it. Employers' liability insurance must be in place before the employee starts, not after. The right to work check has to be completed before the first day of work, and doing it afterwards gives you no statutory excuse if it later turns out the person had no permission to work.

Before the offer: decide the role, the hours and the pay, and check the rate against the minimum wage band for the person's age.
Before the first day: complete the right to work check and keep a dated copy, arrange insurance, and set up the PAYE scheme.
On or before the first day: give a written statement of employment particulars — this is a day-one right, not something to send later.
Within the first weeks: assess pension auto-enrolment duties and complete your declaration of compliance on time.

Skipping steps is where small employers get caught. Operating without employers' liability insurance carries a daily penalty. Failing a right to work check can bring a substantial civil penalty per worker. Missing the auto-enrolment declaration deadline attracts fines even where you have no eligible staff.

Acas publishes free template contracts and policies, and its helpline is free. Use it before you write anything from scratch.

Hiring Your First Employee Checklist

Start four to six weeks before their first day

Before advertising

Before they start

Ongoing obligations

Helpful organisations

HM Revenue & Customs

Health and Safety Executive

Advisory, Conciliation and Arbitration Service

Frequently asked questions

Related guides

Hiring Your First Employee

Right to Work Checks

Employment Records for Small Businesses

Health and Safety for Small Businesses