Guide
Mandatory hiring requirements
Every employer obligation from pre-hire through the first month of employment. Covers right to work checks, written statements of particulars, employers' liability insurance, PAYE registration, auto-enrolment pensions, and DBS checks where required.
Hiring brings a set of legal duties that apply to every employer, regardless of size, sector, or role. Some must be completed before the worker starts; others by the first payday or within the first month. Missing any of them can result in penalties ranging from tribunal awards to criminal prosecution.
This guide sets out each obligation in the order you need to deal with it, from the point you decide to hire through to the end of the first month of employment.
Employer obligations timeline
Use the following timeline to understand when each duty falls due:
- Before the worker starts: Right to work check, employers' liability insurance, DBS check (if applicable), PAYE registration (allow 4 weeks)
- On or before day one: Written statement of employment particulars (principal statement), auto-enrolment assessment
- By first payday: PAYE operational, Full Payment Submission (FPS) to HMRC, payslip issued
- Within first month: Auto-enrol eligible workers (within 6 weeks), provide remaining written particulars (within 2 months)
1. Right to work checks
You must verify that every person you hire has the legal right to work in the UK before they do any work for you. This applies to all nationalities, including British citizens. There is no grace period and no exception for trial shifts.
Conducting a compliant check gives you a statutory excuse against civil penalties if it later emerges the worker was employed illegally. Without this excuse, enforcement penalties are severe:
List A and List B documents
Right to work documents fall into two groups. List A documents prove an ongoing, unrestricted right to work (such as a UK or Irish passport, or settled status). A single check before employment starts is sufficient. List B documents prove a time-limited right to work and require follow-up checks before permission expires. Set a calendar reminder at least one month before the expiry date.
Three ways to conduct a check
You can establish a statutory excuse through any of these methods:
- Online check (recommended): The worker generates a share code at GOV.UK. You enter the share code and their date of birth at the employer checking service. This is the primary method for eVisas, EU Settlement Scheme holders, and most visa holders from 2024 onwards.
- Manual document check: Obtain original List A or List B documents in person. Verify they are genuine, belong to the holder, and permit the work offered. Make a clear copy (scan or photograph) and record the date you made the check.
- IDVT check (British and Irish citizens only): Use a certified Identity Document Validation Technology service provider to verify a British or Irish passport digitally, without needing to see the physical document. Only use providers on the government's published list.
Avoiding discrimination
The Home Office Code of Practice requires you to treat all applicants consistently. You must not make assumptions about someone's right to work based on their appearance, accent, or name. Check the same documents, in the same way, for every candidate. Discriminating on grounds of race or nationality during right to work checks is unlawful under the Equality Act 2010.
Record keeping
Keep copies of right to work documents for the duration of employment plus 2 years after the person leaves. For online checks, retain a copy of the profile page showing the date of the check. These records are your evidence of a statutory excuse if challenged.
2. Written statement of employment particulars
Under section 1 of the Employment Rights Act 1996 (as amended from 6 April 2020), you must give every employee and worker a written statement of employment particulars on or before their first day of work. Before April 2020, employers had 2 months; this is no longer the case.
The written statement has two parts:
Principal statement (day one)
Must be provided as a single document on or before the start date. It must include:
- Employer and employee names
- Job title or description of work
- Start date and continuous employment date
- Pay rate and frequency
- Hours of work (and whether variable)
- Holiday entitlement and holiday pay
- Place of work
- Notice periods required by both sides
- Probation period (if any) and conditions
- Any other benefits (not just pay)
- Mandatory training (and whether employer-funded)
Wider written statement (within 2 months)
Additional terms that can follow in a separate document within 2 months of the start date:
- Pensions and pension schemes
- Collective agreements affecting terms
- Disciplinary and grievance procedures
- Rights to non-compulsory training
3. Employers' liability insurance
The Employers' Liability (Compulsory Insurance) Act 1969 requires you to hold employers' liability (EL) insurance from the moment you employ anyone. This covers claims from employees who are injured or become ill as a result of their work.
Key points for new employers:
- Minimum cover is £5 million (most policies provide £10 million)
- Operating without valid cover is a criminal offence: £2,500 fine for every day you are uninsured
- You must display the certificate in your workplace or make it available electronically to employees; failure to do so carries a £1,000 fine
- Keep certificates for at least 40 years (recommended best practice) as occupational disease claims can be made decades after exposure
Exemptions
A small number of employers are exempt from compulsory EL insurance:
- Family businesses where all employees are close relatives of the owner
- Companies where the sole employee owns 50% or more of the share capital
- Certain public bodies and nationalised industries
Even if exempt, you remain liable for employee injuries and may wish to hold voluntary cover.
4. Register for PAYE
You must register as an employer with HMRC before your first payday if you pay anyone above the Lower Earnings Limit (£96 per week for 2025/26). Registration can take up to 10 working days to process, and HMRC sends activation codes by post, so start at least 4 weeks before the first payday.
Once registered, your ongoing PAYE obligations include:
- Full Payment Submission (FPS): Submit to HMRC on or before every payday, reporting what you have paid each employee and what tax and National Insurance you have deducted
- Starter checklist: New employees who do not have a P45 from a previous employer must complete a starter checklist so you can apply the correct tax code
- Payslips: Issue an itemised payslip to every employee on or before each payday
- Pay HMRC: Send the tax and National Insurance you have deducted by the 22nd of the following month (19th if paying by post)
Late FPS submissions carry a penalty of £100 per month for employers with 1 to 49 employees.
5. Auto-enrolment pensions
From the day you employ your first member of staff, you have duties under the Pensions Act 2008 to provide a workplace pension. You must assess every worker and auto-enrol those who are eligible jobholders.
Postponement
You can defer auto-enrolment for up to 3 months from the worker's start date or from when they first meet eligibility criteria. You must give the worker written notice within 6 weeks of the postponement start date explaining their right to opt in during the postponement period.
Re-enrolment
Every 3 years, you must reassess workers who previously opted out and re-enrol those who are eligible. You must also re-declare compliance with The Pensions Regulator within 5 months of the re-enrolment date.
6. DBS checks (where required)
DBS checks are not required for every hire. You can only request a Standard or Enhanced check if the role involves regulated activity with children or vulnerable adults, or falls within the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975. Requesting a check you are not entitled to make is a criminal offence.
If the role does qualify, the check must be completed before the worker starts in the role. You may allow someone to begin work before the check returns only if you have submitted the application and put appropriate safeguards in place (such as supervised access).
DBS Update Service
Workers can subscribe to the DBS Update Service (£16 per year, free for volunteers). This allows employers to check the status of an existing certificate online, avoiding the need for a fresh application each time the worker changes role. The worker must register within 30 days of the certificate being issued.
DBS certificates do not expire
There is no legal expiry date on a DBS certificate. It is a snapshot of the worker's record at the time of the check. How often you re-check is your decision as the employer, though many employers re-check every 3 years. For workers subscribed to the Update Service, you can check their status at any time.
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1. Conduct right to work check
Verify the worker's right to work in the UK before they do any work, including trial shifts. Use the online checking service (share code), manual document check, or IDVT for British and Irish passport holders. Keep records for duration of employment plus 2 years.
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2. Arrange employers' liability insurance
Obtain EL insurance before the worker starts. Minimum cover is £5 million. Display the certificate in your workplace or make it electronically available to staff.
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3. Prepare written statement of particulars
Draft the principal statement covering all day-one mandatory terms (pay, hours, holidays, notice, job title, probation, benefits, mandatory training). Deliver to the worker on or before their first day.
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4. Register for PAYE with HMRC
Register at gov.uk/register-employer at least 4 weeks before the first payday. Choose payroll software that supports Real Time Information (RTI) submissions. Have the new starter complete a starter checklist if they do not have a P45.
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5. Set up workplace pension
Choose a qualifying pension scheme and register with The Pensions Regulator. Assess the new worker's eligibility on their start date. Auto-enrol eligible jobholders within 6 weeks (or use postponement for up to 3 months).
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6. Apply for DBS check (if applicable)
If the role involves regulated activity, submit the DBS application before the worker starts. Consider the Update Service for portability. In Scotland, use PVG; in Northern Ireland, use AccessNI.
Common compliance mistakes
Enforcement data from the Home Office, HMRC, and The Pensions Regulator shows these errors are the most frequent among new employers:
- Checking right to work after the start date: The check must be done before the worker does any work. Conducting it on day one is too late if they have already started. There is no grace period.
- Accepting photocopies or photos of documents: For manual checks, you must see original documents. Scans or photos sent by the applicant do not establish a statutory excuse.
- Not following up on time-limited permissions: If a worker holds List B documents, you must re-check before their permission expires. Missing this loses your statutory excuse from the expiry date onwards.
- Delaying the written statement: Since April 2020, the principal statement must be provided on or before day one. Providing it in the first week is a breach.
- Forgetting to display the EL certificate: The certificate must be visible in the workplace or accessible electronically. Inspectors can issue a £1,000 fine on the spot.
- Missing the PAYE registration window: If you register too late, you cannot submit your first FPS on time, triggering automatic penalties.
- Ignoring auto-enrolment for a single employee: The duties apply from your first employee. There is no exemption for micro-employers.
- Requesting DBS checks for ineligible roles: It is a criminal offence to request a Standard or Enhanced check for a role that does not qualify. Only roles meeting the Exceptions Order criteria are eligible.