Journey

Hiring your first employee after April 2026

Updated hiring journey incorporating Employment Rights Act 2025 day-one rights and contract requirements. Covers employment contracts, SSP, family leave, and compliance essentials for new employers.

Starting a Business Updated 15 September 2026
7 milestones references 4 guides

Hiring your first employee: what you need to know

Hiring your first employee is a significant step. This guide walks you through the key requirements, incorporating the Employment Rights Act 2025 changes that affect new employers from April 2026.

Time needed: 30 minutes to complete.

  1. Before you hire

    Before taking on your first employee, you need to set up several things:

    gov.uk

    Register as an employer (opens in a new tab)

    How to register for PAYE with HMRC

  2. Prepare the employment contract

    All employees must receive a written statement of employment particulars on or before their first day. The Employment Rights Act 2025 adds new requirements to what this must include.

    Updating employment contracts for ERA 2025

    Checklist of contract changes needed under ERA 2025

  3. Check right to work

    You must check that every employee has the legal right to work in the UK before they start. This applies to all employees, including British citizens.

    gov.uk

    Check an employee's right to work (opens in a new tab)

    Government guidance on right to work checks

  4. Set up payroll correctly

    Your payroll must be set up to handle PAYE, National Insurance, and statutory payments from day one. The ERA 2025 changes SSP rules significantly.

    Statutory Sick Pay: employer guide

    How SSP works under the current rules

  5. Understand day-one leave entitlements

    Under the ERA 2025, several leave entitlements are available from the first day of employment. Your policies must reflect this.

    Family leave: employer checklist

    Checklist for implementing day-one family leave entitlements

  6. Health and safety basics

    As soon as you employ someone, you have health and safety obligations:

    hse.gov.uk

    Health and safety for employers (opens in a new tab)

    HSE guidance on employer health and safety duties

  7. Know about the Fair Work Agency

    The Fair Work Agency (FWA) launched on 1 April 2026 as the unified enforcement body for employment rights. It enforces National Minimum Wage, SSP, holiday pay, and employment agency rules.

    As a new employer, ensure you are compliant from the start - the FWA actively targets non-compliance.

    Fair Work Agency: what employers need to know

    Overview of the FWA and what it enforces

Summary checklist

Next steps

  • Complete the ERA 2025 compliance checklist for a full review of your obligations
  • Set up your payroll before your employee's start date
  • Provide the written statement on or before day one

ERA 2025 compliance checklist

Quick compliance check for all ERA 2025 changes