Topic

Employment & HR

Hiring, managing staff, and employment law compliance

Hiring & Recruitment

Rent a chair or room in a salon as a self-employed stylist

Renting a chair or room can make you self-employed for tax if you serve your own clients and set your own prices and hours, but HMRC looks at the whole arrangement and employment law may still treat you as a worker. Put the agreement in writing, register for Self Assessment and hold your own insurance.

Pay your partner or children through your business

Yes, if the work is real and the pay matches it. Relatives get at least the minimum wage unless they meet the narrow household exemption.

Start a business while you're still employed

You can usually start a business while you are employed. You only have to tell your employer if your contract or job requires it, but your contract and your duty not to compete with your employer or misuse its information set the limits.

Protect employees when a business transfers under TUPE

When a business changes hands or a service changes provider, TUPE moves the employees to the new employer on their existing terms, with continuous service kept. Both employers must inform and consult staff, and dismissals because of the transfer are automatically unfair unless there is an ETO reason.

Unpaid trial shifts and the minimum wage

A trial can be unpaid only as a short assessment, not work. If the person does work for you, you must pay at least the minimum wage.

Settlement agreements

A settlement agreement stops an employee bringing the tribunal claims it lists, but only if it is in writing and the employee has advice from a named, insured independent adviser. It cannot waive whistleblowing rights.

Liability for an umbrella company's unpaid tax

Usually yes, if you hold the end-client contract as the agency, or are the end client with no agency. HMRC can recover the unpaid tax from you.

Get a DBS check as a self-employed counsellor

The law does not require a DBS check in England and Wales, but a register or client may ask. If your role is eligible, you can apply for an Enhanced one.

Get a DBS check for a new employee or volunteer

Anyone can ask for a basic DBS check, but you can ask for a standard or enhanced check only for roles the law lists, and for the barred lists only for regulated activity. Apply through the right body, see the original certificate and destroy the information within about six months.

Dismiss an employee fairly

A dismissal is fair only if you can show a fair reason and acted reasonably, which usually means following a fair procedure. Employees need 2 years' service to claim ordinary unfair dismissal, falling to 6 months for dismissals taking effect from 1 January 2027, when the cap on compensation also goes.

Engage and manage agency workers

From their first day, agency workers must have equal access to your facilities and hear about permanent vacancies. After 12 weeks in the same role they are entitled to the same basic pay and working conditions as direct recruits, and you share liability with the agency if that goes wrong.

Sponsor overseas workers

To employ someone from outside the UK who is not an Irish citizen or settled here, you need a Home Office sponsor licence. Apply online, appoint key personnel, assign a certificate of sponsorship to each worker and pay the fees, then keep records and report changes within set deadlines.

Make reasonable adjustments for disabled employees

If you know, or ought to know, that a disabled employee or job applicant is at a substantial disadvantage, you must make reasonable adjustments to remove it. Failing to do so is discrimination in itself, and Access to Work funding can cover much of the cost.

Prevent discrimination at work

You must not discriminate against job applicants, employees or workers because of a protected characteristic, and you are liable for what your staff do unless you took all reasonable steps to prevent it. From 30 October 2026 that includes harassment by customers and other third parties. Discrimination compensation is unlimited.

Check whether someone is an employee, worker or self-employed

Whether someone is an employee, a worker or self-employed depends on how they really work for you, not on what their contract says. Getting it wrong can mean back tax and National Insurance, penalties and tribunal claims for holiday pay, sick pay and unfair dismissal.

Employ a nanny

If you hire a nanny to look after your children, you are usually their employer. You must check they can work in the UK, register with HMRC and run payroll, pay at least the minimum wage, give written terms, insure them and enrol them in a pension if eligible.

Give new staff a written statement of their employment terms

You must give every new employee and worker a written statement of their main terms on or before their first day, and the rest within 2 months, and tell them in writing about changes within a month. A tribunal can award 2 to 4 weeks' pay if you fail.

Register as a childminder in England

To work as a childminder in England you must be at least 18 and register with Ofsted or a childminder agency before looking after children. You need DBS checks, a health declaration, child protection and paediatric first aid training and insurance, then a registration visit.

What employers can and cannot do in fire and rehire

Once section 28 of the Employment Rights Act 2025 commences, dismissing staff to re-engage them on worse terms will be automatically unfair, except in a genuine financial crisis threatening the business. Until then, follow existing dismissal law and the Acas Code of Practice on Dismissal and Re-engagement.

Recruit staff safely for a childcare setting

Before anyone starts work in a childcare setting, you must get a written reference, receive their enhanced DBS and barred list result, and check they are not disqualified. Record each check. Nobody unchecked may have unsupervised contact with children.

Holiday entitlement and pay

Understanding statutory holiday entitlement and holiday pay.

Giving and asking for employment references

Usually no. You must give a reference only if you promised one in writing or FCA or PRA rules require it, and any reference you give must be fair and accurate.

Safeguarding and Child Protection for Childcare Providers

Every childcare setting must have a written safeguarding policy, a designated safeguarding lead trained to Level 3, and staff who can recognise physical, emotional and sexual abuse and neglect. Record any concern immediately and report it to the lead the same day; providers also have a legal Prevent duty.

Changes to trade union rights for employers

The Employment Rights Act 2025 gives trade unions a statutory right to access workplaces, allows electronic and workplace balloting and simplifies statutory recognition. The government plans that from 1 January 2027 you must tell workers in writing that they have the right to join a union. The reforms do not apply in Northern Ireland.

Pay men and women equally for equal work

You must give a woman and a man equal pay and contract terms when they do like work, work rated as equivalent or work of equal value, unless a genuine material factor other than sex explains the difference. Arrears can reach back several years, and the Act sets no cap on compensation.

Update employment contracts for the Employment Rights Act 2025

Several contract clauses and handbook references need changing as the Employment Rights Act 2025 takes effect: sick pay, paternity and unpaid parental leave, tribunal time limits, the unfair dismissal qualifying period, clauses that let you vary terms, and the trade union rights statement due with written statements.

Check someone's right to work

Before anyone does any work for you, including a trial shift, check their right to work in the UK, whatever their nationality. A correct check gives you a statutory excuse; without one, you face a civil penalty of up to £45,000 per illegal worker, or £60,000 for a repeat breach.

Paying the National Minimum Wage

Your obligations for minimum wage and record keeping.

Host an au pair

An au pair lives with your family and helps with childcare and light housework. Since 1 April 2024 an au pair who is not a relative must be paid at least the National Minimum Wage, so you must check their right to work and may need to run payroll.

Register as a nanny

You do not have to register with Ofsted to work as a nanny in a family's home, but registering on the voluntary Childcare Register lets the families you work for pay you through Tax-Free Childcare. You need first aid training, childcare training, insurance and an enhanced DBS check.

Prepare for the new rules on zero-hours contracts

The Employment Rights Act 2025 will require employers to offer guaranteed hours to qualifying zero-hours and low-hours workers, give reasonable notice of shifts and pay when they cancel, move or shorten a shift at short notice. These rights are not in force and have no start date.

Recruit international talent with Scale-Up Visa

How to sponsor skilled workers on the Scale-Up Visa route for high-growth businesses.

Employee Rights

Bereavement and pregnancy loss leave for employees

Yes, when a dependant dies or an employee's child dies. Other deaths and pregnancy loss before 24 weeks carry no right yet, but the government plans one from April 2027.

Manage redundancies correctly

To make redundancies fairly, consult the people affected, choose who goes using fair and objective criteria, and pay statutory redundancy pay to employees with 2 years' service. Proposing 20 or more redundancies at one establishment within 90 days triggers collective consultation.

Family leave: employer checklist

Paternity leave and unpaid parental leave are now day-one rights under the Employment Rights Act 2025, so remove any service requirement from your policies and HR system. Statutory Paternity Pay still depends on the lower earnings limit, and parental leave stays unpaid.

Follow anti-discrimination law in Northern Ireland

The Equality Act 2010 does not apply to employment in Northern Ireland. Employers there follow a separate law for each protected ground, including the Fair Employment and Treatment Order 1998, which covers religious belief, philosophical belief and political opinion. Claims go to the Industrial Tribunal or the Fair Employment Tribunal.

Pay Statutory Sick Pay

Since 6 April 2026, Statutory Sick Pay is due from the first full day of sickness, whatever the employee earns. Pay 80% of their weekly earnings or the flat rate, whichever is lower, and check your payroll system does this.

How employment law differs in Northern Ireland

Employment law in Northern Ireland is separate from Great Britain's. It mostly has the same effect but sits in different legislation, and new Westminster employment Acts don't automatically apply. Disputes go to the Labour Relations Agency, not Acas, and to Industrial Tribunals.

Right to work checks for hospitality employers

Before anyone starts work for you, including a trial shift, complete a right to work check, using the Home Office online service for anyone with digital status. A proper check protects you from a civil penalty of up to £45,000 per illegal worker, or £60,000 for repeat breaches.

National Minimum Wage, tips, and pay compliance in hospitality

How to ensure NMW compliance in hospitality, covering the accommodation offset, why tips cannot count towards minimum wage, unpaid trial shift rules, uniform deductions, and avoiding being named under the government's naming scheme for employers who underpay.

Plan for the Employment Rights Act 2025 changes

The Employment Rights Act 2025 is being brought in by stages. SSP from the first day, day-one paternity and parental leave and the Fair Work Agency arrived in April 2026, tribunal time limits and harassment duties in October, and the 6-month unfair dismissal qualifying period follows on 1 January 2027.

Working time limits and rest breaks

Workers must not work more than 48 hours a week on average, usually over 17 weeks, unless they freely sign an opt-out. They are also entitled to 11 hours' rest between working days, weekly rest, rest breaks and paid annual leave.

Register and monitor your workforce for fair employment

If you employ more than 10 people in Northern Ireland, you must register with the Equality Commission within one month, record the community background of your staff and applicants, send a monitoring return every year and review your employment practices at least every three years.

Manage security staff hours, lone working and violence risks

Security work often means long shifts, nights and lone working, so the Working Time Regulations 1998 apply in full: an average of no more than 48 hours a week unless the worker opts out in writing. You must also assess the risks of lone working and violence and put controls in place.

Working time and rest breaks in hospitality

Working Time Regulations explained for hospitality employers including maximum hours, rest break entitlements, split shift rules, night work limits, young worker protections, and the 48-hour opt-out.

What the Fair Work Agency means for employers

The Fair Work Agency launched on 7 April 2026 as a single enforcement body for employment rights, bringing together the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority. HMRC's National Minimum Wage enforcement transfers to it in April 2027, and holiday pay and sick pay enforcement are expected to follow.

Workplace Policies

Prevent workplace harassment

Every employer must take all reasonable steps to prevent sexual harassment of its employees. From 30 October 2026 you are liable when a customer, client or other third party harasses an employee and you did not take all reasonable steps to stop it. A breach can add up to 25% to a sexual harassment award.

Make employees redundant when closing your business

Closing your whole business does not excuse you from consulting staff before making them redundant. If you propose 20 or more redundancies at one site, you must consult for at least 30 days and notify the government first. Employees with 2 years' service are owed statutory redundancy pay.

Consult on collective redundancies

Updated guidance on collective redundancy consultation following ERA 2025 changes, including doubled protective award and new organisation-wide threshold.

Employee Relations

Handle industrial action

A union can call lawful industrial action only after a properly run ballot and at least 10 days' written notice to you. You do not have to pay strikers for time not worked, but you cannot bring in agency staff to cover, and dismissing someone for taking part in protected action is automatically unfair.

Respond to a trade union recognition request

When a union asks you in writing to recognise it, you have 10 working days to agree, refuse or offer to negotiate. If you refuse and employ at least 21 workers, the union can apply to the Central Arbitration Committee, which can declare it recognised to bargain on pay, hours and holidays.

Information and consultation requirements (ICE)

Requirements under the ICE Regulations 2004 for informing and consulting employees about business decisions.

Workplace Pensions

Your auto-enrolment duties for workplace pensions

From your first employee, you must check whether each worker is eligible and automatically enrol those aged 22 to State Pension age who earn enough into a workplace pension, then pay at least the minimum employer contribution. Workers can opt out, but you cannot encourage them to.

Complete your declaration of compliance

Within 5 months of your duties start date, declare to The Pensions Regulator online that you have met your auto-enrolment duties. You must declare even if nobody was enrolled, and missing the deadline brings a £400 fixed penalty.

Choose a workplace pension scheme

How to select a qualifying pension scheme for auto-enrolment. Compares master trusts (NEST, People's Pension), group personal pensions, and occupational schemes by charges, features, and suitability for different employer sizes.

Salary sacrifice pension arrangements

Under salary sacrifice, an employee gives up part of their salary and you pay it into their pension instead, so neither of you pays National Insurance on it. It needs a written contract change made in advance, and cash pay must not fall below the National Minimum Wage.

Auto-enrolment penalties and TPR enforcement

The Pensions Regulator usually starts with a compliance notice. If you ignore it, you face a £400 fixed penalty and then escalating daily penalties of £50 to £10,000, depending on how many workers you have.

Worker categories for auto-enrolment

You must automatically enrol workers aged 22 to State Pension age who earn over £10,000 a year. Younger, older or lower-paid workers can ask to join, and you must pay employer contributions for those earning over £6,240.

Re-enrol staff into a workplace pension every three years

Every three years, re-assess workers who opted out of or left your pension scheme, re-enrol those who are eligible and send The Pensions Regulator a new declaration of compliance. You can move your re-enrolment date up to three months either way.

Training & Development

Becoming an apprenticeship training provider

To deliver government-funded apprenticeship training in England, you must be on the Apprenticeship Provider and Assessment Register, which needs at least 12 months' trading and a UK Provider Reference Number. Funding is paid 80% in monthly instalments and 20% on completion.

Fund apprenticeship training

You pay for apprenticeship training in England through the apprenticeship service. Levy payers spend the funds in their account, and other employers reserve government funding. The government pays the full cost for apprentices aged 16 to 24, up to the funding band maximum, and shares the cost for older apprentices.

Pay the Apprenticeship Levy

You pay the Apprenticeship Levy if your annual pay bill, added to that of any connected companies or charities, is more than £3 million. You work it out each month, report it on your Employer Payment Summary and pay it with the rest of your PAYE bill.

Guides

How Shared Parental Leave works

Shared Parental Leave is not extra leave. The birth parent or main adopter ends maternity or adoption leave early, and the unused weeks, up to 50 weeks of leave and 37 weeks of pay, become a pool both parents can share in the first year.

Check statutory family leave and pay rates

Compare statutory paternity, adoption and shared parental leave and pay side by side: how long each lasts, how pay is worked out, who qualifies, what notice employees must give and how employers reclaim the cost from HMRC.

Handle SPL curtailment, disputed eligibility and refused-booking disputes

How to manage the dispute surface around Shared Parental Leave - curtailment-notice withdrawals, partner eligibility challenges, refusing discontinuous bookings correctly, and the HMRC and Employment Tribunal routes for ShPP and detriment claims.

Handle statutory adoption leave and pay

When an employee is matched with a child for adoption, the main adopter can take up to 52 weeks' adoption leave and up to 39 weeks' Statutory Adoption Pay, if they have 26 weeks' continuous service by the week they are matched. Only one parent in a couple can be the main adopter.

Handle statutory paternity leave and pay (post-2024 rules)

An eligible employee can take up to 2 weeks' paternity leave, as one block or two separate weeks, at any time in the 52 weeks after a birth or placement. They must give you 28 days' notice of each period, and you cannot refuse leave that meets the rules.

Respond to an employment tribunal claim

If a tribunal claim is brought against your business, submit your ET3 response within 28 days of the claim being sent to you, or the tribunal may give judgment against you without a hearing. Most claims are resolved before a hearing, many through Acas early conciliation.

Comply with tipping law in hospitality

Since October 2024, employers in Great Britain must pass all tips, gratuities and service charges to workers fairly, by the end of the month after they are received. Where customers tip more than occasionally, you need a written tipping policy available to all staff and records of how tips were shared, kept for 3 years.

Meet your employment agency regulatory duties

Whether you find permanent jobs or supply temporary workers, you must meet the conduct standards in the Employment Agencies Act 1973 and the Conduct Regulations 2003. Temporary workers get equal treatment after a qualifying period, and supplying workers to agriculture or food processing needs a gangmasters licence.

Meet Fair Work First requirements

How to meet the mandatory and encouraged Fair Work First criteria when applying for Scottish public sector grants or contracts.