As an employer, the tax and employment responsibilities you have for your staff will depend on the type of contract you give them and their employment status. Contract types include: full-time and part-time contracts fixed-term contracts agency staff freelancers, consultants, contractors zero-hours contracts There are also special rules for employing family members, young people and volunteers .

Full-time and part-time contracts

As an employer you must give employees: a written statement of employment or contract the statutory minimum level of paid holiday a payslip showing all deductions, such as National Insurance contributions ( NICs ) the statutory minimum length of rest breaks Statutory Sick Pay ( SSP ) maternity, paternity and adoption pay and leave You must also: make sure employees do not work longer than the maximum allowed pay employees at least the minimum wage have employer’s liability insurance provide a safe and secure working environment register with HM Revenue and Customs to deal with payroll, tax and NICs consider flexible working requests avoid discrimination in the workplace make reasonable adjustments to your business premises if your employee is disabled

Fixed-term contracts: last for a certain length of time are set in advance end when a specific task is completed end when a specific event takes place Fixed-term employees must receive the same treatment as full-time permanent staff. Find out more about fixed-term employees’ rights , and what to do about renewing or ending a fixed-term contract.

As an employer, you can hire temporary staff through agencies . This means: you pay the agency, including the employee’s National Insurance contributions ( NICs ) and Statutory Sick Pay ( SSP ) it’s the agency’s responsibility to make sure workers get their rights under working time regulations after 12 weeks’ continuous employment in the same role, agency workers get the same terms and conditions as permanent employees, including pay, working time, rest periods, night work, breaks and annual leave you must provide the agency with information about the relevant terms and conditions in your business so that they can ensure the worker gets equal treatment after 12 weeks in the same job you must allow agency workers to use any shared facilities (for example a staff canteen or childcare) and give them information about job vacancies from the first day they work there you are still responsible for their health and safety

Freelancers, consultants and contractors

If you hire a freelancer, consultant or contractor it means that: they are self-employed or are part of other companies they often look after their own tax and National Insurance contributions ( NICs ) they might not be entitled to the same rights as workers, such as minimum wage you’re still responsible for their health and safety

Zero-hours contracts are also known as casual contracts. Zero-hours contracts are usually for ‘piece work’ or ‘on call’ work, for example for interpreters. This means: they are on call to work when you need them you do not have to give them work they do not have to do work when asked Zero-hours workers are entitled to statutory annual leave and the National Minimum Wage in the same way as regular workers. You cannot do anything to stop a zero-hours worker from getting work elsewhere. The law says they can ignore a clause in their contract if it bans them from: looking for work accepting work from another employer You are still responsible for health and safety of staff on zero-hours contracts.

Employing family, young people and volunteers

Family If you hire family members you must: avoid special treatment in terms of pay, promotion and working conditions make sure tax and National Insurance contributions are still paid follow working time regulations for younger family members have employer’s liability insurance that covers any young family members check if you need to provide them with a workplace pension scheme Volunteers and voluntary staff When taking on volunteers or voluntary staff you: are responsible for their health and safety must give inductions and training in the tasks they’re going to do Young people You can employ young people if they are 13 or over but there are special rules about how long they can work and what jobs they can do. Once someone is 18 they’re classed as an ‘adult worker’ and different rules apply. As well as following these rules you must do a risk assessment before taking on young workers. Young people may also have certain employment rights like: statutory maternity pay and ordinary statutory paternity pay if they qualify as a result of their continuous employment paid time off for study and training redundancy pay Young workers and apprentices have different rates from adult workers for the National Minimum Wage .

Contract types and employer responsibilities

Overview

As an employer, the tax and employment responsibilities you have for your staff will depend on the type of contract you give them and their employment status.

Contract types include:

There are also special rules for employing family members, young people and volunteers.

View a printable version of the whole guide

Step 1 Check this process is right for you
Follow these steps if you're taking on someone with the employment status of 'employee'.
1. Check who counts as an employee
There are other steps you may need to take first if you have not employed someone before.
1. Get ready to employ someone for the first time
The rules are different if you want to take on someone with another type of employment status, such as agency staff, freelancers, consultants and contractors.
1. You are currently viewing: Check your responsibilities when you take on someone with a different employment status and contract type
Step 2 Recruit someone
You need to advertise the role and interview candidates. You can use a recruitment agency to do this or do it yourself.
1. Find out about recruiting someone yourself on Acas
2. Find out about using a recruitment agency
As an employer you must make sure you recruit employees fairly.
1. Avoid discrimination during recruitment
2. Make your application process accessible for employees with disabilities or health conditions
and Check they have the right to work in the UK
1. Find out how to check an applicant's right to work
and Find out if they need a DBS check
You may need to check someone's criminal record, for example, if they'll be working in healthcare or with children.
1. Find out if you need a DBS check
2. How to do a DBS check
Step 3 Check if they need to be put into a workplace pension
Check if you need to put your employee into a workplace pension scheme:
- if it's the first time you're employing someone
- if you already employ people
Step 4 Agree a contract and salary
When someone accepts a job offer they have a contract with you as their employer.
Step 5 Tell HMRC about your new employee
You must tell HMRC about your new employee on or before their first pay day.

Contract types and employer responsibilities

Overview

Step 1 Check this process is right for you

Step 2 Recruit someone

and Check they have the right to work in the UK

and Find out if they need a DBS check

Step 3 Check if they need to be put into a workplace pension

Step 4 Agree a contract and salary

Step 5 Tell HMRC about your new employee

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Contract types and employer responsibilities

Overview

Part of Employ someone: step by step

Step 1: Check this process is right for you

Step 2: Recruit someone

and Check they have the right to work in the UK

and Find out if they need a DBS check

Step 3: Check if they need to be put into a workplace pension

Step 4: Agree a contract and salary

Step 5: Tell HMRC about your new employee

Is this page useful?

Help us improve GOV.UK

Help us improve GOV.UK

Step 1 Check this process is right for you

Step 2 Recruit someone

Step 3 Check if they need to be put into a workplace pension

Step 4 Agree a contract and salary

Step 5 Tell HMRC about your new employee