All employees have an employment contract with their employer. A contract is an agreement that sets out an employee’s:
- employment conditions
These are called the ‘terms’ of the contract.
Employees and employers must stick to a contract until it ends (eg by an employer or employee giving notice or an employee being dismissed) or until the terms are changed (usually by agreement between the employee and employer).
If a person has an agreement to do some work for someone (like paint their house), this isn’t an employment contract but a ‘contract to provide services’.
Accepting a contract
As soon as someone accepts a job offer they have a contract with their employer. An employment contract doesn’t have to be written down.
Step 1 Check your business is ready to employ staff
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.
As an employer you must make sure you recruit employees fairly.
and Check they have the legal 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
You have ongoing responsibilities to check if your employees need to be put into a workplace pension scheme.
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.