If you set up your own company, it may be that you start out doing all the work yourself on top of the things you can charge clients for. You are the HR, IT, accounts, and admin departments all rolled into one. This may work well at the beginning because it keeps the costs down. However, there will be a time you want to expand and will need to think about hiring people. This can be a daunting experience and you will need to make sure that you carry out procedures correctly to stop you from getting into trouble and possibly having a lawsuit on your hands. Here is a guide to staying on the right side of employment law when you run a small business.
Outsourcing specialist positions can be a great way to keep your costs down and stay on the right side of the law. Most outsourcing companies will only charge you for the work they carry out, so you won’t be stuck paying a full-time employee you don’t really need. Work such as HR and legal can be imperative to the running of a small business.
Check the Small Print
Even if you outsource, the buck could still stop with you as head of the company. Make sure you check the finer points. For example, if you are running a bar or restaurant, you need to make sure your servers are old enough to serve alcohol. Don’t just take their word for it; check their ID personally to stay on the right side of the law.
Create a Contract
If you are employing people, they will need to sign a contract of employment. Rather than drawing this up yourself, it is best to get the HR or legal department to draw this up for you to make sure it is legally binding and something that both you and your employee can adhere to. Check this thoroughly before you ask your new employee to sign it so that you can make sure it is correct. Things such as duties, hours, and pay are all things that you know better than anyone, even if you are not familiar with the correct contract wording.
Always be professional when working with your employees and think about the way you act and what you say in front of your employees. You may think you are making a light-hearted joke but, in the event you later fire them for whatever reason, your so-called joke could be taken as one of the signs of wrongful termination which could land you in a lot of trouble. It is best to maintain a professional distance from your employees and remain on a less personal footing. This can help you to set boundaries between employer and employee too.
Follow this guide to make sure you stay on the right side of employment law when you hire employees.