Hiring your first employee in the UK: an employer checklist

What do you need before hiring your first employee?

Hiring your first employee is a big step for a small business. Get the basics ready before the start date: a clear role and budget, a right-to-work check, payroll, insurance and written terms. This first-hire checklist takes you through the key steps and what to prepare first.

Before you recruit

1. Define the role. Set out duties, essential requirements, hours, location, reporting line and pay.
2. Plan the budget. Include salary, employer National Insurance, pension contributions, holiday, equipment, training and insurance. Check current rates with HMRC.
3. Choose the right working arrangement. Status depends on the real working relationship, not the label in a contract. Employees, workers and genuinely self-employed people have different rights and responsibilities. If you are unsure, check the status before choosing terms or setting up pay.
4. Recruit fairly. Use role-related criteria consistently and avoid discriminatory questions or requirements.

Before the first working day

• Check the right to work. Complete the required check before employment begins and keep the prescribed record. Follow the current Home Office process.
• Register for PAYE if needed. Set up payroll with HMRC and arrange timely reporting of pay and deductions.
• Arrange employer’s liability insurance. Most employers must have cover of at least £5 million from an authorised insurer. Check any exemption before relying on one.
• Prepare written terms. Give the principal written statement of employment particulars on or before day one. Some wider particulars can follow within two months. It is not a substitute for a complete contract where one is needed.
• Plan workplace pension duties. Assess staff and comply with automatic enrolment duties where they apply.
• Cover health and safety. Assess risks, provide suitable information and training, and make the workplace and equipment suitable.

On and after the first day

Welcome the employee, explain the role and reporting arrangements, provide equipment and training, and cover relevant safety procedures. Show them how to report sickness, request holiday, raise concerns and find workplace policies. Confirm their written terms and explain any probation or review arrangements.

Set reminders for payroll, pension duties, training, probation reviews and any time-limited right-to-work checks. Keep working-time, holiday and personnel records accurately and securely. A planned check-in during the first few weeks can catch unclear expectations or missing support early.

First-hire checklist

1. Confirm the role, status, pay, hours and budget.
2. Recruit using clear, fair criteria.
3. Complete a right-to-work check before work starts.
4. Set up PAYE and payroll reporting.
5. Arrange insurance, pension and health and safety duties.
6. Give written terms on or before day one.
7. Prepare induction, training and workplace policies.

Before you confirm the start date, check the current requirements for your role and sector. The government’s GOV.UK first-employer checklist covers PAYE, insurance and pension duties. You can also read our guide to HR policies for a small business or GOV.UK written-statement requirements.

Which policies should be ready?

Explain how to report sickness, request holiday, raise concerns and find disciplinary, grievance and safety procedures. Choose policies that fit the work rather than buying a large generic handbook. Our small-business HR policies guide helps you prioritise.

Avoid leaving the paperwork until day one

Missing checks, unclear terms and an unplanned induction can create problems before the employee settles in. Adept HR can help prepare employment documents and manager processes ahead of the start date.

For the next stage, read our recruitment and retention guide.