Starting a Business in Scotland
STARTING A BUSINESS IN SCOTLAND - THE LEGAL SIDE
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Having done all your market research, secured funding, found your ideal premises and started the interview process for staff, you may be starting to wonder what exactly you've taken on! There's so much red tape to manage and it's becoming increasingly difficult for employers to gain a proper grasp of all employment law issues relating to their staff and contractors.
This article provides you with a brief overview of the main issues which new businesses should address when engaging employees and contractors for the first time.
Recruitment
Carefully consider the content of job advertisements and where and how positions are advertised. In particularl you need to ensure your recruitment practices are not discriminatory. Employers should put in place appropriate procedures for recruiting staff, including recording information accurately. This will ensure that you can demonstrate, if necessary, that your decision to employ (or more likely, not employ) any individual was fair.
Statement of Terms & Conditions of Employment
All employees engaged directly by the employer must be issued with, as a minimum, a Statement of Terms and Conditions of Employment within two months of starting their employment. This Statement should include details relating to their start date, job title and duties, hours or work, rate of pay, pension entitlement, holiday entitlement, place of work amongst other particular details. This Statement will be the principal document regulating the terms of engagement of your employees and therefore, it is important that this document:- meets the minimum statutory requirements in terms of the details which must be included in the Statement;
- is issued to your employees and signed by both parties; and
- includes details of any additional contractual benefits applicable to employees for example, bonuses, commission, company car or company sick pay.
Employee Handbook
Whilst the Statement of Terms & Conditions of Employment will be the main document regulating employees’ employment, there are also a number of work-related policies which should be put in place. It is best practice to have an Employee Handbook as a “one stop shop” for all the relevant policies. As a minimum, policies and procedures in relation to disciplinary issues, grievances, equal opportunities, family related policies such as maternity leave and paternity leave should be included in the Employee Handbook. There may be additional policies, for example, whistleblowing, email and Internet use, company vehicle policy, alcohol and drugs policy etc. that should be included, depending on the size and needs of your business.
Director’s Service Agreements
It is of vital importance that where the business is incorporated, Directors are issued with and enter into Service Agreements. Such service agreements should address all the matters in the Statement of Terms & Conditions of Employment as well as stipulating additional duties as a Director and officer of the Company. The Service Agreements may also require approval of the board depending on the circumstances.
Contracts for Services
If your business intends to engage independent contractors on an ongoing basis, eg, joiners, maintenance people, cleaners etc, it is best to set out the basis on which these people are engaged to ensure that no employer/employee relationship could be inferred. You must also give consideration to whether these contractors could fall within the definition of “worker” for the purposes of some employment legislation, for example, the Working Time Regulations, which may entitle such contractors to holidays and holiday pay.
Data Protection
You should be mindful of the fact that you will be gathering and processing personal information in relation to your employees. You must ensure that the provisions of the Data Protection Act 1998 are complied with in relation to the storage and use of this information.
Health & Safety
Employers have a paramount duty to ensure the health, safety and welfare of their employees. Employers must remember that a risk assessment of each of the positions within the company must be conducted and the ongoing monitoring of fire safety and of the health & safety of the employees must be maintained. In that regard, employers must also put in place employer’s liability insurance.
Keep yourself up to date with the provisions of employment law, particularly relating to dealing with grievances, disciplinary issues and termination of employment.
UK employment law has become increasingly burdensome, complex and also ever changing. Employers should not hesitate to seek professional advice in dealing with employee complaints or disciplinary action so as to avoid any potential claims.
This information has been taken from Bggart Baillie website dact sheet. It in no way offers any advice and is a generalisation.
For a free consulation please contact Biggart Baillie or visit their website www.biggartbaillie.co.uk
This information has been taken from Bggart Baillie website dact sheet. It in no way offers any advice and is a generalisation.
For a free consulation please contact Biggart Baillie or visit their website www.biggartbaillie.co.uk
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