Skip to Navigation Skip to Content
Back to blog

Expanding your business – Becoming an employer

March 24, 2016 featured image

You’re in the trades, business is booming, there is more work than you can actually take on and you feel like you’re missing out. is it time to employ someone…

Becoming an employer may seem like a straightforward process. Put out and ad, know someone handy, hire them and that’s that.

Well employing someone for the first time requires you to think about a few things …

  • Level of experience to take on
  • Cost
  • Background checks
  • Insurance
  • Employment statement
  • Workplace pention

Level of experience

You need to decide what level of experience you are looking for from an employee coming to work for you. This person will represent your business and will either need to be thrown in at the deep end or is perhaps more of a long term project.

  1. Take on someone who is fully qualified and has plenty of experience

Taking on someone with experience and qualifications will help with the workload straight away but they will expect a decent starting salary.

  1. Take on an apprentice

If you decide to take on an apprentice you are taking on a long term commitment. It will take a while before they have enough skill and knowledge to be useful to your business.

However you will be able to train them to meet your own standards and can get financial help. You can find more information on hiring an apprentice – Here


Make sure you can actually afford to pay someone. It may seem obvious but planning ahead and making sure that you have enough cash flow is crucial.

You must be able to meet the requirements of the minimum wage rate. You will have to contact HM Revenue and Customs and register as an employer before the first payday. This can take up to two weeks.

electrician and employee

Background Checks

You need to know if a potential employee has the right to work in the UK. Papers that should be checked are listed on the website.


You must get Employers’ Liability insurance as soon as you become an employer. Your policy must cover you for at least £5 million and come from an authorised insurer.

This is important as you can be fined £2500 every day you are not properly insured.

You can read our guide to insurance here.

Employment Statement

When your new employee starts you must provide them with a written statement of employment. This must be provided within two months of the start of employment.

The statement should include how much they will be paid, holiday entitlement (normally 20 days plus bank holidays), hours of work and if they will have to do overtime.


Workplace pension

New pension rules mean that you will have to enrol a person on a workplace pension if they are aged between 22 and the state pension age and earn at least £10000 a year.

You can find more information on pensions here.

If you would like to learn more about employing people you can find detailed information Here.

Newsletter Sign Up

For industry news, special offers and the latest from our centres, sign up to our mailing list

    Sign me up for the newsletter!