Although a CIC (community interest company) is a hybrid of a for-profit corporation and a charity, many of the rules for employing people are the same as a regular company.
In this blog, we’ll review some rules and laws governing the employment of people in a CIC.
1. Paying your staff wages
The most effective way to make sure everything is taken care of and recorded properly where payroll is concerned is to use payroll software. Whether you operate the software yourself or you have a contractor do it for you, payroll software ensures that all wages are paid, taxes are handled, and there’s a record of every paid minute.
2. Carry Out Employment Checks
An employment check will help you find if someone is legally allowed to work in Great Britain. This is a requirement to ensure that everyone working in the country is here legally. You may need some other legal background checks, such as an eye test for a commercial driver.
3. Do you need to DBS check potential employees?
You can do a Disclosure and Barring Service (DBS) check on applicants and employees. This will tell you if the person has a criminal record that might bar them from employment. There are additional levels of information for people who work with children or in health care.
You only need to do a Criminal Records Bureau check if the employee will work in a safeguarded field, like childcare, health, or eldercare. Otherwise, it’s optional and based on your company’s needs and policies.
4. Get employer’s liability insurance
Employers’ liability insurance provides business protection from litigation and compensation costs resulting from employee claims. It’s crucial insurance since you might be held responsible if one of your employees gets sick or hurt while working for you.
As an employer, it is imperative to uphold your duty to ensure the health and safety of your employees. A claim could result from anything as simple as closing one’s hand in a door. Employers’ liability insurance can safeguard the viability of your company because accidents do occur.
5. Statement of Employment
A legally binding agreement is one that is made in a contract between an employer and a worker. This can be a “contract of service” or “contract of employment.” You can agree to a contract either orally or in writing.
A “written statement of employment particulars” is a legal privilege for everyone who is classified as an employee or worker, except those who were employed after April 2020. The primary terms of an individual’s employment, such as pay and working hours, are included in a written statement.
If they began working for the company prior to 6 April 2020, those who are classified as workers legally do not have the right to a written statement.
The term “employment contract” is frequently used to describe this agreement. However, the written statement is not the only part of the employment contract as defined by law. Verbal statements can also be included in the contract.
While employment laws are part of the employment contract, it doesn’t need to be in the contract. It’s assumed to be part of the contract by virtue of being a national law that everyone must follow.
6. Registering status as an employer
When you hire employees, you often need to register with HM Revenue and Customs (HMRC) as an employer. Even if you only hire yourself, as the sole director of a limited company, you still need to register.
Before the first pay period, you must register. Receiving your employer’s PAYE reference number can take up to 5 working days. You cannot register more than two months before your first payroll.
7. Do you need to set up a workplace pension?
Every business in the UK is required under the Pensions Act 2008 to enroll some employees in workplace pension plans and make financial contributions to those plans. Automatic enrolling is the term used for this. You are an employer with legal obligations if you have at least one employee.
Contact us for Help!
If you have questions about any of the rules, laws, and best practices you should put in place as an employer and a CIC, please contact KG Accountants on 0207 953 8913. We’re here to help you do everything you’re legally required to, quickly and easily.
Call us today on Tel: 0207 953 8913 or complete our enquiry form in order to book a FREE initial consultation