First Employee Checklist

Everything to set up before and after you take on your first employee, from PAYE and right to work to pensions and insurance.

Editable Word document
8
10pages
Guidance notes included
aml consultancy solutions

Starting a business

First Employee Checklist

About this document

What it’s for

A step-by-step checklist for a business taking on its first employee. It covers the legal must-dos (right to work, PAYE registration, written statement, pension auto-enrolment, employers’ liability insurance), the true cost of employing someone, and the Employment Rights Act 2025 changes now coming into force.

When to use it

  • When you decide to recruit your first employee (including a director who will be paid through payroll)
  • As a timeline from eight weeks before the start date to the end of the first three months
  • As a refresher whenever you take on someone new

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  • Part 1 – The role and the true cost
  • Employee, worker or self-employed?
  • Worked example – annual cost of a first employee
  • Part 2 – Recruitment (8 to 4 weeks before start)
  • Part 3 – Right to work checks (before the first day of work)
  • Part 4 – PAYE and payroll (4 weeks before first payday)
  • Part 6 – Workplace pension auto-enrolment
  • Part 7 – Insurance and compliance
  • Part 8 – First three months
  • Sign-off

How to complete it

  • Fill in the role details and the cost calculation in Part 1
  • Work through Parts 2 to 7, recording who is doing each action and by when
  • Check every figure in [BRACKETS] against gov.uk for the current tax year
  • Keep the completed checklist with the employee’s personnel file

Key points to check

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Starting a business

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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