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Recruiting in 2024? What You Need to Know About the Legal Considerations of Hiring New Staff

12 January 2024

As we start the new year, if like businesses across every industry you are planning on hiring new staff, you need to be aware of the legal considerations that come with the hiring process. The recruitment and hiring of new candidates can be complex and time-consuming, but having a clear understanding of the legal requirements involved can help you avoid costly mistakes and ensure that the hiring process runs smoothly. In this article, we’ll cover the legal considerations you and your hiring team need to factor in when taking on new staff.

Hiring and Recruitment Process

It’s essential to ensure that the hiring process is conducted legally and ethically throughout to ensure applicants are treated fairly and are clearly informed about what the role entails. Candidates should have clear guidance throughout their job recruitment process, from completing the application form to receiving their offer letter.

The first step of course is to identify gaps in your company staffing and decide you need someone to fill a particular vacancy. Your hiring team must identify the responsibilities the new employee will have and how the new job will support existing roles, determine the candidate specifications for the role, draft a job description, and decide on a recruitment budget, including not just the salary and National Insurance costs, but also the cost of advertising, recruitment agency fees, attending job fairs and any expenses arising from the selection process.

While a job description does not legally have to exactly match the expected duties in the role, it is good practice to ensure potential candidates are clear about expectations before applying. An accurate job description helps to attract candidates whose skills, qualifications and work experience match the role, and ensures that the hiring team and potential candidates are on the same page when interviews begin. It will also help avoid any future legal conflicts should disagreements arise.

If you decide to use recruitment agencies as part of your hiring process, they should also be provided with an accurate job description and an overview of the expectations for the position to ensure they send you the best candidates from the right talent pool.

Another good practice during the hiring process is to maintain communication with your candidates and provide constructive feedback, whatever the outcome. Even unsuccessful candidates who don’t receive a job offer for existing roles may have skills and qualifications that would be valuable for future roles. If your hiring needs change, having good candidates’ details and information like their LinkedIn profile on file so you can easily contact them to see if they are still interested in your company, can speed up future recruitment and save costs and effort.

Diversity and Inclusion

Employers in the UK must comply with the Equality Act 2010 throughout their recruitment processes. The Act prohibits discriminating against applicants on the grounds of age, disability, gender, marriage status, pregnancy and maternity, race, religion or belief, and sexual orientation. HR departments should ensure that the hiring process is fair, non-discriminatory, and based on applicants’ merit, both to comply with legal regulations and to avoid alienating underrepresented groups within your target candidate pool.

It also important to ensure that job vacancy advertisements are free from discrimination. This means avoiding language that could be deemed discriminatory against potential candidates, such as gender-specific pronouns or phrases that imply a preference for candidates of a certain age or ethnicity. You should also be mindful of the selection process when screening candidates and ensure that qualified applicants are assessed based on their skills and abilities, rather than personal characteristics.

It is also vital that the interview process for your business does not exclude potential candidates due to disability. Under UK law, discriminating against qualified candidates based on disability is not permitted. This extends to the interview process, where the hiring manager should make reasonable adjustments for a candidate to accommodate their disability. This not only ensures legal compliance, but also helps ensure a positive candidate experience if candidates feel they were treated fairly during interviews.

Right to Work in the UK?

Another important aspect of the recruitment process is determining an applicant’s right to work in the UK. Employers should ask the question as part of the application process, seeking confirmation in job interviews if the candidate makes it further along the recruitment process, then conducting ID and other appropriate background checks before making an offer. Copies of relevant documents should be retained as required by the Immigration, Asylum, and Nationality Act 2006.

Employment Contracts

Once you’ve extended a job offer to the candidate and they have accepted, typically the first step of the onboarding process is to issue an employment contract. These contracts are legally binding agreements that set out the terms and conditions of the job and protect both your business’s interests and those of new employees. They should provide a comprehensive guide to an employee’s rights and responsibilities while they work for your business. Some key features to include are:

Written Employment Agreement

Employers should provide their staff with a written employment agreement within two months of their start date. This should include essential details such as the employee’s job title, salary or wage, working hours, holiday entitlement, notice period, and disciplinary and grievance procedures. This written statement serves as a crucial reference point for both companies and staff, ensuring clarity and transparency in the relationship. Whilst terms and conditions of employment can be agreed verbally, it is regarded as poor practice and poses a risk to both parties not to have a signed written agreement in place in the event of disagreement or dispute.

Minimum Wage Compliance

A contract should state the new employee’s salary or hourly wage. Employers in the UK are required to pay their staff at least the National Minimum Wage (NMW) or the National Living Wage (NLW). The rates are updated annually by the government, and organisations must ensure that they comply with these minimum wage requirements. Failing to pay the minimum wage can result in legal penalties, including fines and potential damage to the employer’s reputation.

Statutory Employment Rights

UK job contracts must include provisions that adhere to statutory employment rights. These rights encompass a wide range of protections and benefits, including paid time off, maternity and paternity leave, sick pay, and the right to request flexible working arrangements. Employers are legally obligated to grant these rights and benefits to eligible staff, and they should be clearly outlined in the contract. Failure to provide these statutory rights or attempts to infringe them can lead to legal disputes and liabilities for employers.

It’s crucial for employers in the UK to not only be aware of these key legal requirements but also to regularly review and update job contracts to ensure compliance with evolving employment law and regulations. Clarity and transparency in contracts about rights and benefits foster a sense of trust between a business and its staff, encouraging employee retention and a positive workplace environment.

Final Thoughts

Hiring for new job roles can be both exciting and challenging, and it’s important to ensure that you have the legal framework in place to protect both your employees and your business. By having a clear understanding of the legal considerations that come with taking on new staff, you can avoid costly mistakes, ensuring that the process runs smoothly, and you get the right person on board.

This may include reviewing your existing recruitment process policies and procedures, ensuring that job contracts comply with all relevant legislation, and being mindful of the selection process to ensure that it’s free from discrimination.

How Can Redkite Solicitors Help?

At Redkite Solicitors, we are here to provide comprehensive assistance with any HR and recruitment questions or issues that may arise throughout your hiring or employment process. Our dedicated team of experienced employment law specialists is well-versed in UK regulations, ensuring that your recruitment practices align with legal requirements. Whether you need guidance on drafting contracts that protect your interests, resolving complex HR challenges, or addressing employment disputes, we offer tailored solutions to safeguard your organisation.

With our expertise, you can make informed decisions, foster a fair and inclusive hiring environment, and streamline your recruitment procedures while reducing legal risks. Trust Redkite Solicitors to be your partner in navigating the intricacies of HR and recruitment, allowing you to focus on building a strong and compliant workforce, and a successful, thriving business.