When setting up your own company, if you are thinking of employing staff, there will be, as an employer a number of things you have to consider. In fact, if you fail to follow the correct procedures you may incur penalties.

For example, male and female employees doing the same or similar job should be paid at the same rate and given the same terms of employment. The rate and terms should only be different if there is a non-gender based reason for it (such as a pay award for length of service).

If an employee becomes a parent or adopts a child while working for you they may be entitled to a variety of payments including Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP) or Statutory Adoption Pay (SAP). You may also be required to allow for flexible working hours for employees with children.

There are various rules too in relation to holiday entitlement and sick pay.