Hiring your first employee is an exciting step, but there are a few legal and practical things you must do before they start. Here’s the simple checklist small businesses rely on. 

1. Confirm the job details 

Before you recruit, be clear on: 

  • Job title 
  • Hours 
  • Pay 
  • Responsibilities 
  • Location or hybrid terms 

This clarity helps attract the right candidate and reduces future misunderstandings. 

2. Do your right-to-work checks 

This is a legal requirement for all employers. 

Make sure you copy and securely store the documents. 

3. Issue an offer letter 

Short, simple, professional, this confirms key details like: 

  • Salary 
  • Hours 
  • Start date 
  • Conditions of offer 

4. Prepare the employment contract 

You must issue this on or before day one of employment. 

A compliant contract protects both you and your new hire, setting clear expectations from the start. 

5. Share your employee handbook 

Give your new employee the essential policies, such as: 

  • Sickness 
  • Holidays 
  • Conduct 
  • Data protection 
  • Grievance and disciplinary 

Even small businesses need these. 

6. Set up payroll 

Register the employee with HMRC and organise payroll software or support. 

7. Create a new starter checklist 

This helps you remember: 

  • Emergency contact details 
  • Equipment access 
  • System logins 
  • Induction meeting 
  • Policy sign-offs 

You’ll find one included in HR Foundations.  

Ready to hire with confidence? 

Our HR Foundations package includes all the templates and documents you need, plus a consultation to guide you. 

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As your business grows, your HR documentation should grow with it. Out-of-date contracts, policies and processes create risk and can lead to issues when you least expect them. 

Here’s what every SME should review once a year. 

1. Employment Contracts 

Ask yourself: 

  • Do they reflect current salary and benefits? 
  • Have working hours or hybrid arrangements changed? 
  • Are they still legally compliant? 

Contracts become outdated faster than you think, especially as laws and practices evolve. Contract updates are inevitable and essential.

2. Policies and Handbook 

Check that your policies match how your business actually operates. Common updates include: 

  • Hybrid/remote working 
  • Sickness and absence 
  • Equality and diversity 
  • Data protection 

If your handbook still reflects a pre-growth business, it’s time for a refresh. 

3. Onboarding and Leaver Processes 

Growing businesses often realise: 

  • New starters aren’t getting consistent inductions 
  • Leavers’ documents or access aren’t handled correctly 
  • Holiday and absence records fall behind 

A quick review can prevent mistakes and improve employee experience. 

4. Your HR Tracker 

If you’re using spreadsheets for holidays, absences or training, make sure they’re: 

  • Up to date 
  • Legible 
  • Used consistently 

A simple HR tracker (included in HR Confidence) reduces admin headaches.  

Want a complete HR documentation audit? 

Our HR Confidence package includes: 

  • Full HR documentation review 
  • Updated contracts & policies 
  • Onboarding and leaver process review 
  • HR tracker template 
  • 1-hour follow-up consultation 

Perfect for SMEs with 5–20 employees who want reassurance and readiness for growth. 

Explore HR Confidence 

Hiring your first employee is an exciting milestone. It means your business is growing and you’re ready for extra support. But it also means stepping into the world of HR, and that can feel overwhelming if you’re not sure what’s legally required. 

The good news? You don’t need a huge HR department to stay compliant. But you do need a few key documents in place before your new team member starts. 

Here are the five essential HR documents every small or new employer must have. 

1. A Legally Compliant Employment Contract 

Every employee must receive a written statement of terms and conditions on or before their first day. This is usually provided as an employment contract. 

A clear, up-to-date contract protects both you and your employee. It sets expectations, reduces misunderstandings, and ensures you’re meeting legal obligations around pay, hours, leave, benefits, and notice. 

Many small businesses rely on outdated templates or copy something from the internet, but an inaccurate contract is one of the most common HR risks. A tailored contract gives you peace of mind from day one. 

2. An Offer Letter 

The offer letter confirms the basics: job title, salary, working hours, and start date. It also sets a positive, professional tone and helps your new employee feel confident joining your business. 

It’s also useful if someone needs written proof of employment before their contract is finalised. 

3. Core HR Policies 

You don’t need a full suite of policies at this stage, but you do need the basics in writing, including: 

  • Disciplinary and grievance 
  • Equality and diversity 
  • Health & safety 
  • Data protection/privacy notice 

These are required by law and form the backbone of your HR compliance. They are also a key part of your employee handbook… 

4. A Basic Employee Handbook 

A handbook doesn’t need to be long or complicated; it simply outlines how things work in your business. The essentials usually include: 

  • Sickness and absence 
  • Holiday and time off 
  • Data protection 
  • Health & safety 
  • Code of conduct 
  • Basic well-being or workplace expectations 

This gives employees clarity and ensures consistency. It also helps you, as the employer, handle issues fairly and legally. 

Think of it as the “how we do things around here” guide. 

5. A New Starter Checklist 

When you’re new to hiring, it’s easy to forget the small but essential steps. A checklist helps you stay organised and cover things like: 

  • Right-to-work checks 
  • Payroll setup 
  • Collecting emergency contacts 
  • Sharing company policies 
  • IT or system access 

It also gives your new employee a smooth, structured onboarding experience, which boosts confidence from day one. 

Need Help Getting These in Place? 

Many new employers don’t realise these documents are required or worry about getting them wrong. That’s where our HR Foundations package can help. 

It includes: 

  • A 30-minute HR consultation 
  • Customised employment contract template 
  • Offer letter template 
  • Basic employee handbook, including a set of core HR policies 
  • New starter checklist 

Everything you need to hire confidently, professionally, and legally, without the stress. 

Find out more about HR Foundations 

Book a free HR consultation