PAY
Almost all workers in the UK are entitled to be paid at least the National Minimum Wage. The current rates are: Age Minimum hourly rate 25 and over £7.83 21 to 24 £7.38 18-20 £5.90 Under 18 £4.20 Apprentice (first year) £3.70 You might also read about the ‘National Living Wage’, which is effectively the highest rate of the National Minimum Wage. Then there’s the Living Wage (without the ‘national’), which is set by a separate foundation and is voluntary. The rates for that are £8.75/hour nationally or £10.20/hour in London. Finally, you may decide to offer your staff a basic rate of pay that is topped up by bonuses for achieving certain targets, especially in sales. If you opt to pay your staff like this, make sure that the arrangement complies with employment legislation, and remember, an employee’s overall pay must still meet the National Minimum Wage.
OTHER IMPORTANT STUFF
If by now you’re wondering whether it’s all worth it, bad news, because there’s more… Taking on staff means you’ll have to set up a payroll (most accountants can run this for you), make National Insurance contributions, and – thanks to a new law – employers must automatically enrol workers into a workplace pension scheme if the employee is aged between 22 and pension age and if they earn more than £10,000 per year. Then there’s employer’s liability insurance, which according to Bowkis is ‘a must for employers from day one of taking someone on, as failure to have adequate insurance in place can
‘Don’t forget good old health and safety, and the importance of doing proper risk assessments.’
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lead to large fines’. It’s not expensive, and many providers wrap this into other insurance plans. Don’t forget about good old health and safety and the importance of doing proper risk assessments, either. ‘It really can’t be ignored,’ says Bowkis. ‘The Lawgistics online portal also has a digital health and safety system, which means checks can be undertaken on an iPad and digitally stored.’
GET HELP
There’s a lot to get your head around, and on top of everything else you have to worry about you simply won’t have time to become an expert on HR and employment law. So seek as much help as you can. Seriously consider signing up to Lawgistics or Lawdata. Also, take a look around the Acas website (it has all sorts of practical advice and workshops) and keep an eye on gov.uk for updates to employment law. It may seem like a huge hassle, but as your dealership grows and you take on more staff it’s essential stuff. ‘If you get it right from the outset it’s a lot easier,’ says Bowkis. ‘Treat it as a serious issue from the beginning and you’re less likely to have problems as you go along.’ HowToBeACarDealer | 33