Contracts of Employment and rules and regs?
Submitted by Lee.Garside on Wed, 24/03/2010 - 12:03
I have set up a small network of blogs with five friends. Our enterprise is growing and we are bringing in enough revenue to employ my friends full-time. Do I need to issue them with contracts? Also, even though there are only six of us and we are friends, do we still need to have formal rules and procedures?
You need to issue a statement
You need to issue a statement of the main terms and conditions to anyone you employ, whether full-time or part-time, This document sets out the main details of your contract and is a legal requirement. You should provide this within two months of someone starting work. This does not change just because your employees are your friends.
The purpose of the documentation is to ensure everyone knows the rules, so that disputes are avoided. Just because you are all friends now does not mean you will stay that way. The documentation will ensure that everyone knows where they stand.
Set out all your terms and policies clearly and pay particular attention to any terms you want to introduce, such as non-competition clauses. While you can hope for the best, you should plan for the worst. You need to consider the possibility of one of your friends deciding to leave to work for a competitor and trying to take some of your employees and clients with him.
In addition to protecting against doomsday scenarios, clear policies and procedures help ensure the general smooth running of the business. Make sure you have a clear holiday policy, otherwise everyone could book leave at the same time. Consider what you will do if someone in your mutual circle of friends gets married and everyone wants to attend.
Documentation helps to make it clear that this is a business and that everyone must act accordingly.
The answer sourced by Peter Done of Peninsula Business Services. www.peninsula-uk.com or email lee.garside@peninsula-uk.com
I work at Peninsula Business Services Limited, who have 24,000 businesses already intergrated to work as part of their HR and Health an Safety functions. For further help contact me on 01618279918 or email lee.garside@peninsula-uk.com ref TLF01