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What are the employment law considerations when hiring staff?

Employment status, the checks to do before someone starts, what you owe them from day one, and the Employment Rights Act 2025 changes arriving in 2026 and 2027.

  • England
  • Wales
  • Scotland

The short answer

First decide whether the person will be an employee, a worker or genuinely self-employed, because that sets their rights and your tax duties. Before they start, check their right to work and, for a CQC-registered service, complete the recruitment checks the regulations require. From day one you must give a written statement of terms, pay at least the minimum wage, provide paid holiday, enrol eligible staff in a pension, run PAYE and hold employers' liability insurance.

Key points

  • Employment status (employee, worker or self-employed) decides which rights apply, and tax status is assessed separately.
  • You must check a job applicant's right to work before they start. The civil penalty is up to £60,000 per illegal worker.
  • Employees and workers must get a written statement of their main terms on their first day.
  • From April 2026 the National Living Wage is £12.71 an hour for workers aged 21 and over, at the time of review.
  • The Employment Rights Act 2025 is being phased in. The qualifying period for unfair dismissal falls to six months for dismissals from 1 January 2027.

Employee, worker or self-employed?

Decide this first, because it sets the person's rights and your obligations. GOV.UK describes several types of employment status, mainly:

  • Employees, who have the full set of rights, including unfair dismissal protection once they qualify, redundancy pay and statutory leave.
  • Workers, who get core rights such as the minimum wage, paid holiday, rest breaks and protection from discrimination.
  • Self-employed contractors, who run their own business and have few employment rights.

Receptionists and practice managers working regular hours under your direction are almost always employees. Sessional GPs may be self-employed, but calling someone self-employed does not make them so. The reality of the arrangement decides. Tax status is assessed separately, and HMRC's Check Employment Status for Tax (CEST) tool gives HMRC's view. Courts and tribunals make the final decision on employment status.

Before they start

  • Advertise and select fairly. The Equality Act 2010 protects job applicants. In general you must not ask about an applicant's health before offering the job, except in limited circumstances.
  • Right to work. Check it before employment starts, using an online share code, the original documents or an identity service provider using identity document validation technology. Keep copies for the length of employment and two years after. The civil penalty for employing someone without the right to work, without having done a correct check, is up to £60,000 per worker.
  • CQC recruitment checks. In England, regulation 19 requires you to employ only fit and proper people and to hold the information in Schedule 3: proof of identity with a recent photograph, a DBS check where required, evidence of conduct in previous health or care jobs, relevant qualifications, a full employment history with an explanation of gaps, and relevant health information. See DBS checks.
  • Immunisations. Clinical and patient-facing staff need a pre-employment health assessment covering immunisations. See immunisations for your staff.

What you owe from day one

DutyWhat it means
Written statementA principal statement on the first day, covering pay, hours, holiday, place of work, probation, training and other core terms, plus information on sick pay, other paid leave and notice. A wider statement on pensions and disciplinary and grievance procedures within two months.
Minimum wageFrom April 2026, £12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20, and £8 for under-18s and first-year apprentices, at the time of review. Rates change every April.
Holiday5.6 weeks' paid holiday a year, which is 28 days for someone working five days a week, pro rata for part-time staff.
Working timeNo more than 48 hours a week on average unless the worker opts out, and statutory rest breaks.
PAYERegister with HMRC as an employer before the first payday.
Workplace pensionEnrol staff aged 22 to State Pension age who earn at least £10,000 a year and normally work in the UK, and contribute at least 3% of qualifying earnings.
Employers' liability insuranceAt least £5 million of cover from an authorised insurer from the day you become an employer, with the certificate available to staff.
Health and safetyA risk assessment, induction and the HSE law poster or leaflet. See the health and safety poster.

Since 6 April 2026, Statutory Sick Pay has no lower earnings limit or waiting days. Check the current rules and rates on GOV.UK when you set up payroll.

Contracts, handbook and policies

Use a written contract that goes beyond the statutory statement. For a clinical setting, include confidentiality, data protection, professional registration where relevant, and a probation period. Put your policies in a staff handbook: disciplinary and grievance, following the Acas Code of Practice, sickness absence, equal opportunities, health and safety, whistleblowing and raising concerns, and social media. Staff personal data, including health information, must be handled in line with UK GDPR. See GDPR in private practice.

Changes under the Employment Rights Act 2025

The government is phasing in the Act. Its published timetable, which may still change, includes:

  • 6 April 2026: day-one paternity leave and unpaid parental leave, and the changes to Statutory Sick Pay.
  • 1 October 2026: the time limit for most employment tribunal claims rises from three to six months.
  • 30 October 2026: employers must take all reasonable steps to prevent sexual harassment of their employees, and must not permit harassment by third parties such as patients.
  • January 2027: the qualifying period for unfair dismissal falls to six months for dismissals from 1 January 2027, the compensatory award cap is removed, and fire and rehire protections begin.
  • Later in 2027: changes to flexible working, bereavement leave and guaranteed hours, among others.

The practical effect for a small practice is that probation periods and early performance conversations matter more. See managing staff performance.

Getting help

Acas publishes free guidance and a helpline for employers. An HR adviser or employment solicitor can draft your contracts and handbook, which is worth the cost for a first hire. For the roles you might need, see staff for a private GP service.

Scotland, Wales and Northern Ireland

Employment law is largely the same in England, Scotland and Wales, although some tribunal procedures differ in Scotland. Northern Ireland has separate employment legislation, and the Labour Relations Agency provides advice there. Check which rules apply before you draft contracts.

Frequently asked questions

Can I employ someone on a zero-hours contract?

You can, but zero-hours staff are usually workers, with rights to the minimum wage and paid holiday. The Employment Rights Act 2025 will add rights to guaranteed hours and notice of shifts, with timings still to be confirmed.

Do I need a contract for a self-employed sessional GP?

Yes. A written agreement should set out services, fees, indemnity, access to systems, and responsibilities for records and governance. Check employment status for tax with HMRC's CEST tool.

How long should a probation period be?

The law does not set one, so choose a length that gives you time to assess the role. With the unfair dismissal qualifying period falling to six months from January 2027, hold proper probation reviews and record them.

Do I need to offer a pension to part-time staff?

You must enrol those who meet the age and earnings criteria. Staff below the earnings threshold can ask to join, and you must put them in within a month of the request.

Sources

  1. Plan to Make Work Pay and Employment Rights Act: timeline updateDepartment for Business and Trade (GOV.UK) · gov.uk · Accessed
  2. National Minimum Wage and National Living Wage ratesGOV.UK · gov.uk · Accessed
  3. Employment contracts: written statement of employment particularsGOV.UK · gov.uk · Accessed
  4. Checking a job applicant's right to workGOV.UK · gov.uk · Accessed
  5. Penalties for employing illegal workersGOV.UK · gov.uk · Accessed
  6. Set up and manage a workplace pension schemeGOV.UK · gov.uk · Accessed
  7. Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, Schedule 3legislation.gov.uk · legislation.gov.uk · Accessed
  8. Employment statusGOV.UK · gov.uk · Accessed