Business Mentor: Hiring staff not as scary as it seems

We run a business from home and now need to think about hiring staff for our peak periods. But it sounds very complicated. Is it?

Philip Kotze, from AdviceWise People, replies:

There are challenges in taking on staff for the first time, but your business will never reach its potential unless you do it.

We say take the plunge, but carefully, starting with casual staff until you know exactly what your needs are.

You need to follow a few key points when taking on casual staff.

You must have an employment agreement by law, even with casuals.

It can be quite simple but must feature at least the names of the employer and employee, a description of the work and where it is to be carried out, hours of work, wages and a plain-language explanation of dispute resolution services, including a reference to the 90-day period for submitting a personal grievance.

Casuals work day-to-day. This means you do not need to offer them work each day but they also have the right not to accept an offer of work.

If you entrench hours of work and it becomes regular (such as with a roster) then they become permanent staff.

You do not need to accumulate holiday pay for casuals but you still need to pay it to them. It should be noted as a separate element in the pay calculation (6 per cent of earnings).

Casuals do not have statutory days off and you do not need to pay extra for work on public holidays.

The business area of your home will have to comply with the Health and Safety in Employment Act.

It is mainly just good sense, but check out the Department of Labour website for rules that may apply to your type of business.

Even office environments have Occupational Safety and Health rules.

If you are not registered for PAYE contact the IRD (or your accountant). Also ask about any ACC implications.

Call your local council for any bylaws regarding businesses operating from home and employing non-resident staff.

In no time at all you will be ready to place an advertisement for your first employee.

If you are looking to take on permanent, full-time or part-time, or fixed-term, employees you will have more obligations towards them, including such things as holiday pay and special leave.

But following simple procedures can make this easier than you think.

Good luck.

* Philip Kotze is the chief executive of AdviceWise People, an employment law and management firm working with small to medium businesses. Ph: 0800 692-384.


* Send Mentor questions to: ellen_read@nzherald.co.nz. Answers will be provided by Business in the Community's Business Mentor Programme.



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