The recruitment minefield

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After a while, a growing practice will need more staff. But Sarah Loates, founder of HR consultancy Loates Business Solutions, says small businesses are often unprepared to take on talent, and end up making  potentially damaging mistakes.



“a lot of new businesses don’t realise they actually have employed somebody,” Loates says. “the difference between casual workers, employees and self-employed workers is not the same for HMRC, and employment tribunals.

There is case law where HMRC has said someone is casual worker an employment tribunal had said they are an employee,”

Generally, if someone is working exclusively for you or is required to come into the office every day, they are an employee. Don’t fall into the trap of forgetting to transfer someone who starts as a casual worker into a permanent role as their work for your company increases