We’ve put together our top 10 tips to think about when setting up your dream team:

1. Classify your team members correctly

In the beginning, correctly classifying your team members as employees, workers or consultants is vital. This ensures that they have access to their rights and benefits while also protecting you from potential legal challenges. Depending on whether you want to hire an employee, consultant or independent contractor, you need to make sure you have the right documentation in place to make it clear what the type of relationship it is. There are also rules around IR35 that founders should bear in mind. For example, even if you have a consultancy or a contractor arrangement in place, if an individual meets certain criteria, they can still be considered an employee. Such ‘misclassification’ could lead to challenges and penalties, especially from the HMRC. Speak to one of our consultants about this if you’re unsure.  

2. Set up your first employees the right way

Before you welcome your first employee several foundational steps must take place such as creating a UK bank account and registering with HMRC. Every employer mustget employer’s liability insurance to allow you to pay compensation if an employee is injured or becomes ill because of the work they do for you. Your policy must cover you for at least £5 million – although most policies provide £10 million cover. Without this insurance, you could face massive fines of up to £2,500 per day.  

3. Ensure you comply with UK data protection rules

Every company in the UK must register with the ICO (Information Commissioners Office) and pay the data protection fee, to ensure lawful handling of your teams' data. There are certain rules around how you handle and process data of your employees as well as clients and suppliers. A thorough review should take place as soon as possible to ensure that you have the appropriate policies, procedures and safeguards in place to ensure that you are and continue to be compliant.

4. Get your employee benefit plans and schemes set up properly

Being an employer means planning for the future. Providing employee benefits and establishing pension plans are the key steps to do just that. SuLe is here to support you in creating contracts that meet your needs without overwhelming your business.

5. Respecting Legal Employment Rights

It is vital to comply with the requirements surrounding employment contracts and basic employee entitlements. We will help you create contracts that uphold those rights while also safeguarding the interests of your business.

6. Protecting Employee Rights, from Day One

Develop a workspace that promotes diversity and ethical behaviour. At SuLe we assist startups in cultivating a work environment that complies with the law whilst fostering growth.

7. Navigating Employee Rights and Protections

Understanding matters such as dismissal rules or whistleblowing requires expertise and sensitivity. SuLe can serve as your trusted partner in addressing these issues.

8. Get the share distribution right from the start

Determining how equity should be distributed among co-founders and early employees requires consideration. A shareholder's agreement is a must to avoid misunderstandings in the future, whilst selection of appropriate employee share scheme (if you wish to have one) is crucial to ensure that your expectations in this regard are met. Join us in our series where we explore the depths of finding the solution ensuring that the core team of your start-up feels valued and fairly compensated.

9. Ensure that team contracts have appropriate IP provisions

Your company's intellectual property is super important. It’s what investors pay the highest premium for and it’s what you should invest money and time in protecting. Many founders make the mistake of not protecting it early on and facing challenges down the line. If you have trademarks, or wish to protect your logos, name or patent any invention – speak to us! You should also ensure that your employment, client and supplier contracts protect your IP rights to the maximum extent possible.

Under English law, if an employee, consultant or contractor creates something on behalf of the company, without strong assignment provisions in place, that creator owns the IP. This means that your company may not own the fantastic IP it has paid for! Collaborate with us to create agreements that secure your IP, promote beneficial relationships with contractors and safeguard the foundation of your business.

10. Include post-termination protection in your contracts

Ensuring a conclusion to a working relationship requires planning. SuLe can assist you in creating agreements that respect rights while protecting your business interests after termination of your various relationships.

Embarking on your journey doesn't have to be intimidating. SuLe is here to provide guidance and expert advice to help you build a team and nurture your long-lasting dream. Let's cherish the path of your start-up together by crafting a roadmap that honours the individuality of your journey while securing its’ future.  

Reach out to us. Explore a partnership built on understanding, expertise and a shared vision, for success.

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