1. Complete a data mapping exercise

Right from the beginning stages of your start-up journey it's essential to consider whether you will be collecting data. This initial step forms the basis for understanding the extent of your data protection obligations. Whether your start-up involves data processing or primarily focuses on employee information, conducting a data mapping exercise lays the groundwork for a robust compliance program.

Besides assisting in identifying your responsibilities, it also helps evaluate the potential risks that your business might encounter.

2. Understand your company’s legal basis for processing personal data

The UK General Data Protection Regulation (“GDPR”) mandates that companies must establish a basis for processing personal data, ensuring that such processing is lawful, fair and transparent. There are six options including obtaining consent, fulfilling legal obligations, performing contractual duties, vital interests such as protecting someone’s life, a public task or for a legitimate interest. Each legal basis has its requirements. Therefore, it is crucial to determine which legal foundation your start-up will rely on before engaging in any collection of data.

3. Consider a privacy notice and cookie notifications

According to the GDPR, companies are obligated to provide individuals with information when collecting and processing their data. This is typically achieved through a privacy policy on your website. If your website collects data from users (and yes, this includes having your contact details on the website), it is essential to display a privacy notice that complies with the GDPR guidelines. Additionally, if your website uses cookies, you must inform users about their usage and obtaining their consent. Keep in mind that these disclosures often undergo scrutiny by regulators, therefore, it is important that start-up founders and entrepreneurs make them a top priority right from the start.

4. Establish and maintain privacy compliance documents, policies and procedures

For companies involved in handling data, it is essential to establish and maintain privacy compliance documents, policies and procedures. These may include a Record of Processing Activities and an employee privacy notice. The specific requirements for your compliance documents depend on the nature and extent of your business operations. There is no: one size fits all solution so seeking expert guidance to create a customised compliance roadmap is crucial.

5. Consider legal rules for international transfer of data

Strict regulations govern the transfer of data across borders. If your start-up intends to transfer data from the UK to regions that do not offer levels of data protection additional safeguards must be implemented. These safeguards may involve using clauses and supplementary security measures such as encryption and access controls. During the process of mapping out your data flows it is important to assess how and where your data travels to determine the need for safeguarding measures.

6. Get legally required employment policies

There are certain requirements for companies to have employment policies and contracts. Such policies include a grievance procedure policy, health and safety policy (required for companies with five or more employees) as well as whistleblowing policy (applicable to regulated and listed companies). You want to make sure that you start off with an appropriate employment agreement as it is difficult to change this employee’s agreement once it has been entered into. Also consider the process of hiring your first employee, such as registering for HMRC for PAYE, setting up payroll, getting employer’s liability insurance, and implementing your policies and employment contract.  

7. Consider other policies to help build a diligent company

Not all policies are legally required, but if you are looking to build a diligent, compliant company then there are some policies which you may want to consider. These policies include family leave, flexible working arrangements, IT and communications guidelines, anti-corruption and bribery measures, modern slavery policies, as well as environmental social and governance practices. By having these policies in place, you can provide clarity and legal protection while promoting consistency throughout your business.

8. What to consider in your employee handbook

In the world of start-ups, clarity and consistency are paramount. An Employee Handbook is more than just a document; it's a roadmap to streamlined operations and a harmonious work environment. Customise policies based on the nature and size of your business, covering areas such as sickness and absence management, holiday entitlements and expense procedures. It's important to mark these policies as non-contractual to maintain flexibility.

9. Get employer’s liability insurance

Protect your business by ensuring you have employers' liability insurance which is a requirement for all employers in the UK. This coverage is essential, not just by law, but you also want to make sure you are protected in situations involving employee injuries or illnesses, so that your company funds are not in jeopardy and are covered by insurance funds.  

10. Ensure employees have written terms and the right to work in the UK

When managing employee matters it is crucial to comply with the law by verifying that all employees have the right to work in the UK. Make sure each employee has written employment contract before they start working. It's also important to enrol employees in a pension scheme and follow the regulations on working time regulations while keeping records of all. You should know that employees should not legally work longer than 40 hours per week without voluntarily agreeing to do so in writing.  

This list is by no means exhaustive and aims to give you an overview to kick off your business. For specific, bespoke support please book some time with one of our experienced lawyers for a competitive upfront fixed fee.  

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