What to do when taking on a new farm employee

Every farm business that employs staff will go through the process of hiring a new recruit at some point, but even employers with experience in this area can fall foul of what is required.
Getting it wrong can be costly and could expose the business to legal claims by the worker.
From providing a written contract setting out the terms and conditions of employment to running a right-to-work check, there is much to consider, says George Miller, a chartered legal executive at law firm Roythornes.
See also: How the Employment Rights Bill will affect farm businesses
As well as established procedures, new laws and obligations must be considered too, he adds, such as the legal duty to take reasonable steps to prevent sexual harassment in the workplace.
We look at some of the key areas that must be covered when hiring.
Contract of employment
An employer has a legal obligation to present their worker with a statement of terms and conditions of the job at the start of their employment.
Some businesses provide a one- or two-page document with terms, such as pay and working hours, in bullet-point form.
While this meets minimum requirements, George advises employers to instead set out terms and conditions in a signed contract to avoid disputes.
“If the employee has a contract they have signed, they can’t dispute that they accepted those terms,” he points out.
A contract is also more detailed and should provide more protection for the employer.
For example, should they want to dismiss the employee during the probationary period, it makes the process easier.
It can also protect in other ways.
“Having a more detailed set of terms should in theory avoid disputes over things such as the employee questioning if they should be paid for certain work, such as overtime,” George says.
“If it is clear in the contract then there can be no argument.”
He also sees offer letters as unnecessary additional paperwork, preferring instead the approach of providing the contract only.
“There are situations where the recruiter will send out an offer letter which the employee signs and accepts the position, and the employer then follows this by sending out a contract.
But if the contract is not signed, the employee can dispute whether they agreed to the terms.
“I prefer the approach of, before the employment starts, sending out a contract and asking the candidate to sign it if they want the job and that by doing so they accept the terms.”
Avoid using an old template, he warns, as in 2020 the government updated legislation on what needs to be included in a job contract.
For example, before 2020 there was no requirement to include information about training, if it is to be offered, and the probationary period.
As a minimum, the contract of employment should include:
- the employer’s name address and place of business
- the employee’s name, address and where they are required to work
- their start date, normal hours and days (and whether or not these can change)
- pay (amount, frequency of payment and any overtime or bonus arrangements)
It should also describe:
- job title and role
- holiday entitlement and holiday pay
- sick leave and sick pay arrangements
- any benefits (whether contractual or voluntary by the employer)
- details of any pension schemes
- notice period on either side, any probation period (conditions and length)
- any training that must be completed by the employee
- confirmation of whether there are any collective agreements with trade unions.
Right-to-work check
Before the employment starts, the business should run a right-to-work check to ensure the person they are taking on is legally allowed to work in the UK.
“This needs to be done before the employment starts because if the employer hasn’t done that check and it transpires that they have taken on someone without a right to work, the fines can be very large,” says George.
A record of the check must be kept.
Employee liability insurance
Employer liability insurance to cover any injuries incurred in the course of the job is a legal requirement for employers of all sizes. This includes family members who are employees.
Health and safety policy
Only businesses that employ five or more staff are legally required to have a health and safety policy but George suggests it is good practice to have one, regardless of size.
There is no obligation to include a separate emergency procedures policy – this can be included within the health and safety policy.
“Employers should definitely have this written down and make employees aware of it to protect themselves legally.”
Tenancy agreements
If the new employee is to live in a dwelling provided by the farm, in England it is preferable for the employer to create an assured shorthold tenancy.
However, there are rules that state a specific document, a Form 9, must be given to the tenant before the tenancy begins.
If this is overlooked they will have more rights as an agricultural tenant, making it more difficult for them to be asked to vacate the property should it be required.
A similar requirement exists in Wales, where the document is known as a RHW2.

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Induction
It is good practice to have an induction to introduce the worker to key policies including health and safety, equality, harassment and use of equipment.
Have a checklist to tick off and ask the employee to sign it at the end of the induction.
It is vital that the employment contract is signed on day one if this hasn’t already been done.
Sexual harassment in the workplace
Employers have recently been put under a legal duty to take reasonable steps to prevent sexual harassment in the workplace and that should probably include having a policy on it, says George.
Cover this during the induction, stating that no tolerance will be shown to sexual harassment, and include it in the checklist document that the employee signs.
Social media policy
Although not a legal requirement, it can be sensible to have a policy setting out what the employer deems acceptable for the employee to post about the business while they are employed there.
“If the employee posts something unwise on social media and it is stated in their profile where they work, it can cause all sorts of problems for the employer,” says George.
Pay and tax administration
Ensure the correct national insurance (NI) code is used. There are many NI codes and every worker has different factors that determine which to use, including age.
If the new staff member is under 21, the farm has no requirement to pay the employer NI contribution, advises Alex Scott-Ruddock, payroll senior manager at accountant MHA.
Here, NI code M should be used.
If the recruit is coming on board as part of an apprenticeship and that is stated within the job contract, NI code H is applicable if they are under 25.
Again, there is no employer NI to pay during their apprenticeship until they turn 26.
When their 26th birthday falls within that tax year, they will switch to NI code A.
Pension scheme auto-enrolment
Employers can postpone pension scheme auto-enrolment for new starters for three months, but getting that process wrong can be costly for the business.
Key is ensuring that the employee receives all the necessary communications, says Alex.
First, establish if the worker is eligible to be enrolled – they must be an eligible job holder, earn more than £10,000, and be aged between 22 and the state pension age of 66.
If they are eligible and the farm wishes to postpone auto-enrolment, a letter advising the employee of this must be sent by the employer within six weeks.
This gives the worker the choice to opt in during that postponement period, says Alex.
If the employer fails to send the letter within that timeframe, they will have to backdate their contributions to day one.
If there is no postponement, the business must ensure the assessment for eligibility has been correctly done, which most payroll software will do, says Alex.
The employee has the right to opt out but a deduction must be made in the first month, and the pension provider informed that they have joined.
“Those two things have to be done before the employee can opt out.
“The 30-day opt out window can only begin after the employee has been assessed to be an eligible job holder and they have been sent a pension joining pack by the pension provider.
“In most cases, the employee will have to inform the pension provider that they wish to opt out as this ensures there is no employer persuasion.”
Tax code
The employer should be advised of the relevant tax code by receiving a P45 from the worker’s former employer or by the employee completing an HMRC starter checklist.
Employee handbook for policies
Any employer should have an employee handbook setting out all relevant policies to the worker’s employment, including an attendance management policy.
Employers are advised not to include policies in the contract, otherwise a contractual procedure is created as opposed to a policy which can be flexed.