With Jeremy Clarkson’s launch of his new pub – the Farmer’s Dog – a key feature in the latest season of Clarkson’s Farm, he found a new challenge in recruiting and maintaining a larger and more varied workforce.
For many farmers looking to diversity with hospitality and retail ventures, the idea of serving flat whites or selling local produce from a converted barn may seem appealing, it also ushers in a host of new legal responsibilities – especially around employing staff.
Thrings Employment Partner Natalie Ward runs through some of the essentials to consider before taking on a new workforce.
Payroll and HMRC registration: Getting the basics right
Even if you’re only taking on one or two employees, you’ll need to register as an employer with HM Revenue & Customs (HMRC) before the first payday. You’ll also need to operate PAYE (Pay As You Earn) to collect Income Tax and National Insurance.
Managing payroll in-house is possible with the right software and diligence, but many small businesses opt to use an outsourced payroll provider for peace of mind. Either way, getting this right from the outset is key to avoiding penalties or disputes later down the line.
Contracts, policies and procedures
Anyone you employ must receive a written statement of employment particulars by the time they start work. This doesn’t need to be a long-winded contract, but it must cover certain key details like pay, working hours, and job duties.
Alongside the contract, you’ll want to have a few basic policies in place. The essentials include:
Clear policies not only help protect your business – they also build trust and professionalism among your team.
Employer’s liability insurance
If you’re employing anyone – even just part-time help – you are legally required to hold Employer’s Liability Insurance with a minimum cover of £5million. This protects you if an employee suffers illness or injury while working for you.
It’s worth checking with your current agricultural insurer whether your existing cover is suitable for your new business activities, or whether additional cover is needed. For example, opening a public café or shop may require public liability insurance too.
Working conditions
Unlike traditional farming work, which is often seasonal and outdoors, hospitality and retail roles tend to involve more regular hours, customer interaction and shift-based work. This raises some additional risks and responsibilities:
Knowing the minimum employment rights
Regardless of how informal your set-up may seem, employment rights apply from day one. Key entitlements include:
It’s important not to assume that casual or part-time workers are exempt from these rights.
Regulatory compliance
Finally, don’t forget the sector-specific regulations that may apply to your new venture. These include:
The early involvement of legal and professional advisers can help ensure your diversification ambitions don’t get derailed by red tape.
Diversifying with confidence
Diversifying into hospitality or retail can breathe new life into your farm and open exciting opportunities for growth. But as with any new venture, the devil is in the detail – and employment law is one area that should not be overlooked.
By putting proper structures in place from the outset, you’ll be better equipped to recruit and retain staff, manage risks, and focus on what matters most: building a thriving new arm to your rural business.
Thrings’ Employment lawyers are experienced in dealing with business matters that affect the workforce across a wide range of employment matters and sectors. To find out how they can help strengthen your polices, and solve your disputes, please get in contact.