There are two things that every employer needs to know about employment law: it is complicated, and there is a lot of it. Having the appropriate policies and contracts in place from the beginning can certainly help avoid future problems.

INITIAL CONSIDERATIONS

You need to know who you are looking for, and why. Advertising for candidates must not be discriminatory. Do not forget about indirect discrimination: advertising for persons who meet a specific criterion could also be discrimination.

Try to establish standard, objective selection criteria when choosing which candidates to interview, so that you can produce evidence of the objectivity of the process.

When inviting candidates, ensure that disability discrimination legislation is considered. If your interview room is inaccessible or has features which may be associated with disability discrimination, consider informing candidates.

THE JOB OFFER

When offering the job, consider: is a fixed-term contract appropriate? Remember it can be a benefit and a burden, particularly if the employee does not live up to expectations. Consider what package should be offered. If you do not have an existing company pension scheme, what pension provision will you offer?

Remember that you are required to deal with pensions in the contract. The job offer should contain sufficient information for the candidate to assess the role. A proper contract of employment should be drafted.

THE CONTRACT OF EMPLOYMENT

Do not forget that a contract of employment is a contract like any other, and you are obliged to fulfil your obligations under it otherwise you could be faced with a claim for breach of contract. Statutory requirements for a statement of terms or contract of employment must be included.

Consider the job that the employee is to do, and the remuneration offered. Be wary of contractual bonuses, commission payments and obligations to increase or review salary annually. For more senior employees or those in a privileged position, ensure adequate provision is included for confidentiality - include adequate post-termination restrictions and notice periods - and consider payment in lieu of notice options and garden leave.

A MUTUALLY BENEFICIAL RELATIONSHIP?

The employment relationship should be rewarding for both employer and employee. However, many relationships fail and turn sour.

• Grievances: Every employer is required to have a three-step disciplinary and grievance procedure in place.

• Bullying: Employers can be liable for the actions of bullies in the workplace under the Protection From Harassment Act 1997. Ensure procedures are in place to prevent bullying, or to deal with it swiftly.

• Fixed-term contracts: Failure to renew a fixed-term contract can amount to unfair dismissal if the correct procedures are not followed. Bear in mind that successive renewals of fixed-term contracts bringing the period of employment over four years will lead to the fixed term being deemed permanent.

• Temporary workers, contractors and consultants: This class of worker is often overlooked as a source of potential dispute. However, employers should be aware that they may be held liable for the actions of such workers.

• Deductions from pay and equal pay: Many employers still fall foul of the provisions preventing unlawful deductions from pay and the Equal Pay Act.

• Holiday and sick pay: Ensure that a clear and consistent policy is in place. Remember, if there is no policy in place, statutory sick pay will apply.

Ben Hopps is a partner specialising in litigation at Sykes Anderson LLP.