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ans Serif">Many large New Zealand businesses have started their life as a home based operation.

ans Serif">So how do you move from it being "just you" to a multi national, employing thousands? (Okay, so your aspirations may be something a little bit more realistic)!

ans Serif">Regardless of your aspirations, to grow you are going to need employees. Finding the right ones and then traversing the many pieces of legislation that you are forced to comply with can be easy or it can be a nightmare. There are only 24 hours in the day and cloning is still in its infancy. If your business is growing, how do you service and maintain

that growth without sacrificing your life and your loves.

ans Serif">Employing staff - some legal obligations
Employing staff may seem like the easy solution, and sometimes it is. However, you need to be aware of the legal requirements associated with becoming an employer.

ans Serif">A key piece of legislation that you need to know about is the Employment Relations Act. This requires that all employees (temporary, permanent, or casual) have a written employment contract. The Minimum Wages Act requires that employees are paid at a minimum rate of pay. Then there is all the tax legislation which requires you to submit PAYE on a regular basis. The Health and Safety in Employment Act requires you to keep your employees safe from harm. There is also the Holidays Act, Privacy Act, Smokefree Environments Act, Human Rights Act …

ans Serif">Unfortunately that list of legislation is just the beginning!! Depending on the type of work that you are doing there may be other legislative requirements and regulations you must follow. Sometimes the penalties for failing to comply with legislation are quite severe. The Health and Safety in Employment Act has penalties of up to 2 years imprisonment and/or $500,000.00 in fines.

ans Serif">So now at this point in the article, you are feeling queasy and thinking NO WAY am I going to employ staff - I'll hire them as contractors.

ans Serif">What about hiring contractors?
Yes it may be possible, however if this is done to avoid the legislative minefield - think again. IRD may view the relationship as employee/employer and require you to still pay PAYE. Even if you have just one employee the Health and Safety in Employment Act requires you to keep contractors working there safe as well. The Employment Court may determine that your contractor was an employee and thereby covered by its jurisdiction.

ans Serif">So now, you are not only feeling queasy but thinking about shutting up shop and never getting out of bed again!

ans Serif">I am sorry, I didn't set out to scare you, but just to point out that employing staff is something that you need to put careful thought into and to plan accordingly.

ans Serif">Become informed
There are many sources of information that can help to guide you through the process. Many government agencies publish "how to" guides - a good starting point is with IRD and the Department of Labour. You may choose to get independent advice from your lawyer, trade organisation or from a human resources consultant.