What to Expect Starting your First Job

When you become an employee your employer is responsible for deducting Income Tax and National Insurance from your salary before you receive it. This system is called PAYE (Pay As You Earn).

When you start work, HMRC will send you a tax code on a ‘PAYE Coding Notice’. They also send a copy of the Coding Notice to your employer, who’ll use it to work out how much tax to deduct from your pay.

Tips

1.      If you multiply the number in your tax code by ten, you’ll get the total amount of income you can earn in a year before paying tax.

2.      Sometimes your employer or pension payer will have to use an ‘emergency code’ until they have worked out what your tax code should be. While you’re on an emergency code you’ll get the basic Personal Allowance but we advise you to get a proper code from HMRC as quickly as you can.

As an employee you have an employment contract or ‘contract of employment’which is the agreement between you and your employer. Your employment contract doesn’t have to be in writing. If you  have been working for your employer for longer than one month you are entitled to a written statement of your main employment terms within two months of starting work.

3.      Employees have the right to know how much they will be paid and how often. They are also entitled to receive an individual, detailed written pay statement from their employer, either when they are paid or shortly before.

4.      Open a bank account if your pay is not in cash. It may be a good idea even if you get cash!

5.      If you do not get a written contract chase up the statement of your main employment terms also called ‘main particulars’. You may find it useful in disputes.

There are three main types of employment status; Employee, Worker or  Self-employed (discussed elsewhere).

Employment status is different from your working pattern.  Various patterns include part-time, fixed-term, contractor, consultant, casual, agency or ‘temp’, volunteer etc.

Workers’ are defined more widely than employees and are different from the genuinely self-employed. The status of worker includes individuals working under a variety of contracts. Employees are workers, but employees have different employment rights and responsibilities than workers.

As a worker you have to perform work or services personally, and can not undertaking the work as part of your own business. Then you are entitled to core employment rights, including the right to:

* receive the National Minimum Wage
* protection against unlawful deduction from wages
* a minimum period of paid holiday
* minimum length of rest breaks
* not work more than 48 hours on average per week or to opt out of this right if you choose
* protection against unlawful discrimination (including less favourable treatment on the grounds of part-time status)
* protection for ‘whistleblowing’ (reporting wrongdoing in the workplace)
* You may also be entitled to: Statutory Sick Pay and maternity pay dependant on your level of earnings.

As an employee, you rights include all of the rights workers have, plus the right to:

* a minimum statement of employment terms
* Statutory Sick Pay
* minimum notice periods if your employment will be ending (eg if your employer is dismissing you)
* not be unfairly dismissed
* maternity, paternity and adoption leave and pay
* request flexible working
* time off for emergencies
* Statutory Redundancy Pay

Some of these rights require a minimum length of continuous service with your employer before you qualify for them.