A Practical Guide to Onboarding for Small UK Businesses

How to Give New Starters the Best Possible Start—and Avoid Legal and Financial Risks

Hiring someone new is a big milestone for a small business—but it also comes with responsibilities. A well-planned onboarding process helps new hires feel welcome and productive from day one. Just as importantly, it keeps you on the right side of UK employment law.

Getting it wrong—especially around right to work checks or compliance—can be costly.

Here’s how to onboard properly, avoid common mistakes, and protect your business.

1. Check Their Right to Work in the UK

Before they start working, you must carry out a right to work check. This is a legal requirement for all employers, regardless of business size.

✅ What You Must Do:

• See original documents (e.g. UK passport, visa documents) or use a government-approved digital identity check provider

• Check documents are valid and belong to the person

• Keep a copy with the date of the check clearly recorded

🔎 Tip: Complete the check before their first day—not after. It’s illegal to employ someone who doesn’t have the correct right to work.

❌ What Happens If You Don’t:

• Fines of up to £60,000 per illegal worker

• Criminal charges if you knowingly employ someone illegally

• Jail Time, Upto 5 years in prison 

• Loss of sponsorship licence (if applicable)

• Serious reputational damage

For a small business, one missed check could be financially devastating.

2. Prepare Properly Before Their First Day

A smooth first day sets the tone. Sort out the basics before your new hire arrives:

• Employment contract is signed

• Starter paperwork (e.g. P45, emergency contact, payroll info) is ready

• Equipment, logins, and workspace are set up

• A welcome email is sent with details of what to expect

These simple steps show you’re organised and make your new hire feel like a valued team member.

3. Provide the Right Tools for the Job

Legally, you must make sure your employee can do their job safely and effectively. That means providing:

• A work laptop or phone

• Uniform or PPE (if required)

• Access to software or systems

Letting employees use their own devices can lead to:

• GDPR/data protection breaches

• Cybersecurity risks

• Poor performance or miscommunication

In some cases, mishandling sensitive data can result in ICO fines of up to £17.5 million or 4% of annual turnover, though smaller fines are more common for SMEs.

4. Introduce Policies and the Team

A proper induction helps your new hire understand how your business operates. Cover these essentials:

• Health and safety rules

• GDPR and data protection policies

• Conduct and behaviour expectations

• Sickness absence and reporting

• Remote or flexible working arrangements

Provide a short staff handbook or induction sheet. It doesn’t have to be fancy—just clear and easy to follow.

Also, introduce them to the team and assign a buddy or mentor if you can. It helps people settle in faster and feel part of the business.

5. Be Clear About What’s Expected

Make sure your new hire understands:

• Their day-to-day tasks

• Key goals or performance targets

• What success looks like in their role

You might create a basic 30-60-90 day plan—it helps them stay focused and gives you a structure for early check-ins.

6. Check In Regularly and Offer Support

Onboarding doesn’t end after the first week. Keep in touch, ask how they’re doing, and offer feedback. You could schedule:

• A catch-up after day one

• A check-in at the end of the first week

• Monthly reviews during probation

Employees who feel ignored or unsupported are far more likely to leave.

7. Ask for Feedback to Improve Your Process

Once they’ve been with you a few weeks, ask for their thoughts:

• Did they have what they needed?

• Was anything confusing or missing?

• What helped them feel welcome?

You’ll gain valuable insights to improve your process for future hires.

8. Don’t Be Afraid to Ask for HR Support

If you’re not confident with employment law, onboarding processes, or paperwork, talk to an HR professional. They can help with:

• Creating or checking contracts and handbooks

• Ensuring your onboarding meets legal standards

• Completing right to work checks correctly

• Building a simple and repeatable onboarding process

It’s far more affordable than dealing with fines, disputes, or re-hiring due to early turnover.

What Happens If You Get Onboarding Wrong?

It’s not just right to work checks that carry risks. A poor onboarding process can be costly too:

According to ACAS, the average cost of defending an employment tribunal claim is around £8,500, even if you win.

Good Onboarding = A Stronger Business

Getting onboarding right isn’t about red tape—it’s about giving people the best possible start so they can contribute to your business with confidence. It protects your investment, keeps you legally safe, and helps new hires become long-term team members.