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Labor law aspects of hiring employees in a start-up

11/08/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Hiring employees in a start-up is an important step on the road to success. However, it is also a complex process that takes various labour law aspects into account. In this article, we take a closer look at the labour law considerations that founders and entrepreneurs should keep in mind when hiring employees in their start-up.

1. Employment contracts and terms of employment

The first step in hiring employees for a start-up is to draw up clear employment contracts. These contracts should set out the terms of employment, working hours, remuneration, notice periods and other relevant details. It is important to ensure that the contracts fulfil the legal requirements and take into account the interests of both the company and the employees.

2. Minimum wage and working time regulations

Founders must ensure that they comply with minimum wage legislation and manage their employees' working hours in accordance with the law. This may include recording working hours, break arrangements and overtime arrangements.

3. Social security and taxes

Hiring employees has an impact on the company's social security and tax obligations. Founders must ensure that they pay social security contributions correctly and withhold and pay income tax. This often requires collaboration with accountants or tax advisors.

4. Dismissal and termination of the employment relationship

It may be necessary to terminate employees in any company. When terminating an employment relationship, the legal provisions and notice periods must be observed. It is advisable to seek legal advice to ensure that the termination is carried out properly

5. Occupational health and safety

The health and safety of employees in the workplace is of paramount importance. Start-ups should ensure that they comply with applicable health and safety laws and regulations and take the necessary precautions to ensure the safety of employees.

6. Data protection and confidentiality

In many start-ups, data protection and confidentiality are crucial. It is important to ensure that employees sign confidentiality agreements and are aware of how they should handle sensitive company information.

7. Discrimination and equal treatment

Compliance with discrimination and equal treatment laws is essential. Start-ups should ensure that they treat employees fairly and do not discriminate on the basis of gender, race, religion or other protected characteristics.

Conclusion

Hiring employees in a start-up can be complex, but requires compliance with labour laws and regulations. Founders should be aware of the legal obligations and consult legal experts where necessary to ensure they comply with the law. If these labour law aspects are handled correctly, start-ups can create a stable foundation for successful growth and a positive working environment for their employees.

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