Like Tina and the others, being a jack of all trades is a phrase often associated with starting up and running a small business. This works so far as being the decision maker, creative input and tea maker but what happens when you come up against an area you can't handle - we're not all salespeople, for example.

This is the point where you are forced to acknowledge that although it's entirely your business you can't do everything. That's the hard part. The easy (or easier) bit is then building up the expertise you need around you without having to employ leagues of people you can't afford.

You need an extended, partly virtual, team.

Company and marketplace

The first thing is to identify what skills and experience your company needs to grow and make it a success. Only once you know this can you start to work out where your team is strong, where it is lacking and how to rectify this.

If you haven't already done so in your business plan, define the exact nature of your product or service and its marketplace and how to recognise the problems of that market. This doesn't have to be complicated, simply testing at a local level to see how your company fits in can be your first step.

Brian Steel at Business Link Berkshire and Wiltshire has four key questions, which can help in identifying areas for improvement:

• What does the company do well?
• What does it do badly?
• What it needs to start doing?
• What it needs to stop doing?

All this might seem rather theoretical but if you put it in context of customer service, advertising, growth, product range and so on you'll build up a picture of areas to address.

What are your strengths?

This is the part where you identify where you can reasonably manage without the expertise of others by relying on your own resources. In some ways this is the most important stage.

Practically speaking, you can learn to market your own product - after all you are the expert on it - you can run the office and develop new custom. But if for example on top of this you are spending far too much time struggling to balance the books when you don't have a head for figures, it's time to pay someone else to do this. It won't be a full time job and the time saved will be worth the money.

An overview of the regulations

If you decide on employing staff for the first time or if you are in any way unsure, check out our list of what your employees are entitled to. If in doubt, check with the Department for Business Enterprise and Regulatory Reform. The penalties for getting it wrong can be quite severe. Some of these issues are covered in more detail in separate articles and we will bring you updates on any changes that could affect her business as they come up.

Equal opportunities

Race and sex: Jobs, training and promotion must be open to all regardless of colour, race, nationality, ethnic or national origin, sex, marital status and to anyone intending to undergo, undergoing or who has undergone gender reassignment.

Disability: From October 2004, it became unlawful for any employer (apart from the Armed Forces) to discriminate against a disabled person because of their disability. These new duties amended the Disability Discrimination Act, 1995. The law says that an employer cannot discriminate either directly or by failing to make ‘reasonable adjustments’ for a disabled person in the recruitment process; in their terms and conditions of employment; in chances for promotion, transfer, training or other benefits; by dismissing them unfairly; by treating them less fairly than other workers; by subjecting them to victimisation or harassment.

Terms and Conditions of Employment

If employed for more than one month, employee must receive (within the first two months) a written statement of main employment particulars. Statement must include main terms and conditions including pay, holidays, details of notice and disciplinary procedures.

Transfer of an undertaking

Employees terms and conditions are preserved when a business (or part of one) transfers to a new employer. Employers are required to consult either representatives of an appropriate recognised trade union or elected representative of any employees affected.

Fair and unfair dismissal

If an employee has at least one year's service, the right to complain of general unfair dismissal applies.

Period of Notice

For continuous employment of more than one month but less than two years, one week's notice must be given unless a longer period is stated in the employment contract.

For continuous employment of two years or more, at least two weeks' notice must be given unless a longer period is stated.

After two years employment, one additional week's notice for each further complete year is required. After 12 years continuous employment a minimum of 12 weeks notice is required.

An employee is required to give his or her employer at least one week’s notice if employed continuously for one month. This minimum is unaffected by longer service, however you may ask for longer in their contract.

Unions

Employees have the right to belong or not belong to a union, and the right not to be refused employment on the grounds of trade union membership or non-membership.

Redundancy

Under 20 employees - no obligation to notify of redundancy.

20-99 employees - at least 30 days' notification.

Above 99 employees - at least 90 days' notification.

An employer who proposes to make redundant at least 20 employees at one establishment over a period of 90 days or less is required to consult either representatives of a recognised independent trade union or other elected representatives of affected employees.

Although an employer making less than 20 employees redundant is not legally obliged to inform and consult with those employees, failure to do so could result in a claim being made for unfair dismissal.

Illegal working

You can face a criminal prosecution if you employ illegal workers and haven't made certain checks on new employees, such as seeing a P45, P60 or payslip showing a NI number - or one of a range of other specified documents. Copies need to be retained in most cases.

National minimum wage

The minimum wage is £5.52 an hour, or £4.45 an hour for 18-21 year olds. You can get more information about the national minimum wage from the HMRC website..

Pay and tax

You must inform the Inland Revenue when you take on your first employee. They will set up a PAYE scheme and send you a new employer's starter pack. Obtain a P45 from each employee or complete a P46. Make the necessary deductions and send them in monthly.

All employees must be given itemised pay statements showing deductions. National Insurance is payable for employees aged 16 or over earning more than £100 per week (as at April 2007).

Statutory sick pay

If the employee is sick for less than four consecutive days, no action is needed. If the employee is sick for more than four days, and is entitled to SSP, pay sick pay in the same way as wages and keep records of payments made and dates of sickness absence. If the employee is sick for more than four days, and not entitled to SSP, the employee may claim state incapacity benefit instead

Statutory maternity pay

Employees can claim SMP if on the fifteenth week before their baby is due they have been in your employ for more than 26 weeks. They can choose to take it from the eleventh week before the baby is born.

Employees must tell you at least 28 days before they intend to stop work, you are should get them to make this request in writing. They must also provide you with evidence of when their baby is due. This is normally on maternity certificate MATB1. The earliest that this certificate may be issued by your doctor or midwife is 20 weeks before the week in which your baby is due. You should receive this no later than 3 weeks after the date their SMP begins.

Hours

Working hours are limited to an average of 48 hours a week, though workers can choose to work more if they want to.

Night workers hours are limited to an average of 8 hours work in a 24 hour period and they have a right as night workers to receive free health assessments. All employees have a right to 11 hours rest a day, a right to a day off each week, a right to an in-work rest break if the working day is longer than 6 hours.

Insurance

You must take out Employer's Liability Insurance and display the certificate.

Health and Safety

You must register your business with either the Health and Safety Authority (most factories, workshops etc) or the local authority (most offices, shops and catering businesses).

So where can small employers get advice?

A confidential helpline offering free advice has been specifically created to help employers find out where they stand on equality legislation and good practice. Equality Direct can give employers authoritative advice on any equality issues in the workplace. The Equality Direct advisers do more than tell employers what the law says. They help businesses consider their management procedures from recruitment onwards or tackle particular issues, such as requests for flexible working patterns or introducing equality policies. The advisers discuss options and approaches relevant to the particular circumstances of the business, to enable managers to take informed decisions on what’s right for their business.

CONTACTS

Equality Direct is a free service that offers advice on equality issues including race, disability and sex discrimination, to maternity leave and flexible working plus forthcoming legislation on sexual orientation and religion. Equality Direct is managed by Acas, and is supported by the three statutory equality commissions, the Small Business Service and the Federation of Small Business.

The helpline (Tel: 0845 600 3444 a local call throughout the UK) is open seven days a week: 8am to 8pm Monday to Friday and 10am to 4pm on Sundays. Information on equality legislation and good practice advice is also available on the Equality Direct website.

Written particulars of employment

Even Tina’s sister requires written particulars of employment. Employers are required by law to give employees written particulars of the main terms and conditions of employment. Failure to do so could result in a complaint to an employment tribunal. Additional and separate rules also apply to itemised pay statements.

Contracts of employment

All workers directly employed by an employer will have contracts of employment. A contract of employment – which can be written, oral or implied – commits the employer and employee to certain mutual obligations. Generally, a contract of employment will be drawn up beforehand. But in the absence of any such agreement, the contract will come into existence when the employee starts work.

It is clearly in the interests of both the employer and employees that as many terms and conditions as possible are written down and agreed. This will help to avoid disagreements in the future.

Written particulars

Many terms and conditions of employment can be written down and there is a legal requirement for an employer to give an employee, who is taken on for one month or more, a written statement setting out the main particulars.

Employers covered

All employers, however small, must provide the specified written particulars. There is only one flexibility allowed for employers with fewer than 20 employees regarding the details of disciplinary rules and grievance procedures - this is explained below.

Employees covered

Virtually all employees are entitled to specified written particulars. All employees who are taken on for a month or longer must be given the statement automatically. Only those employed before 30 November 1993 must request a statement before becoming entitled to it.

Excluded employees are:

• Anyone taken on for less than a month.
• Those working wholly or mainly outside the UK; and Some workers at sea and certain public servants.
• Time scale.

An employee must be given the statement within two months of starting work. If an employee is required to work abroad for longer than a month before then, the written statement must be given before the employee goes abroad.

Information required

The following must be contained in the written statement:

• The names of the employers and the employee.
• The date when employment began (and if different, the start of the period of continuous employment).
• Wages or salary and the intervals at which they are paid.
• Hours of work.
• Holiday entitlement.
• Entitlement to sick leave and pay.
• Pension arrangements.
• Entitlement to notice periods – employer and employee – for termination of employment.
• Job title or brief description of job.
• Where not permanent, the period for which employment is expected to continue or, if a fixed-term contract, the end date.
• Place of work, or indication of this and employer's address if an employee is required or allowed to work at more than one location; and The existence of any collective agreements that directly affect the employee's terms and conditions.
• State pensions and discipline.

In addition, the written statement must include a note:

• Stating whether the employee is contracted-out of the State Earnings Related Pension Scheme (SERPS) for that employment; and Giving details of disciplinary rules, and the procedures by which employees can raised a grievance about employment. Employers with fewer than 20 employers need give only the name (or job title) of the person the employee should contact if dissatisfied with any disciplinary action taken, or to raise a grievance.
• Overseas assignments.

Where an employee is normally employed within the UK but sent to work abroad for longer than a month, the employer must provide a written statement of:

• The period of overseas employment.
• The currency in which the employee will be paid.
• Any additional pay or benefits (such as a location allowance); and Provisions relating to the employee's return to the UK.
• Reference to documents.
• Generally, the specified information must be contained in the written statement itself. In limited circumstances, the statement can, however, refer the employee to other documents for details of:
• Sick leave and pay.
• Pensions and pension schemes; and Disciplinary rules.
• The documents to which the employee is referred must be easily accessible to the employee. Similarly, for details of notice periods, the employee can be referred to the law or an easily accessible collective agreement.

Changes to particulars

Employees must be given notification about any changes that are made to written particulars as soon as possible and no later than one month after they are made. Notification must be in writing but need not be by personalised letter: it is sufficient, for example, to give each employee a photocopy of a notice detailing the change.

In most cases the change must be set out explicitly in the written notice. In the case of sick leave and pay, pensions, and disciplinary rules, however, the notice may refer to other documents, provided these are easily accessible. Similarly, employees may be referred to the law or a collective agreement when changes are made to notice periods.

Change of employer

In normally circumstances, where there is a change of employer, employees must be given a new and full written statement of particulars within two months of the change.

However, if only the name of the employer changes – without any change in the identity of the employer – or if the identify changes but the employee's continuity of employment is maintained (for example, in transfer of undertakings) a new statement is not required. In these cases employees must still be given written notification of the change.

Complaints and questions

Employees who think that they have not been given a written statement of particulars, or notification of changes, may refer the matter to an employment tribunal. Ex-employees can take the same course of action up to three months after the end of their employment.