Free guide to starting a UK plant hire companyUpdated October 2026 · Browse all guides

Staffing

Hiring your first plant hire employee

When to take on your first employee, which role to hire first, and the legal steps before day one: payroll, right to work, insurance, contracts and pensions.

Guide specPHSUG-53
Read time7 min
LevelBeginner
Legal steps5
UpdatedOct 2026

Key takeaways

  • Hire when your own time is the thing stopping growth, not just when you're busy.
  • Most small hire firms hire a driver/yard person first, then a fitter or operator.
  • Before day one: register as an employer, check right to work, and arrange employers' liability insurance.
  • Give a written statement of terms from day one and set up a workplace pension for eligible staff.
  • Employment status depends on how someone actually works, not what you call them.

When to hire

  • You're turning down hires because you can't deliver them.
  • Admin and quotes are going unanswered.
  • Machines are waiting for servicing.
  • Your forecast shows the extra hire income covers the full cost of the role, including employer costs.

Who to hire first

RoleHire whenLook for
Driver / yard personDeliveries are your bottleneckRight licence category, load securing experience, reliable
FitterBreakdowns and servicing eat your timePlant experience, own tools, diagnostics
OperatorYou're adding operated hireBlue CPCS or NPORS card in the right categories
Admin / bookingsCalls and quotes are missedOrganised, good on the phone, systems-minded
  1. 01

    Register as an employer

    With HMRC before the first payday; run payroll and report pay each time.

  2. 02

    Check right to work

    Before they start, using the GOV.UK checks; keep records.

  3. 03

    Employers' liability insurance

    Compulsory, minimum £5 million; display or share the certificate.

  4. 04

    Workplace pension

    Automatic enrolment for eligible employees; tell The Pensions Regulator.

  5. 05

    Health and safety

    Risk assessments covering their work; training and PPE.

Contract and pay

  • A written statement of employment particulars on or before the first day.
  • At least the National Minimum Wage or National Living Wage; check current rates on GOV.UK.
  • Paid holiday entitlement, working hours, overtime and on-call arrangements.
  • Driving responsibilities, licence checks and what happens if they get points.
  • Clear rules on company vehicles, phones and fuel cards.

Employed or self-employed?

Many plant firms use self-employed operators and drivers. That can work, but status depends on the real working relationship: who controls the work, whether they can send a substitute, who provides equipment, and whether they're in business on their own account. Getting it wrong can mean backdated tax, National Insurance and employment rights. HMRC's online status tool is a useful starting point. Operated hire with subcontracted operators also brings CIS; see VAT, PAYE and CIS.

Onboarding

  • Induction: yard rules, emergency procedures, accident reporting.
  • Training on your procedures: pre-delivery checks, loading, off-hire, paperwork.
  • Check and record licences and cards; set expiry reminders.
  • Give them access to your booking system so jobs and checks are recorded.

FAQs

Common questions

Who should a plant hire company hire first?
Usually a driver or yard person, because deliveries and collections are the first bottleneck. A fitter or operator often follows.
What do I need to do before employing someone?
Register as an employer with HMRC, check their right to work, arrange employers' liability insurance, give them a written statement of terms, and set up a workplace pension if they're eligible.
Can I use self-employed plant operators?
Yes, if they're genuinely self-employed. Status depends on how they actually work, and operated hire with subcontractors usually brings CIS obligations.

This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.