3 Essential Facts About Hiring in the UK

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NNRoad’s employment service in the UK ensures you are up-to-date and compliant with local UK employment laws.

The United Kingdom is one of the easiest places to set up and run a business in Europe.

In 2019, the World Bank found that it takes five business days to set up a business in the UK, compared to the world average of 19.5 days. However, the UK’s employment laws are constantly evolving. 

All employers in the UK, regardless of size, are required to follow these laws or face financial penalties and risk a tarnished brand image.

Often it is prudent for companies to hire their UK employees through a Professional Employment Organization (PEO) rather than setting up their own business in order to test the market. 

Keep reading to learn about three essential facts for hiring employees in the UK

London Bridge, UK


Hiring in the UK for the First Time 

When you hire staff in the UK for the first time there are many things to take into considerations.

For one, employers must decide how much to pay their candidate, and at the very least employers will have to pay the national minimum wage.

The minimum wage a UK worker receives depends on their age and if they’re an apprentice. Then employers will have to check to see if their candidate is legally allowed to work in the UK. 

Companies with employees that are not European Union (EU) citizens must obtain a work permit by filing an application for the employee before the start of employment. Then employers will check their candidates’ criminal record, also known as a Disclosure and Barring Service (DBS) check.  

Employers need to apply for employers’ liability insurance and need to give their employees a written statement of employment if they are hiring someone for more than one month.

The employers will register as an employer with HM Revenue and Customs (HMRC) before the first payday when hiring staff. Finally, employers must check if you need to automatically enroll your staff into a workplace pension scheme.  

Working through these processes take time and effort; an employment service company in the UK can take of this for you to ensure you are taking the right steps when you are hiring in the UK. 

Contract Types 

All employees have an employment contract with their employer.

A contract is an agreement that sets out terms of an employee’s conditions, rights, responsibilities, and duties. Employees and employers must stick to a contract until it ends or until the terms are changed.

An example would be if an employer were to terminate their employment or if a fixed-term contract got extended.

Contracts are categorized as full/part-time, fixed-term, freelancers/contractors/consultants, and zero-hours contracts.

Fixed-term contracts last for a certain length of time. Zero-hours contracts are usually for ‘piece work’ or ‘on-call’ work, such as interpreters. Learn more about contracts in the UK here.

A Professional Employment Organization (PEO), such as NNRoad, can guide you through the contract types and stages to ensure you are compliant even if you don’t have an entity in the UK. 

Elizabeth Tower UK


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