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.
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.
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.
An employment service company in the UK can guide you through time-off and keep track of leave management for your employees in the UK.
Time-off for family and dependents in the UK is also included and employees are allowed time off to deal with an emergency involving a dependent. A dependent could be a spouse, partner, child, grandchild, parent, or someone who depends on you for care.
Employees are allowed a reasonable amount of time off to deal with the emergency, but there’s no set amount of time as it depends on the situation. There are no limits on how many times one can take time off for dependents.
Hiring employees in the UK does not have to be difficult. If you are interested in bringing your business into the UK market, check out NNRoad’s United Kingdom Country Guide to learn more about UK business culture and market expansion options.
NNRoad stays up to date with all local laws and regulations that are required to hire individuals so that your business can stay compliant in the UK. Contact us today to discuss our process for hiring employees in the UK and how we can assist you.