The United Kingdom is the easiest place 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 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. Keep reading to learn about three essential facts for hiring employees in the UK.
Employers must decide how much to pay your candidate, at the very least employers will have to pay the national minimum wage. The minimum wage a worker should get 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 if they have not already. Then employers need to give their employee a written statement of employment if they are hiring someone for more than one month. Employers need to 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.
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 employee 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.
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. This includes mental or physical illnesses that don’t have to be life-threatening or need full-time care – it could be an existing condition that has worsened.
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 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!