UK Hiring/Employment Compliance
Whether you choose to recruit for your business domestically or hire abroad in the United Kingdom, the process of growing your team can be a complex one. Before you begin expanding your company, you need to learn about employment laws in the UK to make sure you remain compliant every step of the way.
How Do You Hire UK Employees?
Embarking on the hiring process without additional support means you must find time to seek out talented new employees and onboard them as official employees of your company. Once you find the perfect candidate, you need to write up an employment contract within two months of their start date that outlines key terms of the arrangement. This contract should focus on compensation, job title, work hours, holidays, sick days, pension plans, and a notice period for termination.
You also need to ensure compliance with UK employment laws through the right payroll and taxation systems. The hiring process involves complying with the Real Time Information (RTI) system and reporting all relevant payroll information to Her Majesty’s Revenue and Customs (HMRC).
What Laws About Employment Exist in the UK?
As mentioned above, drafting an employment contract is legally required when you hire UK employees. You should also remain aware of other employment laws, including EU data protection — the legal requirement to keep your employees’ personal data secure. This directive plays a role in how you can transfer information about your employee between the US and the UK.
You can mitigate many UK employment compliance concerns by drafting a strong employment contract. Ideally, this contract will cover the days employees will work, time off work, sick leave, and termination of employment.
How Do You Onboard UK Employees?
The hiring process doesn’t end when the employment contract is signed. You also need a streamlined process to onboard your new employees while staying within UK employment compliance.
One of the most important onboarding processes involves setting up an employee payroll system. You’ll need certain pieces of information from your employees, including their national insurance number and tax code. You’ll then need to register every new employee with Her Majesty’s Revenue and Customs (HMRC).
What Is the Benefit of UK Hiring Outsourcing?
When you’re considering how to hire UK employees, it pays — in both time and money — to work with a UK hiring outsourcing company such as Globalization Partners. If you choose to work without a global PEO, you will need to establish a subsidiary before you can even begin the hiring process. This can take months, causing you to potentially lose valuable talent.
We take the stress out of meeting UK employment compliance by placing the burden on our shoulders. We hire employees on your behalf through our subsidiary that works in accordance with UK employment law. Contact us today to learn more.