A Beginner’s Guide to Hiring Staff in the United Kingdom

Hiring staff sounds straightforward, but a lot more goes into it than you might think. In this guide to hiring staff in the United Kingdom, we explore the various procedures, best practices, and legal obligations of hiring new staff.

 

What Are the Legal Obligations with Hiring Staff in the UK

Employers must abide by several legal obligations when hiring new staff members. These include employment contracts, minimum wage amounts, health and safety policies, the right to work, taxes, and national insurance.

Employment Contracts

Employment contracts are written statements that must be given to all employees within two months of their start date. The contract must include all pertinent details such as the job title, job description, working hours, salary, holiday and sick leave entitlements, and any other benefits.

Holiday Entitlements

Specific details about holiday entitlements must be clearly stated in your employment contract. In the UK, the statutory minimum annual leave entitlement is 28 days for full-time employees. Sick pay details must also be clearly stated, including how many days your employee is entitled to. Other leave benefits, including maternity, paternity, and adoption leave, should also be in your employment contract.

Legal Obligation

Before hiring any employee, you must ensure they have a legal right to work in the UK. You must conduct the necessary background checks and ensure they have the proper work permit to avoid incurring penalties. As an employer, you are responsible for paying the minimum wage per the National Minimum Wage standard (also known as the National Living Wage). The employee’s age and circumstances determine wages.

Taxes and HMRC

Part of your legal responsibility when hiring staff in the UK includes taxes and the National Insurance contributions. You must deduct income taxes and insurance from your employees’ wages. This will then be paid out to the HM Revenue and Customs (HMRC) in the UK. Finally, it is your responsibility to provide your employees with a safe working environment. You must abide by the health and safety regulations, conduct the necessary risk assessments when needed, and put in place measures to minimise and deal with hazards.

 

What Does the Recruitment Process Involve with Hiring Staff in UK?

The first step of the recruitment process in the UK is to prepare a detailed job description. This must outline the prospective employee’s responsibilities, what skills are needed to fill the role, and what qualifications you seek to fulfil that role. Your advert must be advertised in various channels, including social media, recruitment agencies, your company’s websites, and job boards or platforms.

Resumes that come through to you will be screened, and the shortlisted candidates will be contacted based on the criteria you are looking for. What follows next is the interview process and, after that, the background checks. Background checks here include checking references, criminal record checks, and any other relevant information checks to ensure the details provided by the prospective employee are accurate. Once everything checks out, you are ready for the final step, where salary negotiations are agreed upon before an official employment contract is signed.

 

Pensions Schemes In the UK

As part of your responsibility toward hiring staff in the UK, you must enrol staff members in a workplace pension scheme. Once the employee is officially on board, contributions must be made by the auto-enrolment requirements in the UK.

 

Other Considerations to Hiring Staff in the UK

As an employer, you must provide a safe and inclusive work environment for your employees. There are anti-discrimination laws in place in the UK that help to promote workplace diversity. Your organisation should also have strict policies in place and prevent discrimination and promote equal treatment.

 

Hiring Staff in the UK to Work Remotely

If you are hiring staff in the UK that will be engaged in remote work, your company must follow the laws and regulations pertaining to this type of work. This includes the employees right to work, tax obligations, health and safety requirements, entitlements and benefits (similar to full-time on-site employees). Remote work practices means that your company must have data protection and security measures in place to safeguard sensitive information, since these employees will not be on-site all the time.

 

Enlisting the Help of 3E Accounting

Handling the recruitment process from start to finish while ensuring all compliance obligations are met can be a time-consuming process. That is why many companies choose to leave it to the professionals like 3E Accounting. We’ll help you stay up to date on the latest regulations so you never miss a thing. For more information about our hiring services, get in touch with the 3E Accounting team.