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Doing Business in the UK

Hiring and Visa Options In the UK

Hiring and Visa Options In the UK

The information on this page was current at the time it was published. Regulations, trends, statistics, and other information are constantly changing. While we strive to update our Knowledge Base, we strongly suggest you use these pages as a general guide and be sure to verify any regulations, statistics, guidelines, or other information that are important to your efforts.

Hiring Options in the UK

Of course, you want to find and hire the best possible people to help you grow your business, and there are different options available to you for expanding your workforce in the United Kingdom. Each has its own considerations, including the employment laws and regulations that cover it.

If you want to jump into UK employment law first, you can get an overview of the regulation that will govern your employer-employee relations. The first decision you will need to make is whether to bring your employees from home or hire employees in the UK. Below you will find a discussion and the resources to determine your visa requirements if you decide to bring your workforce (all or part) with you to the UK and the resources to help you hire local talent if you decide not to bring your employees with you.

Steps to Take When Hiring Local Talent in the UK to Remain Compliant

Hiring local talent in the UK offers a wealth of benefits, from accessing a skilled and qualified workforce to gaining valuable local market insights. However, navigating a new country’s employment regulations can feel daunting. Here’s a breakdown of key steps to ensure a smooth and compliant hiring process that fosters a positive relationship with your new UK employees from day one.

1 . Understand Employment Regulations:

  • The UK Equality Act 2010: Familiarize yourself with the act’s nine protected characteristics to avoid discrimination in recruitment and hiring practices. Refer to the Protection from Discrimination section for more details.
  • UK Minimum Wage : Ensure you offer at least the National Living Wage or National Minimum Wage, depending on the employee’s age. Check the government website for the current rate.
  • UK Worker Status: Distinguish between employees, workers, and self-employed individuals. This classification impacts tax and National Insurance contributions.
  • UK Statutory Rights: Be aware of statutory rights employees have from day one, including minimum paid vacation time, sick leave, and rest breaks.

2 . Develop a UK Compliant Recruitment Process:

  • Job Descriptions: Avoid language that could be discriminatory. Focus on skills and experience required for the role.
  • Advertising: Target job boards and publications relevant to your industry and location.
  • Selection Proces s: Use clear and objective criteria to shortlist candidates. Conduct standardized interviews with a focus on relevant skills and experience.

3 . UK Right to Work Checks:

4 . Prepare UK Employment Contracts:

  • Written Contracts: While verbal agreements are technically valid, written contracts are highly recommended for clarity and to avoid future disputes.
  • Essential Terms: Include key details like job title, duties, salary, working hours, holiday entitlement, benefits, probationary period, and termination procedures.
  • Statutory Minimums: Ensure your contract adheres to statutory minimums for things like notice periods and redundancy pay.

5 . UK Payroll and Taxes:

  • PAYE (Pay As You Earn): Register as an employer with HMRC ( HM Revenue & Customs) and deduct income tax and National Insurance contributions from employee salaries through PAYE.
  • Employer National Insurance Contributions: You are also liable to pay National Insurance contributions as an employer.
  • Auto-Enrolment: Automatically enroll eligible employees into a workplace pension scheme and contribute a minimum percentage of their qualifying earnings.

6 . Ongoing UK Compliance:

  • Employee Records: Maintain accurate and up-to-date employee records, including contracts, tax information, and training records.
  • Training: Provide mandatory training on topics like health and safety, fire safety, and data protection.
  • Stay Updated: Employment law is subject to change. Stay informed about any updates to ensure continued compliance.

Visa Options in the UK

Visa Options for Bringing your Employees with you to the UK

For many companies, having someone who has been employed at the home office and transfers that culture and experience to a new foreign office, sets up the office, and hires the first team abroad, is the preferred approach for setting up overseas. Those employees from home can begin to establish important relationships in the UK and hire people in the UK who will help make the business a success.

Of course, if you are sending or bringing someone from outside the UK, it’s very possible you will be required to apply for a visa. We’ve summarized the possible visas below. If you’d like to get more information on applying for visas in the UK, you’ll find it as part of Globig’s UK Expansion Plan, you can send us an email at hello@globig.co to learn more.

  • UK Innovator Founder Visa
    If you want to set up or run a business in the UK you might be able to apply for a UK Innovator Founder visa.You can apply for an Innovator Founder visa if:
  • You want to set up and run an innovative business in the UK – it must be something that’s different from anything else on the market
  • Your business or business idea has been endorsed by an approved body, also known as an endorsing body in the UK.
  • You meet the other UK Innovator Founder Visa eligibility requirements.
    You can find specific information on the application and extension process here.
  • UK Skilled Worker Visa
    If you want to send a new or current employee to your UK branch, she will need a UK Skilled Worker Visa. This visa has replaced the Tier 2 (General) work visa
    A Skilled Worker Visa is available to your employee if:
  • work for a UK employer that’s been approved by the Home Office
  • have a ‘certificate of sponsorship’ from your employer with information about the role you’ve been offered in the UK
  • do a job that’s on the list of eligible occupations
  • be paid a minimum salary – how much depends on the type of work you do
    You can find specific information on the application and extension process
  • UK Senior or Specialist Worker visa (Global Business Mobility)
    A Senior or Specialist Worker visa allows you to bring an employee to stay in the UK to do an eligible job at your business UK branch. This visa has replaced the Intra-company Transfer visa, previously the Tier 2 (Intra-company Transfer) Long-term Staff visa.
    A Senior or Specialist Worker visa (Global Business Mobility) is available to your employee if:
  • they are an existing employee of an organization that’s been approved by the Home Office as a sponsor
  • they have a ‘certificate of sponsorship’ from your employer with information about the work you will do in the UK
  • they do a job that’s on the list of eligible occupations
  • they are paid at least £45,800 per year
    You can find specific information on the application and extension process

Other Visas to consider that permit working in the UK for an overseas employer include:

Hire Local UK Talents

In the UK, you have different options for hiring local talent, including: hiring your own employees (full-time, part-time, and fixed-term), hiring through an agency, and hiring freelancers, consultants, and contractors. Your responsibilities as an employee will vary depending on the type of contract you have with your employees. Some of your responsibilities may include:

Hiring Employees from the EU/EEA/ or Switzerland in the UK

Freedom of movement between the UK and EU has ended and the UK has introduced an immigration system that treats all applicants equally, regardless of where they come from. Anyone you want to recruit from outside the UK, excluding Irish citizens, needs to meet certain requirements and apply for permission first.The EU Settlement Scheme was established to enable EU, EEA and Swiss citizens resident in the UK by 31 December 2020, and their family members, to get the immigration status they need to continue to live, work and study in the UK.

For most EU, EEA and Swiss citizens, you need to check their UK right to work online using:

  • A share code
  • Their date of birth

An EU passport or national identity card alone is no longer valid proof of someone’s right to work in the UK. However, Irish citizens can continue to use their passport or passport card to prove their right to work.

Hiring your Own Employees in the UK

Hiring your own employees in a foreign country can be a daunting task. You will want to target the right candidates and not have too narrow a pool of applicants. Consider looking for employees in the following places:

  • local schools or colleges;
  • jobcentres;
  • local newspapers; and
  • online recruitment, such as job websites and social media.

Furthermore, to find employees in the UK, you may need to put yourself in the shoes of the jobseekers. Here are some places to find jobs in the UK.

Recruitment Agencies in the UK

You can use a recruitment agency to help you hire permanent or temporary employees in the UK. Many recruitment agencies specialize in a particular industry or sector, such as IT, finance, retail, etc. Recruitment agencies are generally well connected. If you use a recruitment agency, some of the responsibilities you have under UK law may be transferred to the agency.

Review the UK Agency Workers Regulation 2010 for more detailed information about the regulations surrounding the use of an Agency and agency workers. Agency Central is an online recruitment agency directory.

Freelancers, Consultants, and Contractors in the UK

In the UK you are permitted to hire freelancers, consultants, and contractors. In general, freelancers, consultants, and contractors are not entitled to the same rights as other employees and workers and are responsible for looking after their own taxes and National Insurance Contributions.

UK Employment Related Resources

References

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