- Overview: United Kingdom (UK)
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in the United Kingdom
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in United Kingdom Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in United Kingdom so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in United Kingdom, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in United Kingdom.
See the guide below for a general overview of labor rules and regulations in United Kingdom. Or contact us if you need to employ workers in United Kingdom or would like to get more details.
Hiring and Firing Workforce in UK Guide
Sure, United Kingdom is not only known for being the fifth largest economy in Europe and one of the largest in EU and a prominent world city, but also for having one of the most uncomplicated business systems among the more economically developed countries. Its responsiveness to foreign direct investment, high living standard, socio-cultural diversity and economic stability make it particularly attractive for both individual investors and companies to do business in the country. To achieve this end, Acumen International has put up some basic need-to-know facts about the business environment in the UK.
#1 – Employment contracts
According to the labor governing authority in the UK, an employer can conclude the terms of employment verbally, issue a written contract or just a written statement stating the essentials of the job. Preceding the issuance of an employment contract is the issuance of written “statement of employment particulars”. This statement is given to employees if their employment contract lasts over one month. Under this condition, the employer is obligated to provide the employee with the written “statement of employment particulars within 2 months he/she starts to work.
#2 – Minimum employment rights
# Working hours
The legal maximum weekly hours for employees are 48 hours when averaged over 17 weeks. Meanwhile the employee can “opt-out” of the 48-hours week by written opt-out agreement with certain exceptions as for list of professions for which opt-out is not permitted. This law does not apply to workers under 18 years old who must not work more than 40 hours per week. For night workers – those who work between the hours of 11 pm and 6 am, the maximum hours worked per day must not exceed 8 hours. Except otherwise stated in the collective agreement, only workers who are 18 and above can work at night. All employees are entitled to at least a 20 mins undisturbed break during the working day and 11 hours of uninterrupted rest between working days.
# Probation period
Depending on the length and type of contract, the probationary period for standard jobs can be as short as one month and as lengthy as 6 months. Some employers can even decide to give a trial period of one week if the job requires a short-term contract.
# Annual leave
All employees are eligible for a statutory leave entitlement of 28 days. Part-time workers receive leave entitlement proportionally to their worked-out hours. Unlike in many other countries in United Kingdom bank and public holidays are not paid by the employer, they can just be included into employee’s statutory annual leave.
# Sick leave
Sick note should be provided by the employee only in case he/she is out of work for period over 7 days. Self-certification (special form to be filled-in by the employee) is applied for period of sick leave under 7 days. As for sick leave payment, the employee is entitled to receive Statutory Sick Pay in case the disease lasts for more than 4 days. Employer pay out Statutory Sick Pay for up to 28 weeks and can foresee higher sick leave payment through the sick pay scheme.
Employers have no right to force their employee(s) to work overtime even if they want them to. He can only put it in a request and allow the employee to accept at his/her own discretion. Should the employee decide to “opt out”, the employer must provide him with a written agreement on the duration and the pay rate.
# Minimum salary
The legal minimum wage in the UK is classified according to age group and whether or not a person is employed as an expertise in the field or an apprentice. Employees who are under 18 years old are entitled to a minimum hourly pay of £4.05, while those who are within the bracket of 18 and 20 are entitled to £5.60 / hour minimum. Employees that are between 21 and 24 cannot earn less than £7.05 While from 25 minimum hourly rate cannot be less than £7.50.
# Employment entitlement
Both the employer or the employee can end an employment contract at any time. However, whether the decision comes from the employer or the employee, both of them are under obligation to give a reasonable notice period to the other party before the contract is actually terminated. The statutory minimum notice period is one week and subsequently increase by a week after 2 years of employment. This notwithstanding, the length of the notice period mostly depends on what was agreed upon in the contract. The only reason that can make an employer to dismiss an employee without prior notice is when the reason(s) involved is grievous. Contract termination is better to be presented in writing and if not so, either of the parties has the right to request for it.