When expanding to or hiring personnel in the United Kingdom (U.K.), if slowness or a lack of local knowledge are among your top worries, an employer of record can be your best bet for reaching your global growth goals.
You may hire and onboard employees in the UK quickly—often in as little as two weeks—by using an employer of record, also referred to as an overseas PEO, without having to incur the expense and risk of forming a local organization.
Discover how our employer of record service, Global Employment Outsourcing (GEO), and local HR professionals can assist you in managing your needs for foreign employment, as well as the hiring, employment, payroll, and benefits obligations for workers in the United Kingdom.
Employing with a Employer Of Record UK
Compliant employment contracts are a fundamental requirement for business due to the intricacy of the employment laws in the United Kingdom. As your official employer and PEO in the UK, we can make sure that each and every contract for each employee complies with all legal requirements. We can also give you advice on cultural norms and hiring best practices, as well as keep you up to date on any changes to the law governing employment.
employee onboarding at a British employer of record.
The onboarding procedure for you and your U.K. employees is streamlined because we draft and validate all local employment contracts; all you have to do is submit the necessary data and review and approve the employment agreement.
In the UK, an employer of record will:
- Plan a welcome call to go over HR and employment details for the UK and address any questions.
- Construct a unique work contract
- Give the new employee a copy of the employment contract and information on the perks for review and signature.
- Obtain the employee’s banking and tax details to set up payroll.
- Give the worker a local point of contact who can respond to any inquiries about their job, local HR, or payroll.
It’s common to finish the employee’s onboarding procedure in as little as two weeks.
contracts with a PEO UK
It’s crucial to keep in mind that employment contracts are necessary in the UK and must contain information about the employee’s rights, duties, and working conditions when you look to engage new staff.
Here are some basic regulations you should be aware of in order to draft a compliant contract and how a PEO and employer of record can support your particular HR requirements.
hours of work
In the United Kingdom, the maximum workweek is 48 hours per week averaged over 17 weeks. Employees over the age of 18 may generally decide to work more than 48 hours per week if they have a documented, voluntary opt-out agreement; however, employees in other industries are not permitted to opt out.
Keep the following in consideration as you decide what salary to pay your U.K. workers:
Depending on the employee’s age, the hourly minimum pay as of April 2022 ranges from £4.81 to £9.50.
Although it is not required, thousands of U.K. firms have embraced the higher living wage that the Living Wage Foundation in the U.K. has estimated in addition to the minimum wage.
Employment agreements for wages that are less than the minimum wage are not legally enforceable.
A documented payslip that includes the gross pay, net pay, tax and NIC deductions, as well as any fixed deductions like union dues, must be sent to each employee.
Although overtime pay is not required, the average salary for all hours worked by an employee should not be less than the minimum wage.
In the UK, the probationary period typically lasts between one and six months, and companies are expected to let employees know when it has been successfully completed.
Severance pay and dismissal
Employers frequently agree to more lenient arrangements, sometimes up to six months’ notice, even though the U.K. Employment Rights Act of 1996 specifies how much notice of termination must be given to employees.