Hiring employees is a multifaceted process that demands thorough consideration and preparation. Whether you're establishing a new venture in the UK and recruiting staff for the first time or relocating employees from an international branch to an existing UK setup, navigating the intricacies of employment law and compliance is essential.

While each hiring scenario may present unique challenges, certain legal aspects remain paramount for all businesses. Below, we delve into some fundamental points to bear in mind:

1. Employment Classification: Determining whether an individual will be classified as an "employee," a "worker," or a "self-employed contractor" is crucial. Each category entails distinct rights and responsibilities under employment and tax laws, with employees typically enjoying the highest level of legal protection. For the purposes of this discussion, our focus will primarily be on the employment of individuals as employees.

2. Employment Law in the UK: With the UK's departure from the European Union in January 2020, certain aspects of UK employment law, which previously had roots in EU legislation, may undergo alterations in the future. Additionally, it's important to recognize that the UK comprises four separate legal jurisdictions—England, Wales, Scotland, and Northern Ireland. While employment law is largely uniform in England and Wales, nuances may exist in other regions. However the UK is still the ‘easiest’ place to land within EMEA with less language barriers and less regulation and law than the EU.

   Key legal rights and protections applicable to employees in England include:

   • The right to receive a written statement outlining the terms of employment, a legal requirement that, if overlooked, may result in penalties.

   • Regulations governing maximum working hours and annual leave entitlements, safeguarding employees' well-being and work-life balance.

   • Provisions for family-related leave, ensuring support for employees during significant life events.

   • Statutory sick pay entitlements, offering financial assistance during periods of illness or incapacity.

   • Notice requirements for termination of employment, ensuring fair treatment and sufficient transition periods.

   • Protections against unfair dismissal and discrimination, safeguarding employees from discriminatory practices or unjust termination.

   • Whistleblowing protections, encouraging transparency and accountability within organizations.

   • Mandatory pension enrollment and data protection obligations, ensuring employee welfare and privacy rights are upheld.

3. Statement of Employment Terms: English law mandates that employers furnish employees with a comprehensive statement of employment terms, containing essential information such as:

   • Employer and employee details.

   • Job title and commencement date.

   • Probationary period, if applicable. (usually 2 weeks to 3 months)

   • Salary and payment intervals. Weekly or monthly

   • Work hours and holiday entitlements. Most employees cannot be required to work more than an average of 48 hours a week unless they expressly agree otherwise with their employer. Employees can opt-out of any such agreement at any time by giving up to three months’ notice. Senior employees who have autonomous decision-making powers are not subject to this limit. Employees are also entitled to 5.6 weeks' paid annual leave (which means 28 days for a full-time employee). This can include public and bank holidays, of which there are eight a year in England.

   • Sickness absence and pay provisions. Employees are entitled to be paid when they are off sick. The amount that they are entitled to receive is known as "statutory sick pay" (SSP) and is specified in law. Entitlement to SSP ceases after 28 weeks’ sickness absence in any three-year period. However, there is no statutory limit on the amount of time employees may be off work due to sickness or injury.

   • Termination notice requirements. Once employees have been continuously employed for a certain period (two years), they are protected from unfair dismissal. This means they may only be dismissed for one of five prescribed reasons, including redundancy, capability (i.e. performance) and misconduct and, in addition, employers must follow a fair process when dismissing an employee. Failure to dismiss for a prescribed reason or to follow a fair process could lead to a successful claim for unfair dismissal. Compensation for unfair dismissal is capped at the lower of a year’s pay or a specified amount set out in statute (reviewed each year and which is £105,707 for the period 6 April 2023 to 5 April 2024). However, compensation for certain dismissals, such as those in connection with disability or whistleblowing, is unlimited.

   • Disciplinary and grievance procedures.

   Additionally, employment contracts commonly include clauses pertaining to confidentiality, intellectual property, and post-termination restrictions, especially for senior or critical roles.

4. Additional Considerations: Beyond legal obligations, employers must address various other factors, including:

   • Immigration compliance, ensuring all hires possess the right to work in the UK.

   • Pre-employment checks, encompassing qualifications verification, reference checks, and, where necessary, criminal record and health assessments.

   • Taxation responsibilities, involving the deduction of income tax and national insurance contributions through PAYE schemes.

   • Sector-specific regulatory requirements, particularly in regulated industries like finance, law, and healthcare.

   • Mandatory employer's liability insurance coverage, regardless of business size.

   Depending on the industry and job role, additional considerations may arise, underscoring the importance of meticulous planning and legal adherence throughout the hiring process.

In summary, recruiting employees necessitates strategic planning to ensure compliance with legal obligations and the protection of business interests. Seeking expert guidance early in the recruitment process can mitigate risks and facilitate smooth on boarding for new team members. Secure Glow Solutions can remove this hurdle completely with SaaS, or we can assist you in finding local partners to enable direct hire.