Are you looking to hire an employee in the United Kingdom? If so, you may want to consider using an EOR Company. Read on to learn more about how to hire an employee in the UK through an EOR.
Why Hire Employees from the United Kingdom
The UK's highly developed economy provides businesses with access to a skilled and educated workforce. The country also boasts an excellent infrastructure and communications network, making it easy to access talent from all over the world. This makes it an ideal location for international companies that need access to highly skilled professionals.
Many British universities offer top-notch education programs that allow students to gain valuable skills related directly or indirectly to the business industry. This means that potential employees may already have some level of knowledge about their field before even joining your organization — reducing training time and costs associated with hiring new people as well as increasing overall efficiency.
Finally, due to its strong legal system, any employer operating within the UK is protected by various laws designed to protect both parties involved in employment contracts — making sure fair practices for both employer and employee alike. This provides peace of mind when considering entering into any contractual agreement with potential new hires from this region.
How to Legally Hire in the UK
When it comes to hiring employees in the UK, there are a variety of legal requirements that must be met to set up an entity. To make sure that your company is compliant with UK law, it is important to understand how to hire in the UK legally.
The process of hiring in the UK begins by obtaining permission from the Home Office. Companies must first apply for a sponsor license before they can hire employees from outside the European Union or European Economic Area (EEA). This process requires evidence of financial stability, as well as demonstrating that you have an appropriate system for monitoring and reporting on any employees who are sponsored under this license.
It is important to remember that employment contracts must be written according to UK standards and follow applicable legislation such as The Employment Rights Act 1996 and the Working Time Regulations 1998. Failure to follow these regulations could result in hefty fines or other penalties from HM Revenue & Customs or other regulatory bodies if found guilty.
To skip all this, companies can work with an EOR. An EOR provides comprehensive HR services such as payroll processing, pension contributions, employment contracts, and other benefits administration. By outsourcing these services to an EOR, companies can reduce costs while making sure they are compliant with all relevant employment laws.
Benefits of Hiring an Employee with an EOR
Contracts and documentation
EORs are well-versed in UK employment legislation which makes sure that all paperwork is legally compliant. This includes drafting employment contracts that meet the requirements of both parties, like the UK minimum wage, as well as any other necessary documents such as non-disclosure agreements.
Payroll, Employee Insurance and Benefits
EORs also support payroll processing by providing employers with accurate salary calculations based on the agreed-upon wage rate and any additional benefits or deductions. This includes managing employee insurance & benefits such as pensions and other workplace-related perks like gym memberships.
Paid Vacation and Holidays
EORs also manage paid vacation days and holidays according to UK regulations, making sure employees are given their rightful rights under UK law. Employers in the UK observe these public holidays, otherwise known as bank holidays:
- January 1: New Year’s Day
- March 29: Good Friday
- April 1: Easter Monday
- May 6: Early May bank holiday
- May 27: Spring bank holiday
- August 26: Summer bank holiday
- December 25: Christmas Day
- December 26: Boxing Day
Taxes and Social Security Contributions
Finally, EORs ensure that all taxes & social security contributions are correctly handled for each employee to remain compliant with HM Revenue & Customs regulations. This helps avoid hefty fines or other penalties from HMRC for non-compliance.
Choosing the Right EOR Service Provider for You
When it comes to choosing the right EOR for your business, there are several key factors to consider:
- Make sure that the provider is licensed and registered with HM Revenue & Customs so that they can accurately calculate taxes & social security contributions for your company. This will help to ensure compliance with all relevant laws and regulations.
- Check if they offer a range of services including payroll, benefits management, HR compliance advice, global contractor management, immigration and visa services, and employee insurance.
- Make sure that they have experience in dealing with multinational companies.
- Consider the fees associated with an EOR service provider. Different providers may charge different rates for their services, so it’s important to compare prices before making any decisions. Ask for quotes from multiple providers to get a sense of the market rate and be sure to read through their terms & conditions thoroughly before signing any contracts or agreements.
- Speak directly with potential EORs so you can ask questions about their experience, processes, and customer service capabilities - this will give you an idea of how well they can handle your HR needs in the UK.
Simplify UK Hiring with Borderless — Your EOR of Choice
Take the hassle out of hiring from the UK with Borderless - choose us as your EOR and streamline your hiring process today! Book a demo.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
