Employer of Record United Kingdom
If you are excited to run business operations globally, an Employer of Record company makes the entire process of hiring in the United Kingdom easier. With quick employee onboarding, you join the international market without setting up an actual office. Our professional services save your time significantly for establishing a branch internationally. It enables you to utilize our global infrastructure to recruit and onboard employees overseas. It does not let you lose control over their routine job responsibilities. With our consistent expansion assistance, you can execute payroll management seamlessly by mitigating the risk.
Setting up a business or employing in the United Kingdom – Here is the detailed information that throws light on the various aspects of hiring in the United Kingdom.
Hiring in UK
If you are an organization planning to hire workers in the United Kingdom, you can do that easily by outsourcing to Employer of Record United Kingdom. It assists you with employee payroll management and human resources compliance. Traditionally, organizations recruiting their initial staff in the United Kingdom set a branch office before doing that. For companies that want to recruit staff and manage payroll without having a subsidiary, an EOR like Infotree Global Solutions is the smart choice. In this system, the employee is legally contracted through the subsidiary of a UK Employer of Record in accordance with the UK labor law. It is an easier way to recruit employees in the United Kingdom. You also get comprehensive benefits to your workers in the UK by assigning an EOR company for the same, which is well aware of the entire process.
Key Areas to Consider
There are key concerns that need to be attended while hiring employees in the United Kingdom. These include all the legal requirements to offer maximum benefits to your employees as per the labor law regularities of the United Kingdom. Besides, non-compete regulation facilitates the employee more than the employer in the UK, hence details like language in employment contracts should be observed carefully. Let’s understand the entire process and requirements for hiring in the United Kingdom and the role of our UK Employer of Record.
Table of Contents
• Immigration and Work Permits in UK
• Have Your Own Company
• Setting up Payroll in UK
• Payroll and Tax in UK
• Work Permits
• Employee Entitlements
• Setting up a Company in UK
• UK Employment Compliance
• How to Onboard Employees
• Benefits of UK Hiring Outsourcing
• Why Infotree Global Solutions?
Immigration and Work Permits in UK
The eligibility for a UK work visa is mainly based on various points that you score on the UK points system. These points are awarded for qualifications, expected income, language skills, and sponsorship. To retain its competition, the UK encourages skilled people to work in the country with a Tier 2 visa program. The workers with their occupations listed on the Tier 2 occupation list can apply to work there. The list of popular professions includes IT, finance, education, engineering, and healthcare. The Tier 2 work permit visa can be extended to 5 years as required. Taking assistance from Infotree Global’s UK Employer of Record helps you deal with the complex process and makes it easy to get all the required documents without hassles.
Have your Own Company
Expanding your business operations in United Kingdom is exciting and yet challenging. To work as a UK establishment, you need to register the company as an overseas company. You need to obtain a voluntary UK VAT registration. However, with the help of an EOR, it is easy to start a business with fewer hassles. As your partner, they are well aware of corporation tax and hold the responsibility for filing annual tax returns. With the assistance of an EOR company, your business is ready for a successful expansion by delegating international hiring, payroll, tax, compliance, and overall risk reduction to them.
No matter whether you want to build your presence in United Kingdom for a short-term project or want to hire a full team, an EOR is very helpful. An international EOR presents a flexible solution by reducing the time and cost to keep your operations running uninterrupted. A UK Employer of Record company like Infotree Global deals with the complexities and makes hiring in UK a smooth process for new companies.
Setting up Payroll in UK
When it comes to setting up payroll in UK, having an employment contract is the first legal requirement in the United Kingdom. It should have all the details of the employee’s responsibilities, compensation, perks, grievance and disciplinary procedures, and even termination if required. An offer letter in the UK should always have the salary and compensation amounts mentioned in British pounds instead of foreign currency. The legal needs for an employment deal in the UK are basic. Most of such contracts are more comprehensive in nature than the law demands. The provision of such an employment contract should be done as per the recommendations of an Employer of Record.
Payroll and Tax in United Kingdom
Employers should deduct Personal Income Tax as well as a National Insurance contribution from business earnings through a system called PAYE (Pay as You Earn). The payroll requirements include sending the year’s final report before the employee’s payday and update all the payroll records. Further, they should also update the payroll software and providing employees a P60 and reporting their employees about expenses and advantages. Employees can put to work up to 48 hours per week with the flexibility of opt-out or working extra hours. Exceptions to these rules can be further implemented depending on the employers. At Infotree Global, our UK Employer of Record Services help you understand the various aspects associated with employer contributions. It comprises of national insurance, workplace pension, employee taxes, and personal allowances up with a basic rate and higher rate and so on.
Before any individual applies for work permits, he needs to fill basic work permit requirements. The employee should have a confirmed offer of employment from his employer or an Employer of Record in UK who will be acting as his sponsor. He should be given a certificate of sponsorship that is issued by the sponsoring employer. Besides, he should clarify the points-based assessment that can be found on the category oriented work permit. Typically, there are three main categories of work permits in United Kingdom including Tier 2 General, Tier 2 Intra, and Tier 2 Sportsperson visa. The work permit application process is led by the employer who issues a certificate of sponsorship. If you are willing to know more about Tier 2 work permits, consider taking the help of an EOR company.
The compensation of an employee varies depending upon age and other factors. As per UK national minimum wage, it depends on the employer to determine the contractual benefits. Usually, there is a probation period of three to six months. Depending upon the employer, it is possible that his staff may not get all the contractual benefits during the probation period. There are no bonus needs for employers in the UK.
As an Employer of Record UK, Infotree Global assists you with employee entitlements as per the UK regulations. However, if an employer considers distributing cash or non-cash among his employees, it must be reported to HM Revenue & Customs (HMRC) and the reporting requirements may vary further. Employee termination in the UK recommends employers to give staff between one and 12 weeks’ notice before ending his services. Employers must offer statutory redundancy pay, and payment through the notice period or instead of notice based on individual circumstances.
Setting up a Company in United Kingdom
Now that if you have made up your mind to try in the international market, it is the time to take the services of an Employer of Record into consideration. For that, you need to find out all the requirements and queries that can help you undergo the process easily. There are legal issues, compliance hassles, and laws & regulations in the UK which need serious consideration. As an Employer of Record, Infotree Global oversees all risk mitigation, compliance, and payroll management so that you can start business operations with confidence. No matter whether it is a short-term project or a long term plan, hiring a team needs Employer of Record services in UK to make it easier. By taking their assistance, you get a flexible solution that can save a significant amount of money spent on starting a new office.
United Kingdom Employment Compliance
Each employee in UK should be given a detailed employment contract in the English language. An Employer of Record in United Kingdom helps you with the non-confidentiality and post-termination restrictions clauses providing greater protection for any venture. There should be a complete insight of the UK legal requirements like sick leave, holiday entitlement, and maternity or paternity pay that should be made available prior to the offer. An Employer of Record recommends where the provisions can be improved to offer a competitive salary and perks for all employees.
How to Onboard Employees?
Onboarding employees is a crucial task and the risk is multiplied when it is in a new country. An EOR company works with in-country legal experts to easily take you through the various law. With our EOR, you get fully managed services that take care of all the routine HR tasks like expense processing, absence, and probationary management. Besides, you get ad-hoc support available as and when you need it. Regular updates and advice are shared covering important changes to UK employment law. Plus, there are recent changes in the flexible working policy in the United Kingdom which you get to know by an EOR that helps you onboard your employees smoothly and within the expected time frame.
Benefits of UK Hiring Outsourcing
As businesses are becoming more specialized, globalization comes as no surprise. With the world developing new rules, laws are also evolving consistently. There is a constant update in rules and regulations which is adding to the complexities. Especially if you are a new company, trying your luck in the overseas market, these challenges are intimidating. Thankfully, there is a way known as the Employer of Record UK services. By taking their assistance, you get a number of benefits associating with overseas hiring. A business that engages an EOR gets benefitted in terms of mitigating risk, cost, and complexities related to overseas expansion. By outsourcing for hiring in United Kingdom, your employee gets the same perks and security as other team members of your company.
Why Infotree Global Solutions?
As your UK Employer of Record expert, Infotree Global Solutions takes the responsibility for adhering to the laws and regulations of the United Kingdom. We take tax, HR, and social security burdens away from you and ensure to get your employee onboard with ease and in less time. We allow you to utilize the potential of our network offices to actively work on your company’s behalf and take care of all the legal considerations and compliances. You simply enjoy peace of mind learning that our staff of in-territory experts will be there for your throughout your expansion plan in the UK. As your Employer of Record, we help you expand into emerging markets, provide a dedicated workforce for your business in a compliant way. We do ensure to practice legal, HR & payroll compliance in the country that you are going to establish your business.
So, if you wish to reduce the cost of a traditional setup and reduces the hassles of processing and managing back office, reach us to learn about our Employer of Record services in UK!