Employer Of Record United Kingdom
Infotree Global Solutions assists clients to hire in the United Kingdom by providing Employer of Record solutions. For companies willing to recruit staff and manage payroll in the UK without having a subsidiary, Infotree Global Solutions is a wise option. Here the employee is legally contracted through our subsidiary in accordance with the UK labor law, which is a streamlined way to recruit employees in the UK. With quick employee onboarding, you enter the international market without facing legal complexities. Our in-territory experts provide you all the required expansion assistance that helps you execute payroll management seamlessly.
Table of Contents
• Hiring in the United Kingdom
• Employment Compliance
• Employee Entitlements
• Payroll Tax in the UK
• UK Visas and Work Permits
• Benefits of UK Employer of Record Services
• Why Infotree Global Solutions?
Hiring in the United Kingdom
U.K. labor law includes different acts, charters, and regulations. The wide array of legislation requires a great legal framework for staff, employers, and trade unions. There are specific rules governing the rights and responsibilities. Due to the complexity of employment laws in the U.K, drafting accurate employment contracts comes as a mandate. The UK labor laws and rules comprise detailed acts, including The Employment Rights Act 1996 and the Equality Act 2010. Any company that looks forward to establishing their operations in the UK land must be aware of all these rules and regulations thoroughly.
Due to the abundance and complex aspects associated with the rules and regulations of the United Kingdom’s employment procedures, companies often find it overwhelming to understand and implement all of it. In such cases, the best option is to get these done by the Employer of record United Kingdom. At Infotree Global, we make sure all your responsibilities are covered with proper care by keeping you updated with all the rules and regulations working in the UK so that your company gets the best workforce by hiring the best candidates and flourish enormously.
Companies who are looking forward to expanding their operations in the UK should be aware of the importance of the contracts and compliances in the employment procedure. Here no employer can hire a candidate as their employee if they fail to provide them with a detailed contract depicting the details about the payments and the work. Drafting the contract requires an immense amount of time and knowledge about the rules and regulations imposed on the employment procedures. The Employer of Record services makes sure that the contract is created keeping in mind all the rules and regulations, thereby keeping the process free from any disputes and complications as well.
The UK employer of record makes sure information regarding the following is shared with the employers so that while drafting the contract, no mistakes are made.
• Working hours
The working hours allocated for the employees in the UK are 48 hours. This time period is distributed in 17 weeks. However, if the employee is over 18 years old, then they can opt to work for more than 48 hours; in that case, it should be mentioned in the contract.
The minimum wage in the Uk for an employee ranges between £6.45 to £8.72, and any payment less than this will not be considered right. Employers will have to pay a salary within or more than the minimum range. A payslip should also be provided to the employee with their salary, which will have detailed calculations of the deductions made from their earnings along with the salary denominations.
There are no mandatory regulations associated with the bonus payment for the employees in the UK; this is entirely dependent on the Employer whether they want to provide a bonus or not. The Employer of Record will make sure the bonus category is detailed in the contract so that no confusion takes place during the employment procedure.
• Probation Period
In the UK, the probationary period ranges between one to six months. The standard probation period is for three months, however, for senior roles, it can be six months and one month for contract workers.
According to United Kingdom’s National Minimum Wage, the compensation of an employee varies depending upon one’s age and other factors. While drafting an employment contract in the UK, it is very crucial that employers keep in mind the statutory benefits and leaves the employees are entitled to enjoy in the UK. Employer of record UK makes sure that these regulations are maintained thoroughly to nullify any disputes happening in the employment procedure. Some of the important statutory benefits and leaves you need to know are:
• Maternity Leaves
A total of 52 weeks is given off as maternity leave to pregnant employees in the UK. It includes 26 weeks of normal maternity leave and 26 weeks of additional maternity leave. After giving birth to the baby or babies, the employee can take an extra two weeks off before returning to work. Pregnant employees are also entitled to Statutory Maternity Pay for up to 39 weeks where they get
• 90% of your average weekly earnings (before tax) for the first 6 weeks
• £151.97or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks
Employees are entitled to get a total of 28 days of paid leave annually as their vacation, which also includes the bank holidays, but this varies according to the contract. The bank holidays are not required to be paid leaves, but it depends upon the sole description of an employer to incorporate it in the paid leave section. The common holidays which are celebrated in the UK are not mandatorily considered as paid leaves as employers are not legally entitled to give them off unless they want to.
• Sick leave
Employees need to give their employer proof of illness if they are ill for more than four days to qualify for Statutory Sick Pay (SSP). Employees with an income of at least £120 per week before tax are entitled to get a paid leave of sick pay of £95.85 per week if they are unable to attend office for more than four days. Other than that, modifications can be made on the sick statutory pay by the Employer where they can incorporate more benefits as well.
• Health benefits
The health insurance coverage for employees is covered by the National insurance Contributions (NICs), which will include a contribution made from the employee’s income and also front the Employer’s earning. But employers can provide additional benefits along with these federal benefits.
Payroll Tax in the United Kingdom
When it comes to setting up payroll in the UK, having an employment contract comes as a 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 requirements if required. An offer letter in the UK should always have the salary and compensation amounts listed in British pounds (£) instead of a foreign currency. The legal needs for an employment deal in the UK are basic and 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 UK.
Employers are required to 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, payroll software, and providing the employee a P60, and reporting employee expenses and advantages. Employees can put to work up to 48 hours per week which comes with an opt-out option and they can further work extra hours. Exceptions to these rules can be further employed depending on the employers. In UK the corporate tax rate is 20%, while individual income tax varies between 20% to 45% depending upon employee gross earnings. Employers contribute around 13.8% towards National insurance Contribution and employees contribute 12%.
Infotree Global as our UK Employer of Record helps you understand the various aspects of it like employer contributions comprised of National Insurance, Workplace Pension, Employee taxes, personal allowances up with a basic rate and higher rate and so on.
UK Visas and Work Permits
The eligibility for a UK work visa is mainly determined by various points that you are able to score on the UK points system. These points are awarded for qualifications, expected income, language skills, and sponsorship. Before any individual applies for work permits, he needs to fulfill a number of basic work permit requirements. The employee should have a confirmed offer of employment from his employer or an Employer of Record who will be acting as his sponsor having a certificate of sponsorship. Besides, he should clarify the points-based assessment that can be found on the category-oriented work permit. The work permit application process is led by the employer who issues a certificate of sponsorship.
Taking assistance from Infotree Global’s UK Employer of Record helps you sail through the complex process and ensures that you get all the required documents without hassles.
Benefits of UK Employer of Record Services
As businesses are becoming more specialized, globalization is significant. 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. By taking the employer of record UK services, you get a number of benefits associating with overseas hiring.
Our team at Infotree is always there for you with the best Employer of record services. We are specialized in helping companies with top-notch quality services being their Employer of Record UK and making sure the company operations are carried on effortlessly without any hindrance. Our abundant knowledge regarding the UK hiring market and cultural boundaries makes us the perfect choice for your company’s hiring responsibility.
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 you throughout your expansion plan in the UK. 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 the back office, reach us to learn about our Employer of Record services in UK!