United Kingdom

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Congratulations on your decision to hire employees in the United Kingdom! The UK is known for its highly skilled and diverse workforce. It can be an attractive destination for international businesses looking to hire employees, particularly those in the technology, finance, healthcare, and engineering sectors. Plane makes this process easy for you by providing automated tax document collection, payroll, benefits, and more. This ensures compliance and efficiency throughout the process. Navigating the hiring process in a new country can be challenging, so we've compiled the details below to help guide you.

Currency

GBP

 Onboarding

2.5 weeks minimum

Employer Cost

20.80%

Pay Frequency

Monthly

Public Holidays

8

5 Considerations Before Hiring in the UK

As an employer in the UK, it is important to have a comprehensive employment contract outlining the employment relationship's terms and conditions. The contract should include compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in the UK, take a moment to consider the following questions:

Does your employee have the right to work in the UK?

To work in the UK, an individual must have the necessary visa or work permit that grants them the right to work. If the person you are hiring is a citizen of an EU country, they may require a visa unless they have already been a resident or have previously worked or studied in the UK before December 31, 2020.

Important note

The Skilled Worker Visa is the most common visa type, and visa processing times can vary depending on the employee's ability to provide the necessary information promptly. The initial application time can take between 2 to 5 weeks. To sponsor the employee, we require their passport, resume, job title, job description, and annual salary.

Do you want to offer private supplemental health insurance?
How much should you contribute towards workplace pension?
Will there be a probationary period? If so, for how long?
Would you like to offer additional incentives?

Getting Started with Hiring in the UK

Employment Contract
Fixed-term vs. Indefinite-term Contracts

In a fixed-term contract, an employee has an agreement with the organization they are working for, but their contract ends on a specific date or upon completion of a specific task. In an indefinite-term contract, the employee has an agreement with the organization they are working for, but their employment has no specified end date.

Employee Rights

Employees on a fixed-term contract are entitled to the same treatment as employees on an indefinite-term contract. It's possible for an employer to have different terms for a fixed-term contract employee if they can show there is a good business reason for doing so. Otherwise, employers must ensure that fixed-term employees receive:

  • the same pay and conditions as permanent staff

  • the same or equivalent benefits package

  • information about permanent vacancies in the organization

  • protection against redundancy or dismissal

Terminating a Fixed-term Contract

The contract will typically end automatically on the agreed-upon date, and no notice is needed from the employer.

Not Renewing a Fixed-term Contract

When a contract is not renewed, it is considered a dismissal. If the employee has provided at least two years of service, the employer must show that there is a fair reason for not renewing the contract. An employee may not be unfairly dismissed after two years of service and is entitled to a written statement of reasons for not renewing the contract after one year of service.

The employee may be entitled to statutory redundancy payments if they have provided two years of service and the reason for non-renewal is redundancy.

Hire Calculator

Get an instant, free estimate of how much it will cost to employ your next hire, including taxes.

Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:

How to hire and onboard an employee

Plane offers a guided process for administrators and managers to hire and onboard their new employees.

Hiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate this process step-by-step. We'll keep you informed and up-to-date with the latest regulations and employment laws.

Frequently Asked Questions

Here are answers to some common questions about hiring employees outside of the US with Plane:

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.

Can Plane withhold taxes for non-cash compensation (e.g. stocks, options)?
Will I be able to pay a bonus, commission, or any other additional payments?
Can Plane guarantee the employee’s start date?