Global HIRING & employment

Here’s what you need to know about hiring employees in the United Kingdom

Onboarding in the UK usually takes a day or more. Contracts must be in writing and signed by both parties. With Rippling EOR, you have access to a localized employment agreement.

Common Hiring Mistakes to Avoid 

1. Misclassifying employees and independent contractors

Like most jurisdictions, the United Kingdom differentiates between employees and self-employed contractors. But all employees and some contractors have the status of “workers.” Although nonemployed workers don’t have the full suite of employment rights enjoyed by employees, they are more protected than independent contractors. For example, all workers are entitled to the national minimum wage and holiday pay. Despite carefully drafted contracts, an independent contractor can be found to be an employee if the true reality of their working practices indicates this. The burden of proof is on employers to show that their contractors don’t qualify as employees.

2. Failing to take TUPE into account

Employees can be automatically transferred to a new employer under circumstances like an asset sale, or when a service is outsourced. This is set out by the UK’s Transfer of Undertakings (Protection of Employment) Regulations (known as TUPE). TUPE also requires the employer to inform and consult with employee representatives prior to a transfer, which can take weeks to comply with—and failure to do so can be costly.

3. Not complying with the UK’s mandatory parental leave rights

Similar to other European countries, the UK entitles employees of all genders to take paid time off on the birth or adoption of a child. Depending on the length of their leave, they can return to their previous position. More recently, parents gained the right to share parental leave between them. They are also entitled to unpaid leave in certain circumstances (e.g. parental and dependents leave). Clear family leave policies help manage potential pitfalls. Managers are obliged not to discriminate against, or retaliate against, employees who use their statutory entitlements.

4. Failing to follow a fair dismissal process

When dismissing an employee with two years or more of continuous service, employers must have a fair reason, and follow a fair process. Otherwise, employers risk a significant fine, based on the claimant's age and length of service, plus compensation based on their financial loss. Even when the employee has less than two years’ service, a dismissal could be found to be discriminatory.

5. Relying on template restrictive covenants intended for other jurisdictions

If you import restrictive covenants from other jurisdictions, they are unlikely to be enforceable in the UK—unless you modify them. Restrictive covenants are considered to be a direct restraint of trade, unless they go no further than is reasonably necessary to protect an employer’s legitimate business interests. To give restrictive covenants the best chance of being enforceable in the UK, take care when drafting them, and take a customized approach. Tailor the duration and scope of the restrictions to the employer’s needs and the employee’s role or circumstances. UK courts won’t entirely redraft a covenant, but they can strike out certain words (known as the “blue pencil test.”).

6. Not being GDPR-compliant

Even after leaving the European Union, the UK has continued to uphold the EU’s GDPR data protection regulations. Known as UK-GDPR, this regime establishes rules regarding why and how employers can process employees’ personal data.