HR & Employment Law Overview for Overseas Businesses
The “Have Tos” – Legal Requirements When Hiring in the UK
UK-Compliant Employment Contract
- Required by law if employment exceeds one month.
- Must meet UK employment law standards – translations of home country contracts are not compliant. Our experience is that trying to amend a home country contract to fit UK requirements can often be more time consuming than using a UK-compliant contract from the outset.
- We tailor all employment contracts to fit your circumstances, avoiding wording that could inadvertently trigger UK tax issues.
Right to Work (RTW) Checks
- Legally required for all employees.
- Failure to comply can result in fines or imprisonment.
- We can carry out checks for British/Irish passport holders and those with share codes.
Employer’s Liability Insurance
- Must cover at least GBP 5 million.
- Fines of up to GBP 2,500 per day apply if uninsured.
Statutory Pay & Leave Policies
Must comply with UK rules for:- Statutory Sick Pay
- Maternity / Paternity / Adoption Leave and Pay
- Shared Parental Leave
- Bereavement Leave
- Neonatal Leave
- Compassionate and Dependant’s Leave
Disciplinary & Grievance Policy
- Required in writing.
- Should follow ACAS Code of Practice to avoid increased tribunal awards.
GDPR & Data Protection Compliance
- Includes an employee privacy notice.
- You may need to register with the ICO (the Information Commissioner’s Office).
Display Screen Equipment (DSE) Assessments
- Required for all employees using screens for over an hour a day.
Health & Safety Policy
- Required if your UK team has 5 or more employees.
The “Nice Tos” – Best Practice to Consider
Employee Handbook
Helps communicate policies like:
- Code of Conduct
- Equal Opportunities
- Cybersecurity & Device Use
- Family Policies
- Whistleblowing and more
Travel & Expenses Policy
Clear rules for booking travel, claiming expenses, and approvals. Our tax and payroll teams can help you to navigate the UK rules on these points. Read more about UK Employee Expenses Rules
Company Car / Car Allowance Policy / Mileage Claim Policy
- Essential for sales or client-facing roles.
- Can impact employee benefits and tax.
- Guidance on rates and claim process
Parental Leave Enhancements
Enhancing statutory entitlements improves recruitment & retention.
Reference Checks & Pre-Employment Screening
Our HR Consultancy Services
We work exclusively with international businesses and understand the pressures of managing HR in a country you may not be familiar with. Our team works hand-in-hand with your payroll team and proactively raises issues before they become problems.
We support our clients with:
- Drafting employment contracts and offer letters.
- Undertaking Right to Work checks.
- Creating policy documents, staff handbooks, and onboarding materials.
- Keeping documentation up-to-date with changing UK laws.
- Navigating redundancy, disciplinaries, and other sensitive employee matters.
FAQs
Yes, if they will be working for more than one month.
No, UK employment law has strict requirements that must be met.
You may face fines of up to GBP 20,000 per illegal worker, or a prison sentence.
You must meet the UK National Minimum Wage or National Living Wage.
Statutory Maternity Leave and Pay must be provided. We help you meet the requirements and can guide you through enhanced arrangements.
There may still be legal obligations, such as DSE assessments and inclusion in GDPR policies.
Not by law, but highly recommended to clarify expectations and protect your business.
Contact Our Experts
Ready to hire or update your HR documentation? Contact us to discuss your specific situation.
Kate McDermott
Director
Head of Indirect Tax & HR
Jennifer Cooke
Assistant Manager
Management Reporting, Statutory Accounts, HR & Payroll