Background Checks

Perform background checks where necessary, and only if relevant to the job role.

Respect privacy laws during the process, limiting the scope of background checks to essential information.

References

• Seek references only after a conditional offer of employment is made.
• Request consent from candidates before contacting referees.

Verification and New Hire Reporting

Employment Verification (Right to Work Checks): Employers are legally required to verify that every new employee has the right to work in the UK. This includes:

• Checking original documents (e.g., passport, visa, biometric residence permit)
• Conducting online checks via the Home Office Right to Work service
• Keeping copies of the documents or online check results for the duration of employment + 2 years
• Failure to comply can result in civil penalties of up to £20,000 ($26,612.02 USD) per illegal worker.

New Hire Reporting: Unlike the U.S., the UK does not have a centralized “new hire reporting” system for all employers. However, employers must:

• Register with HMRC as an employer before the first payday
• Submit a Full Payment Submission (FPS) through PAYE each time they pay employees, which includes:
  • Employee’s personal details
  • National Insurance number
  • Tax code
  • Pay and deductions

Onboarding Process & Documentation

Collecting Required Documentation

Verify that all prospective employees have the right to work in the UK.

• Request and verify appropriate documentation, such as a valid passport or work visa.
• Use the online Right to Work Checking Service as an alternative verification tool.

Documentation Verification

• Check the authenticity and expiration dates of documents.
• Retain copies of documents for administrative records for the specified retention period.

Providing Employee Rights and Obligations

• Employment Contract (or Written Statement of Employment Particulars)
• Staff Handbook (Optional but Recommended)
• Health and Safety Information
  • Includes fire safety procedures, first aid arrangements, and any job-specific safety training
• Company Policies
  • Examples: Anti-discrimination, data protection, remote work, and cybersecurity policies.
• Training Materials
  • Especially for roles requiring specific software or compliance knowledge.

Healthcare

Employer’s Liability insurance is required for businesses in Great Britain to cover liability for bodily injury or disease sustained by employees during employment.

Some employers may offer life insurance, permanent health insurance, private medical insurance, and company cars.

Retirement

Employers are required to automatically enroll eligible workers into a qualifying pension scheme. Employers must also inform employees about their enrollment, the type of pension scheme, and how much both parties will contribute.

• The ages must be between 22 and state pension age
• At least £10,000($13,267.50 USD) per annum
• Employers must contribute at least 3% of each employee’s qualifying earnings. The combined minimum contribution from both employer and employee is 8%, with employees contributing at least 5%.

Social Security

Social Security system is funded by funded by general taxation and National Insurance Contributions (NICs).

• It covers maternity/paternity/adoption, childcare, disability, caregiver matters, and retirement pensions. Employers can supplement these benefits contractually.
• Employers must collect income tax at source from employment income, pensions, and taxable state benefits.
• Both employed earners and their employers must pay NICs. Class 1 contributions are payable by both employer and employee.

Employment Contract Details

Every employee is entitled to a written statement of employment particulars, typically within two months of their start date. “Terms and Conditions” are job roles, salary, working hours, and notice periods.

Probation Period

Probationary periods are agreed in the employment contractor, but they typically last between three to six months.

Visas

• Types of UK Visas: Visitor, work, study, and family visas.
• Application Process: Determine eligibility, gather required documents, complete the application, attend a visa appointment, wait for a decision.
• Visa Validity and Extensions: Monitor visa expiry, submit extension applications early.
• Key Points to Remember: Start the application process early, ensure document accuracy, comply with immigration laws, maintain communication with HR.

Independent Contractors

An independent contractor is an individual or business entity providing services on a self-employed basis

• Contractors are not paid through PAYE and do not have the rights and responsibilities of employees
• HMRC may regard someone as self-employed for tax purposes even if they have a different status in employment law

Paid Time Off

Employees are entitled to 20 working days of paid leave per year for full-time employees, plus 8 days of public holidays.

• It runs from January 1st to December 31st.
• Unused vacation days can be carried over at the employer’s discretion, with specific conditions for sick leave and maximum carryover limits.
• Negative Leave Balance is allowed, with deductions from the final salary if the employee leaves before accruing the balance.
• Unlimited Leave Policy is permitted by law, subject to employer’s discretion.
• All unused leave days will be paid out upon termination.

Public Holidays

• New Year’s Day
• New Year’s Day Holiday (Scotland)
• Saint Patrick’s Day (Northern Ireland)
• Saint Patrick’s Day Holiday (Northern Ireland)
• Good Friday
• Easter Monday (England, Northern Ireland & Wales)
• May Bank Holiday
• Late May Bank Holiday
• Battle of the Boyne (Northern Ireland)
• August Bank Holiday (Scotland)
• Summer Bank Holiday (England, Northern Ireland & Wales)
• St Andrew’s Day (Scotland)
• St Andrew’s Day Holiday (Scotland)
• Christmas Day
• Boxing Day

Bereavement

Parents who lose a child under 18 or experience a stillbirth after 24 weeks of pregnancy are entitled to 2 weeks of paid leave. Outside of parental bereavement, there is no statutory bereavement leave. Employers set their own policies.

Maternity Leave

Employees are entitled to 52 weeks of statutory maternity leave, divided into 26 weeks of ordinary leave, followed by 26 weeks of additional maternity leave.

• Employees are not required to use the full 52 weeks
• Employees must take 2 weeks following childbirth

Employees are compensated by Statutory Maternity Pay (SMP) for up to 39 weeks at the rate of 90.00% of the employees average weekly earnings for the first six weeks, and 172.48 GBP ($229.33 USD) or 90.00% of the employee’s average weekly earnings, whichever is lower) for the following 33 weeks

Paternity Leave

Employees are entitled between 1 to 2 weeks of paid leave, starting after childbirth.

• Employees must have been employed for at least 26 weeks continuously up to the ‘qualifying week’.

Adoption Leave

• Second adopter may be entitled up to 2 weeks of paternity leave and pay
• Taking adoption leave at a later date (on matching) may affect statutory adoption pay.
• Taking adoption leave at a later date (on matching) may affect statutory adoption pay.

Employees are compensated by Statutory Paternity Pay (SPP) 172.48 GBP ($229.33 USD) or 90.00% of the employee’s average weekly earnings, whichever is lower, per week of leave

Parental Leave

Shared Parental Leave allows up to 50 weeks of leave that can be shared between parents.

• Statutory Shared Parental Pays (ShPP) up to 37 weeks.
• Leave must be taken within the first year of child’s birth or adoption
• Parents must meet specific criteria, including ending maternity or adoption leave early to create SPL and ShPP

Sick Leave

Employees can receive up to 28 weeks of paid sick leave, compensated at a minimum of £109.40 ($145.49 USD) per week (Statutory Sick Pay – SSP). The first three days of sickness absence are not covered by SSP, but some employers may pay regular salary during this period.

• If sick leave exceeds seven days, including weekends and bank holidays, a professional medical doctor certificate is required.
• Employees may be entitled to higher pay during sick leave if the employer offers this benefit.
• After SSP ends, employees on long-term illness may be able to claim Disability Benefits from the government.

Termination Requirements

At this time, Vensure does not have termination requirement details available. However, see the Notice Period section for more termination-related information.

Notice Period

Notice periods are outlined with the employment contract or the statutory minimum, whichever is longer.

• At least one week’s notice if employed for 1 month to 2 years.
• One week’s notice for each year of service beyond 2 years, up to a maximum of 12 weeks.

Dismissal for gross misconduct and without notice is possible. Employers can also pay in lieu of notice

Severance Pay

Severance pay is only required in the case of redundancy, and they had to be employed at least two years.

• Half a week’s pay for each full year for employees under 22.
• One week’s pay for each full year for employees aged 22 to 41.
• One and a half weeks’ pay for each full year for employees over 41.

Length of service is capped at 20 years and the weekly pay is capped at £571 ($757.45 USD).

Unemployment Insurance

Jobseeker’s Allowance (JSA): This is an unemployment benefit an employee can claim while looking for work. There are two types:

• New Style JSA: Available to those who have paid enough National Insurance contributions. It can be claimed for up to 6 months
• Income-Based JSA: This is being phased out and replaced by Universal Credit

Universal Credit: This benefit supports individuals who are unemployed or on a low income. It combines several benefits into one monthly payment.

To qualify for JSA or Universal Credit, the employee must:

• Be actively seeking work.
• Be available for work.
• Meet specific income and savings criteria

When an employee applies for JSA, they will create a Claimant Commitment, outlining the steps they will take to find work. Their benefits may be reduced or stopped if they do not adhere to this agreement

Anti-Discrimination Practices

The following characteristics are protected by law, and discrimination on these basses is prohibited:

• Age
• Disability
• Gender Reassignment
• Marital or Civil Partnership Status
• Pregnancy and Maternity
• Race
• Religion or Belief
• Sex
• Sexual Orientation

Implementing Equal Opportunities

• Ensure hiring, promotion, training, and all other employment practices are aligned with equal opportunities legislation.
• Conduct regular training and assessments to foster an understanding of diversity and inclusion.

Labor Law Sanctions

• Exploitation of Migrant Workers: Companies found exploiting migrant workers, such as charging them for visa-related costs or paying below the National Minimum Wage, can face severe penalties. Offenders may be banned from hiring any more overseas staff.
• Visa Abuse: Businesses that repeatedly flout visa rules or commit serious employment breaches can be barred from sponsoring overseas workers for up to two years
• Employment Rights Violations: Companies failing to comply with employment laws, such as not providing adequate working conditions or failing to pay wages on time, can face fines and legal action.