How to Hire Workers in UK?

Hiring staff in the United Kingdom involves more than simply offering a job. From ensuring legal compliance to managing payroll and potentially sponsoring overseas talent, employers must navigate a structured set of procedures. Whether you're hiring your first employee or expanding your team, understanding the requirements helps avoid costly mistakes and ensures smooth operations.

1. Prepare Your Business for Hiring

Before recruiting staff, ensure your business is set up to employ workers legally and responsibly.

Determine the Employment Type

Identify whether you need a full-time, part-time, temporary, or contract-based worker. Understanding different employment statuses—employee, worker, or contractor—is essential for assigning the correct rights and obligations.

Ensure Workplace Safety and Accessibility

You are legally required to maintain a safe and accessible working environment. This includes:

Complying with UK health and safety regulations
Making reasonable adjustments for employees with disabilities

Register with HM Revenue and Customs (HMRC)

If you're employing staff for the first time, you must register as an employer with HMRC. This allows you to process payroll, pay tax, and make National Insurance contributions.

Set Up PAYE (Pay As You Earn)

PAYE is the UK’s system for collecting Income Tax and National Insurance from employees’ wages. Most employers must operate PAYE as part of their payroll.

Understand Your Pension Responsibilities

Under the auto-enrolment rules, most employers must automatically enroll eligible employees into a workplace pension scheme and make contributions.

2. Recruit and Select Employees

Once your business is ready, the next step is to find and recruit suitable candidates.

Create a Job Description

Clearly outline the duties, responsibilities, required qualifications, and experience for the role.

Advertise the Vacancy

Utilize various channels, including:

Online job boards (e.g., Indeed, Reed, Totaljobs)
Recruitment agencies
Social media platforms
Local newspapers and community boards

Interview and Select Candidates

Conduct structured interviews to assess skills, cultural fit, and eligibility. Always ensure non-discriminatory hiring practices in accordance with UK Equality Law.

3. Employing and Managing Your Staff

After selecting a candidate, you must formalize the employment and manage ongoing obligations.

Agree on Terms of Employment

Settle key terms such as:

Job title and duties
Salary and benefits (meeting at least National Minimum Wage)
Working hours and start date

Issue a Written Statement of Employment Particulars

Employees must receive this statement no later than the first day of employment, outlining core terms such as pay, hours, job description, and leave entitlements.

Check the Right to Work

You must confirm that the employee has the legal right to work in the UK. This applies to all employees, regardless of nationality, and involves checking and retaining acceptable identity documents.

Register New Employees with HMRC

Notify HMRC of new hires on or before their first payday using your payroll system.

Manage Payroll and Deductions

Ensure accurate deductions for:

Income Tax
National Insurance
Pension contributions
Use reliable payroll software or outsource to a payroll provider for compliance.

Provide Statutory Benefits

Employees are entitled to benefits including:

Paid annual leave
Statutory Sick Pay (SSP)
Maternity/Paternity Leave
Redundancy and notice periods (if applicable)

Get Employers' Liability Insurance

You must have employers’ liability insurance with coverage of at least £5 million to protect your business in the event of workplace injury claims.

4. Hiring Foreign Workers in the UK

If you're considering hiring staff from outside the UK (including the EU, EEA, and Switzerland post-Brexit), additional steps are required.

Obtain a Sponsor Licence

To employ most overseas workers, your business needs a sponsor licence from the Home Office. This allows you to issue Certificates of Sponsorship (CoS) to prospective foreign employees.

Assign a Certificate of Sponsorship (CoS)

Once licensed, use the Online Sponsorship Management System (SMS) to assign a CoS to the worker. The CoS contains information about the job and employer.

Academic Technology Approval Scheme (ATAS) Certificate

If the position involves certain research or technology-related fields, the worker may also need an ATAS certificatebefore a CoS can be assigned.

Employee Visa Application

The employee then uses the CoS to apply for a work visa—such as a Skilled Worker visa—through the UK Visa and Immigration (UKVI) system.

Hiring employees in the UK—whether domestic or foreign—requires careful attention to legal, financial, and procedural details. From workplace readiness and compliance with tax rules to supporting international hires, each step helps safeguard your business and support employee well-being.

By following this structured approach, UK employers can build a reliable, legally compliant workforce that contributes to long-term business success.