Expanding your business internationally is a significant decision. It involves not only introducing your brand to the global market but also managing a team in compliance with local laws and regulations. Before you take such a crucial yet rewarding step towards global business expansion you might consider hiring a global remote team. This approach allows companies to explore the market beyond their home base, gain better insight, and access top talent from around the world.
For an Australian company, hiring in the UK is feasible. While the process can be complex and intricate, it is certainly achievable. In this blog, we will delve into the complexities of international hiring and how Employer of Record (EOR) services can simplify the process.
What Should You Know About Hiring an Employee in the UK?
International hiring is a complex process that requires adherence to the labor laws and regulations of the countries you wish to expand into. This process can be challenging but the results are substantial. Here is what you need to consider when hiring employees in the UK or internationally:
- Legal Considerations
Expanding your business into a new country involves more than just the hiring process. To employ someone from a different nationality than your company’s home base, it is important to understand their legal constraints. For an Australian company to hire an employee in the UK, it must establish entity in UK. Additionally, the employer company must be familiar with the labor laws, leave entitlement, global payroll processing, employee benefits, taxation and more. These legal considerations are mandatory practices, which lead to repercussions.
There are two main scenarios to consider: establishing a legal subsidiary entity using third party solutions like entity solutions whereby they can build their credibility with the help of entity solution service providers or partnering with an Employer of Record (EOR). While establishing an entity in the UK can be time-consuming, EOR service providers can simplify the process.
- Global Hiring Solutions
Global business expansion solutions such as Employer of Record (EOR) services, are invaluable when it comes to global hiring. EOR service providers assist with the hiring process and help overcome conventional global hiring challenges. They offer a team of experts with an extensive network to guide you, ensure compliance and manage other crucial functions like payroll.
- Registering with EOR service providers
Australian company hiring UK-based employees can partner with EOR service providers. Registering with an EOR not only expands your network and access to top talent, but also helps manage your team with a standardized platform, track attendance, address payroll concerns, and enhance your organization’s credibility.
- Other Considerations
Partnering with an EOR service provider solves many expansion challenges. But while considering hiring a team abroad, it is important and fair to consider cultural differences such as- holidays and time-zone and how UK shifts operate.
Understanding Employment Law in Australia
- Employment Contract
In the UK, employment rules and regulations are pre-defined and mandatory for both employers and employees. The organization and its employees are bound by the governing bodies to follow the employment contract. The employment contract outlines the responsibilities, rights and duties of both parties.
This set of responsibilities and rules must be observed until the end of the contract. It outlines the duties of both the employer and employee from onboarding to contract expiration, or employment termination.
- Hiring and Termination
Both hiring and termination are governed by strict policies. An employee termination must be fairly explained with a valid reason. If the employer fails to provide a legitimate claim, the employee has the right to the employer take legal action.
What are the hiring requirements in the UK?
Based on the hiring requirement of the organization the employer must conduct a background screening, provide adequate training and assure that the candidate is permitted to work in the UK. It is important for the employer and employee to agree on the same salary and contract conditions before finalizing the documentation and onboarding the candidate.
- Payroll
Setting up payroll for UK based employees or any other country involves several compliance requirements. Organizations must follow the PAYE (Pay as You Earn), adhere to tax deadlines, generate salary slips, payroll processing, track attendance and deductions, ensure sick leaves, among other tasks.
How Can TopSource Worldwide Assist You?
TopSource Worldwide helps companies expand globally by providing services like EOR, Entity Solutions, Payroll processing, HR advisory and Accounting.
Delegating your work like global hiring or payroll or EOR services with TopSource can help you focus on your core business functions and growth.
Whether it’s compliance, payroll or hiring, - we manage them all. TopSource has two decades of experience and a global presence in over 180 countries. So, global hiring and remote workforce management in any country is no longer a challenge. Contact us today to learn more!
