Locating in the UK - Employment

Recruiting staff is a key part of locating your business in the UK. How you approach recruitment will depend on your business needs and how you see it developing.

You can recruit:
- permanent employees - full-time or part-time
- fixed-term contract employees
- through employment agencies for temporary staff
- freelancers, consultants and contractors
- zero-hours contractors

Contracts of employment
A contract of employment comes into existence as soon as someone accepts your job offer.

The terms of contract can be verbal, written, implied or a mixture of all three. Terms can be found in the original job adverts, letters, agreements as well as staff rules and handbook.

A verbal contract imposes the same obligations on you as a written one. Also, certain rules apply if you wish to change an employee's existing contract. See our guide on the employment contract.
Minimum wage

Nearly all workers in the UK are eligible to receive the National Minimum Wage (NMW). The following rates apply:

- Main (adult) rate - this applies to workers aged 22 or older and stands at £5.05 per hour. From 1 October 2006, this will increase to £5.35 per hour.

- Development rate - this applies to 18-21 year olds but may also apply to workers aged 22 and over during the first six months in new employment, who are receiving accredited training. The development rate is £4.25 per hour. From 1 October 2006, this will increase to £4.45 per hour.

- Young workers' rate - this applies to 16-17 year olds, with exceptions, and is £3.00 per hour. From 1 October 2006, this will increase to £3.30 per hour.

Because of changes to how work permit applications are assessed, all employees of UK-based businesses must be paid at least the NMW. This applies whether they are paid overseas or in the UK.

The majority of workers are not allowed to work more than the maximum hours set down by the law. You need to actively manage your workers' hours and keep accurate records. See our guide on hours, rest breaks and the working week.

Disciplinary and dismissal procedures
You may need to deal with disciplinary and grievance issues and perhaps even dismissal.

Your rules on dismissal, disciplinary and grievance procedures must be set out in writing for your employees. See our guide on handling discipline and grievance procedures.

Dismissing an employee is a serious issue and should be approached carefully. If dismissal is necessary, you need to know how to prevent unfair, wrongful and constructive dismissal claims.