How to Bring Existing Staff to a New Business in the UK

Moving staff from one jurisdiction to another is a big step but can be key in growing your business. Overseas expansion will often be an exciting period, but you will need to ensure you follow the correct procedure when moving staff to comply with UK laws. This article will explore overseas recruitment and how to bring existing staff to a new business in the UK.

Costs Considerations

Setting up a business in a new territory (where your business may be completely unknown) will undoubtedly involve costs. In particular, overseas expansion will include costs associated with:

• immigration;
• leasing an office premises;
• incorporating your company;
• trademarking;
• health and safety;
• insurance;
• sales and marketing;
• taxation;
• staffing and employment;
• retraining staff to work in the new jurisdiction.

Visa Requirements/Right to Work Checks

Freedom of movement between the UK and the EU has ended. The UK now has an immigration system that treats all candidates equally, regardless of where they come from.

If you bring over staff who do not have the right to live and work in the UK, you can face significant civil penalties from £15,000.00 for each illegal worker (rising to £60,000.00 from 2024) and possibly criminal sanctions.

Employment Contracts

From day one of your staff’s employment, you must issue employment contracts that comply with UK employment laws.

The type of employment contract that you issue will depend on:

• the number of years you expect the employee to work in the new jurisdiction;
• each party’s role in the relocation procedure;
• the number of hours the employee will be required to work;
• whether the employee will need to undertake any mandatory training; and
• the employee’s roles and responsibilities.

You will also need to consider factors, such as whether to terminate the existing employment contract before entering into the new one. Before terminating an employment contract, it is important that you seek legal advice in the jurisdiction you operate in.

Setting Up as an Employer

Three essential factors to consider when setting up as an employer in the UK include:

• registering as an employer;
• setting up a workplace pension scheme; and
• obtaining employer’s liability insurance.

Register as an Employer With HM Revenue and Customs

You must register before your employees’ first payday with HM Revenue and Customs (HMRC). HMRC will provide a PAYE (pay as you earn) reference number allowing you to pay your staff.  

Set Up a Workplace Pension Scheme

You should set up a workplace pension scheme and automatically enrol eligible staff. Staff are eligible if they:

• are between 22 years old and the State Pension age;
• earn at least £10,000 a year; and
• ordinarily work in the UK.

The minimum pension contribution your company will have to make for each staff member will be 3%, and the minimum contribution from your staff will be 5%. You can do your own research on pension providers that other businesses are using. Alternatively, you may wish to speak to an accountant. 

Obtain Employer’s Liability Insurance (EL)

Employer’s liability insurance (EL) is a legal requirement for almost all employers. Your EL policy must cover you for at least £5 million, and the policy should come from an authorised insurer. You can either use an insurance broker for this or look at the Financial Conduct Authority (FCA) register to confirm that your insurer is authorised.

If you have an office premises and have visitors, you should also consider obtaining public liability insurance, although this is not a legal requirement. 

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Supporting Relocated Employees

While the business is undergoing fresh changes and learning to work in a new environment, employees will also undergo a mixture of emotions. Therefore, it is crucial to support your staff through this turbulent time. Likewise, provide adequate support so that they can acclimatise to their new surroundings.

In particular, you should:

• allow the employee time to settle in;
• proactively ask your employees if they need any support;
• train your employees to work in the new jurisdiction;
• offer language support (if a language barrier exists);
• offer cultural training so staff can understand local customs and culture; and
• provide assistance with finding accommodation, transportation etc.

Key Takeaways

Expanding your business from one jurisdiction to another is an exciting business opportunity. There are several key considerations, including whether and how you will bring existing staff to your new business in the UK. While you can indeed hire new staff from the local talent pool, your existing staff are already familiar with the business and can bring elements of your workplace culture to the new business.

For more information on your employment law considerations when expanding overseas, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to solicitors to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.