Hiring Employees in the UK Made Simple: A Step-by-Step Guide for Employers
Looking to hire someone for your business in the UK but not sure where to start? Don’t worry—you’re not alone! Recruiting and hiring can feel confusing, especially with all the legal steps involved. But once you break it down, it’s not as complicated as it seems.
In this guide, we’ll walk you through everything you need to know to hire legally, fairly, and efficiently in the UK—whether you’re a brand-new startup or an established small business.
Let’s dive in!
Why Getting Hiring Right Matters
Think of recruitment like building a football team. You can’t win the game if you don’t choose the right players—or follow the rules. Hiring the right people (and doing it legally) ensures:
- You avoid penalties and legal trouble.
- You build a strong team that fits your business values.
- You protect your company’s reputation as an ethical employer.
Now, let’s explore the step-by-step process of recruiting and employing staff in the UK.
Step 1: Understand Job Roles and Requirements
Before posting any job advert, take time to clearly understand what the role demands. Ask yourself:
- What are the key responsibilities?
- What skills or qualifications are essential?
- Will the position be full-time, part-time, fixed-term, or freelance?
Having a clear job description not only helps you attract the right candidates but also protects you legally when it comes to contracts and pay expectations.
Step 2: Check the Right to Work in the UK
It’s your legal duty to make sure anyone you hire has the right to work in the UK. This applies to all workers, whether permanent or temporary. Failing to do this could lead to a civil penalty of up to £20,000 per illegal worker!
You’ll need to:
- Check official documents like a passport or biometric residence permit.
- Take a clear copy and keep it on file.
- Make sure the documents are valid and match the person in front of you.
Need help with checking documents? The government offers a step-by-step checklist.
Step 3: Create a Fair and Legal Job Advertisement
When writing a job advert, make sure it’s inclusive and doesn’t discriminate. That means no mention of age, gender, race, religion, or disabilities unless there’s a genuine occupational requirement.
A good job ad includes:
- Job title and summary
- Key duties and expectations
- Work location
- Type of contract (e.g. full-time, permanent)
- Salary or a pay range
Try to post your job where it can reach diverse candidates. That could be online job boards, social media, or even community centers.
Step 4: Handle Applications and Interviews Fairly
Once the applications come in, it’s time to shortlist and interview. Here’s how to keep the process smooth and legal:
- Use a scoring system to rank candidates based on qualifications and experience.
- Ask consistent interview questions so everyone gets a fair shot.
- Take notes for future reference and decisions.
Avoid asking personal questions that can seem discriminatory—like “Do you intend to have children?” or “Where are you originally from?”
Stay focused on what the person can bring to the team.
Step 5: Make a Job Offer
Found the perfect candidate? Great! Next, you’ll need to formally offer them the position.
This can be done verbally or in writing—but it’s always best to follow up with a formal offer letter. Include:
- Job title
- Start date
- Salary
- Working hours
Keep in mind: Once the offer is accepted, it becomes a binding contract—so make sure you’re ready to commit.
Step 6: Conduct Pre-Employment Checks
Depending on the type of job, you might need to run background checks. These can include:
- Criminal record checks (DBS) if the role involves vulnerable groups
- Reference checks from previous employers
- Credit checks for financial positions
Always ask permission before running these checks, and stay compliant with data protection laws.
Step 7: Provide a Written Statement of Employment
By law, you must give employees a written statement of employment—a sort of mini-contract—on or before their first day of work.
This document should include:
- Job title and description
- Pay and deductions
- Hours of work
- Holiday entitlement
- Notice periods
- Benefits if any (e.g. pension, sick pay)
Think of it as drawing the boundary lines on a football pitch—so everyone knows where they stand from the start.
Step 8: Enrol Employees in a Workplace Pension
If your employee is:
- Over 22
- Under state pension age
- Earns over £10,000 a year
…then you have to automatically enroll them into a workplace pension scheme. It’s part of your legal duties as an employer.
There are different providers to choose from, like NEST, The People’s Pension or private providers.
Step 9: Register as an Employer with HMRC
Once you hire someone, you must register with HM Revenue and Customs (HMRC). This allows you to:
- Pay employee wages legally
- Handle taxes and National Insurance
- Submit Pay As You Earn (PAYE) information
Try to register at least 2 weeks before your first payday to avoid issues.
Step 10: Keep Records and Stay Compliant
Finally, managing employees doesn’t stop once they’re hired. You’ll need to:
- Keep payroll and tax records for at least 3 years.
- Stay up to date with employment law changes.
- Document sick leave, annual leave, and performance reviews.
Think of it like servicing your car—you’ve got to keep things updated, or problems may crop up later.
Closing Thoughts: Hiring Isn’t Just a Process—It’s an Opportunity
Recruiting might seem like a stack of paperwork, but at its heart, it’s about finding people who’ll help your business grow. Taking shortcuts can cost you later in fines, high turnover, or poor morale.
Instead, build your hiring process on a solid foundation of fairness, clarity, and compliance.
And remember, every great company begins with great hiring.
Want to learn more?
Read more: https://www.gov.uk/browse/employing-people/recruiting-hiring