Hiring Your First UK Employees: Key Requirements for Swedish Companies
Hiring in the UK for the first time involves several legal and administrative requirements that are worth understanding before you make an offer. Here's a high-level overview of the main areas to get right:
Right to Work checks Before any employee starts, you are legally required to verify that they have the right to work in the UK. This means checking original documents (such as a passport or share code for those with settled or pre-settled status) and retaining copies.
Getting this wrong — even unintentionally — can result in significant fines, so it shouldn't be treated as a box-ticking exercise.
Employment contracts Every employee must receive a written statement of employment particulars from day one. In practice, this means having a proper employment contract in place covering key terms: job title, salary, hours, holiday entitlement, notice periods, and so on. UK employment law has its own specific requirements, so contracts drafted for Swedish (or other EU) entities won't automatically be compliant.
Day one rights With the continued strengthening of UK employment rights, it's more important than ever that businesses are across what employees are entitled to from the moment they start. Employees have a broad range of protections from day one of employment — including protection from detriment linked to discrimination and whistleblowing (which can lead to unfair dismissal claims) , the right to a written statement of terms, statutory sick pay eligibility, and parental leave rights. Understanding these upfront, rather than after a dispute arises, is essential for any business new to employing in the UK, particularly as there are ongoing reforms planned over the next year, with significant changes to ordinary unfair dismissal protections scheduled for January 2027.
Employment policies Alongside contracts, you'll need a basic suite of HR policies — at minimum, a grievance and disciplinary procedure and a bullying and harassment policy. As you grow, you'll want to add policies covering areas like sickness absence, data protection, equal opportunities, and flexible working. These aren't just good practice; some are legally required.
Auto-enrolment pension Under UK law, employers must automatically enrol eligible employees into a workplace pension scheme and make minimum contributions. The current minimum employer contribution is 3% of qualifying earnings. You'll need to choose a pension provider and register with The Pensions Regulator.
Employers' Liability Insurance If you have employees based in the UK, Employers' Liability (EL) insurance is a legal requirement — not optional. It covers you in the event an employee suffers illness or injury as a result of their work. The minimum legal cover is £5 million, though most policies offer significantly more. You're required to display your certificate of insurance (digitally is fine) and keep records.
Getting these foundations in place before your first hire avoids the most common — and costly — compliance pitfalls for businesses new to the UK employment landscape..
