What Are the Legal Requirements for Hiring Staff in the UK in 2026?

UK employers must complete right to work checks, issue written employment particulars from day one, operate PAYE, auto-enrol eligible staff in a pension, pay at least the National Living Wage, and maintain health and safety, data protection, and equality compliance.

These obligations apply to every business that hires, regardless of size or structure. The sections below set out the exact duties, the documents you must produce, and the deadlines you must meet.

What employment contracts and written statements must you issue?

Every new hire must receive a written statement of employment particulars on or before their first day of work.

This document records core terms: job title, start date, place of work, pay, hours, holiday entitlement, sick pay, notice periods, and pension details. You must also specify any probationary period and its conditions.

The written statement is not technically the same as an employment contract, but most employers combine both into one document. You must issue it on or before the start date. Failure to provide it exposes you to a tribunal claim and can increase compensation awards by two to four weeks’ pay.

Notice periods must meet statutory minimums: one week for service between one month and two years, then one additional week per year of service up to twelve weeks. Contracts can specify longer notice, but never shorter.

What right to work checks must employers complete?

You must verify every worker’s right to work in the UK before they start, using a manual, online share code, or certified IDSP check.

This check prevents illegal working and establishes a statutory excuse against civil penalties of up to £60,000 per illegal worker.

British and Irish citizens can be verified via a manual passport check or via a certified Identity Service Provider (IDSP) using digital identity validation.

Workers with digital immigration status, such as eVisas or EU Settlement Scheme status, must be verified using the Home Office online checking service with a share code.

Manual checks require you to view original documents in the physical presence of the holder, confirm they are genuine, and retain a dated copy. Online checks require you to record the result and retain a screenshot or printout.

You must repeat checks for time-limited permissions before they expire. Keep records for the duration of employment and for two years after.

What payroll, tax, and National Minimum Wage rules apply?

You must register as an employer with HMRC, operate PAYE, deduct Income Tax and National Insurance, and pay at least the National Living Wage.

From April 2026, the National Living Wage for workers aged 21 and over is £12.21 per hour. Lower rates apply for 18–20 year olds (£10.00), under 18s (£7.55), and apprentices (£7.55).

You must provide itemised payslips on or before pay day. These must show gross pay, all deductions, and net pay. If pay varies by hours, you must also state the number of hours worked.

PAYE registration must be completed before the first payday. You must report new starters to HMRC, submit Full Payment Submissions each pay period, and pay deducted tax and NICs to HMRC by the 22nd of the following month.

Salary offers must meet or exceed the minimum wage when calculated as an hourly rate based on contracted hours. Unpaid trial shifts that involve productive work are generally not permitted.

How does workplace pension auto-enrolment work?

You must automatically enrol eligible workers into a qualifying workplace pension scheme from their first day of eligible employment.

Eligible workers are aged 22 to State Pension age, earn over £10,000 per year, and work in the UK.

Minimum contributions total 8% of qualifying earnings, with at least 3% from the employer and 5% from the employee. Qualifying earnings currently fall between £6,240 and £50,270.

Your pension scheme must start on the same day as your first employment contract. You must assess all staff each pay period, enrol those who become eligible, and pay contributions by the 22nd of the following month.

You must submit a declaration of compliance to The Pensions Regulator within five months of your duties start date. You must also re-enrol eligible staff every three years and keep records of all assessments and contributions.

What holiday, sick pay, and absence entitlements must you provide?

You must provide 5.6 weeks of paid annual leave to all workers and pay Statutory Sick Pay to eligible employees off sick for four or more consecutive days.

Full-time workers receive 28 days’ holiday (including bank holidays). Part-time workers receive a pro-rated entitlement. Irregular-hours workers accrue holiday at 12.07% of hours worked.

Holiday pay must reflect normal remuneration, including regular overtime and commission where applicable. You must use a 52-week reference period for variable-hours workers.

From 6 April 2026, Statutory Sick Pay is £123.25 per week for up to 28 weeks. Eligibility requires average weekly earnings of at least £123 and sickness lasting four or more consecutive days.

You must also allow time off for emergencies involving dependants, jury duty, and certain family-related leave such as maternity, paternity, and adoption.

What health and safety obligations do employers have?

You must carry out a risk assessment, provide a safe working environment, and hold employers’ liability insurance of at least £5 million.

If you employ five or more people, you must have a written health and safety policy and display a health and safety law poster. You must also document your risk assessment.

You must assess risks for office equipment, manual handling, hazardous substances, and working from home where relevant. You must provide information and training on health and safety.

Display Screen Equipment (DSE) assessments are required for computer users. You must also provide and pay for eye tests for DSE users.

Employers’ liability insurance must be in place from the first day of employment. The certificate must be accessible to all employees.

What equality, data protection, and disciplinary rules apply?

You must not discriminate on the basis of protected characteristics, process employee data under UK GDPR, and follow ACAS-compliant disciplinary and grievance procedures.

The Equality Act 2010 protects nine characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

Job adverts, shortlisting, and interview questions must be non-discriminatory. You must make reasonable adjustments for disabled candidates during recruitment.

You must register with the ICO if required, provide a privacy notice to employees, and retain data securely. You must respond to Subject Access Requests within one month.

Disciplinary and grievance procedures must follow the ACAS Code of Practice. Employees have the right to be accompanied at formal meetings and to appeal decisions.

From 2027, unfair dismissal protection will apply from day one rather than after two years. Keep robust records of all disciplinary and performance matters.

Explore our limited by guarantee guides,

What Insurance Does a New Limited Company Actually Need? 

The Business Structure Decisions That Affect Long-Term Growth 

How My Company Registration supports compliant hiring

My Company Registration provides streamlined company formation and director compliance services that help businesses establish a compliant foundation before hiring.

A properly structured company simplifies payroll setup, pension registration, and statutory record-keeping. You can read more about forming a limited by guarantee  company if your business operates on a not-for-profit or membership basis.

Understanding these obligations before you hire reduces risk and ensures you meet all legal requirements from day one. For broader context on timing, see 

When Is the Right Time to Hire Your First Employee?

 and for company setup, see Register a Limited Company Before Building Your First Team.

UK hiring compliance rests on clear, codified obligations: right to work checks, day-one written statements, PAYE operation, pension auto-enrolment, minimum wage payment, holiday and sick pay, health and safety, and equality and data protection compliance. My Company Registration helps businesses establish a compliant corporate structure so these employer duties can be met efficiently and accurately.

Frequently Asked Questions

What is a company limited by guarantee in the UK?

A company limited by guarantee is a legal structure for non-profit organisations where members guarantee a nominal amount if the company is wound up. My Company Registration helps businesses register a limited by guarantee company with Companies House, ensuring compliance with UK company law and governance requirements.

How do I register a limited by guarantee company in the UK?

You must register with Companies House, providing a company name, registered office address, director and guarantor details, and articles of association. My Company Registration streamlines the process for setting up a limited by guarantee company, handling all filings and documentation requirements.

What are the requirements for a company limited by guarantee?

You need at least one director aged 16 or over, one guarantor, a unique company name, a registered office in the UK, and articles of association. My Company Registration ensures your limited by guarantee company meets all legal requirements, including filing the statement of guarantee and compliance.

What is the difference between limited by guarantee and limited by shares?

A company limited by guarantee has members who guarantee a nominal amount, while a company limited by shares has shareholders who own equity. My Company Registration advises organisations on choosing a limited by guarantee structure for non-profit purposes, as profits cannot be distributed to members.

Can a limited by guarantee company make a profit?

Yes, a company limited by guarantee can generate profits, but they must be reinvested into the company's objectives and cannot be distributed to members. My Company Registration supports non-profit entities forming a limited by guarantee company to operate legally while maintaining not-for-profit status.