Hamilton Pratt

Staffing Your Business

You will need appropriate personnel to run your business in the UK.  Whether you wish to second personnel to the UK from your head office or other operations or hire local workers, you will need to consider various issues relating to immigration and employment law.  It is a criminal offence for a UK business to employ someone who is subject to immigration control unless that person has a valid right to work in the UK.

Are there special rules for EU nationals?

In broad terms, workers holding passports from European Economic Area (EEA) member states (which includes all EU member states and Iceland and Liechtenstein) are entitled to enter, reside and work in the UK without requiring any entry clearance or work permit.

What are the rules for non EU nationals?

There are three principal bases on which you may apply to bring non EEA nationals to work in the UK:-

Work permit:  The work permit scheme enables UK based employers to recruit or bring employees from outside the EEA to work in the UK.  However, strict and detailed rules apply to work permit applications and in most cases the employee will need to have a UK degree level qualification.

The Department of Education and Employment issues all work permits through its Overseas Labour Service (OLS).  It accepts applications only from employers based in the UK in respect of a specific job.  The application must be made before the proposed employee arrives in the UK.  The OLS does not accept applications from proposed employees direct.  Applications typically take two to four weeks to process.  Generally speaking, there are three types of work permit:

  • a full work permit (for which you must show that there is no other person within the EEA who can perform the job to the required standard);
  • an intra-group work permit (for which the employee must have worked for at least 6 months at a relatively senior level in your organisation); and
  • a board level work permit (for which the individual must have responsibility for the day-to-day running of the company in the UK, will have a number of years' experience at that level and will command a salary of at least £50,000).

Work permits can be granted for up to five years.  After four years, the employee may apply for permanent residency in the UK (which, if granted, means that he or she will no longer require a work permit to continue working in the UK).

Sole representative:  If you have no existing branch or subsidiary or representative in the UK, your 'sole representative' may enter the UK to establish a branch or a subsidiary without a work permit.  However, in all cases, entry clearance must first be obtained from the British Embassy or Consulate.  The applicant must provide:-

  • a full description of your company's activities;
  • evidence that your company will establish a branch or subsidiary;
  • details of his or her job description and salary and a copy contract of employment;
  • a statement from your company that he or she will be its sole representative;
  • confirmation that he or she is an existing senior employee who can make important decisions on behalf of your company and that he or she is familiar with all aspects of the firm’s activities and policies; and
  • a current passport.

The representative must be an individual.  Leave to remain in the UK will be initially granted for a period of up to 12 months and an extension for a further three years will normally be granted if required.

Although a sole representative does not need a work permit, other employees coming in from overseas to work in a newly established branch will do.

Business visitor:  If you wish to send an individual to the UK to attend meetings and briefings, negotiate or make contracts with UK businesses (but not the general public) to buy or sell goods or services, he or she may enter the UK for these purposes (for up to 6 months) as a "business visitor". A business visitor must satisfy several conditions which include an intention to leave the UK at the end of the visit and an ability to maintain and accommodate him- or herself without the need to be supported out of public funds.