Recently, Sam Barnes, Co-founder of Agility EOR, was invited to speak at a webinar about key hiring differences between the US and UK. Here, Sam shares further details on some points of confusion.
Although the UK and the US share a common language, when hiring, there are big differences between the two countries. One of the most significant topics to be aware of is the concept of "at-will employment," which is standard in the US but doesn't exist in the UK or in most other parts of the world.
At-Will Employment vs. Formal Termination
In the US, it’s common and legally acceptable for either the employer or the employee to terminate the working relationship at any time, with or without reason. This common practice allows for a fast and high degree of flexibility for both parties. However, employment in the UK is governed very differently, and termination outside of gross misconduct, always requires notice and follows formal procedures. This can present an unexpected challenge for US companies hiring across the pond.
One major distinction is that in the UK, legal protections for employees can begin even before their first day. A verbal job offer can actually carry legal weight, and if a candidate believes that an offer was withdrawn for discriminatory reasons, they can pursue legal action, even if they never started the role.
Legal Protections Begin Early in the UK
The employment process in the UK typically begins with an offer letter, which outlines topline details such as job title, salary, and start date. But unlike in the US, where a signed ‘offer letter’ often finalizes the hire, in the UK, this is usually just the first step in bringing new member on board.
In the UK, a formal, written contract of employment follows an offer letter, which must be signed no later than the employee’s first day. This employment contract is a binding legal document including essential terms such as working hours, duties, notice requirements, salary, and often role or company-specific clauses tailored to the individual. Without this contract, most UK candidates will not feel legally protected, and the employer risks losing this candidate to a more professional-acting company.
The Purpose of Handbooks
Another common feature in UK employment practices is the employee handbook, which outlines company-specific policies and values. These documents often outline procedures and stance around the likes of sick leave, parental leave, use of company equipment, and increasingly, more progressive policies like menopause support. While handbooks help define company culture and expectations, they do not hold the same legal weight as a contract and can usually be amended without formal notice.
The Meanings for Global Employers
For US employers, it’s essential to understand that UK employees operate under a different set of legal requirements and cultural expectations. The hiring process may be more structured and slower than what US companies are used to, but showing awareness and respect for these differences positions your company as professional, credible, and ready to do business with globally.
