Employment Agreement Requirements in the UK

Backdating, currencies, and classifications.

Updated on March 14th, 2023

Can employment agreements be backdated in the United Kingdom? 

Agreements cannot be backdated where Velocity Global must verify an individual’s right to work prior to any work being done.

Can a supported employee work before their start date? 

To avoid permanent establishment risk and seniority accrual, we strongly advise against supported employees commencing work prior to their official contractual start date.

Can we pay the salary in a different currency than the local currency?

Your supported employees in the United Kingdom must be paid in British pound sterling (GBP). Salaries cannot be paid in United States dollars (USD) or any other currency.

Should we classify our talent as a contractor or an employee?

A contractor is considered self-employed if they run their business for themselves and are responsible for its success or failure. Contractors are not paid through their business’s payroll and do not have the rights and responsibilities of an “employee.”

An “employee” is someone that works under an employment contract. An employee distinctly completes work personally and under the direction and control of the employer. Their working hours will be determined by their employer, and their pay will be based on an annual salary or hourly rate. 

Given our Employer of Record structure, we should classify our talent as an employee. For more information, please submit a ticket using the Help widget at the bottom of the page.