Employing staff and essential checks
When you start a business, you need a business licence. Once you have a business licence, you can employ staff.
Find information on
starting up a business.
Before employing someone you must check that they have a registration card.
A registration card shows the person's residential and employment status, which will be one of the following:
- entitled
- entitled for work
- licensed
- licensed lease only
- registered
How to get a registration card
Learn more on
residential and employment statuses and what they mean.
When the person shows you their registration card:
- check that the card is in date
- ask for photo ID
- if their status is licensed, licensed lease only or registered, make sure your business licence allows you to employ someone with this status
If you decide to employ the person, you should:
- photocopy the registration card
- photocopy the photo ID
- return the registration card to the employee
When you need permission to employ someone
You can employ as many staff as you wish with entitled or entitled for work status.
However, you need permission from the Business Hub to employ anyone with licensed, licensed lease only or registered status.
Depending on their nationality, your prospective employee may also need an immigration work permit. You must have a licensed, licensed lease only or registered permission before you can apply to Immigration for a work permit.
Find more information on
work permits: make an application, including who needs them, fees and how to apply.
When you do not need permission to employ someone
Second jobs
Unless a person is restricted otherwise by an immigration permission, you can employ any number of part-time staff if they are already employed using a registered permission with another employer and are continuing to work for that employer. You can do this without affecting your staffing limits or asking Business Licensing for permission.
Businesses need to include details of these part-time workers on their Combined Employer Return but to mark as exempt in the manpower section. The same rules apply to licensed and licensed lease only workers.
Policy for granting registered, licensed lease only or licensed permissions
Registered permissions allow people to work and rent registered accommodation. Applications to employ registered workers must have an annual salary threshold of £30,000 or the specific job’s ‘going rate’. Applications for permission to employ registered workers as short-term seasonal workers or on temporary immigration work permits will generally be supported.
Licensed lease only permissions allow people to work and have access to rent qualified housing, providing they remain in their role. Applications for licensed lease only permissions must meet the following qualifying criteria:
- the role meets a salary threshold of £54,000
- the role is below the salary threshold but is listed as a qualifying role
Licensed permissions allow people to work and have access to buy or rent qualified housing, providing they remain in their role. Applications for licensed permissions must meet the following qualifying criteria:
- the role meets a salary threshold of £60,000
- the role is below the salary threshold but is listed as a qualifying role
Before applying for additional permissions, the business should check that it doesn’t already have spare permissions that could be used and that it can satisfactorily explain why they have been unable to find entitled / entitled for work candidates.
See the business licensing and employee status guidance notes for a full list of qualifying roles and more details on the law and policy on granting licensed lease only, licensed and registered permissions.
Apply to employ licensed, licensed lease only or registered staff
To complete the online application you need:
- details of the roles you are seeking Registered, Licensed Lease Only or Licensed permission for including:
- salary
- experience and qualifications
- contract type and contracted hours
- what you have done to find suitable entitled/entitled for work candidates
- what your business does to attract, retain and develop staff
- details of identified candidates you wish to employ along with why they’re most suited (if relevant)
Apply for registered and or licensed staff
Fees for licensed, licensed lease only or registered permissions
There's an annual fee for each permission you hold on 1 November of each year. You will be charged for the permission even if you are not using it.
You don't need to do anything. If your application is successful you'll receive a bill payable by 31 December.
Licensed
| £247.02
|
|---|
Licensed lease only
| £247.02
|
|---|
| Registered | £55.14
|
|---|
Cards for licensed and licensed lease only employees
When recruiting someone with a licensed or licensed lease only status, you need to complete an application for a licensed registration card.
Your employee needs this to be able to get a registration card from the Customer Hub at Union Street.
Staffing limits
Your staffing limits can be found on your business licence.
Staffing limits set out the number of licensed, licensed lease only and registered individuals you're allowed to employ. This may be zero.
Your staffing limits also specify if there are roles or individuals that you must use the permissions for.
Check your business licence to know your staffing limits or
contact Business Licensing to get a copy.
You must not go over your staffing permissions. Exceeding your limit is against the law.
You don't need to tell us when you recruit a new employee covered by the staffing limits on your business licence. This is picked up through your manpower return.
Temporary staff from an agency
If you employ temporary staff through a recruitment agency, you don't need to see their registration card. They are covered by the agency's business licence.
Using Back to Work Recruitment to find staff
Back to Work Recruitment can help to fill any vacancies you have within your business. They're similar to a regular recruitment agency but offer all services free of charge.
A range of incentives are available to employers using this service.