|“Your service has been first class.”
Mr R H – London SW22
Domestic employers often agree a net (i.e. take-home) wage with their staff, but in reality any employee is always paid a gross salary, with tax and National Insurance Contributions deducted and paid to HMRC on a quarterly basis by the employer on behalf of the employee. Although many employers tend to look on this as an additional cost, it is actually part of the gross wage. On top of the gross wage, employers also have to pay an Employer's National Insurance Contribution for each employee.
Domestic employment is probably the only profession left in the UK where wages are still commonly agreed on the basis of net (i.e. take-home) pay. It is surprising that this outdated arrangement has not yet been dispensed with, as there are considerable financial implications at stake for both employee and employer.
A net pay arrangement is equally unfavourable to your employee.
|Make sure your employee is legally entitled to work in the UK|
All UK employers are now required by law to make basic checks on every person they intend to employ in order to establish that they have a right to work in the UK and are here legally. You must not make assumptions based on the person's appearance or accent.