Hire in the United Kingdom in 3 easy steps
The United Kingdom is known for its rich history, cultural diversity, iconic landmarks, contributions to literature, and global influence in music and sports. It’s important to note that the country is also known for its educated and diverse workforce. Let us show you why and how you can hire and manage your remote team from the UK.
Onboard your talent in the UK in 10 minutes
If you’re considering hiring your next candidate in the UK, you’ve landed in the right place. After helping hundreds of businesses onboard their remote hires, we have achieved excellent expertise in the country. Our team of experts and tech solutions will make this incredibly easy for you.
Accelerated onboarding
Fast-track your talent onboarding while ensuring 100% compliance with local regulations
Expense check
Identify taxable talent expenses easily. No more manual sorting & human errors. Get 100% protection from tax liabilities
Equipment management
Send laptops and other devices to your remote employees in the UK through our platform with just a few clicks
Guidance & payroll management
Receive process support by an experienced team of experts & pay your talent on time and in their local currency
Hire in the UK through an EOR
Easily onboard your remote talent in the UK through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
A quick overview of the United Kingdom
Time zone
UTC+0
Paid leave
28 days
Minimum wage
£11.44 h
Currency
GBP
Public holidays
09 days
Payroll frequency
Monthly
What makes the UK's talent great?
British professionals are known for their strong work ethic and dedication. This commitment to excellence often sets the stage for outstanding achievements. The UK's historical global reach has facilitated connections with people and ideas from around the world. This exposure to different cultures and perspectives has contributed to the breadth and depth of its talent.
Educational excellence & creativity
The UK is home to some of the world's top universities and educational institutions. These institutions provide rigorous education and training, nurturing a skilled workforce across various fields. British culture has a long history of innovation and creativity, from literature and arts to technology and sciences.
Diversity and multiculturalism
The UK's talent pool benefits from its diverse population and multicultural heritage. This diversity fosters a range of perspectives, ideas, and approaches that enrich creative thinking and problem-solving.
Research and Development
The UK invests significantly in R&D across various sectors, contributing to breakthroughs and advancements that attract and nurture top-tier talent. The country also offers a supportive environment for talent, including funding opportunities, mentorship programs, and networking platforms.
Basic facts
The United Kingdom of Great Britain and Northern Ireland (UK) is an island country that sits northwest of mainland Europe. It is made up of mainland Great Britain (England, Wales, and Scotland) and the northern part of the island of Ireland (Northern Ireland). It has numerous smaller islands. The UK is low-lying in the east with mountains in the north of England, Scotland, Northern Ireland, and Wales. Services, particularly banking, insurance, and business services, are key drivers of GDP growth.
Capital
London
Population
67.33 M
VAT - standard rate
20%
Statutory holidays
The national holidays mentioned below are valid for the year 2023.
Bank or public holidays do not have to be given as paid leave. Employers can choose to include bank holidays as part of a worker’s statutory annual leave. A substitute holiday system applies for certain holidays falling during the weekend. The following Monday will normally be the substitute day.
| Date | Holiday Name |
|---|---|
| January 2 | New Year’s Day |
| April 7 | Good Friday |
| April 10 | Easter Monday |
| May 1 | Early May bank holiday |
| May 8 | Bank holiday for the coronation of King Charles III |
| May 29 | Spring bank holiday |
| August 28 | Summer bank holiday |
| December 25 | Boxing Day |
| December 26 | Christmas Day |
Contract sharing time
The approximate time for sharing the contract with an employee in the UK is 3 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal or external review, directly leading to a time delay.
Note
This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
What you need to know
- There is no statutory entitlement to severance payments except for redundancy dismissals.
- Employers are mandated to provide workplace pensions.
- Employees are entitled to the majority of statutory employment rights, while other types of workers (such as independent contractors and workers) are not.
- There is no specific legal provision on the regulation of remote work but there is a provision for flexible working which allows employees to apply for work from home if they have worked continuously for the same employer for the last 26 weeks. It is known as making a statutory application.
Labour conditions
Working Hours
Overtime
Probation Period
Termination Notice Period
Working Hours
48
hours
is the maximum working time per week
11
hours
rest between working days
20
minutes
is the rest period per day
Overtime
For an employee to work overtime it must be stated and agreed upon in the contract. Usually, employees cannot be forced to work more than an average of 48 hours per week. Employers do not have to pay workers for overtime as long as the average pay for the total hours worked does not fall below the National Minimum Wage. The employment contract must include details of any overtime pay rates or paid time off in lieu of their regulations.
Probation Period
There are no statutory provisions for probation periods in the United Kingdom so the exact terms of this period are governed by the employment contract, typically lasting between three and six months.
Termination Notice Period
Employers may offer payment in lieu of notice or a different notice period in the employment contract. Employers may ask the employee not to come to work, or to work at home or another location during the notice period. This is called gardening leave. Employees get the same pay and contractual benefits when put on gardening leave.
Length of Service | Notice Period |
1 month – 2 years | 1 week |
2 years – 12 years | 1 week for every completed year of service |
More than 12 years | 12 weeks |
Leave / time off
Annual
Sick
Parental
Other Types
Unpaid
Annual
Statutory paid holiday entitlement is limited to 28 days for employees working six-day workweeks. Part-time workers are entitled to at least 5.6 weeks’s paid holiday. For example, if they work 3 days a week, they must get at least 16.8 days’ leave a year (3 x 5.6). The general notice period for taking leave is at least twice as long as the amount of leave a worker wants to take, plus one day.
Sick
Employees in the UK are entitled to Statutory Sick Pay for up to 28 weeks, paid by the employer. If an employee is absent from work for more than seven days, they must provide a note from their doctor to document their Sick Pay obligation. This includes non-working days such as weekends and bank holidays. If an employee is ill just before or during their holiday, they can take the time as sick leave instead.
Parental
Maternity leave
Employees (not workers) are eligible for a Statutory Maternity Leave of 52 weeks:
- Ordinary Maternity Leave – first 26 weeks,
- Additional Maternity Leave – last 26 weeks.
Employees do not have to take 52 weeks but they must take two weeks’ leave after their baby is born.
Statutory Maternity Pay (SMP) is paid for up to 39 weeks:
- 90% of the employee’s average weekly earnings (before tax) for the first six weeks,
- £172.48, or 90% of their average weekly earnings (whichever is lower) for the next 33 weeks.
Employers can reclaim 92% of employees’ Statutory Maternity Pay (SMP) from the Her Majesty’s Revenue and Customs (HMRC).
Paternity leave
When an employee takes time off because their partner is having a baby, adopting a child, or having a baby through a surrogacy arrangement, as the father they might be eligible for:
- One or two weeks of paid Paternity Leave,
- Statutory Paternity Pay paid by the employer,
- Shared Parental Leave and Pay.
Other Types
Parental Bereavement Leave
Employees can take two weeks of leave from the first day of employment for each child who has died before they turn 18 or is stillborn after 24 weeks if they are eligible. Eligible employees may be paid statutory parental bereavement pay at either £172.48 a week or 90% of average weekly earnings (whichever is lower).
Unpaid
Time Off for Family and Dependents
Employees are allowed time off to deal with an emergency involving a dependent. The time off allowed is described as reasonable but there is no set amount of time as it depends on the situation. There are no limits on how many times an employee can avail of this leave.
The paid contributions to the National insurance tax depend on the employee’s category letter.
○ Most employees have a category letter A to which employers contribute 13.8% whilst employees contribute 12%.
○ Category letter X is used for employees who do not have to pay National Insurance (i.e employees under the age of 16 do not need to make contributions).
All employers must auto-enroll their workers in the new UK workplace pension scheme. The minimum contribution is 3% from the employer, and 5% from the worker. The actual contribution to be paid by the employer is dependent on the pension scheme chosen by them.
Social security schemes in the UK include the following:
| Social security scheme | Benefits | Entitlement |
|---|---|---|
| National Health Service (NHS) | Sickness, unemployment, death of a partner, or retirement. | Payment of National Insurance contributions.per month (€7,100 for East Germany) |
| National Health Service (NHS) | National Health Service (NHS) Medical, dental, and optical treatment | Free of charge only to people who live in Great Britain and Northern Ireland. |
| Child benefit and Child Tax Credit schemes | Bringing up children | Not applicable |
| Disabled persons or carers | Taking care of the disabled | Non-contributory |
| Employer-sponsored | Maternity, paternity, and adoption | Non-contributory |
Health insurance
The National Health Service (NHS), the UK’s healthcare system, provides almost all healthcare for citizens and residents. This is covered by the government and National Insurance.
Accident insurance
In the UK, employers are obliged to grant mandatory life insurance and work accident insurance to employees. The policy must cover them for at least £5 million and come from an authorized insurer.
Unemployment insurance
In the UK, unemployment insurance is governed through the Job Seekers Allowance (JSA) and funded by the National Insurance Contributions.
Public pension
In the UK, the default retirement age (forced retirement age of 65) no longer exists. Individuals can keep working after they reach the State Pension age. The law protects them against discrimination, e.g. if they apply for a new job, they do not have to provide their date of birth.
There is a state pension age, which is the earliest age an individual can start receiving their State Pension. It may be different from the age an individual can get a workplace or personal pension.
Other Statyutory Benefits
Work Pension
All employers must auto-enroll their employees in the new UK workplace pension scheme. The minimum contribution is 3% from the employer, and 5% from the employee.
If an employee dies following an accident at work or an occupational disease, a survivor’s pension is paid to the surviving spouse or civil partner.
Disclaimer
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.
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