Hire in United Kingdom

Employer of record in the United Kingdom

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in the United Kingdom (UK), an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in the UK ― often in as little as two weeks ― without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in the UK and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in the UK

UK labor law is made up of various charters, acts and regulations, including the Employment Rights Act 1996 and the Equality Act 2010. This wide collection of legislation provides the legal framework for employees, employers and trade unions, including the Equal Pay Act of 1970, the  Employment Rights Act of 1996 and the Equality Act of 2010.

Because of the complexity of employment laws in the UK, compliant employment contracts are an essential business need. As your employer of record and PEO in the UK, we can ensure that every contract, for every worker, meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change.

Employment contracts in the UK

As you look to hire new employees, it’s important to remember that employment contracts are required in the UK, and terms must include employment conditions, rights, responsibilities and duties. Here are some common regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs. 

Working hours 

The maximum workweek for employees in the UK is 48 hours a week averaging over 17 weeks. In general, employees over 18 years old can choose to work more than 48 hours a week if they have written, a voluntary opt-out agreement — although workers in certain sectors are not eligible for opting out.

Under the Working Time Regulations, employees are entitled to: 

• a rest break of 20 minutes for every six hours of continuous work, 
• 11 hours of rest per 24-hour period, and 
• 24 hours of continuous rest per week (or 48 consecutive hours every two weeks). 

Employees cannot work more than eight hours per night shift. 

Compensation 

As you consider the appropriate salary to offer your UK employees, keep in mind:

• Effective April 1, 2023, to March 31, 2024, the hourly minimum wage rates are: 
• Effective April 1, 2024, the hourly minimum wages are: 
• Employment contracts for payments below the minimum wage are not legally binding.
• Employees must be issued a written payslip that shows gross pay, net pay, deductions for taxes, NICs, and any fixed deductions such as union dues.
• There is no requirement for premium pay for overtime work; however, an employee’s average pay for total hours worked should not be lower than minimum wage.

As your employer of record in the UK, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer. 

Bonuses 

There is no requirement for bonuses to be paid — they are discretionary in the UK, and they are usually agreed upon in the contract between the employee and employer. Certain roles and sectors are more likely to see bonus payments — including corporate managers and directors; business, media, and public service professionals; and science, research, engineering, and technology professionals — and the average bonus payment in the UK is over £2,000. 

Probationary period 

The probationary period in the UK is generally one to six months, and employers are required to notify employees when they have completed the probationary period. 

Termination and severance 

Although the UK Employment Rights Act 1996 defines how much notice of termination must be given to employees, employers often agree to more generous provisions — sometimes up to six months’ notice. Employers who are terminating a worker’s employment are encouraged to follow the ACAS (Advisory, Conciliation and Arbitration Service) Code of Practice to help ensure fair dismissal. As your employer of record in the UK, we can work with you to quickly handle the unforeseen event of an employee termination, providing legal guidance and a personalized process that ensures you stay out of labor court.

Employee benefits and paid leave in the UK

When negotiating terms of an employment contract with a candidate in the UK, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Pregnant employees are entitled to 52 weeks of maternity leave, which includes 26 weeks of “Ordinary Maternity Leave” and 26 weeks as “Additional Maternity Leave.” Employees aren’t required to take all 52 weeks of their maternity entitlement, but they must take two weeks off when the baby is born — and an employer can face criminal charges if they allow an employee to return to work within two weeks of giving birth.

Additionally, pregnant employees are entitled to receive up to 39 weeks of statutory maternity pay if they have worked for the employer for at least 26 weeks and meet minimum earnings requirements.

Vacation

Full-time employees in the UK are entitled to a minimum of 28 days of paid annual leave each year with up to 8 days eligible to roll over into the next year. These generally include bank holidays unless the employment contract states otherwise. Vacation pay is usually based on the average pay over the 52 weeks prior to the vacation, or the number of weeks of employment if the worker has been with the employer for less than 52 weeks.

Effective starting April 2, 2023, the basic weekly amount is 172.48 pounds.

Holidays

England and Wales recognize eight public holidays, also known as bank holidays, while Scotland recognizes nine and Northern Ireland recognizes ten. The seven holidays that are collectively recognized by England, Wales, Scotland, and Northern Ireland are as follows:

• New Year’s Day
• Good Friday
• Easter Monday
• Early May bank holiday
• Spring bank holiday
• Summer bank holiday
• Christmas Day
• Boxing Day

The additional public holiday recognized by England and Wales is Easter Monday, the Monday immediately after Easter Sunday. The additional public holidays recognized by Scotland are: 

• The second day of the new Gregorian Calendar year
• St. Andrew’s Day

The additional public holidays recognized by Northern Ireland are: 

• St. Patrick’s Day
• Easter Monday, the Monday immediately after Easter Sunday
• Battle of the Boyne (Orangemen’s Day)

In the UK, bank 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.

Bank holidays do not have to be given as paid leave, but employers can choose to include them as part of a worker’s statutory annual leave. When employees work on a national holiday, they have no statutory right to extra pay.

Sick leave

Effective April 6, 2023, to April 5, 2024, employees generally are entitled to statutory sick pay (SSP) of 109.40 pounds per full week of seven days, for up to 28 weeks.

Employers can offer more sick pay, called “contractual” or “occupational” pay, as part of the employment contract, but they cannot offer less than the statutory minimum. Employers cannot require employees to contribute towards sick leave payments.

Health coverage

Health benefits in the UK are funded through the National Insurance Contributions (NICs), which include both employee salary deductions and employer contributions. In addition to the federal health benefit, some employers opt to provide separate private health insurance, but that is generally considered a perk.

As your employer of record in the UK, we may be able to provide optional supplementary health coverage for professionals and their dependents at a more cost-effective rate.

Additional benefits

In addition to healthcare benefits, the NICs fund benefits such as state-provided pensions, statutory leave benefits and workers’ compensation.

Employer social costs will cover a large portion of employee benefits in the UK, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance, if needed.

Updated: December 18, 2023

Employee onboarding with an employer of record in the UK

We write and validate all local employment contracts, streamlining the onboarding process for you and your UK employees — all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in the UK, we will:

• Schedule a welcome call to discuss HR and employment information for the UK, as well as answer any questions
• Prepare a customized employment contract 
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee can often be completed in as little as two weeks.

Partner with Safeguard Global as your UK employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in over 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable — and with our extensive knowledge of local law and culture, we know what it takes to get employment right in the UK. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration — including payments, filings and other calculations — all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer: The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.