What you need to know for employing in United Kingdom

Employee Contributions

The NI contributions payable by an employee on weekly earnings for tax year 2024–25 are as follows:

• 0 pounds to 123 pounds — exempt;

• 123.01 pounds to 242 pounds — 0 percent;

• 242.01 pounds to 967 pounds — 8 percent; and

• over 967 pounds — 2 percent.

Employees over the state pension age do not pay NI contributions.

The UK adopted the EU Working Hours Directive into its laws. However, in the UK you have the ability to opt out of the 48 hours per week maximum in the employment contract, as long as the employee consents. This is market practice in virtually all office jobs.

Employers do not have to pay overtime unless it is outlined in the contract.

The UK offers 28 weeks of protected and paid sick leave.

Minimum sick pay very low - only £96.35 per week (as at 1 April 2021) and must be paid by the employer, not the government. Most employers will offer sick leave at full pay for a period of time, 4 - 12 weeks would be usual.

Maternity is up to 52 weeks (i.e. 1 year), the first 39 weeks of which are paid.

Paternity is 2 weeks paid, but parents can choose to share the Maternity Leave if they wish.

The UK offers a minimum of 28 working days paid annual leave, inclusive of public holidays. The UK currently has 8 regular public holidays.

However, it is common for employers to give more than this. Market standard would be 25-28 days excluding public holidays.

There is no mandatory severance pay when employees resign or are terminated, unless it is a formal redundancy.

In the first 2 years of service, employers can terminate without cause.

For employees with more than 2 years of service, employers can only terminate if they have a valid reason, which can be due to the employee's behaviour or performance, but must follow a ‘fair and reasonable process’.

Employers must be given notice in all cases, except gross misconduct.