United Kingdom

United Kingdom

Global Employment Solutions & PEO / EOR in the United Kingdom (UK)

Omnipresent makes it fast and easy to employ remote talent in the United Kingdom. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

For the purposes of the below "UK" will mean the legal jurisdiction of England & Wales.

OmniAtlas Employment Rating

Capital City
London
Currency
British Pound (£, GBP)
Native Language
English
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
High
Termination
Hard
Immigration
Easy
Cost of Living
Moderate
Population
67.22 Million

What You Need to Know About Employing in the United Kingdom

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
United Kingdom

How do Omnipresent Global Employment Solutions Work?

  • Your company conducts the hiring and candidate selection process in the United Kingdom.
  • Omnipresent hires the selected candidate through our local professional employment organisation in the UK.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in the UK.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation.
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Payroll & Taxes in the UK

UK tax information updated as of April 1, 2020.

Employee Income Tax: Deducted at Source 

0%: 0 to £12,570 

20%: £12,571 to £50,270 

40%: £50,271 to £150,000 

Payroll cycle:

Monthly

United Kingdom

Employer Costs in the UK

UK employer cost information updated as of July 13, 2022.

Employer Contributions:

13.8%: National Insurance (on income above 737.00 GBP per month)

3%: Mandatory Pension Fund (employers are required to offer a pension on an opt-out basis)

0.5%: Apprenticeship Levy (applies to employers with payroll over 3 million GBP)

Employee Contributions:

Employees are required to contribute to the National Insurance scheme, and to a company pension fund, at the following rates:

12%: £797.00 - £4189.00 per month

2%: £4189.00 per month and above

5%: Pension Fund

United Kingdom

Working Hours in the UK

Typical Maximum Working Hours per Week:

Like much of Europe, has a maximum of 48 working hours per week under the Working Hours Regulation. However, employees can and often do opt out of this limit in their employment contract. After 26 weeks of service, employees can request flexible working. This means:

  • Employee can request amended hours, or work from home.
  • Employer has 3 months to consider and respond, and must do so reasonably.
  • Employer can refuse but only for a specific list of reasons. 

Note: Working hours may vary depending on the age, industry, or other special circumstances of the employee. Contact us for more information.

Overtime Laws:

Overtime laws in the UK are complex and can be paid or unpaid depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context. Please contact our team for more information.

United Kingdom

Public Holidays & Vacation Time in the UK

Typical Public Holidays in the UK:

  • New Years Day
  • Good Friday
  • Easter Monday
  • May Day Bank Holiday
  • Spring Bank Holiday
  • Late Summer Bank Holiday
  • Christmas Day
  • Boxing Day

Vacation Time in the UK:

In a typical case, an adult employee is entitled to a minimum of 20 working days excluding public holidays. There are 8 public holidays in a normal year.

United Kingdom

Types of Leave in the UK

Every country has different statutory rules on leave, entitlement and the carrying over of unused leave. It is important to understand these differences to stay compliant. 

Sick Leave:

Day 0 - 3: No Sick Pay
Day 3 - 28 weeks: Statutory Sick Pay (SSP)

SSP and any contractual sick pay, is paid by the employer in the UK. It is not generally possible to recover this cost from the state. COVID-19 has also impacted sick leave, contact us for more specific information on this issue.

Maternity Leave:

Maternity leave in the UK includes up to 52 weeks. The 2 weeks immediately following birth are COMPULSORY leave. Any leave taken over 39 weeks is unpaid. All pregnant employees are entitled to maternity leave; however, in order to be eligible for statutory maternity pay their current employer for employees must have worked for a minimum number of weeks.

Paternity Leave:

UK law allows for 2 paid weeks of paternity leave at £151.20 per week or 90% of weekly wage, whichever is lower.

Unpaid Childcare Leave:

Up to 18 weeks of unpaid childcare leave per child is permissible in the UK, which can be taken when the child is 0 - 18 years old, and this entitlement is total, not annual. Please note that the definition of a "week" depends on the working week of the individual employee.

Other Types of Leave:

  • Shared parental leave
  • Parental bereavement leave
United Kingdom

Health Insurance & Supplementary Benefits in the UK

The UK has a government funded national healthcare system known as the NHS which provides treatment to residents of the UK for free. Employees contribute to this via mandatory National Insurance contributions.

Employers in the UK are required to provide all employees with a private pension plan. We believe that remote employees should be able to access all government local benefits, as well as a high standard of international benefits anywhere they are.

Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

United Kingdom

Termination Laws in the UK

The law provides a variety of acceptable reasons to dismiss an employee, depending on the circumstances and severity of any misconduct or poor performance. If you would like to know more specific details, please contact us

Severance:

Severance is not typically required in the UK, except in the case of redundancy. However, other payments may be required in certain specific circumstances. Please contact us with any questions.

Notice of Termination:

0 - 1 month service: No notice
1 month - 2 years service: 1 week notice
2 years - 12 years service: +1 week for each year
12+ years service: 12 weeks notice

Payment in lieu of notice is acceptable only if specified in the contract. Minimum notice periods may vary for certain categories of employees and for different dismissal cases.

Unprotected & Protected Termination:

UK law protects employees from illegal termination of employment including but not limited to unfair dismissal and constructive dismissal. Because there are a range of reasons an employee can be terminated, it is important for those looking to employ in the UK reach out to us directly with questions.

United Kingdom

Grow your global team. Employ the best talent, anywhere in the world.

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in the UK are strict with penalties for non-compliance. Let our global employment solutions team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. Omnipresent is here to help you every step of the way.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team. Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.

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