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.
UK tax information updated as of April 1, 2020.
Employee Income Tax: Deducted at Source
0%: 0 to £12,500
20%: £12,501 to £50,000
40%: £50,001 to £150,000
45%: £150,000 and above
UK employer cost information updated as of April 1, 2020.
13.8%: National Insurance (on income above 732.00 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)
Employees are required to contribute to the National Insurance scheme, and to a company pension fund, at the following rates:
12%: £719.01 - £4167.00 per month
2%: £4167.00 per month and above
5%: Pension Fund
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:
Note: Working hours may vary depending on the age, industry, or other special circumstances of the employee. Contact us for more information.
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.
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.
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.
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 in the UK includes up to 52 weeks. The 2 weeks immediately following birth are COMPULSORY leave. Any leave taken over 34 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.
UK law allows for 2 paid weeks of paternity leave at £151.20 per week or 90% of weekly wage, whichever is lower.
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.
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.
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 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.
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.
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.
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.
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.