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

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.

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

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

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.

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.

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

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.

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.