How do you Navigate
Hiring Employees in United Kingdom?

Your guide to hiring employees in United Kingdom, covering the employment
landscape, working customs, and local labor laws.

  • Capital City London
  • Languages English
  • Currency Pound Sterling
  • Timezone GMT / GMT +1
  • Employer Tax 13.8%
  • Payroll Frequency Monthly, Bi-weekly, or Weekly
  • Tax Year 6 April to 5 April

How to Hire Employees in United Kingdom

Navigating the UK’s employment landscape for the first time can be challenging, particularly with its detailed labour laws and strong worker protections. Whether you’re onboarding independent contractors or leveraging an Employer of Record (EOR) service, understanding the local employment framework is essential for a smooth and compliant hiring process.

Our comprehensive guide provides the insights you need to hire local talent or relocate team members with confidence.

Partnering with an Employer of Record (EOR)

An EOR acts as a legal employer on your behalf, managing the hiring process, payroll, and compliance with the UK’s labour laws and tax requirements. By using an EOR, you can streamline operations and focus on building your team while ensuring full regulatory compliance.

Why United Kingdom?

Strategic Location:

The UK is a major global business hub with strong trade connections to Europe, North America, and Asia.

Skilled Workforce:

The UK has a highly educated workforce, particularly in industries such as finance, technology, healthcare, and creative industries.

Business-Friendly Environment:

The UK offers a stable economy, competitive corporate tax rates, and strong legal protections for businesses and employees.

Good to Know About Hiring in United Kingdom

(Working Hours)

Standard working hours in the UK are regulated by the Working Time Regulations 1998:

  • A standard working week of up to 48 hours, averaged over 17 weeks (employees can opt out of this limit).
  • A maximum of 8 hours per day is typical but can vary based on industry.
  • Employees are entitled to 11 consecutive hours of rest in every 24-hour period.
  • Overtime pay is not legally required but may be specified in employment contracts.

Minimum Wage

The UK has a statutory National Minimum Wage (NMW) and National Living Wage (NLW), which are reviewed annually:

  • As of April 2024, the National Living Wage (for workers aged 23 and over) is £11.44 per hour.
  • The National Minimum Wage varies by age group and applies to workers under 23.
  • Apprentices have a separate minimum wage rate.

Probation Period

Probation periods in the UK depend on the contract type and job role:

  • Standard probation periods range from three to six months.
  • During probation, notice periods may be shorter, as specified in the employment contract.
  • After probation, employees gain full employment rights, including redundancy pay and unfair dismissal protection.

Mandatory Leave Entitlements

Employees in United Kingdom entitled to:

Annual Leave:

Full-time employees are entitled to a minimum of 28 days of paid annual leave per year, including bank holidays. Many employers offer additional leave.

Public Holidays:

The UK has 8 bank holidays in England and Wales, 9 in Scotland, and 10 in Northern Ireland.

Maternity Leave:

Eligible employees can take up to 52 weeks of maternity leave. The first 6 weeks are paid at 90% of salary, followed by 33 weeks at a statutory rate (£172.48 per week as of 2024), with the remaining 13 weeks unpaid.

Paternity Leave:

Fathers or partners are entitled to 2 weeks of paid paternity leave at a statutory rate.

Shared Parental Leave:

Parents can share up to 50 weeks of leave and 37 weeks of statutory pay.

Paid Sick Leave:

Employees receive Statutory Sick Pay (SSP) if they are ill for 4 or more consecutive days:

Paid at £109.40 per week (as of 2024) for up to 28 weeks.

Employers may offer enhanced sick pay through contracts.

A medical certificate is required after 7 consecutive days of illness.