and contractors in United Kingdom
Remote’s guide to employing in the United Kingdom
Facts & stats
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK or U.K.) or Britain, is a sovereign country located off the northwestern coast of the European mainland. The United Kingdom has the world's sixth-largest economy by nominal gross domestic product (GDP), and the ninth-largest by purchasing power parity (PPP). It has a high-income economy and a very high human development index rating, ranking 14th in the world.
Grow your team in United Kingdom with Remote
Employing in the United Kingdom requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in the UK makes full compliance with employment laws a burdensome process.
Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.
The United Kingdom, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.
Employing in the United Kingdom
People at work in the UK benefit from a minimum charter of employment rights, which are found in various Acts, Regulations, common law and equity. This includes the right to a minimum wage, paid holidays, break from work, limit to excessively long working hours, automatic enrolment in a basic occupational pension and provisions for leave.
The following are only guidelines in the broadest sense, and professional legal services are recommended when employing in the UK.
|Date||Holiday Name||Extra information|
|New Year's Day|
|St. Patrick's Day||Only observed in Northern Ireland|
|Easter Monday||England & Wales & NI. Not a Scottish Public Holiday.|
|May Day Bank Holiday||Moved to May 8 in 2020 to commemorate Victory in Europe day|
|Spring Bank Holiday||Also known as Summer Half-Term Monday|
|Battle of the Boyne (Orangeman's Day)||Only observed in Northern Ireland. Falls on the 12 July unless this is a Saturday or Sunday. Falls on 13 July in 2020.|
|Summer Bank Holiday||Scotland only|
|Late Summer Bank Holiday|
|St Andrew's Day||Scotland only|
In the United Kingdom, the National Living Wage depends on the age of the worker. In April 2021, the national minimum wages were updated to the following hourly rates:
- 23 and over: £8.91
- 21 to 22: £8.36
- 18 to 20: £6.56
- Under 18: £4.62
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in the United Kingdom fast. The minimum onboarding time we need is just 48 hours. If the employee's start date is after the 15th of the month, payment will be included in the next month's payroll.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in the United Kingdom
Besides providing your employees with all statutory benefits in the United Kingdom, Remote can advise on and arrange for custom benefits and perks for your employees upon request.
Taxes in United Kingdom
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in United Kingdom.
- Minimum 3% - Pension Fund
- 13.80% - National Insurance Rate
- £60.32 - Employer Liability Insurance
- 0.50% - Monthly Apprentice Levy
- Minimum 5% - Pension Fund
- 0% - Up to 11,850
- 20% - 11,850-46,350
- 40% - 46,350-150,000
- 45% - Over 150,000
Questions about IR35 or UK contractors? Read Remote's guide to IR35 rules in the UK.
Types of leave
Full-time workers in the UK are entitled to 28 total working days of annual leave. These often include the 8 public/bank holidays which would otherwise be unpaid.
- Pregnancy and
52 weeks, with the two first weeks mandatory for the mother. Comprised of ordinary maternity leave for the first 26 weeks and additonal for the last 26 weeks.
Employee can choose to take either one week or two weeks consecutive leave. Leave cannot start before the birth. Mother can transfer up to 50 weeks of leave to partner, with up to 37 weeks of pay between the couple.
- Time off work for public duties: intended to allow employees to fulfill certain public duties related to holding roles such as local councillor, school governor, trade union member, etc.
- Time off for family and dependents: intended for unforeseen personal circumstances for which an employee has to take time off immediately. Has to be an emergency and involve a dependent.
Termination from the employer valid grounds with any fair reasons. There are six potentially fair reasons for dismissals::
- Employee's capability or qualifications for performing work of the kind the employee was employed to do;
- Employee conduct;
- Employee retirement;
- Employee redundancy;
- Employee could not continue work in position without contravening statutory duty or restriction; or
- Other substantial reason justifying dismissal
Notice period depends on the length of the employment relationship. For up to 4 years of employment, the notice period is no less than 1 month. For 5 to 11 years of employment, the notice period is no less than 1 week's notice for every year of completed year of continous employment. Above 12 years, it is no less than 3 months.
There is no legal stipulation for minimum and maximum probation periods and all statutory rights and protections apply from commencement of employment. Employers can set probationary periods in the employment contract.