* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
London
Currency

Pound Sterling (ÂŁ)

Timezone

BST (GMT +1)

Payroll
Monthly
Employment Cost

17.30%

Annual Leave

8 days

In-demand Specialties*
Customer Service, Software Engineer, Project Manager

The Ultimate Guide to Hiring Employees in The United Kingdom

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-The United Kingdom-guide

Key Considerations Before Hiring In The United Kingdom

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. Grow your team in The United Kingdom with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in The United Kingdom quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

The UK is known for having a highly skilled and educated workforce. Hiring employees in the UK provides access to talent with diverse skills and expertise across various industries.

The UK serves as a global business hub, making it an attractive location for companies looking to establish a presence in Europe. It offers a strategic location for international business operations.

English is the primary language spoken in the UK, making it easier for businesses to communicate with employees and navigate business operations. Cultural compatibility can also be an advantage for seamless collaboration.

The UK's international reputation attracts global talent, allowing businesses to hire professionals from different parts of the world, fostering diversity and innovation.

playroll-good-to-know

Fundamental Aspects of Employment in The United Kingdom

When employing an individual in the UK, the following formalities must be adhered to:

  • An employer must give employees a document known as a written statement of employment particulars, stating the main conditions of employment.
  • The employment of particulars includes a principal statement and a wider written statement.
  • The principal statement must include several inputs including: pay, how long the job will last, work hours, probation period length, benefits, location of work, amongst others.
  • On the first day of employment, employers must provide employees info on sick pay, paid leave and notice periods.
  • Within the first two months of employment, employers must provide employees with details on pensions, collections agreemment, non-compulsory training, and grievance procedures.

Probationary Period in The United Kingdom

Probationary periods in the UK help mitigate risk in hiring. Employees can be subject to a probationary period that enables the employer to assess employees’ skills. Unless an employee’s collective bargaining agreement outlines increased protections, the contract can be terminated during the probationary period without cause and at no additional cost to the employer outside of providing the mandatory notice. This probationary period is not automatic and must be provided in the employment contract. Standard probationary periods can be 3-6 months on average.

Working hours in The United Kingdom

An employee whose age is 17 or younger has a maximum of 8 hours per day and 40 hours per week. An employee whose age is 18 or older is allowed to work 48 hours per week. A minimum meal interval of 20 minutes must be observed by employees who work more than 6 hours in a day. In typical working hours, Monday through Friday, the hours are 9 am to 17:30 pm.

Overtime in The United Kingdom

Generally, employers do not have to pay overtime for their workers, but if you work more than 40 hours in a week, your average pay for that amount of time must not fall below the National Minimum Wage. A detailed description of any overtime pay rates and how they are calculated is normally included in an employment contract.

Navigating Key Aspects of Payroll in The United Kingdom

the UK has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

April 6th - April 5th

Fiscal Year in The United Kingdom

April 6th - April 5th is the 12-month accounting period that businesses in The United Kingdom use for financial and tax reporting purposes.
monthly

Payroll Cycle in The United Kingdom

The payroll cycle in The United Kingdom is usually monthly, with employees being paid between the 25th and the 30th of the month.
10.42 GBP p/h

Minimum Wage in The United Kingdom

The minimum wage for employees in The United Kingdom is typically 10.42 GBP per hour, amounting to ~2,000 GBP per month for a typical 48 hour work week.

Minimum wages and salaries in The United Kingdom

As of April 1st, 2023, the minimum wage is 10.42 GBP per hour, for ages 23 or older.

Bonus Payments in The United Kingdom

There are no bonus requirements in the UK, but if employers pay a cash or non-cash bonus, they must report it to HMRC.

Comprehensive Overview of Employment Taxes in The United Kingdom

Understanding the tax obligations for both employers and employees is crucial when operating in The United Kingdom's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in The United Kingdom.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 17.30% on top of the employee salary in The United Kingdom.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In The United Kingdom, the typical estimation for employee payroll contributions cost is around 17%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual income tax ranges from 0% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Tax Rate Income Bracket

Pension in The United Kingdom

Employers must offer a workplace pension scheme to every employee, but it is up to the employee to take it or not. If the employee chooses to enter the pension scheme, their minimum contribution is 4% of their salary. The employer’s minimum contribution is 3%, and government tax relief is 1%, for a total minimum contribution of 8%.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in The United Kingdom tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in The United Kingdom

When it comes to terminating employment in The United Kingdom, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Employees who have been continuously employed by an employer for {period} or more have a right not to be unfairly dismissed. According to the UK employment law, there are 5 statutory reasons for dismissal, which are listed below. Upon dismissal, the employer will have to prove that one applies and that they acted reasonably and legally in treating the reason as sufficient to justify dismissal of the employee.

  • Conduct
  • Capability
  • Redundancy
  • Breach of a statutory restriction
  • Some other substantial reason

Notice Period

Notice periods in the UK depend on the length of the employment relationship, as well as whether the notice is being given by the employee or the employer. For employees who have worked for more than one month, the minimum notice period is 1 week. For employers, the minimum notice periods are as follows:

  • 1 month - 2 years of service: 1 week
  • 2 - 12 years of service: 1 week per year of employment
  • Over 12 years of service: 12 weeks

Severance Pay

In the UK, all employees who are terminated due to redundancy are entitled to severance pay. Severance pay is calculated as follows.

  • 0.5 weeks pay for each year of service where the employee was below the age of 22
  • 1 weeks pay for each year of service where the employee was between 22 to 40 of age
  • 1.5 weeks pay for each year of employment where the employee was 41 and over

Annual Leave Entitlements and Company Policies in The United Kingdom

The annual leave entitlement in The United Kingdom is 8 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in The United Kingdom

Public holidays, also known as bank holidays, vary by region in the United Kingdom. There are 8 bank holidays in England and Wales, 9 in Scotland, and 10 in Northern Ireland.

Holiday Date

Paid Time Off in The United Kingdom

Maternity Leave in The United Kingdom

Paternity Leave in The United Kingdom

Sick Leave in The United Kingdom

Parental Leave In The United Kingdom

The United Kingdom's Benefits Built Into Playroll

Competitive benefits package in The United Kingdom

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in The United Kingdom's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In The United Kingdom

Make your benefits package in The United Kingdom a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in The United Kingdom

Playroll allows you to provide localized benefits for employees in The United Kingdom within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in The United Kingdom create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for The United Kingdom

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in The United Kingdom.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!