Explore our EOR & PEO services in the UNITED KINGDOM

As your UK EOR, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.

Your candidate is hired by a UK PEO provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.

London

Country Overview

United Kingdom, island country located off the northwestern coast of mainland Europe. The United Kingdom comprises the whole of the island of Great Britain—which contains England, Wales, and Scotland—as well as the northern portion of the island of Ireland. The name Britain is sometimes used to refer to the United Kingdom as a whole. The capital is London, which is among the world’s leading commercial (UK EOR), financial, and cultural centres. Other major cities include Birmingham, Liverpool, and Manchester in England, Belfast and Londonderry in Northern Ireland, Edinburgh and Glasgow in Scotland, and Swansea and Cardiff in Wales.

General Information

Population: ~67.000.000

Capital City: London (population: ~9.000.000)

GDP: ~$2.7 trillion

GDP per capita: ~$40.000

Currency: Pound sterling (GBP)

Unemployment: ~4%

Employer Taxes: ~18.55%

Employee Taxes: ~35%

UK EOR SPECIFICS

Employment contracts in the UK

The company (or UK EOR) can provide employment contracts for both – fixed and indefinite terms.

Probation period in the UK

For a new hire, the employee can be on probation for up to 2 weeks to 12 months. There is no legal maximum in the UK. 6 months is a standard.

Working hours in the UK

Average working hours are estimated following the “working time directive” over a “reference” period. Typically it’s 17 weeks. As long as the average over 17 weeks is less than 48 hours each week, you can work more than 48 hours in a single week.

Vacation days in the UK

Employees have the right to a pro rata minimum of 28 days of paid vacation time, which equates to 5.6 weeks. Bank holidays can be chosen by the employer and are not required to be considered as part of paid leave.

Sick leave in the UK

Employer-paid (or by the UK EOR) statutory sick pay for up to 28 weeks. Employees must present a doctor’s letter to support their claim for sick pay if they are off from work for more than seven days. When an employee misses three consecutive days of work, sick pay kicks in. Clients can provide higher payments than the SSP minimum (£96.35 per week). The number of days should be clarified in the contract.

Wages and salary payments in the UK

In the UK EOR, minimum wage rates depend on employee age. From April 2022, the hourly rate increased to £9.50 for 23+-year-olds. (Also known as National Living Wage)

Salaries get paid on the last day of the month by bank transfer only.

Public holidays in the UK

1 January – New Year’s Day

Good Friday – Easter Monday – Movable

1 May – Early May bank holiday

29 May – Spring bank holiday

28 August – Summer bank holiday

25 December – Christmas Day

26 December – Boxing Day

When a bank holiday falls on a weekend, a “substitute” weekday — typically the Monday after — becomes a paid holiday. The yearly leave allowance also includes public holidays.

Employer taxes in the UK EOR

Employers must automatically enroll workers into a workplace pension scheme if they:

Are aged between 22 and state pension age;

Earn more than £10,000 a year;

Work in the UK.

All new employers (also in UK EOR) now have to enroll eligible staff into a workplace pension from day one of employment. The minimum payment from the company is 3% of the Gross Salary.

Employee taxes in the UK

Notice period in the UK

The statutory notice period is determined by the length of service:

A one-week notice period for a one-month period and fewer than two years of employment

For between two and twelve years of service, provides one additional week’s notice for each year

For 12 years or more of service, 12 weeks’ notice

Termination / Severance in the UK

Only in redundancy situations is severance necessary. If an employee has been employed for at least two years, payment is statutory:

For workers under the age of 22, a 1/2 weekly salary for each full year

For workers aged between 22 and 41, one week’s pay for each full year

For employees over the age of 41, one and a half weeks’ salary for each full year is due

Length of service is maxed at 20 years

The maximum weekly paycheck is £525

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