What should I know about hiring in the UK?
Understanding UK hiring procedures and the regulations you must follow under UK law is essential if you want to grow your business and have a presence in the UK.
There is a process involved in hiring someone in the UK, and chances are good that many of the stages are similar to those you would take if recruiting someone in your nation. However, when doing so for the first time in the UK, you may need to take a few more steps into account.
First and foremost, all employers are obligated to give their employees a written employment contract specifying the expected duties, work hours, remuneration, and benefits.
The minimum salary, hours worked, paid time off, and termination policies are also essential factors to consider. Ultimately, businesses stand to gain a great deal by recruiting new workers from the United Kingdom due to the country’s abundant supply of skilled workers at competitive wages and central location.
Why is the UK a good choice for finding remote employees?
The education system in the United Kingdom is highly regarded, and as a result, many workers in the country have advanced degrees. This can help businesses that are in need of highly competent workers.
In addition, the rights of employees, including those who work remotely, are protected by the UK’s robust employment laws and regulations. To put it another way, this can give companies more security when hiring remote workers.
Overall, the UK is a good choice for finding remote employees due to its combination of English proficiency, high-quality education, convenient time zone, reliable infrastructure, and legal protections for employees.
How can Native Teams help you hire in the UK
Native Teams’ employer of record solution paves the way for businesses to hire personnel in any country without the need to form a separate legal company and ensures compliance with local employment laws. In addition, we can help you stay in accordance with all applicable UK laws and regulations during the entire process of hiring new staff members, paying them, and providing them with any other financial incentives.
Hire your first UK employee with Native Teams.
Legal requirements for hiring in the UK
To calculate the salary and taxes in the United Kingdom please click here.
The United Kingdom has a tiered national minimum wage system, with different rates applying to workers of different ages.
- The minimum wage for employees under the age of 18 is 4.81 GBP;
- The minimum wage for employees between the ages of 18 and 20 is 6.83 GBP;
- The minimum wage for employees between the ages of 21 and 22 is 9.18 GBP;
- The minimum wage for employees aged 23 and over is 9.50 GBP.
- Apprentice employees are paid a minimum pay of 4.81GB.
Contributions & taxes
How much are the contributions & taxes?
As a rule of thumb, it is expected that the company will have to pay 18.5% of the employee’s wage. National Insurance Contributions (Social Security) Paid by the employer – 15.05% and 3% Contribution to Company Pension Plan. Also, Apprentice Levy Tax is 0.5% and P&I Insurance – is £20.00.
The corporate income tax rate is 19%.
There is a 0% to 45% tax bracket for personal income. The tax system applies progressive rates on income. Other factors, such as marital status and the number of children in the home, may also affect average rates.
What is the payroll cycle?
Salary payments in the United Kingdom occur between the 25th and 30th of each month, with the 25th being the most common.
Is there a 13th salary in the UK?
There are no legal requirements for 13th-month wage payments in the United Kingdom.
What are the main labor rules?
Probationary periods in the United Kingdom are defined by the employment contract and not by law. Probationary periods often range anywhere from three to six months.
In the United Kingdom, employees must provide either the minimum notice required by law or the notice specified in their employment contract.
- The minimum required notice period is 1 week for employees with 1 to 2 years of service;
- The minimum period of notice needed for employees with 2 to 12 years of service is 2 weeks for every year of service;
- The minimum period of notice needed is 12 weeks for employees with +12 years of service;
It is possible to fire an employee immediately for serious wrongdoing. Companies can opt to make a monetary payment instead of providing notice.
Redundancy is the only valid reason for severance pay. In addition, severance pay is prorated based on the employee’s age if they have worked for the company for at least two years.
This is how severance is determined:
- Employees under the age of 22 who have worked for at least one year receive half a week of pay for each year of service;
- When employees are between the ages of 22 and 40, they receive an additional week of salary for every year of service;
- For every year over the age of 41 that the employee worked, the company would pay them an additional 1.5 weeks.
The employer determines daily work hours and is flexible enough to meet the company’s needs. However, a worker cannot be scheduled to work more than 48 hours per week on average over 17 weeks.
Leave and benefits
Leave and benefits rules
There are 8 official holidays observed in England, Wales, and Scotland, and 10 in Northern Ireland.
- New Year’s Day
- Good Friday
- Easter Monday
- Early May Bank Holiday
- Spring Bank Holiday
- Summer Bank Holiday
- Christmas Day
- Boxing Day
Employees are entitled to a maximum of 28 weeks of paid sick leave, with compensation set at the statutory minimum of 99.35 GBP per week (SSP). However, the first three days of any sickness absence are not counted toward this total.
Companies have different sick pay policies, which may affect how much an employer must pay. A professional medical doctor’s certificate is required if an employee’s sick absence lasts longer than seven days.
If a company provides contractual sick pay, an employee may be eligible for compensation at a greater rate than SSP during sick leave.
Maternity leave & paternity leave
Employees who are pregnant during their employment are eligible for 52 weeks of paid leave. After giving delivery, you need to take two weeks off. The remainder of the leave, up to 11 weeks, can be taken any time before the first. The company pays 90% of the employee’s wage for the first six weeks. For the next 33 weeks, workers will be compensated at 90% of their regular weekly wage. After that, the last 13 weeks of the leave will be unpaid.
Workers are allowed two weeks of paid paternity leave. The time off must be taken at once. During this time, the employer is obligated to pay the employee 90% of their typical weekly wages.
Other leave (marriage, bereavement, exam leave)
Following the birth or adoption of a child in the United Kingdom, both parents may qualify for Shared Parental Leave (SPL). Parents are entitled to up to 50 weeks of leave under shared parental leave, during which they can receive income for up to 37 weeks. Take time off within the first year after a child is born.
A worker in the United Kingdom can take up to three days off as bereavement leave after the loss of a close relative (the employment contract will stipulate whether this is paid or unpaid leave).
What are the minimum vacation days?
Full-time workers are entitled to 28 paid days off annually as annual leave. Vacation time can be taken on official bank holidays as well. Additional time off is at the discretion of employers and should be specified in the employment agreement.
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in the UK, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for hiring in the UK?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
*Note: The provided information was accurate at the time of writing.