Hire employees and contractors in The United Kingdom
Outstaffer’s guide to employing in 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.
- Capital city
- London
- Currency
- Pound sterling (£, GBP)
- Official Languages
- English
- Population size
- 67,886,004 (2020 census)
- Ease of doing business
- Very easy
- Cost of living index
- $$$$ (27 of 139 nations)
- Payroll frequency
- Monthly
- VAT - standard rate
- 20%
- GDP - real growth rate
- 1.398% (2018 est.)
Tech Talent in The United Kingdom
The United Kingdom is a global hub for tech talent, boasting a diverse and highly skilled community of software developers, engineers, and IT professionals. Renowned universities like Oxford, Cambridge, and Imperial College London produce graduates with strong technical acumen. Cities like London, Manchester, and Edinburgh have become thriving tech ecosystems, attracting startups and tech giants alike. The UK's commitment to innovation, access to venture capital, and a robust tech infrastructure make it a prime destination for tech companies and entrepreneurs. UK tech talent is celebrated for its creativity, problem-solving abilities, and contributions to cutting-edge technologies, cementing the country's position as a leader in the global tech arena.
Grow your team in The United Kingdom with Outstaffer
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.
Outstaffer can employ your team in the United Kingdom on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your India team. You can also pay contractors now in the United Kingdom with Outstaffer.
Minimum wage
In the United Kingdom, the National Living Wage depends on the age of the worker. In April 2022, the national minimum wages were updated to the following hourly rates:
- 23 and over: £9.50
- 21 to 22: £9.18
- 18 to 20: £6.83
- Under 18: £4.81
- Apprentice: £4.81
Payroll cycle
For customers of Outstaffer.com, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

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.
To employ workers in the United Kingdom, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Jan 1
New Year's Day
May 8
Bank Holiday for the coronation of King Charles III
Dec 26
Boxing Day
Apr 7
Good Friday
May 29
Spring Bank Holiday
May 1
Early May Bank Holiday
Dec 25
Christmas Day
Competitive benefits package in The United Kingdom
Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.Our benefits packages in India are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes in The United Kingdom
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in The United Kingdom.
Employer
- Minimum 4% - Pension Fund
- 15.05% - National Insurance Rate
- £60.32 - Employer Liability Insurance
- 0.50% - Monthly Apprentice Levy
Employee
- Minimum 5% - Pension Fund
- 0% - Up to 11,850
- 20% - 11,850-46,350
- 40% - 46,350-150,000
- 45% - Over 150,000
Types of leave
Statutory 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 maternity leave
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.
Parental/paternal leave
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.
Other leave
- 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.
Employment termination
Termination process
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
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.
Probation periods
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. It is typical for a probationary period to last no longer than six months, and three months where an employee is moving to a new post internally.
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01. Book a call or sign up
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02. Add your people
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03. Dedicated onboarding
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