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Hire employees and contractors in The United Kingdom

Outstaffer’s guide to employing in United Kingdom.

United Kingdom employee facts

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.

Map of United Kingdom

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

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.

hire from United Kingdom

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.

Hiring in The United Kingdom with Outstaffer
hire from United Kingdom

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

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.

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

attract & retain talent

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.

Get started with Outstaffer in three easy steps

  1. 01. Book a call or sign up

    Book a call with one of our Solutions Managers or create your free account. It’s quick, easy, and you’ll be ready to get started in minutes.

  2. 02. Add your people

    From new hires to your existing team, onboard them seamlessly with our simple-to-use self-serve platform

  3. 03. Dedicated onboarding

    Our dedicated team is here to guide you every step of the way ensuring you’re confident, supported, and set up for success.

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