Hire employees in

the United Kingdom, hassle-free

Hire employees in the United Kingdom, hassle-free

With Deel, your business can easily hire employees in the United Kingdom. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in the United Kingdom is 1 day with Deel.

Download the Guide

Currency

Pound Sterling (GBP)

Capital

London

Official Language

English

Payroll Cycle

Monthly

Hire employees in the United Kingdom. No entity needed.

Usually, to hire in the United Kingdom, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

the United Kingdom also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in the United Kingdom quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for the United Kingdom
built right in

Deel allows you to provide localized benefits for employees in the United Kingdom within minutes. All in one manageable online dashboard.

  • Employers Liability Insurance
  • Professional Training
  • State Pension Fund
  • Unemployment Insurance
  • Private Healthcare - Freedom (optional)

Our quickstart guide to hiring in the United Kingdom

Navigate the tabs below to learn everything you need to know about hiring an employee in the United Kingdom

Minimum Wage Requirements

The minimum wage varies depending on the employee's age.

Age Minimum Wage GBP
18-20 1.049,6 per month
21-22 1.337,6 per month
23+ 1.425,6 per month

Individual Income Tax

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.

Gross Annual Income Tax Rate (%)
Up to £12,570 0%
£12,571 - £50,270 20%
£50,271 and £150,000 40%
Over 150,000 45%

 

 

 

 

 

 

 

There are slightly different tax rates and banding in Scotland, however, this is all taken care of by the tax authorities. Employees based from a Scottish address will have a slightly different tax code that will enable the correct taxation to be applied.

Employer Cost

The employer cost is generally estimated at 18.55% of the employee salary.

  • Employer National Insurance (Social Security) - 15.05%
  • Workplace Pension - 3.00%
  • Apprentice Levy Tax - 0.5%
  • P&I Insurance - £20.00

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. Overtime payment is not mandatory, however, an employee's average pay for the total hours they work must not fall below the National Minimum Wage.

Maternity Leave

Pregnant employees are entitled to 52 weeks of paid leave. 2 weeks must be taken after the child's birth. Up to 11 weeks can be taken before the first with the rest being used as the employee sees fit. The employee will receive 90% of their salary during the first 6 weeks, and the employer will be responsible for this pay. The next 33 weeks are paid at £157.97 a week or 90% of the employee's average weekly earnings (whichever is lower). The final 13 weeks as unpaid leave.

Paternity Leave

Employees are entitled to 2 weeks of paid paternity leave. The leave must be taken in one period. The employee will receive £151.97, or 90% of their average weekly earnings (whichever is lower) during this period, and the employer will be responsible for this pay.

Parental Leave

Parents are entitled to 50 weeks of Shared Parental Leave (SPL). Both parents can decide how to distribute the time off. Either parent can take parental leave, the mother can only take parental leave once they have formally returned from maternity leave.

The first 37 weeks are paid at £151.97 a week or 90% of the employees' earnings, whichever is lower. The remaining 13 are unpaid.

In addition to the standard SPL, employees are also entitled to an additional 18 weeks of unpaid leave that can be used up until the child’s 18th birthday.

Sick Leave

Employees are entitled to paid sick leave for up to 28 days. The first 3 days are unpaid and considered as a qualifying period. The remaining days are paid at £96.35 per week by the employer.

Termination Requirements

Terminations in the UK can be complex. There is no at-will termination in the UK for employers outside the probation period and termination must be done for just cause.

Compliant terminations include:

  • Fair dismissal
  • Unfair dismissal
  • Constructive dismissal
  • Wrongful dismissal

Notice Period

The minimum notice period is 1 week and will be increased according to the length of the employment.

  • 1 week if the length of service is 1-2 years
  • 1 week for every year of service on 2 - 12 years
  • 12weeks if the length of services is 12+ years

Severance for Employees

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

Paid Time Off

Full-time employees are entitled to 20 day of paid time off (PTO) a year plus an additional eight public holidays.

Please note, in the platform this is listed as 20 days of PTO and the employee will be entitled to an additional 8 days of public holiday on top of this.

PTO (Including public holidays) accrues at 5.6 weeks times the number of days a week the employee works.

Public Holidays

The UK celebrates 8 national and regional holidays based on the location of the employee.

National public holidays include:

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Early May Bank Holiday
  • Spring Bank Holiday
  • Summer Bank Holiday
  • Christmas Day
  • Boxing Day

Onboarding

Onboarding takes 1 business day.

Employment Contract Details

Contracts must be in English. They must be in writing and signed by both parties. A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. The maximum probation period is 6 months.
btn_download

Download the complete guide to hiring in the United Kingdom

Simply fill out your details below to gain access to our complete guide to hiring in the United Kingdom.

Hiring in the United Kingdom, hassle-free

With Deel, your business can easily hire employees in the United Kingdom. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

18.55%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in the United Kingdom?

View our Employee Cost Calculator

We have a 4.9 out of 5 rating on Trustpilot

We're trusted by over 6,000 businesses all over the world. Read our reviews on Trustpilot.com.

5 Stars

Deel is the best!!

“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

Manuela Echeverry
Nov 20, 2020
5 Stars

A contracting life-changer!

"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

Kix Panganiban
Dec 3, 2020
5 Stars

Great service offering!!

"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

Michael US
Oct 28, 2020
5 Stars

Terrific service

"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

Nunzio Martinello
Dec 15, 2020
5 Stars

Deel is a game-changer for distributed teams

"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

Jeremie Habib
Nov 16, 2020
5 Stars

Great app with great customer service

"Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

Felipe Marote
Jan 29, 2021

Deel makes growing remote and international teams effortless. Ready to get started?

+

Countries

+

Customers

+

Legal experts

+

Currencies