Hire employees in United Kingdom No entity needed.
Usually, to hire in 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.
United Kingdom also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in United Kingdom quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for United Kingdom built right in
Deel allows you to provide localized benefits for employees in United Kingdom within minutes. All in one manageable online dashboard.
- Unemployment Insurance
- Professional Training
Currency: Pound Sterling (GBP)
Official language: English
Payroll Cycle: Monthly
Paid Time Off
In the UK, employees are entitled to 20 days of paid holiday a year
- New Year’s Day
- Good Friday
- Easter Monday
- Early May Bank Holiday
- Spring Bank Holiday
- Christmas Day
- Boxing Day
- Summer bank holidays
Individual Income Tax
The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 20% to 45%.
Approximately, 17.3% of employee salary
Employment Contract Details
Contracts should be in writing and in English.
No mandatory requirement concerning probation periods. The maximum probation period is 6 months.
Minimum Wage Requirements
In the UK, the minimum wage depends on the employee's age:
- Age 18-20: £6.15 an hour
- Age 21-24: £7.70 an hour
- Age 25 and Over: £8.21 an hour
Maximum working hours and overtime
The maximum hours allowed per week are 48.
Bonus and expense payments
Employers providing bonus payments to their employees have certain tax, National Insurance and reporting obligations.
- Maternity leave: employees are entitled to statutory maternity leave for 52 weeks. It’s made up of: Ordinary Maternity Leave (first 26 weeks) and additional Maternity Leave (last 26 weeks). Employees can decide when to take leave, but it's mandatory to take 2 weeks after the baby is born. The National Insurance will be responsible for the payment. The employee will receive 90% of the average weekly earnings (before tax) for the first 6 weeks and £151.97 or 90% of the average weekly earnings (whichever is lower) for the next 33 weeks.
- Paternity leave: employees are entitled to 2 weeks of paid leave, this leave must be taken within the first 56 days since the child is born and cannot be splitted. To be eligible for paternity payment the employee must have worked for the same company for at least 26 weeks.
Employees are entitled to statutory sick pay (SSP) as long as they earn more than the lower earnings level. SSP is not however payable for the first 3 qualifying days of absence (a qualifying day is a day on which you are normally expected to work under your contract of employment).
There is a limit of 28 weeks‘ SSP in any one period of sickness or linked periods (periods of sickness are said to be linked if the second period starts within 8 weeks of the end of the first period). SSP is paid in the same way as ordinary pay and is liable to tax and National Insurance contributions.
Payments of sick pay may be terminated, suspended or reduced if an employee fails to notify the Company of relevant facts, or if their absence or continued absence is due to their taking an unwarranted risk (in or out of work), conducting themselves in a way that prejudices their recovery.
Termination requirements for employees in
Dismissal occurs when you end an employee’s contract, there are different types:
- fair dismissal
- unfair dismissal
- constructive dismissal
- wrongful dismissal
There is no entitlement to Severance Pay, unless it was a termination due to redundancy. Any not taken holidays must be paid out upon termination.
In the UK, the notice period is based on the length of their labor relationship:
- 1 month to 2 years of employment - 1 week's notice
- 2 - 12 years of employment - one week's notice for each year of service.
- 12+ years of employment - 12 weeks' notice
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“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!!”
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