Employer of Record in Great Britain

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Compensation and Benefit

Wages
The minimum wage varies depending on the employee's age.
18-20：1,049.6 per month
21-22：1,337.6 per month
23+：1,425.6 per month
Working Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.
Public Holidays
Name and duration of the festival
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
Annual Leave
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.
Sick Leave
Employees are entitled to paid sick leave for up to 28 weeks. The first 3 days are unpaid and considered as a qualifying period. The remaining days are paid at £99.35 per week by the employer.
Maternity Leave
Pregnant employees are entitled to 52 weeks of paid leave. Two 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 six weeks, and the employer will be responsible for this pay. The next 33 weeks are paid at £156.66 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 two weeks of paid paternity leave. The leave must be taken in one period. The employee will receive £156.66, or 90% of their average weekly earnings (whichever is lower) during this period, and the employer will be responsible for this pay.
Family 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 £1156.66 a week or 90% of the employees' earnings, whichever is lower. The remaining 13 are unpaid. In addition to the standard Shared Parental Leave, employees are also entitled to an additional 18 weeks of unpaid leave that can be used up until the child’s 18th birthday.
Social Security
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
Tax
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.
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.
VAT Rate：The standard rate of VAT in the United Kingdom is 20.00%
Retirement Age：65

Policy of Termination & Severance

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
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

Main Types of VISAs

If employers want to recruit from outside the UK, workers need to meet certain requirements and apply for the appropriate visa first; each visa has different requirements. Employers need to have a sponsor license to hire most workers outside the UK – which can take several weeks to process. Following the end of the Brexit transition period, from 1 January 2021, the free movement of persons between the UK and EU has ended. The UK has introduced an immigration system that treats all applicants equally, regardless of their country. Also effective from this date, Citizens of the European Union, Switzerland, Norway, Iceland, and Liechtenstein can apply for the EU Settlement Scheme.
Foreigners can visit the UK for up to 6 months without a visa to travel, visit family and friends, undertake short-term studies, attend job interviews, etc.
For longer stays, foreigners need to apply through the UK immigration points-based system via the UK government to score the necessary points for entry eligibility criteria must be met. This system aims to prioritise skills and talent over where someone comes from. Irish citizens need not apply for a work permit to live and work in the UK, as free movement, rights, and privileges between these countries continue to be protected by the Common Travel Area arrangements. In most cases, to be eligible to come and work in the UK, a confirmed job offer is required or written confirmation of transferring to the employer’s UK office.
There are many types of work visas for the UK, for both short- and long-term stays. All require different information regarding the foreigners’ skills and qualifications depending on the job being offered/sponsorship, the type of work involved, and whether there will be a requirement to bring the family.
The most requested long-term work visas in the UK include:
Skilled Worker – allows holders of this visa to live or stay in the UK and work in a qualifying role with an approved employer. The visa is valid for up to 5 years before renewal is needed. To be able to get this type of visa, a confirmed job offer is essential. The role must also be in a reported list of eligible occupations on the government website.
Intra-company – Transfer or Graduate Trainee – these are the visas for foreigners being transferred to the UK. There’s also an intra-company visa specifically designed for graduate trainees being transferred as part of a program for managerial or specialist roles.
The role must also be in a reported list of eligible occupations on the government website. The amount of time allowed to stay depends on many factors, as detailed on the government website.
Health and Care Worker – a long-term visa designed for medical professionals coming to the UK to do an eligible job with the NHS, an NHS supplier, or adult social care. There are minimum criteria that an employee must meet to be eligible, together with a confirmed job offer. This role is valid for five years before renewal.
A ‘certificate of sponsorship’ from the Home Office, approved by an employer, is also a prerequisite for all these visas.
The process takes between 3-8 weeks, and the costs associated with applying for the right to work in the UK differ depending on the type of visa or permit but are usually made up of an application fee, a healthcare surcharge, and a minimum amount of money as initial settlement/support.
The UK government has announced the implementation of a new visa scheme for ‘high potential individuals’ to allow people from top universities to work in the UK for 2 years – or 3 years if they hold a Ph.D. – and to switch to other long-term employment visas at the end of this period if they meet certain requirements. The scheme is open to all eligible graduates, regardless of nationality, and a prior job offer is not required.
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