Grow your team in
The United Kingdom effortlessly
Enjoy swift onboarding in United Kingdom – 3 days on average.
Explore for Free
Simple Hire in the United Kingdom
Setting up your business in the United Kingdom usually requires establishing a local entity,which can be complex. Brix handles compliance with labor laws and taxes, from collecting tax documents to managing payroll. Trust Brix for global employment solutions, even without a local entity.
Explore for Free
Facts & Stats
Country Map
Talent Distribution
CURRENCY
GBP
OFFICIAL LANGUAGE
English
CAPITAL
London
PAYROLL FREQUENCY
Monthly
Developer Avg Salary
£45,000 - £85,000/yr
Essential benefits tailored for the United Kingdom
You can easily offer all the necessary benefits, tailored to meet the specific needs of your team,
ensuring a competitive and rewarding employee experience with Brix.
Private Healthcare - Unisure (optional)
Employers Liability Insurance
National Insurance (Social Security)
Private Healthcare - Freedom (optional)
Professional Training
Pension benefits - Penfold (optional)
Private Healthcare - Allianz (optional)
State Pension Fund
Life Insurance - Allianz (optional)
Private Healthcare - Canada Life (optional)
Employment
Pay & Taxes
Leave Policy
Termination
Time Off
Employment
Pay & Taxes
Leave Policy
Termination
Time Off
Employment
Employment Contract Details
Contracts in the United Kingdom should be in English and may be bilingual. They must be in writing and signed by both parties. A contract should include the employer's name, the employee's name, job title or description, start date, contract term, salary details, working hours, holiday entitlement, workplace location, probation period, termination conditions, and any additional benefits or obligations.
Working Hours and Overtime
Employees in the United Kingdom typically work eight hours per day and 48 hours per week, with the option to opt out of this limit in their contract. Overtime should not exceed three hours per day, 30 hours per month, or 200 hours per year. Employees are entitled to additional pay for overtime work and holidays.
Probationary Period
While not mandatory, probation periods in the United Kingdom typically last up to six months. The maximum duration for a probationary period is six months, during which time employment contracts can be extended if agreed upon by both parties.
IP Protection and Non-compete Agreements
Non-compete agreements in the United Kingdom must be limited in scope and duration, generally not exceeding two years. Employees must receive compensation, typically at least 50% of their monthly salary, in exchange for agreeing to non-compete terms.
Pay & Taxes
Minimum Wage Requirements
The minimum wage in the UK varies based on age and working hours. For employees aged 23 and over working 40 hours per week, the minimum wage is £1,806.13 per month (£21,673.60 per year). Starting April 1, 2024, the National Living Wage will increase to £11.44 per hour, with eligibility starting from 21 years of age.
Individual Income Tax
Individual income tax in the UK ranges from 0% to 45%, with rates determined by progressive brackets. Additional factors such as household status and the number of children can affect tax rates. The tax bands and rates are as follows:
  • Up to £12,570: 0%
  • £12,571 - £50,270: 20%
  • £50,271 - £150,000: 40%
  • Over £150,000: 45%
    Payroll Cost
    Employer costs in the UK typically amount to 17.3% of an employee's salary. This includes contributions to National Insurance (13.80%), mandatory private workplace pension (3%), and an apprentice tax levy (0.5% of the NICable salary). National Insurance contributions are calculated monthly on salaries exceeding GBP 758.
    Optional and Conditional Costs
    Additional expenses may include optional private health insurance, with varying rates based on coverage, as well as optional life insurance. There may also be administrative fees associated with private health insurance
    Leave Policy
    Parental Leave
    Maternity Leave
    Eligible employees in the United Kingdom can take up to 52 weeks of maternity leave, split into 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. Statutory Maternity Pay (SMP) for up to 39 weeks is available, with the first 6 weeks at 90% of average weekly earnings (AWE) or £172.48 thereafter.
    Paternity Leave
    Eligible employees are entitled to two weeks of paid paternity leave, receiving £172.48 or 90% of their average weekly earnings (whichever is lower).
    Shared Parental Leave
    Parents can share up to 50 weeks of leave and 37 weeks of pay between them after the first 2 weeks of compulsory maternity leave. The first 37 weeks are paid at £172.48 a week or 90% of earnings, and the remaining 13 weeks are unpaid. An additional 18 weeks of unpaid leave are available until the child’s 18th birthday.
    Sick Leave
    Employees in the UK are entitled to an unlimited number of sick days. The first 3 days of leave are paid at 100% salary by the employer. Afterward, Statutory Sick Pay (SSP) of £109.40 per week is provided for up to 28 weeks for eligible employees.
    Termination
    Termination Requirements
    Terminating employment in the United Kingdom involves navigating complex regulations and adhering to specific contractual terms. Employers are responsible for overseeing the off-boarding process, which may include various fees and procedural steps tailored to each situation.
    Types of Terminations
    Terminations in the UK can take various forms, such as fair dismissal, unfair dismissal, constructive dismissal, and wrongful dismissal, each governed by specific rules and considerations.
    Notice Period
    Notice periods in the United Kingdom vary based on the length of employment. During the probation period, the notice period is typically 15 days. For employees with more than three months of service, the notice period increases to one month, and for those with more than five years of continuous service, it extends to two months.
    Severance for Employees
    Upon termination, employees in the UK may be entitled to severance pay, calculated based on their years of service and age. This compensation package aims to provide financial support during the transition period following employment termination.
    Time Off
    Paid Time Off
    Employees in the United Kingdom enjoy paid time off, with entitlements varying based on their length of service:
    • Less than five years of service: 20 days of leave (excluding public holidays)
    • Five to 10 years of service: 25 days of leave (excluding public holidays)
    • 10 to 20 years of service: 30 days of leave (excluding public holidays)
    • Over 20 years of service: 35 days of leave (excluding public holidays)
    Vacations must be taken between October 1st and April 30th.
      Public Holidays
      The United Kingdom observes several public holidays, which may vary by region. These include:
      • New Year's Day
      • Good Friday
      • Easter Monday
      • Early May Bank Holidays
      • Spring Bank Holiday
      • Summer Bank Holiday
      • Christmas Day
      • Boxing Day
      Additionally, there are regional holidays observed in different parts of the United Kingdom, such as Scotland Day and St. Patrick's Day in Northern Ireland.
        Explore for Free
        HOW IT WORKS
        Grow your team with Brix, as simple as 1, 2, 3, 4.
        1
        Free Consultation
        Chat with our team to explore our resources and get answers to your questions.
        2
        Evaluation
        Experience a customized demo showing how Brix can boost your business.
        3
        Proposal
        Discuss the business and legal details of teaming up with us.
        4
        Finalize & Onboarding
        Complete your employment contract with your chosen candidate.
        “We'll help you with everything you need for
        smooth hiring and management.”
        FIND AND HIRE
        ANYWHERE WITH BRIX
        Explore for Free
        120 +
        Countries
        10,000 +
        Customers
        100 +
        Legal Experts
        120 +
        Currencies