hire in the UK

UK PEO &
Employer of Record

SALARY PAYMENT IN British Pound (GBP, £)

CONTRACT LANGUAGE English

PAYROLL TAX 8.25%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
Get Started

Horizons-owned entity with local country experts in Manchester.

We offer fair, scalable, and transparent pricing on UK PEO service. Contact us for a cost breakdown

End service in the UK with no additional penalties or fees.

Complex UK pension calculations made simple with Horizons.

Hire and pay talents
with Horizons in
180+ countries

Get started

In this guide

Hire in the UK

Employment Laws

Compensation & Benefits

FAQs

Simple, compliant hiring with Horizons PEO

Hire in the UK

Horizons provides compliance solutions to ensure your business in the UK operates in line with British labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, the UK in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a British Employer of Record, absorb all local employer liabilities. Partnering with our UK PEO is the quickest and most cost-effective way to enter the British market.

Facts & Stats

PEO Platform Hire in the UK, and pay employees through our platform or app.	PEO Cost Our UK PEO solution is the most affordable on the market.	Time-to-hire Fast onboarding in the UK, hire in as little as 12 hours.
Contracts We draft labor contracts compliant with British labor law.	Local Benefits We administer all mandatory benefits and contributions in the UK.	180+ Countries It doesn’t stop with the UK — we are an international PEO

stay compliant with UK labor laws

Employment Laws

UK employment contracts

Contracts of employment are a requirement of UK labour law, and must clearly state all relevant details of employment such as benefits, working hours, compensation, and so on. Salaries and wages need to be shown and provided in GBP, the local currency. The main types of employment contract in the UK are full-time, part-time, fixed-term and zero hours (for employees without guaranteed hours). By partnering with our UK PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Probationary period

3 months (standard practice)

6 months (maximum)

Termination notice period

Minimum:
During first month: no notice, regardless of probation
After first month: min. 1 week
After 2 years employment: 1 week per year of employment

Standard: 30 days (max. 3 months)

Severance

None, except in cases of redundancy

At conclusion of contract: no severance

Indefinite

Probationary period

3 months (standard practice)

6 months (maximum)

Termination notice period

Minimum:
During first month: no notice, regardless of probation
After first month: min. 1 week
After 2 years employment: 1 week per year of employment

Standard: 30 days (max. 3 months)

Severance

None, except in cases of redundancy

Working hours in the UK

The legal maximum working hours in the UK are 48 hours (taken as an average over a 17-week period). These can be distributed in any way throughout the week, but almost all office roles are Monday to Friday. Note, employees can also choose to opt out of this limit. The employer may ask, but employees cannot be punished or sanctioned in any way for refusing to accept.

Hire compliantly in UK without a local entity.

Quick, compliant hiring in 12 hours—no subsidiary required.

Public holidays in the UK

here are several public holidays in the UK, and they are commonly referred to as ‘bank holidays’.

Usually, there are 8 public holidays in England & Wales annually, but in 2022 there was one extra to celebrate the Queen’s jubilee.

Northern Ireland and Scotland follow a different structure, so you should be sure to research the local holidays when setting up a business in these countries.

Holiday Schedule in UK [2023]

UK has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

Date	Holiday name
1 Jan Sunday	New Year’s Day
2 Jan Monday	New Year’s Day observed
7 Apr Friday	Good Friday
1 May Monday	Early May Bank Holiday
8 May Monday	Bank Holiday for the Coronation of King Charles III
29 May Monday	Spring Bank Holiday
25 Dec Monday	Christmas Day
26 Dec Tuesday	Boxing Day

Employment benefits in the UK

The main benefit provided in the United Kingdom is through the employers’ portion of the National Insurance Contribution, which is the national social security program requiring all employers and employees to contribute to the public health care system. The employer’s contribution is typically around 14%, on top of total compensation. There is also an additional levy, known as the health and social care levy, which amounts to an extra 1.25%.

UK vacation leave

Every full-time employee in the UK can take 28 days per year of annual leave at full pay. Public holidays can be included in this, but employers usually still provide around 20-30 days plus the standard public holidays.

UK sick leave

If employees are absent from work through sickness for over seven days, they must provide a doctor’s note as proof. Employers must cover up to 28 weeks of sick pay, beginning after the fourth day of continuous absence, at a statutory sick pay rate of £109.40 per week.

Many employers offer a more generous sick pay scheme, but the minimum legal requirement must be met.

UK parental leave

Women can take 52 weeks of leave for maternity in the UK, with a minimum of two weeks taken after birth for most workers. The allowance is split into 26 weeks of ‘ordinary’ leave, and a further 26 weeks of ‘additional’ leave.

Statutory maternity pay is provided for 39 weeks. For the first six weeks, this is 90% of the average weekly earnings. For the remaining 33 weeks, it is the lower amount of either the same 90%, or £156.66, per week (as of 2022).

Partners can claim one or two weeks of paternity leave (paid). If the parents wish, there is also a possibility to share parental leave in the UK. This divides up to 50 weeks of leave and 37 weeks of pay across the two parents, and they can choose to take it together or separately.

Employee severance and terminations in the UK

UK employees have various protections, so any employer should consider the relevant anti-dismissal legislation when considering terminations. Employers in the UK must provide notice when terminating an employee. The statutory minimum notice period is one week of notice for between one month and two years of employment, one week for every year between two and 12 years of employment, and 12 weeks of notice for more than 12 years of employment. Any further notice should be laid out in the employment contract, and employers usually provide one month or more as standard. Some contracts may also stipulate that payment is acceptable in place of notice. In the UK, severance payments are given to employees who are made redundant when they have been employed for over two years. The payment totals half of one week’s pay for every year of employment when the employee was under 22 years old. This rises to one full week per year of employment between the ages of 22 and 40, and 1.5 week’s of pay for every year at the age of 41 and above. Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ UK PEO can mitigate risk for foreign companies and provide guidance through this process.

Taxation in the UK

In the UK, income tax and National Insurance are paid via a ‘Pay As You Earn’ system, where employers withhold the relevant taxes from employees automatically. Taxes are rated progressively, so the rate varies between 0% and 45% dependent on income.

Health insurance in the UK

The National Health Service (NHS), the UK’s healthcare system, provides almost all healthcare for citizens and residents. This is covered by the government and National Insurance, so employers do not need to offer separate health insurance. The employer and employee contribute to their National Insurance at rates set by the government depending on income. Some organizations do offer private cover as a perk, but it is not necessary.

hassle-free UK compensation & benefits

Compensation & Benefits

Compensation laws in the UK

The minimum wage in the UK rises regularly. It is set at a different rate for employees of different ages and apprentices:

Minimum Wage Country Comparison Chart	(Per month in USD)
23 and over	£9.50
Aged 21-22	£9.18
Aged 18-20	£6.83
Aged 16-17	£4.81
Apprentices	£4.81

Note also that UK equal opportunity law requires that pay does not discriminate on the basis of gender, ethnicity, disability and a range of other ‘protected characteristics’.

Benefit management in the UK

Setting up your UK benefits management system as a foreign employer can be a complicated process, with many different laws and employee protections in place. One effective solution is to outsource your UK benefits management to Horizons. We will get you set up, in full compliance with the law, as quickly as possible, so you can focus on a rapid and successful expansion.

Hire in UK in 12h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

What is the difference between a UK PEO and a UK EOR?

A UK PEO and a UK EOR are two types of companies which specialize in providing human resources services to businesses in the UK.

The main difference between a UK PEO and a UK EOR is in the scope of their services.

UK PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a UK PEO is essentially outsourcing your HR duties in the UK.

UK EORs actually take over as the legal employer of your employees based abroad. UK EORs become responsible for labor compliance for your employees in the UK.

At Horizons, we offer both PEO and EOR services in the UK. Get in touch now and let us know what service you are seeking.

Can a PEO in the UK hire both local and foreign nationals to work in the UK?

A PEO in the UK can feasibly hire both local and foreign nationals to work in the UK.

However, the ability of Horizons to sponsor your foreign national employee in the UK may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' UK PEO service take to hire an employee?

In most cases, Horizons’ UK PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in the UK.

Is it possible to get a work visa in the UK?

It is possible to get a work visa in the UK. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in the UK are limited, however—get started today to secure your employees’ visa spot.

hire in the UK

UK PEO & Employer of Record

Simple, compliant hiring with Horizons PEO

Hire in the UK

Facts & Stats

stay compliant with UK labor laws

Employment Laws

UK employment contracts

Fixed-term

Indefinite

Working hours in the UK

Hire compliantly in UK without a local entity.

Public holidays in the UK

Employment benefits in the UK

UK vacation leave

UK sick leave

UK parental leave

Employee severance and terminations in the UK

Taxation in the UK

Health insurance in the UK

hassle-free UK compensation & benefits

Compensation & Benefits

Compensation laws in the UK

Benefit management in the UK

Hire in UK in 12h without your own local entity.

FAQs

Hire Anywhere. Today.

UK PEO &
Employer of Record

Hire in UK in 12h
without your own local entity.