Labor Laws in the United Kingdom
- Annual Leave: 28 days
- Maternity Leave: 52 weeks
- Public Holidays: 8
- Workweek: 40 hours per week.
Grow Your Workforce in United Kingdom
Get everything you need to hire talent in the United Kingdom. Download our comprehensive guide for hiring in this expanding market.
Capital:
London
Languages:
English
Currency:
Pound Sterling
Share online with your network and colleagues
.svg)
Sections
Close
- 1 Hiring in the UK
-
02
Labor Laws in the United Kingdom
- Employment Contracts
- Employee Probation Period
- Annual Leave In The United Kingdom
- Holidays In The UK
- Maternity Leave The United Kingdom
- Paternity Leave The United Kingdom
- Sick Leave In The United Kingdom
- Working Hours In The United Kingdom
- Overtime In The United Kingdoml
- Termination Of Employment In The United Kingdom
- Notice Period In The United Kingdom
- Severance In The United Kingdom
- 15 United Kingdom Salary and Wages
- 05 Income Tax in the UK
- 06 Social Security in the UK
- 07 Deductible Expenses in the UK
- 08 Immigration in the UK
- 09 Value Added Tax (VAT) in the UK
- 10 Withholding Tax in the UK
- 11 Mandatory Benefits in the UK
- 12 Payroll In the UK
- 13 Payroll Accrual in the United Kingdom
- 14 Accrued Benefits in the United Kingdom
- 15 Why use Global Expansion to hire in the United Kingdom
Please enter the following information:
Income Tax in the UK
The individual tax rates on ordinary income are progressive and range from 0% to 45% for both residents and non-residents.
Value Added Tax (VAT) in the UK
The standard VAT rate in the United Kingdom is 20%.
Social Security in the UK
- Employers generally make contributions at the rate of 13.8% depending upon an employee’s category letter and income level.
- Employees generally make contributions at the rates of 2%, 8%, or 10% depending upon the category letter and income level.
Work Visas in the United Kingdom
Following the end of free movement between the UK and the EU, all non-UK resident foreign nationals, including EEA and non-EEA nationals (except Irish citizens), need a visa and authorization to work in the UK.
The UK operates a Points-Based System (PBS) with five tiers, where applicants earn points based on earnings, experience, and sector demand. Key categories include:
Tier 1 Categories:
- Exceptional Talent: For globally recognized leaders in their field, with a limit of 1,000 applications released biannually. Requires endorsement by a designated competent body.
- Graduate Entrepreneur: For non-Europeans who graduated from UK higher education institutions with entrepreneurial skills.
Tier 2 Categories:
- General: For skilled workers with a job offer from a licensed sponsor in the UK.
- Employers must have a sponsor license, estimate Certificate of Sponsorship usage, and meet compliance requirements. A Resident Labor Market Test may be required.
- English proficiency and a minimum salary of GBP 38,700 are necessary. A 12-month cooling-off period applies after visa expiration or job change.
Intra-Company Transfer (ICT):
- Long Term: For employees of multinational companies transferring to a UK branch, requiring 12 months of prior employment unless the salary is at least GBP 73,900. Minimum salary is GBP 41,500.
- Graduate Trainee: For recent graduates in a structured training program with a minimum salary of GBP 23,000. Limited to 20 visas per sponsor annually and allows a stay of up to 12 months.
Hire British Talent with Global Expansion
Setting up a company in the United Kingdom can be expensive and complex. Global Expansion simplifies your entry into this market.
We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.
Our UK Employer of Record (EOR) solution lets you focus on your business growth.
Ready to hire anywhere in the world?
Grow your team the right way with Global Expansion.
