United Kingdom 🇬🇧
Congratulations on your decision to hire employees in the United Kingdom! The UK is known for its highly skilled and diverse workforce. It can be an attractive destination for international businesses looking to hire employees, particularly those in the technology, finance, healthcare, and engineering sectors. Plane makes this process easy for you by providing automated tax document collection, payroll, benefits, and more. This ensures compliance and efficiency throughout the process. Navigating the hiring process in a new country can be challenging, so we've compiled the details below to help guide you.
2.5 weeks minimum
5 Considerations Before Hiring in the UK
Getting Started with Hiring in the UK
Employer Tax Rates
Fixed-term vs. Indefinite-term ContractsIn a fixed-term contract, an employee has an agreement with the organization they are working for, but their contract ends on a specific date or upon completion of a specific task. In an indefinite-term contract, the employee has an agreement with the organization they are working for, but their employment has no specified end date.
Employee RightsEmployees on a fixed-term contract are entitled to the same treatment as employees on an indefinite-term contract. It's possible for an employer to have different terms for a fixed-term contract employee if they can show there is a good business reason for doing so. Otherwise, employers must ensure that fixed-term employees receive:
- the same pay and conditions as permanent staff
- the same or equivalent benefits package
- information about permanent vacancies in the organization
- protection against redundancy or dismissal
Terminating a Fixed-term ContractThe contract will typically end automatically on the agreed-upon date, and no notice is needed from the employer.
Not Renewing a Fixed-term ContractWhen a contract is not renewed, it is considered a dismissal. If the employee has provided at least two years of service, the employer must show that there is a fair reason for not renewing the contract. An employee may not be unfairly dismissed after two years of service and is entitled to a written statement of reasons for not renewing the contract after one year of service.The employee may be entitled to statutory redundancy payments if they have provided two years of service and the reason for non-renewal is redundancy.
Payroll Timelines and Dates
- New Year’s Day (substitute day)
- Good Friday
- Easter Monday
- Early May bank holiday
- Spring bank holiday
- Summer bank holiday
- Christmas Day
- Boxing Day
Health Insurance Benefits
Maternity / Paternity / Parental Leave
- First 6 weeks: 90% of the employee's average weekly earnings (AWE) before tax
- Remaining 33 weeks: £156.66 or 90% of their AWE (whichever is lower)
Employment / Termination
Tell us about your employee.
Enter details about your hire to get an estimated employment cost, including taxes.
Annual cost of employment*
*rates for: February 2, 2024
How to hire and onboard an employee
Pilot offers a guided process for administrators and managers to hire and onboard their new employees...Learn more