Facts & figures

Government Type: Constitutional monarchy

Capital: London

Currency: British Pound (GBP)

Languages: English

GDP Per Capita: 46.510,28 USD (2021)

Main Business sectors: 79.2%

Industry: 20.2%

Agriculture: 0.7%

Employment Rate: 75.8%

Global People has a significant advantage in the United Kingdom thanks to our experience in providing global employment solutions and in-depth understanding of the unique employment culture at each location.

When looking to employ in the UK, it’s incredibly important to understand the employment structure and be familiar with all employment rules and guidelines; it is crucial to have clear and up to date employees policies such as Disciplinary and Grievance, ICO Privacy Notice, and Health and Safety policies as there is a specific protocol to adhere to. Flexible and Smart working as well as equality, diversity and inclusion are very important topics in UK employment law.

Global People, will provide best quality service in the United Kingdom thanks to:

  • Experience in providing global employment solutions.
  • Extensive professional network
  • Top networking strategies and good understanding of the broad employment world and culture.
  • An accurately designed process that assures compliance and provides a tangible ROI.

Global people’s services include:

  • PEO and HR management.
  • Realistic calculation of employee compensation.
  • Payroll, tax liabilities, insurance, and employee benefits.
  • A designated point of contact for the client and the employees, available for any query or question that may rise.
  • Accessible consultation and professional opinions.

Employment Manual – UK

The employment agreement or contract must comply with UK law. The agreement must refer to:

  • Annual salary
  • Overtime entitlement and working time directive
  • Sick leave
  • Annual Leave
  • Allowances
  • Severance pay
  • Notice period
  • Probation period



Termination is always a delicate process which should be approached very carefully. In the case of employment termination, the party terminating the employment contract must submit their notice in writing, indicating the reason for termination, the legal provision in which the basis of the termination and the date of termination of employment relationship.

Notice is given depending on the length of the employment:

  • 1 month to 2 years – statutory notice is 1 week
  • 2 to 12 years – statutory notice is 1 week for each full year employees have worked
  • 12 years or more – statutory notice is 12 weeks

The employee’s contract or a staff policy might say a different amount of notice. This is called ‘contractual’ notice. The employer may give more notice than the statutory minimum, but they cannot give the employee less.

Normally the employee is entitled to statutory redundancy pay if they have been working for the current employer for 2 years or more. The amount of redundancy pay depends on age and length of service. Termination of employment due to misconduct does not qualify as redundancy, and employees are not entitled to receive statutory redundancy pay in such cases.

Payroll Taxes

If the Employee qualifies to be enrolled in a pension fund, a percentage of the salary is put into the pension scheme automatically every payday.

All employers must provide a workplace pension scheme. This is called ‘automatic enrolment’. The employer must automatically enroll workers into a pension scheme and make contributions to the pension scheme every payday.

By law, employer and employee have to pay a minimum amount into the pension scheme. This is set at 8% of the worker’s earnings. The employer must pay at least 3% of this but can choose to pay more.

Employee Payroll Taxes

Tax and National Insurance will be deducted from the salary of most employees. Other deductions may be student loan repayments or pension contributions.

Our payroll software will calculate how much income tax and National Insurance will be deducted from employees’ pay. These deductions are worked out using each employee’s tax code and National Insurance category letter.

Mandatory Employee benefits

Most workers are legally entitled to 5.6 weeks’ paid holiday a year (known as statutory leave entitlement or annual leave).

The minimum for a 5 days working week is 20 days.

There’s no legal upper limit for the number of sick days an employee can take.

Workers are entitled to Statutory Sick Pay (SSP) for up to 28 weeks.

Workers get SSP from the fourth day they are off sick.

Employees must give their employer a ‘fit note’ (sometimes called a ‘sick note’) if they’ve been ill for more than 7 days in a row and have taken sick leave. This includes non-working days, such as weekends and bank holidays.

Statutory holiday entitlement is built up (accrued) while an employee is off work sick (no matter how long they’re off).

Eligible employees can take up to 52 weeks’ maternity leave. The first 26 weeks is known as ‘Ordinary Maternity Leave’, the last 26 weeks as ‘Additional Maternity Leave’.

Statutory Maternity Pay for eligible employees can be paid for up to 39 weeks.

There are eight days counted as a bank holiday in England and Wales. England and Wales share the same bank holidays, which are slightly different to what Scotland and Northern Ireland receive.

Additional days have been allocated for special events, such as royal weddings and jubilees.

Specific Employee Benefits and Industry Benchmarks

Most employers grant employees additional paid leave days, additional coverage on sick leave and health allowances as well as additional pension contributions.

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