Countrypedia · Europe
Hiring in the United Kingdom
A practical guide to employing staff in the UK — contracts, working time, leave, termination, payroll and employer costs for the 2026/27 tax year.
Employment contracts
Every employee and worker must receive a written statement of employment particulars on or before their first day. It must cover pay, hours, holiday, notice, job title, place of work and any probation period.
- Permanent contracts are the norm; fixed-term employees must not be treated less favourably than comparable permanent staff, and after four years of successive fixed-term contracts they usually become permanent.
- Right to work: employers must check and record every worker’s right to work in the UK before employment starts. Fines for illegal working are up to £60,000 per worker.
- Contracts can be in English only; there is no requirement to register them with any authority.
Working hours
| Maximum working week | 48 hours averaged over 17 weeks (employees can opt out in writing) |
|---|---|
| Daily rest | 11 consecutive hours |
| Weekly rest | 24 hours per week or 48 hours per fortnight |
| Breaks | 20 minutes if the working day is longer than 6 hours |
| Overtime pay | No statutory premium — set by contract, but average pay must not fall below minimum wage |
Minimum wage
National Minimum Wage rates from 1 April 2026:
| National Living Wage (21 and over) | £12.71 per hour |
|---|---|
| Age 18–20 | £10.85 per hour |
| Age 16–17 and apprentices | £8.00 per hour |
Leave and holidays
| Annual leave | 5.6 weeks per year (28 days for a full-time 5-day week). Bank holidays can be included in this. |
|---|---|
| Public (bank) holidays | 8 in England and Wales, 9 in Scotland, 10 in Northern Ireland |
| Statutory Sick Pay | £123.25 per week (or 80% of normal weekly earnings if lower), payable from the first day of sickness from 6 April 2026 |
| Maternity | Up to 52 weeks’ leave; 39 weeks’ statutory pay — 6 weeks at 90% of earnings, then £194.32 per week or 90% if lower |
| Paternity | 2 weeks — a day-one right from April 2026; statutory pay £194.32 per week (26 weeks’ service still required for pay) |
| Shared parental leave | Up to 50 weeks shared between parents |
| Unpaid parental leave | 18 weeks per child up to age 18 — a day-one right from April 2026 |
Probation, notice and termination
Probation periods are contractual (commonly 3–6 months). Statutory minimum notice from the employer is one week after one month’s service, then one week per complete year of service, up to 12 weeks. Employees must give at least one week.
- Unfair dismissal: employees currently need two years’ service to claim; under the Employment Rights Act 2025 this falls to six months from 1 January 2027, and the cap on compensation is removed.
- Dismissal must be for a fair reason (conduct, capability, redundancy, statutory restriction or some other substantial reason) and follow a fair procedure, including the Acas Code for disciplinary cases.
- Statutory redundancy pay applies after two years’ service, based on age, length of service (up to 20 years) and a weekly pay cap of £751 from April 2026.
- Collective consultation is required when proposing 20 or more redundancies at one establishment within 90 days.
Payroll and employer costs
Payroll runs through PAYE with Real Time Information (RTI): every payment must be reported to HMRC on or before payday, and tax and National Insurance are paid to HMRC monthly.
| Employer National Insurance | 15% on earnings above £5,000 a year (£417 a month) |
|---|---|
| Employer NIC relief | 0% up to £50,270 a year for employees under 21 and apprentices under 25 |
| Employment Allowance | Up to £10,500 a year off the employer NIC bill (eligibility rules apply) |
| Workplace pension | Auto-enrolment for workers aged 22 to State Pension age earning over £10,000; minimum 8% of qualifying earnings (£6,240–£50,270), of which the employer pays at least 3% |
| Apprenticeship Levy | 0.5% of pay bill above £3 million |
Employee income tax (England, Wales and Northern Ireland)
| Personal allowance | £12,570 (tapered away above £100,000) |
|---|---|
| Basic rate 20% | £12,571 – £50,270 |
| Higher rate 40% | £50,271 – £125,140 |
| Additional rate 45% | Above £125,140 |
| Employee National Insurance | 8% between £12,570 and £50,270; 2% above |
Scotland sets its own income tax bands. Student loan repayments are deducted through payroll where applicable.
Benefits and practice
- There is no 13th-month salary or statutory bonus.
- Private medical insurance, enhanced pension contributions and life cover are common market benefits.
- Benefits in kind are reported through payrolling or form P11D and attract Class 1A employer NIC at 15%.
- Employers must keep annual leave records for six years from April 2026.
Hire in the United Kingdom with Truerix
Truerix employs your UK staff through our own London entity — contracts, RTI payroll, pensions auto-enrolment and HMRC compliance handled for you.
Sources: GOV.UK – National Minimum Wage rates · GOV.UK – Rates and thresholds for employers 2026 to 2027 · GOV.UK – Holiday entitlement · GOV.UK – Statutory Sick Pay · GOV.UK – Notice periods · Blake Morgan – April 2026 key dates for employers