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Hiring Employees in the UK: A Comprehensive Guide

R
Written by Rachael
Updated over a week ago

Table of Contents


1. Introduction

Hiring employees in the UK can be simple and compliant with Omnipresent’s Employer of Record (EOR) service. We provide payroll, benefits, and HR support to ensure a seamless hiring experience.


2. Key Considerations for Employing in the UK

  • Currency: British Pound (GBP, £)

  • Language: English

  • Employer Costs: Average (~17% of salary)

  • Termination Complexity: Average

  • Onboarding Timeline*: less than 24 hours

  • Payroll Frequency: Monthly

    *Once we receive the relevant documents from the employee, the contract is approved by all parties, the deposit (if applicable) is paid, Omnipresent can onboard the employee within 24 hours.


3. Benefits

Types of Benefits Offered

  • Mandatory Benefits: Public healthcare (NHS), retirement & pension (state and auto-enrollment), disability insurance, workers’ compensation.

  • Supplementary Benefits: Private healthcare, dental insurance, life insurance, critical illness insurance.

Healthcare

  • Healthcare is provided by the NHS (National Health Service) and is publicly funded through taxation.

  • Many employers offer private health insurance as an additional benefit.

Retirement

  • State Pension is part of social security contributions.

  • Auto-enrollment pension plans are mandatory, and employers typically match employee contributions.

  • Omnipresent offers multiple pension plan options, including basic and supplementary choices.


4. Employment Contracts

Contract Types

  • Indefinite

  • Fixed-term

  • Part-time

Requirements

  • Written employment contracts are mandatory.

  • Language: English

  • Signature Requirements: Simple electronic signature

  • Backdating: Not permitted under Omnipresent’s policy.

Contract Customisation

We provide optional clauses for customisation when adding an employee to our platform. This allows you to tailor certain contract aspects, such as unlimited time off or extra-legal sick days.

However, certain contract elements cannot be customised due to compliance risks or Omnipresent's policy. Examples include overtime, restrictive covenants, and stylistic changes. Please see here the full customisation policy in the UK.

Probation Period

  • Standard probation period: 3 months.

  • Employers can set probation between 1-6 months based on specific needs.

  • If no action is taken before the probation end date, it is automatically considered passed.

  • Probation cannot be removed except in the case of employment relationship transfers.


5. Onboarding

Timeline

The onboarding steps involved are: Platform Setup, Right-to-Work Check, Employment Contract, Benefits, and Payroll enrollment.

Once we receive the relevant documents from the employee, the Employment Contract is approved by all parties, and the deposit (if applicable) is settled, Omnipresent can onboard the employee within just 24 hours. This timeline does not include exceptions such as visas and medical background checks.

Registration & Approvals

  • Employees must provide a P45 tax document or New Starter Checklist before payroll enrollment.

Immigration & Visas

  • Omnipresent does not offer visas or work permits.

  • Employees with Tier 1 or Tier 5 visas (non-employer-specific) can be hired.

Right-to-Work Verification

  • Right-to-work (RTW) checks are mandatory before employment begins.

Employee Transfers from Another EOR

  • If an employee has worked under another EOR, their seniority can be recognized in the contract.


6. Leaves

Leave Entitlements

  • Annual Leave: Minimum 28 days (including public holidays); standard practice is 33 days.

  • Annual Leave Carryover: Employees may carry over up to 8 days at employer discretion.

  • Maternity Leave: 52 weeks (26 weeks Ordinary Maternity Leave + 26 weeks Additional Maternity Leave).

    • Statutory Maternity Pay (SMP): 6 weeks at 90% salary, then 33 weeks at GBP 172.48 per week or 90% of salary (whichever is lower).

  • Paternity Leave: Up to 2 weeks (paid at GBP 172.48 per week or 90% of salary, whichever is lower).

  • Parental Leave: 18 weeks unpaid per child (until age 18).

  • Sick Leave: Up to 28 weeks protected sick leave.

    • Statutory Sick Pay (SSP): GBP £118.75 per week (as of April 2025).

Public Holidays (8 Days)

  • New Year’s Day, Good Friday, Easter Monday, Early May Bank Holiday, Spring Bank Holiday, Summer Bank Holiday, Christmas Day, Boxing Day.


7. Payroll & Taxes

Payroll Cycle

  • Frequency: Monthly

  • Cut-off Date: 15th of the month (changes must be submitted by this date).

  • Payment Date: Last working day of the month.

Compensation

  • No mandatory bonuses.

  • Commission-based roles: Payments are typically monthly or quarterly.

  • Hourly Wage: Not supported by Omnipresent.

  • Minimum Wage (April 2025):

    • Under 18: GBP 7.55/hour

    • Age 18-20: GBP 10/hour

    • Age 21+: GBP 12.21/hour

Standard Work Schedule

  • 40 hours per week, Monday-Friday.

  • Employees can opt out of the 48-hour workweek limit.

Employer Costs

  • Estimated 17% of salary. Use the OmniCalculator for a detailed breakdown.


8. Termination Process

Before proceeding with a termination (including verbal discussion with the employee about the risk of termination) you must first get in touch with Omnipresent. We will then provide guidance on next steps. You can read our full guidance here.

Termination Within 2 Years of Service

  • Employers can terminate without cause but must avoid discriminatory practices.

Termination After 2 Years of Service

  • Employers must have a valid reason under the Employment Rights Act 1996.

    Notice Period:

    • 0-1 month of service: No notice required.

    • 1 month-2 years: 1 week’s notice.

    • 2-12 years: 1 additional week per year of service.

    • 12+ years: 12 weeks’ notice.

Severance Pay

  • No general right to severance pay unless redundancy applies.


9. Invoice Schedule

  • Setup Fees: Once Terms are signed, Omnipresent begins deploying resources for the setup process. Trigger [Employee Details Added]

  • Deposits: Payable when the local employment contract is ready for signature. The deposit enables Omnipresent to move forward securely to sign the local employment contract with the employee. Trigger [Employee Details Added]

  • Initial Salary Prepayment: The first month’s estimated labour costs are invoiced on the first day of employment. Trigger [Employment Start Date]

  • Ongoing monthly Employment Costs and Fees: Thereafter, we invoice monthly in arrears for labour costs - once the final payroll, taxes, insurance, social security contributions, expenses and deductions have been calculated. Each monthly invoice will include our monthly service fee, deposit insurance (if applicable), and an FX fee (if applicable). Trigger [Payroll Date] Typically the last working day of the month, but varies by country.


10. Get Started with Omnipresent

We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.

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