Table of Contents
Introduction
Key Considerations for Employing in the UK
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
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: Approximately 12 calendar days
Payroll Frequency: Monthly
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
Optional clauses for customization, such as extra-legal sick days or unlimited time off.
Certain contract elements (e.g., overtime, restrictive covenants) cannot be modified due to compliance risks.
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 process in the UK typically takes 12 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
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 109.40 per week (as of April 2023).
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: 6th 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 2024):
Under 18: GBP 6.40/hour
Age 18-20: GBP 8.60/hour
Age 21+: GBP 11.44/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
Consult Omnipresent’s legal team before discussing termination with an employee.
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
Initial Fees
Setup Fees: Due upon signing Terms.
Deposit: Payable when the local employment contract is ready for signature.
First Salary Prepayment: Invoiced on the first day of employment.
Ongoing Monthly Payments
Labour costs invoiced monthly in arrears after final payroll calculations.
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
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.