United Kingdom
Hire Employees & Contractors

United Kingdom

Compliantly hire your distributed team members in


United Kingdom

Person working on laptop

Hiring in


United Kingdom

isn't so simple. Borderless can help.

To hire new employees in


United Kingdom

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


United Kingdom

while staying fully compliant with local laws and compliance.

Primary Language



Pound sterling (£, GBP)

Payroll Frequency

Monthly or weekly

Public Holidays

8 days

Employer Taxes

15.05 - 18.05%

Cost of Living Index

$$$$ (33 of 140 nations)

Statutory Leave

28 days

Sick Leave

28 weeks

Maternity Leave

52 weeks

Important: Risks of misclassification

In many countries like


United Kingdom

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

In the United Kingdom, the National Living Wage depends on the age of the worker. In April 2022, the national minimum wages were updated to the following hourly rates:

  • 23 and over: £10.42
  • 21 to 22: £10.18
  • 18 to 20: £7.49
  • Under 18: £5.28
  • Apprentice: £5.28

Overtime Pay

Employers in the United Kingdom do not have to pay employees for overtime. However, a given employees' average pay for the total hours worked must not fall below the National Minimum Wage.

Any overtime pay rates must be detailed in an employee's employment contract.

Additional Pay

There is no mandatory additional pay in the United Kingdom, however, the majority of employers offer supplemental health insurance to their employees.

Payroll Cycle

For all Borderless customers, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • Minimum 3% - Pension Fund
  • 15.05% - National Insurance Rate
  • £60 - Employer Liability Insurance
  • 0.50% - Monthly Apprentice Levy

Employee Costs & Taxes

  • Minimum 5% - Pension Fund

Employment Information

Termination Process

Termination from the employer is valid on grounds with any fair reasons. There are six potentially fair reasons for dismissals:

  • Employee's capability or qualifications for performing work of the kind the employee was employed to do;
  • Employee conduct;
  • Employee retirement;
  • Employee redundancy;
  • Employee could not continue work in a position without contravening statutory duty or restriction; or
  • Other substantial reason justifying dismissal

Notice period

Notice period depends on the length of the employment relationship.

Probation Period

There is no legal stipulation for minimum and maximum probation periods and all statutory rights and protections apply from the beginning of employment. Employers can set probationary periods in the employment contract. It is typical for a probationary period to last no longer than six months, and three months where an employee is moving to a new post internally.

Severance Details

A severance payment isn’t a legal requirement in the UK, but companies that offer it gain a competitive advantage.

Employees that have worked with their current employer for 2 years or more are typically entitled to mandatory severance pay including the following:

  • half a week’s pay for each full year the employee was under 22
  • one week’s pay for each full year the employee was 22 or older, but under 41
  • one and half week’s pay for each full year the employee was 41 or older

Length of service is capped at 20 years.

Benefits of working in a country abroad

Borderless Benefits Packages in


United Kingdom

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


United Kingdom

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo