To alleviate the burden of HR, compliance, and payroll administration, Globalization Partners' Global Employer of Record model offers a UK PEO and employer of record solution for businesses with UK operations. It is common practice for new businesses in the United Kingdom to set up a subsidiary or branch office before employing any locals. If your business has to recruit full-time staff in the United Kingdom but doesn't want to set up shop there, Globalization Partners can do it for you. In conformity with UK labor legislation, the employee will be legally engaged via our subsidiary and will report to a designated manager inside your firm, streamlining the process of hiring staff in the United Kingdom on your behalf. If you have workers in the United Kingdom, we can help you supply them with a complete set of benefits, including pension and any other perks you may like to give.

UK Job Openings

There are a plethora of nuances to keep in mind while filling open positions in the United Kingdom.

When and if to provide supplementary health insurance and retirement plans in line with those offered by other UK companies
EU Data Protection Laws: Restrictions on the Export of Personal Data to the United States
Gains from stock options in the United Kingdom are subject to taxes levied by employers, so it's important to prepare ahead.
Because of the UK's employee-friendly non-compete laws, non-compete provisions in employment contracts must be drafted with care.
Unlike in the United States, the rules surrounding a worker's termination in the United Kingdom are less clear cut, therefore it's important to take precautions while negotiating a contract with an employee.

Contracts of Employment in the United Kingdom

An employment contract outlining the employee's responsibilities, pay, benefits, grievance and disciplinary processes, and termination clauses is needed by law in the United Kingdom. The wage and any other remuneration figures in a British offer letter or job contract should always be stated in British pounds rather than any other currency. Most employment contracts in practice go well beyond what the law demands, with stipulations pertaining to sensitive information, intellectual property, and non-compete limitations common examples. As part of their employer of record service in the UK, Globalization Partners naturally provides an employment contract with all specified conditions.

The following data may be useful for businesses who wish to learn more about the types of statutory and market norm benefits often negotiated by workers in the United Kingdom throughout the course of a job offer negotiation.
British working hours

Daily work hours are determined by the employer and are flexible enough to accommodate variations in workload. An employee's weekly work hours cannot exceed 48 hours on average over a period of 17 weeks. But, workers may and often do choose to opt out of these benefits.
The United Kingdom as a vacation destination

In 2023, nine holidays will be observed in England and Wales:

Day One of the New Year
It's Good Friday
It's Easter Monday
In the start of May The Bank of England is Closed Today
Bank Holiday in the Spring
Term Break During the Summer
Holiday Season
Christmas Day

A supplementary bank holiday will be observed in England and Wales on May 1, 2023, to commemorate the coronation of King Charles III. Public holidays in Scotland and Northern Ireland differ somewhat from those in the rest of the UK.
the United Kingdom's holiday schedule

The yearly statutory minimum of paid leave for full-time workers in the UK is 28 days (known as statutory leave entitlement or annual leave).

Although it is legal for employers to incorporate paid public holidays as part of their employees' statutory yearly leave, the industry standard is to give at least 20-25 days of paid vacation every year. Negotiating vacation time for high-level workers is common, and they may typically get up to 30 days off per year, in addition to 8 paid holidays.

Paid time off and holidays are accrued on a prorated basis for part-time workers.
Paid Sick Leave in the United Kingdom

In the United Kingdom, workers are eligible for employer-provided sick leave (known as "Statutory Sick Pay") for up to 28 weeks. A doctor's letter is required to prove eligibility for Sick Pay if an employee is out of the office for more than seven days. After an individual misses work for four days in a row, they are eligible to receive sick pay at the current rate of £99.35 per week (since April 2022). It is common for firms to provide sick pay in addition to the minimum wage, albeit the amount of extra days or weeks might vary greatly from one employer to another.
Family Leave in the United Kingdom

There is a generous maternity leave policy in place that allows working mothers to take off work for a full 52 weeks. After giving birth, parents need to take two weeks off (four weeks for factory workers.) The vacation time is broken up into:

The First 26 Weeks of a Mother's Typical Maternity Leave
Longer than the Standard Maternity Leave: 26 Weeks
Paid maternity leave in accordance with the law is provided to employees. Up to 39 weeks of compensation are possible.
The lesser of £156.66 per week (based on the first six weeks of earnings) or 90% of weekly earnings (before taxes) for the next 33 weeks (since April 2022)

Two weeks of paid paternity leave should be given to both parents.

Shared parental leave allows mothers to divide their 52-week maternity leave between themselves and their partner. Because of this, moms may go back to work earlier than expected without having to forgo the remainder of their maternity leave. Shared parental leave may be taken in blocks, rather than all at once, and can be done sequentially or simultaneously, as long as the total time spent does not exceed 52 weeks.

Any of the following may be taken by the spouse taking part in the shared leave:

those that are left depart (52 weeks minus any weeks of maternity or adoption leave)
the balance of payment (39 weeks minus any weeks of maternity pay, maternity allowance or adoption pay)
Those who choose to adopt are also protected.

Health care coverage in the UK

Employers' contributions to National Insurance Contribution (NIC), the United Kingdom's national social security program, fund the country's universal health care system and are therefore its principal statutory benefit. The standard employer contribution to national insurance is 13.8 percent of salary. In addition, workers must contribute to national insurance; employers must withhold these payments from workers' paychecks through the Pay As You Earn (PAYE) system.
Bonus Payments in the United Kingdom

Several businesses also provide their workers perks beyond the NIC, such health and dental plans, income protection, and even life insurance. While there is no law mandating this, it is becoming more common for workers to expect their employers to give some kind of perks beyond what is required by law. Almost three-quarters (75%) of UK firms provide supplementary insurance coverage. One of the top group medical and dental coverage benefits plans accessible to organizations recruiting in the UK is provided by Globalization Partners as part of its UK PEO service. Customer-selected options include both income protection and life insurance.

While working in the United States, many insurance policies in the United Kingdom do not protect their policyholders. We highly suggest getting your UK worker protected by a travel insurance coverage if they will be making frequent trips to the US or somewhere outside of Europe.
Schemes for British Retirees' Pensions

Some of the most often sought perks in the United Kingdom include insurance coverage and employer payments to pension programs. In the United Kingdom, pension benefits are more highly valued by workers than employer-sponsored health insurance.

Every business must provide at least a 3% matching employee pension contribution into a defined benefit plan. To comply with regulations and our local company's staging date, Globalization Partners now provides all workers employed under its UK PEO with a 4% pension. Employer pension contributions may be increased over 4% at the option of the client.

Bonuses

The decision of whether or not to provide a bonus rests solely with the employer. Some companies have incentive schemes that are established according to factors like employee and company success. Some businesses may have an unwritten bonus policy in which payouts are made at the discretion of management. Many professions have different standards of conduct.

Severance/Termination in the UK

In the United Kingdom, there is no such thing as a "at-will" job, hence any termination of employment must be done in accordance with the employee's notice period. There are two sorts of notice: legally mandated "statutory notice" and the "notice period" specified in the employee's contract.

The statutory notice time is determined by the employee's length of service:

Those with fewer than two years of service are required to provide one week's notice if they plan to leave within the next month.
After two years of employment, one week's notice is required; after twelve years of service, two months' notice is required.
Those with 12 years of service or more get a 12-week notice period.

Although it is up to the discretion of the employer to choose the amount of notice in the employment contract, market standards indicate that one month is typical for most workers and up to three months for more senior employees. Employers must provide whatever notice period is longer when providing notice. A right to payment in lieu of notice is a typical provision in employment contracts that allows the employee to resign from their position without serving the required notice period.

When an employee is laid off due to redundancy and has been with the company for at least two years without interruption, they are eligible to receive severance compensation according to the following timetable.

half a week's wages for each year worked if the worker was younger than 22.
One week's salary for each year worked between the ages of 22 and 40, and one and a half weeks' salary for each year worked between the ages of 41 and 45.

For purposes of redundancy compensation, the maximum amount that may be paid in a week is capped at an amount that is reviewed and revised every year.

The right not to be wrongfully terminated applies to employees with more than two years of continuous employment, and anti-discrimination rules apply to all employees, regardless of how long they have been with the company. Getting professional counsel before making a decision to terminate employment is crucial.

Compensation for UK Employees

By a process known as PAYE, employers are responsible for withholding a portion of their employees' pay in the form of income tax and national insurance (Pay As You Earn).

How Collaboration in Globalization Benefits Everyone

Due of its complexity and robust worker safeguards, UK labor law requires meticulous planning and familiarity with regional norms. Without the hassle of establishing a foreign branch office or subsidiary, Globalization Partners can help you select your preferred candidate, manage benefits and payroll, and assure compliance with local regulations in the United Kingdom. If you have a large staff in the United Kingdom, we can provide them with first-rate benefits without your company having to make special arrangements. With the help of our market-leading SaaS platform and app, you can have peace of mind knowing that your business's HR needs are being taken care of by our UK PEO and Global Employer of Record.

In order to learn more about how Globalization Partners can streamline your recruitment processes in the United Kingdom, please get in touch with us.