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United Kingdom
United Kingdom is a sovereign country in north-western Europe, off the northwestern coast of the European mainland. Northern Ireland shares a land border with the Republic of Ireland. Otherwise, the United Kingdom is surrounded by the Atlantic Ocean, with the North Sea to the east, the English Channel to the south and the Celtic Sea to the south-west.
POPULATION
69,3 million inhabitants
CURRENCY
British Pounds (GBP)
GDP
$3,64 trillion
TIME ZONE
UTC +0
British industry is a combination of publicly-and privately-owned companies. Examples of industries that remain owned by the government include railways, ship building, and some steel companies.
One of the strongest components of the British economy is the energy sector. The United Kingdom is a net exporter of energy. In addition to oil, the kingdom has abundant reserves of natural gas, coal, and atomic power.
The rates change on 1 April every year.
21 and over | 18 to 20 | Under 18 | Apprentice
April 2026 | £12.71 | £10.85 | £8 | £8
The UK has no broad statutory “travel allowance” or meal allowance; any such benefits depend on employer policy.
However, many employers reimburse business expenses (mileage, travel, subsistence) under HMRC’s approved rates to ensure they remain tax-free.
- full-time and part-time contracts.
- fixed-term contracts.
- agency staff.
- freelancers, consultants, contractors.
- zero-hours contracts.
Probationary Period – typically the first 3 months so that the employer can evaluate the suitability of the employee for the position.
Employee can’t work more than 48 hours a week on average – normally averaged over 17 weeks. This law is sometimes called the ‘working time directive’ or ‘working time regulations.
If the workers work more than 6 hours a day, they have the right to one uninterrupted 20-minute rest break during their working day.
Overtime is always contractual. There is no statutory overtime premium rate (e.g. “time-and-a-half”); however, employers must still ensure the worker’s average hourly pay (including overtime) does not fall below the National Minimum Wage. If there’s no such arrangement, employees can’t be forced to work overtime. Employee employment contracts usually clarify overtime pay rates and how they get worked out. Employee may have to work more than 48 hours a week on average when:
- where 24-hour staffing is required
- in the armed forces, emergency services or police
- in security and surveillance
- as a domestic servant in a private household
- as a seafarer, sea-fisherman, or worker on vessels on inland waterways
- where working time is not measured.
Pension: At least 3% of this must be paid by the employer (employees contribute the rest, making the total 8% min.). Employer must automatically enroll an employee into a pension scheme and make contributions to pension if all the following apply:
- classed as a ‘worker’
- aged between 22 and State Pension age
- earn at least £10,000 per year
- usually (‘ordinarily’) work in the UK.
The full State Pension is £230.25 per week. (A lower “basic State Pension” of £176.45/week applies to those who reached pension age before 2016.) Most workers indirectly fund it via National Insurance contributions.
- Healthcare insurance: the National health service (NHS) is the government-funded healthcare system that everyone living in the UK can use without being asked to pay the full cost of the service. This includes
- visiting a doctor for medical advice, diagnosis, or treatment
- treatment at a hospital if you are unwell or injured
- getting emergency help from healthcare professionals working in the ambulance services in case of serious or life-threatening injuries or health problems.
- Additional health insurance: The average cost of private health insurance in the UK is just less than £1500 per year. The treatments are much quicker than with NHS and the patient get to choose the hospital and doctors. It doesn’t usually cover chronic or long-term conditions such as diabetes and many cancers and it’s expensive when covering the whole family.
- Life insurance: Establishing proper trust is crucial, otherwise significant tax costs will be charged. Depending on the type of scheme chosen and trust, employers will be required to register the HMRC (Her Majesty’s Revenue and Customs) scheme either at the beginning or in the case of registration.
- Dental insurance: this benefit is easy to set up in the UK and the minimum criteria is normally two employees. It can be paid by employer or by employee. Typical price range varies from £10 to £50 per member depending on the level of service coverage.
- Critical illness insurance: lump sum payment on diagnosis of a specific condition, such as cancer, heart attack or strokes.
- Retirement benefit: it is covered by employer and the implementation of retirement plans typically take between 1 and 3 months and it must be prepared from day one of employment.
- Tuition assistance
- Childcare reimbursement: A government is supporting tax efficient childcare scheme.
- Meal reimbursement: mostly implemented with larger companies. Food is available at a discounted rate, this may include breakfast, lunch, and dinner.
- Company cars: this benefit is usually provided for higher-ranked staff in the company, but it is not as popular as previous years due to high government taxation.
- Gym membership: offered to employees with lower corporate rates.
Most workers who work a 5-day week must receive at least 28 days paid annual leave a year. This is the equivalent of 5.6 weeks of holiday.
Although employees do not have a statutory entitlement to paid leave for bank and public holidays, most employment contracts provide for this. In England, Wales, and Scotland these holidays are:
1 January New Year’s Day
3 April Good Friday date varies
6 April Easter Monday date varies
4 May Early May bank holiday first Monday in May
25 May Spring bank holiday last Monday in May
31 August Summer bank holiday last Monday in August
25 December Christmas Day
28 December Boxing Day substitute day in 2026 (holiday is on 26th December
Employees can take time off work if they’re ill. They need to give their employer proof if they’re ill for more than 4 days. Eligible employees can receive £118.75 per week statutory sick pay (SSP). It’s paid by the employer for up to 28 weeks. The employee cannot get less than the statutory amount. He/she can get more if the company has a sick pay scheme (or ‘occupational scheme’) – employment contract needs to be checked.
Statutory Maternity Leave is 52 weeks. It’s made up of:
• Ordinary Maternity Leave – first 26 weeks
• Additional Maternity Leave – last 26 weeks.
Statutory Maternity Pay (SMP) is paid for up to 39 weeks. The mother gets 90% of average weekly earnings (before tax) for the first 6 weeks and then £187.18/week or 90% of the average weekly earnings (whichever is lower) for the next 33 weeks.
Thereafter, the remaining 13 weeks are unpaid, or covered by contractual pay if offered.) Eligible fathers/partners get 1-2
weeks paternity leave, with Statutory Paternity Pay (SPP) also at £187.18 or 90% (up to 2 weeks). Shared Parental Leave (SPL) allows parents to split up to 50 weeks leave, sharing up to 39 weeks of statutory pay (using the same rate structure
as SMP).
From April 2025 neonatal leave and pay was introduced: parents of babies requiring neonatal care can take up to 12
weeks’ paid leave (Statutory Neonatal Care Pay at £123/week).
Unemployment benefit, which is also known as contribution-based Jobseeker’s Allowance (for those with sufficient NI contributions – income-based JSA is being phased out in favor of Universal Credit) will often provide up to 6 months of cover which should allow to keep up with all essential expenditure such as mortgage payments, grocery shopping and bills while seeking new employment.
The weekly amount of JSA / “personal allowance”:
• £72.90 if a person is aged 18 to 24
• £92.05 if a person is aged 25 or more
Person’s right to work in the UK depends on where he/she travels from as well as what type of work he/she wants to do.
They may need a UK work visa as well as a job offer in order to take up employment.
Since Brexit, all non-UK nationals (including EU/EEA/Swiss citizens) generally require a valid UK work visa to take employment. Only Irish citizens still have free movement by law. EU/EEA/Swiss citizens can visit visa-free for up to 6 months (for tourism or business), but not to work long-term.
Short-term work visas exist for seasonal/temporary roles, but casual/low-skilled roles generally cannot be filled by overseas workers. Employers must conduct right-to-work checks for all employees and sponsorship requirements apply equally to new hires from abroad.
Before applying following work permit requirements must be reached:
- confirmed offer of employment from a licensed UK employer who will act as a sponsor;
- be in possession of a Certificate of Sponsorship issued by a sponsoring employer;
- pass the points-based assessment, details of which can be found on the category specific work permit pages listed below.
There are 3 main categories of UK work permit we advise on. These are:
- Skilled Worker
- Intra-Company Transfer (for employees moving within global companies)
- Sportsperson Visa (for elite athletes)
The work permit application process is led by the employer who is responsible for issuing with a Certificate of
Sponsorship to applicant.
UK is offering many different possibilities for expats visiting the country, depends on the purpose of the visit.
All detailed information on each category (long and short term work visa, other visas, investor, business development and talent visas etc.) can be found here – https://www.gov.uk/browse/visas-immigration/work-visas.
There are different types of dismissal:
- fair dismissal (with valid reason)
- unfair dismissal
- constructive dismissal
- wrongful dismissal.
Termination by employer – Employers must show that they have a potentially fair reason for dismissal.
The potentially fair reasons are:
- misconduct,
- capability (health or performance),
- illegality,
- redundancy or “some other substantial reason”.
Employees must be given notice of termination unless they are dismissed for gross misconduct. The length of the notice period is specified in an employee’s contract of employment, subject to the statutory minimum.
The law entitles both parties, the employee and employer to notice of termination of employment when either party ends the contract.
The statutory redundancy notice periods are (individual contracts often specify longer notice):
- at least 1 weeks’ notice if employed between 1 month and 2 years,
- 1 weeks’ notice for each year of service if employed between 2 and 12 years,
- 12 weeks’ notice if employed 12 years or more.
Fixed-term contracts termination – if the contract is ended before the expiry date, the statutory notice period is given.
Collective dismissal – If an employer has proposals to dismiss 20 or more employees as redundant within a period of
90 days, it must consult with trade union representatives or employee representatives before any final decisions are taken. Consultation must take place about avoiding dismissals, minimizing the number of dismissals, and mitigating the consequences of dismissals. The employer must also notify the Department for Business, Energy & Industrial Strategy of the proposed redundancies.
Weeks of statutory redundancy pay someone is entitled to depends on all the following:
- the employee’s age
- how long they’ve worked for the employer (≥2 years’ service up to 20 years’ service).
Redundancy pay is calculated by weekly pay (capped at £719). The maximum amount of statutory redundancy pay is £16,320.
Employees get:
- 1.5 weeks’ pay for each full year of employment for 41+
- 1 week’s pay per year for age 22-40
- 0.5 week’s pay per year under age 22
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