Guide to Hiring in the United Kingdom

Employment trends and job market analysis 

 The United Kingdom is home to one of the world's most highly skilled workforces, with more than half of workers educated to degree level or above.

As a leading centre for innovation and digital transformation, the UK continues to see strong demand for talent in areas such as technology, data analytics and cybersecurity, while skills shortages in key sectors have intensified competition for qualified professionals.

Employee well-being, diversity and inclusion, sustainability, and opportunities for upskilling and career development are also increasingly important factors shaping employer value propositions.

Businesses that align their hiring, retention and workplace strategies with these evolving workforce expectations will be better positioned to attract and retain top talent in the UK market.

Labour laws to be aware of

Hiring staff in the UK requires compliance with various labour laws and regulations to ensure fair treatment of workers and a productive work environment. Here are some key labour laws to be aware of:

Employment Rights Act 2025

The Employment Rights Act became law on 18 December 2025 and introduces phased changes over 2026–2027, including:

• From 6 April 2026: Day-one entitlement to SSP, paternity leave, and unpaid parental leave; removal of the Lower Earnings Limit for SSP.

• From 1 January 2027: Qualifying period for "ordinary" unfair dismissal reduces from 2 years to 6 months; removal of the compensatory award cap; tighter restrictions on "fire and rehire" and "fire and replace" practices.

• Other reforms rolling out through 2027 include stronger sexual harassment protections, expanded collective redundancy rules, blacklisting reforms, and changes affecting zero-hours contracts.

Employment contracts

Every employee must have a written employment contract that outlines terms and conditions of employment, including job role, pay, working hours, holiday entitlement, and notice period.

National Minimum Wage (NMW) and National Living Wage (NLW)

The UK has a minimum wage law that sets out the minimum hourly rates for different age groups. The National Minimum Wage applies to workers aged 16 to 20 (with separate rates for 18–20 years and under-18 apprentice categories)

Working time regulations

These regulations stipulate maximum working hours, rest breaks, and minimum rest periods. 

Holiday entitlement

Full-time workers are entitled to a certain amount of paid leave per year, including public holidays. Part-time workers' entitlement is calculated on a pro-rata basis. You'll find more information on holiday entitlement further on in this guide. 

Statutory sick pay (SSP)

Employees who are too sick to work are entitled to SSP, which is a set amount paid by the employer for up to 28 weeks. Eligibility criteria apply - we talk about this in more detail further on in the guide. 

Parental leave and pay

The UK offers maternity leave, paternity leave, shared parental leave, and adoption leave, along with related statutory pay schemes. Find out more about parental leave later on in the guide. 

Discrimination laws

The Equality Act 2010 prohibits discrimination on grounds of age, gender, race, disability, religion, sexual orientation, and more. Employers must ensure equal treatment and provide reasonable accommodations when needed.

Termination and notice periods

There are statutory notice periods that need to be adhered to when terminating an employment contract. These vary depending on the length of service of the employee. We cover employment termination later on in the guide. 

Health and safety

Employers have a legal duty to provide a safe working environment and to assess and manage risks to employees' health and safety.

Trade unions and collective bargaining

 Employees have the right to join trade unions, and employers must recognise and consult with employee representatives in certain circumstances.

Data protection

The General Data Protection Regulation (GDPR) sets out rules for the collection, processing, and protection of personal data, including employee data.

It's important to note that labor laws can change, and it's recommended to consult with legal experts or relevant government resources to ensure that you have the most up-to-date information when hiring employees in the UK. 

Taxes and payroll

Employer contributions

The pension scheme is one of the most commonly provided contributions to an employee’s salary in the United Kingdom.

• Different employers have different pension schemes so the percentage of employer contributions can vary, but 3% is the minimum employers have to pay.
  
  
• All employers must offer a workplace pension scheme by law. You, your employer and the government pay into your pension.

Employee taxes

• The UK basic income tax rate is 20%.
  
  
• The deductions include National Insurance, Income Tax and Pension.

Minimum wage

As of April 2026, the national minimum wage in the UK is :

• Age 21 and over (National Living Wage): £12.71 per hour

• Age 18-20: £10.85 per hour

• Under 18: £8.00 per hour

• Apprentice rate: £8.00 per hour

Average work week

The average work week in the UK is 36.6 hours, consisting of five working days per week. 

Employee benefits 

UK employers are legally obligated to provide their employees with certain basic rights and support. However, they are encouraged to develop additional policies that go beyond these fundamental requirements.

Mandatory benefits in the UK:

• Pension
• Healthcare
• Holiday pay
• Maternity/paternity pay
• Sick pay

Supplementary benefits in the UK:

• Life assurance
• Dental insurance 
• Private medical insurance
• Income protection (long-term disability)
• Health cash plan

When thinking about which optional benefits to implement, consider them from the perspective of your staff. Thinking about what is most meaningful to their needs and how you can help them at every stage of growth helps you understand what they need from you.

This will not only result in more loyal and productive employees, but it will also help you retain them and positively impact your bottom line.

Types of leave 

All employees in the UK are entitled to a certain number of leave requirements, including annual leave, sick leave, maternity leave, and paternity leave.

Annual leave

Most workers in the UK 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.

UK bank holidays

• England & Wales: 8 bank holidays (as listed)
  • .New Year’s Day
  • Good Friday
  • Easter Monday
  • Early May Bank Holiday
  • Spring Bank Holiday
  • Summer Bank Holiday
  • Christmas Day
  • Boxing Day

• Scotland: 9 bank holidays, including 2 January and St Andrew's Day (30 November), but does not include Easter Monday.

• Northern Ireland: 10 bank holidays, including St Patrick's Day (17 March) and Battle of the Boyne (12 July).

Sick leave

As of 6 April 2026 Employees in the UK can get £123.25 per week of Statutory Sick Pay (SSP) or 80% of their average weekly earnings if lower, which is the new floor for lower earners.

In addition, under the Employment Rights Act 2025:

• SSP is now a day-one entitlement as the previous three "waiting days" have been abolished.
• The Lower Earnings Limit qualifying threshold has been removed, and all employees now qualify regardless of earnings.
• SSP remains payable by the employer for up to 28 weeks.

• If an employee in the UK has been ill for more than 7 days in a row, they must give their employer a 'fit note'.
  
  
• If an employee is on sick leave, they can usually build up four weeks' statutory paid holiday time.

Maternity leave

When an employee takes time off to have a baby, they might be eligible for:

• Statutory Maternity Leave (52 weeks)
• Statutory Maternity Pay
• Paid time off for antenatal care
• Extra help from the government (Universal Credit, Child Benefit, Child Tax Credit)

For 2026 and 2027, SMP is 90% of average weekly earnings for the first six weeks, then £194.32 per week (or 90% of Average Weekly Earnings (AWE) if lower) for the remaining 33 weeks, up to a total of 39 weeks paid out of a 52-week leave entitlement.

Employees' rights are protected while on Statutory Maternity Leave, including their right to:

• Pay rises
• Build up (accrue) holiday
• Return to work

Paternity leave

Statutory Paternity Leave and Unpaid Parental Leave are day-one rights. Previously, employees needed 26 weeks' continuous service for paternity leave and 1 year for unpaid parental leave.  

Statutory Paternity Leave and Unpaid Parental Leave are day-one rights. Previously, employees needed 26 weeks' continuous service for paternity leave and 1 year for unpaid parental leave. Statutory Paternity Pay for 2026/27 is £194.32/week (or 90% of AWE if lower).

Applicants are eligible for:

• 2 weeks’ Paternity Leave
• Paternity Pay
• Shared Parental Leave and Pay
• Unpaid Parental Leave

Employees' rights are protected while on paternity leave, including their right to:

• Pay rises
• Build up (accrue) holiday
• Return to work

Employees in the UK can be given time off to accompany their partner (or the surrogate mother) to 2 antenatal appointments.

If an employee is adopting a child, they can get time off to attend 2 adoption appointments after they have been matched with a child.

Employee rights

In the UK, employees are granted a range of rights to ensure fair treatment, job security, and a positive work environment. These rights cover various aspects of employment and are designed to protect employees' interests, and include:

Unfair dismissal protection

Employees with at least two years of continuous service have protection against unfair dismissal. Employers must have a valid reason (e.g., conduct, capability, redundancy) and follow a fair procedure to dismiss an employee. 

The two-year qualifying period remains in force through 2026. From 1 January 2027, this will reduce to a six-month qualifying period for ordinary unfair dismissal (Employment Rights Act 2025, section 25). The compensatory award cap will also be removed.

Constructive dismissal protection

Employees have the right to claim constructive dismissal if they can prove that their employer's behaviour has breached the employment contract to a serious degree, forcing them to resign.

Whistleblowing protection

Employees who report wrongdoing, such as illegal activities or health and safety violations, are protected from retaliation or unfair treatment under whistleblowing laws.

Time off for dependent care

Employees have the right to take reasonable unpaid time off to deal with emergencies related to dependents (e.g., family members) and make necessary arrangements.

Maternity, paternity, and adoption rights

These include rights to maternity and paternity leave, shared parental leave, and adoption leave. Eligible employees are entitled to time off and statutory pay during these periods.

Parental leave

Employees have the right to take unpaid parental leave to care for their child's welfare, with limits on the amount of leave and notice requirements.

Time off for public duties

Employees have the right to take reasonable time off for certain public duties, such as serving as a magistrate or a member of a jury.

Rights for temporary and fixed-term workers

Employee rights vary for contract vs. permanent roles. Temporary and fixed-term workers have certain rights, including protection against less favorable treatment compared to permanent employees and access to information about permanent job vacancies.

Rights for disabled employees

Employers have a duty to make reasonable adjustments to accommodate disabled employees, ensuring they have equal access to job opportunities and facilities.

Right to request flexible work

Since 6 April 2024, employees have had the right to request flexible working from day one (previously required 26 weeks' service). Employees can make up to two requests per 12-month period, and employers must respond within 2 months.

Attracting talent

Here are some tips on how to employ people in the UK:

As competition increases and hybrid working becomes more available, an employer must consider how this can impact a potential employee’s decision to consider an office-based job.

Implement policies that promote work-life balance

In a recent survey by Glassdoor, workers who rated their employers as offering a robust work-life balance were notably more inclined to highlight adaptable working hours and wellness in their feedback, whereas those with a lower work-life balance were more prone to discussing exhaustion and burnout.

Implementing these factors into your company culture will increase your chances of attracting and retaining a motivated workforce.

Upskilling and reskilling

Offering opportunities to upskill and reskill is a strategic approach that can significantly benefit companies in attracting top talent. In today's fast-paced and ever-evolving job market, skilled professionals seek continuous growth and development.

By providing employees with chances to enhance their skills and acquire new ones, companies demonstrate a commitment to investing in their workforce's professional growth and future. This fosters a sense of loyalty and engagement among existing employees while also appealing to potential candidates who value personal and career development.

Furthermore, a company known for its focus on upskilling and reskilling is perceived as a forward-thinking and innovative organisation, which can attract ambitious individuals eager to stay relevant and competitive in their fields.

Career growth opportunities

Job seekers who are high performers and talented are always keen on learning new things, so they're always interested in joining organisations where there are opportunities for career growth.

Whether these opportunities take the form of mentorships or professional development plans, businesses should focus on providing candidates with clear information about potential career pathways within the company.

Hiring best practices 

Understand UK employment laws

Familiarise yourself with UK labour laws and regulations to ensure compliance. Seek legal advice if needed to understand your obligations as an employer.

Create clear job descriptions

Develop detailed and accurate job descriptions that outline roles, responsibilities, required skills, qualifications, and expectations for the positions you're hiring for. 

Advertise effectively

Post on job boards, use an employer of record, and join professional networks to reach potential candidates. Tailor your job postings to the local market and culture. This can also help you to attract passive candidates who may not be actively looking for a new role, but are open to the possibility should the right job come along.

Conduct thorough interviews

Conduct interviews to assess candidates' skills, experience, and cultural fit. Consider including both virtual and in-person interviews to evaluate candidates more comprehensively. It's also important to carry out reference checks to get a feel for the candidate's work history. 

Consider cultural fit

Ensure that candidates align with your company's values and culture. Consider how they will contribute to your team dynamics.

Offer competitive compensation

Research industry standards and salary expectations in the UK to offer competitive compensation packages. Consider factors such as location, role, and experience.

Draft clear employment contracts

Create well-drafted employment contracts that outline terms of employment, including compensation, benefits, working hours, and any other relevant details.

Comply with visa requirements

If hiring non-UK nationals, make sure to understand and comply with the UK's immigration and visa requirements. Sponsorship may be necessary in some cases.

Plan for onboarding

Develop an effective onboarding process that helps new employees integrate into your company culture and understand their roles and responsibilities.

Provide training opportunities

Offer training and professional development opportunities to help employees enhance their skills and contribute more effectively.

What should the onboarding process look like?

Termination of employment

In the UK, termination of employment is known as ‘dismissal’. An employer in the UK does not always have to give an employee notice. If an employee is dismissed, the employer must show that they have:

• A valid reason that they can justify the dismissal
• Acted reasonably in the circumstances

Furthermore, an employer must:

• Be consistent, i.e. not dismiss an employee for something they let other employees do
• Have made a full investigation before dismissing the employee, for example, if a complaint was made about the employee

Both fixed-time and part-time workers cannot be treated less favourably than full-time employees.

Notice period

In the UK, an employee must be given a notice period before their employment ends. Here are the statutory redundancy notice periods for employees:

• 12 weeks’ notice if employed for 12 years or more
• At least one week’s notice if employed between 1 month and 2 years
• One week’s notice for each year if employed between 2 and 12 years

As well as the redundancy pay, an employer should either:

• Pay an employee through their notice period
• Pay the employee in place of notice depending on their circumstances

Severance pay

If an employee in the UK has worked at a company for 2 years or more, they should receive:

• Half a week’s pay for each full year they were under 22
• One week’s pay for each full year they were 22 or older, but under 41
• One and a half’s week’s pay for each full year they were 41 or older

If an employee is eligible, they can receive statutory redundancy pay if they have been temporarily laid off. This can be for either:

• More than 4 weeks in a row
• More than 6 consecutive weeks in a 13-week period

An employee is not entitled to statutory redundancy pay if:

• Their employer offers to keep them on
• Their employer offers them a suitable alternative work, but they refuse without good reason

Probation period

In the UK, the most common length for a probation period is either 3 months or 6 months. These are the most common types:

• 3-month probation period: This is typically used for entry-level employees in roles where little or no previous experience is required
  
  
• 6-month probation: This is typically used for more senior positions where more significant experience is required.
  
  
• Longer than 6 months: This is rare, as probation periods do not usually last longer than 6 months. Having one this long can be considered unreasonable without justification.

If an employee fails to meet a company’s standards or is guilty of misconduct/poor performance, there are a few options to consider before dismissal. One of which is an extension of the probation period with an outlined list of improvements for the employee to meet.

If they still fail to meet these requirements, dismissal is an option.

What are my options for hiring in the UK?

For businesses that want to hire contractors and employees in the UK, Airswift provides a variety of employment solutions that make it easy for you to hire employees efficiently and in full compliance with the local laws.

Our expertise allows us to minimise risk while bearing the administrative responsibilities of hiring and onboarding high-quality candidates, while you focus on growing your business.

Talent acquisition

Work with an in-country talent acquisition specialist to source high-quality candidates and hire locally in a competitive landscape.

 Our contract hire services can help you fill temporary roles and provide your business with the agility to respond to shifts in needs and market demand.

For long-term hiring needs, Airswift’s professional search can help you discover talented UK candidates for permanent roles within your business.

Employer of record

For businesses that want to conduct remote hiring without setting up a physical entity, an Employer of Record in the United Kingdom simplifies the process of hiring employees in the UK with minimal compromise on time and expense.

An experienced Employer of Record lets you bypass the complications of physical entity setup and focus on growing your business. Tasks an EOR can help you manage include overseeing locally compliant payroll and managing statutory benefits.

Although the information provided has been produced from sources believed to be reliable, Airswift makes no warranties, whether express or implied, regarding the accuracy, adequacy, completeness, legality, or reliability of any information herein. Accordingly, there shall be no liability attached to use of the information herein, howsoever arising. For the latest information and specific queries regarding particular cases, please contact our team.