United Kingdom
Partner with Lerio in U.K. to ensure your employment policies are legally sound.
Hiring in United Kingdom at a glance
£ / GBP
40 hours / week
7 holidays / year
- Standard payment frequency is monthly.
- By law, payments can be made daily, weekly, bimonthly or monthly.
English
67M
£11.44 / hour
1st Jan – 31st Dec
Employment Tax
- Employee tax: 5%-62%, varies largely between territories (see tables below)
- Applicable to all territories:
- National insurance: 15.05% on earnings above £719
- Pension: 3%
- Employment tax: 3% – 22.3% varies largely between territories
- National insurance: 15.05% on earnings above £719
- Pension: 3%
England, Wales & Northern Ireland Income Tax
| Taxable Salary | Tax Rate (%) | ||
| £0 - £12 570 | 0% | ||
| £12 571 - £50 270 | 20% | ||
| £50 271 - £125 140 | 40% | ||
| £125,140 + | 45% |
Scotland Income Tax
| Taxable Salary | Tax Rate (%) | ||
| £12 570 + | 0% | ||
| £12 571 - £14 732 | 19% | ||
| £14 733 - £25 688 | 20% | ||
| £25 689 - £43 662 | 21% | ||
| £43 663 - £125 140 | 42% | ||
| £125,140 + | 46% |
Employer of Record
in United Kingdom
Serving as the accredited employer entity, an Employer of Record is entrusted with ensuring adherence to all legal obligations concerning employment in Australia. This encompasses duties such as payroll administration, tax compliance, and the provision of employment contracts as mandated by labor statutes.
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
Umbrella Process
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Health insurance
- Pension
- Childcare vouchers
- Sick, parental and adoption paid leave
- Flexible working (after 26 weeks of employment)
- Workers compensation insurance
Non-mandatory
Employee Benefits
- Private healthcare care
- Pension contribution
- Dental & Vision insurance
- Life and disability insurance
- Income protection
Employee Rights
- Protection of personal information
- Access to information such as company policies and codes of conducts
- Flexible working after the required amount of tenure
- Whistleblower protection
- Protection from bullying, discrimination and sexual harassment
- Fair and just dismissals
- A safe and healthy work environment free from risk
Leave
20 days per year
- 1 – 3 days: Unpaid
- 4+ days: Statutory sick pay for 28 weeks, paid by employer and capped at £109.40 a week
- 52 weeks: Mandatory 2 weeks after birth and can start leaving up to 11 weeks before birth. Must be employed for a minimum of 26 weeks at the company.
- First 6 weeks: 90% paid
- 7 – 33 weeks: 90% paid but capped at £172.48 per week
- Remaining weeks are unpaid
- 1 – 2 weeks starting after birth or adoption paid at 90% of standard salary capped at £172.48 per week. Leave must be taken in the child’s first 56 days. Eligible if employed at the company for more than 26 weeks.
- Paternity and remaining maternity leave post the mandatory period can be swapped between partners.
- Unpaid leave can be taken for 2 medical appointments during pregnancy or 5 adoption appointments.
18 weeks unpaid leave for each child with a maximum of 4 weeks per year. Leave cannot be taken in smaller increments than 1 week at a time.
12 weeks paid leave for parents if their babies are admitted into hospital for more than 7 days in their first 28 days after birth.
3 – 5 days unpaid leave for a death of a close relative. If it is the employee’s child they are entitled to 1 – 2 weeks paid leave 90% of standard salary (capped at £172.48 per week)
Contractual notice periods can be used over statutory notice periods. If employment agreement doesn’t include notice period, the statutory notice applies:
- Less than 2 years: 1 week
- 2 – 12 years: 1 week notice for each year worked
- 12+ years: 12 weeks’ notice
Probation
Optional but cannot be longer than 6 months.
What is a work permit in the UK?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – and the UK is one of them. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.
In the UK, the “work permit” required to legally live and work legally is referred to as a work visa. In addition to the work visa, a Biometric residence permit will also be needed if staying for longer than 6 months.
Who needs a work permit in the UK?
The UK requires everyone who is not a citizen or a permanent resident to go through a process of obtaining a work permit. Though most countries belong to a group of countries who have a free movement or similar arrangement, and/or bilateral agreements with another country which allow citizens from some other countries to legally work and live there, the UK is not one of those. As a country that used to be a part of the EU, this is quite a drastic change. Everyone who is not a citizen or a permanent resident of Singapore requires a work permit. The only exception is that there are different, and simpler, processes for family members of foreigners who already have work permits for the UK.
*EU citizens: Please see here to understand the rights of UK citizens who settled in Italy prior to Brexit.
How long does it take to get a work permit in the UK?
Once all documents have been received, 3 – 12 weeks.
Types of work visas in the UK
The UK has MANY different work visa options, see list below.
Unless an applicant fits into one of these specific industries or classifications, the most common visa applied for is the Skilled Worker Visa. To see detailed information about each visa, see here.
Skilled worker visa
The skilled worker visa allows individuals with specific skills identified on the eligible occupations list, to be hired by approved employers in the UK.
Eligibility:
- Offer of employment from a UK employer that’s been approved by the Home Office
- The role must be on the list of eligible occupations
- Salary has to be market-related
- Speak and write English sufficiently
All available work visas
- Skilled Worker Visa
- UK Start-Up Visa
- UK Graduate Work Visa
- UK Domestic Worker Visa
- High Potential Individual Visa
- International Sportsperson Visa
- Minister of Religion Visa
- Youth Mobility Scheme
- Global Business Mobility Worker Visas
- Senior or Specialist Worker Visa
- Expansion Worker Visa
- Secondment Worker Visa
- Service Supplier Visa
- Graduate Trainee Visa
- Temporary Worker Visas
- Creative Worker Visa
- Seasonal Worker Visa
- International Agreement Worker Visa
- Charity Worker Visa
- Government Authorized Exchange Visa
Application process in the UK
For different visas, slightly different processes exist.
Apply for visa
- Submit visa application directly UK government website with all supporting documents
- Once submitted, applicant will be sent a confirmation with further instructions
- An appointment may need to be scheduled at:
- At the local UK consulate or embassy; or
- At the consulate appointment:
- May need to submit extra documents
- Have a brief interview
- Submit your biometric information
- At a visa office center; or
- To submit biometric information
- An appointment won’t be necessary
- At the local UK consulate or embassy; or
Outcome of the application will be sent to the applicant and either a physical visa will be placed in their passport or a digital visa will be issued
Collect Biometric residence permits (BRPs)
- The application for the visa, automatically triggers an application for a BRP
- This must be collected within 10 days of arrival in the UK and it will be have been sent to either a representative you nominated or a post office chosen in the application process. Someone can fetch this on the applicant’s behalf following these steps.
- To collect the BRP, take your passport to the post office and they will assist you
What documents are required to apply for a work permit in the UK?
Visa application
- Certificate of sponsorship reference number (employer has to provide this)
- Proof of your knowledge of English
- Valid passport with at least 1 blank page
- Job Title and annual salary
- Job’s occupation code
- Employment agreement
- Name of the employer and their license number (should be on the sponsorship certification)
- If the role is in the education, healthcare, therapy or social services industry, a criminal record certificate
- A tuberculosis test results if from a listed country
Collect Biometric residence permits (BRPs)
- If collecting for yourself:
- Passport
- If a representative is collecting
- Passport or EU ID card or a BRP
Contact Us
If you have questions - feel free to ask them. We are happy to help our clients.