United Kingdom PEO Services

Global PEO Services (GPS), a Safeguard Global company, helps companies hire employees in the United Kingdom (UK) without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by our UK PEO, while the new hires and headquarter teams focus on your business goals. Using a UK PEO is the fastest and most efficient way to develop a workforce in the UK.

When hiring employees in the UK, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

We hire the employees on your behalf, legally contracting them through our subsidiary in accordance with UK labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in the UK. With our UK PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Under the Employment Rights Act 1996, employers must provide employees with a written employment contract in the United Kingdom. Employers and employees can agree to the terms of an employment contract, but British law imposes several obligations, and rights that may overrule the agreement terms. 

Some of the details typically mentioned in the written employment contract in the United Kingdom include:

• Names of employer and employee
• Date when employment began
• Job title, description, and location
• Leave entitlements
• Working hours
• Notice period
• Probationary period
• Mandatory training, regardless of whether the employer pays for it
• and more

The different types of employment relationships are:

• Permanent Employment – A permanent employee works at least 35 hours per week full-time. Employees on a fixed-term contract are not considered permanent. 
• Fixed-Term Contracts – Fixed-term contracts intend to make employment under specific contracts temporary rather than permanent.
• Temporary Employment – Temporary employment agencies can help employers in the UK find temporary workers.

Probationary Period

In the United Kingdom, a probationary period typically ranges from:

• Three months – usually for entry-level employees in roles that require little or no previous experience 
• Six months – usually for more senior positions or roles which require significant experience or education.
  

Employees in the United Kingdom are entitled to the following leaves:

Annual leave in the United Kingdom – Per the Working Time Regulations, full-time employees receive 5.6 weeks (28 days) of annual paid vacation, including bank holidays. In the UK, bank holidays do not have to be given as paid leave. Employers can include bank holidays as an employee’s statutory annual leave.

Maternity leave in the United Kingdom – In the United Kingdom, statutory maternity leave is 52 weeks long and includes:

• Ordinary maternity leave: first 26 weeks
• Additional maternity leave: remaining 26 weeks
• Statutory maternity pay (SMP): 39 weeks of this is payable: the first six weeks at 90% of average pay and the remaining 33 weeks of statutory maternity pay is payable at a basic weekly amount or 90% of the employee’s average weekly gross pay, whichever is lower. The amount changes each tax year.

Sick leave in the United Kingdom – Employees in the United Kingdom have the right to work off due to illness, including non-working days such as weekends and bank holidays. There is no legal limit to the number of sick days an employee can take in the UK. Employees receive up to 28 weeks of statutory sick pay (SSP) on the provision of a fit note (sickness certificate).

Paternity leave in the United Kingdom – Eligible employees can take two consecutive weeks paid paternity leave within eight weeks of a child’s birth or adoption.

Public Holidays

There are seven statutory national holidays in the United Kingdom; however, they differ per jurisdiction. For example, England and Wales have eight listed public holidays, also known as bank holidays, Scotland has 9, and Northern Ireland has 10.

The following are the national holidays observed in the United Kingdom that are not legally required to be followed by employers:

• New Year’s Day
• Good Friday
• Easter Monday
• Early May Bank Holiday
• Spring bank holiday
• Summer bank holiday
• Christmas Day
• Boxing Day

The additional public holiday recognized by England and Wales is:

• Easter Monday, the Monday immediately after Easter Sunday.

The additional public holidays recognized by Scotland are:

• The second day of the new Gregorian Calendar year
• St. Andrew’s Day

The additional public holidays recognized by Northern Ireland are:

• St. Patrick’s Day
• Easter Monday, the Monday immediately after Easter Sunday
• Battle of the Boyne (Orangemen’s Day)

There are typically the following categories of visas in the United Kingdom with numerous forms of visa types within each category:

• Work visas
  
• Study visas
• Family visas
• Visitor visas
• Business visas 
• Settlement visas

There are specific requirements for issuing work permits in the United Kingdom. Employees must obtain Skilled Worker visas that allow them to stay in the UK for five years. Extension of up to 5 years is possible. Visa holders can apply to settle permanently in the UK after five years, with the right to live, work, and study for an indefinite period and access to benefits.