UK

• New Year's Day
• New Year Holiday (Scotland only)
• St Patrick’s Day (Northern Ireland only)
• Good Friday
• Easter Monday (except Scotland)
• May Bank Holiday
• Second May Bank Holiday
• Battle of the Boyne (Northern Ireland only)
• August Bank Holiday
• St Andrew’s Day (Scotland only)
• Christmas Day
• Boxing Day

Working Hours

Employees can work up to 48 hours per week.

Minimum Wage

The United Kingdom has a National Minimum Wage, which is reviewed each year. As of 1st April 2024, the ratesare:

• £11.44 per hour for workers aged 21 and over
• £8.60 per hour for workers aged 18-20 years
• £6.40 per hour for workers aged under 18
• £6.40 per hour for apprentices under 19, or 19 and over for those in the first years of apprenticeship.

Effective April 2025, the hourly rates of the national minimum wage will be as follows:

• £12.21 per hour for workers aged 21 and over
• £10.00 per hour for worked aged 18-20
• £7.55 per hour for workers under 18
• £7.55 per hour for apprentices under 19, or 19 and over for those in the first year of the apprenticeship.

Employee Tax

Annual income	Tax rate
Up to GBP 12,570	0%
GBP 12,571 - 50,270	20%
GBP 50,271 - 125,140	40%
More than GBP 125,140	45%
National insurance contribution	2% - 12%*

*Actual amount depends on the employee’s income.

Bonuses

There are no statutory bonus schemes in the UK.

Employment contracts in the UK should be written and issued to the employee within two months of their start date. They should include:

• Employer and employee names
• Job title and responsibilities
• Workplace
• Working hours
• Salary and leave entitlement
• Start date
• Pension information
• Notice period
• Contract length (if applicable)
• Disciplinary and grievance procedures

Both indefinite and fixed-term contracts are permitted in the UK.

Annual Leave

Minimum of 5.6 weeks' paid holiday per year.

Sick Leave

Up to 28 weeks' sick leave, paid at the statutory rate. Statutory sick pay is only issued from the fourth day of absence.

Parental Leave

• Maternity leave: at least 39 weeks' leave paid at the statutory rate, plus 13 weeks' unpaid leave.
• Paternity leave: two weeks' leave paid at the statutory rate.

Termination Process

Employment in the UK is not at will. Dismissals are only permitted in limited circumstances.

Grounds for termination include:

• Expiry of a fixed-term contract
• Employee resignation
• Serious misconduct
• Redundancy

Dismissal for poor performance is possible, provided the employer follows a strict disciplinary procedure.

Employees can terminate the contract by providing notice in line with their contract terms. They may also leave without notice in cases of constructive dismissal.

Severance Pay

Severance pay in the UK is related to the employee’s age. Employees aged 21 and under are entitled to 0.5 week's severance pay for each year of service up to 20 years, rising to one week’s pay for those aged 22-40, and 1.5 weeks’ pay for those aged 41 and over.

For the purposes of calculating statutory redundancy pay as of 6^th April 2025, the maximum amount of a week’s pay is capped at £719 per week, and the maximum statutory redundancy pay is £21,570.

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that connects all Mauve entities with two trusted providers. As part of our comprehensive global Employer of Record services, this insurance offering supports companies employing staff overseas by ensuring full compliance with local legal requirements while safeguarding their workforce.

The programme provides international insurance coverage through a combination of the master policy and jurisdiction-specific local policies, where required by law. This structure ensures seamless alignment with local employment laws—an essential element of maintaining global regulatory compliance within any international EOR payroll arrangement.

Coverage includes:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Limit varies based on the employee’s country of work

This solution is ideal for organisations seeking to streamline global employee management while ensuring every EOR employee is protected and fully compliant in their respective jurisdictions.

For tailored advice on EOR insurance coverage, payroll compliance, or global compliance services in your target country, get in touch with Mauve’s expert international HR consultancy team.