The United Kingdom is a diverse, service-based economy with strong financial, technology, and creative sectors. Its labor market is regulated by statutory laws and enhanced by collective bargaining, ensuring clear employee rights and employer obligations across various industries.
Types: Employers may provide contracts for both fixed-term and indefinite employment.
Requirement: Contracts must be in writing, outlining all terms such as job responsibilities, salary, and conditions.
Duration: Probationary periods can range from 2 weeks to 12 months.
Standard Practice: A 6-month probation is common, though no legal maximum exists.
Payment Cycle: Salaries are paid on the last day of the month via bank transfer only.
Working Time Directive: Although employees may work more than 48 hours in a single week, the average over a 17‑week reference period must not exceed 48 hours per week.
Entitlement: Employees are entitled to a minimum of 28 days of paid holiday per year (calculated on a pro-rata basis). Bank Holidays do not have to be included as part of the annual leave but may be allocated at the employer’s discretion.
Statutory Sick Pay (SSP):
Payment Date: Salaries are paid on the last day of the month.
Minimum Wage:
The UK observes the following public holidays (bank holidays form part of the annual leave entitlement):
If a bank holiday falls on a weekend, a substitute weekday (usually the following Monday) becomes a holiday.
Pension Contributions: Employers must automatically enroll eligible employees in a workplace pension, with a minimum contribution of 3% of gross salary.
National Insurance: Employers also pay National Insurance contributions at rates that vary by employee earnings and category.
Income Tax Bands (England and Wales):
Scotland has its own tax bands with slightly different rates.
National Insurance: Employees contribute according to Class 1 rates (e.g., 12% on earnings between £184 and £967 per week and 2% on earnings above £967 per week).
Based on Length of Service:
Termination:
Severance Pay:
Statutory severance is required only in cases of redundancy for employees with at least 2 years of service.
The statutory formula is:
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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