COUNTRY

Written Agreements

In the United Kingdom, an employer must give employees and workers a document stating the main conditions of employment when they start work. This is known as a ‘written statement of employment particulars.' It is not an employment contract. These can either be contained in the employment contract or the offer letter. Permanent employees must be hired with a written contract.

The written statement is made up of:

• The main document (known as a ‘principal statement’)
• A wider written statement

The employer must provide the principal statement on the first day of employment and the wider written statement within 2 months.

Employers must tell employees or workers about any changes to the written statement. They must do this within 1 month of making the change.

Oral Agreements

In the United Kingdom, oral agreements are legally enforceable. However, an employer must give employees and workers a document stating the main conditions of employment when they start work. This is known as a ‘written statement of employment particulars.' It is not an employment contract.

Implied Agreements

Written contracts are not mandatory in the United Kingdom. A contract is deemed to be formed when one party accepts the job offer. However, an employer must give employees and workers a document stating the main conditions of employment when they start work. This is known as a ‘written statement of employment particulars.'

In the absence of written agreements, certain aspects of employment may be considered implied, for example, not stealing from the employer, the employer providing a safe and secure work environment, and the provision of statutory employment benefits, to name a few.

In the United Kingdom, the labor law states that the standard workweek is 48 hours, averaged over a 17-week period. Night shift work cannot exceed 8 hours daily. Employees under 18 years cannot work for more than 40 hours a week or 8 hours a day.

There are also instances in which individuals may have more than one job, in which case they may meet the 48-hour "working time directive" by:

• Signing an opt-out agreement
• Reducing hours to meet the 48-hour limit

Employees are allowed to work remotely by submitting an application to their employers if they’ve worked continuously for the same employer for the last 26 weeks. The application must contain a statement that it is a statutory request and details of how the employee wants to work flexibly and when they want to start. Employers can reject the application on objective grounds.

New Year’s Day (1st January); Good Friday (varies); Easter Monday (varies); Early May bank holiday (varies); Spring bank holiday (varies); Summer bank holiday (varies); Christmas Day (25th); Boxing Day (26th December).

Generally, employees are legally entitled to 5.6 weeks (28 days) of paid holiday per annum. Persons working irregular hours (like shift or term-time workers) are entitled to paid time off for every hour they work. The accrual of annual leave begins at the start of employment.

Employers can include bank holidays as part of statutory annual leave. Bank or public holidays do not have to be given as paid leave.

The employment contract specifies the number of leave days to be carried over to next year. If an employee gets 28 days’ leave, they can carry over a maximum of 8 days.

In the UK, employees can take time off work due to sickness. If the time off work exceeds 28 days, a doctor's note must be provided. There is no legal maximum for the number of sick days an employee can take in the United Kingdom.

Employees who earn an average of at least GBP 123 per week and have been sick for 3 days in a row are eligible to receive Statutory Sick Pay (SSP) during their sick leave. The SSP is GBP 116.75 per week and is paid by the employer for up to 28 weeks.

Maternity leave is 52 weeks long and comprises ordinary leave for the first 26 weeks and additional leave for the remaining 26 weeks. It is paid at 90% of an employee's average weekly pretax earnings for the first 6 weeks of leave and GBP 187.18 or 90% of average weekly earnings (the lower value) for the remaining 33 weeks.

If an employee does not qualify for SMP, she can get a maternity allowance for up to 39 weeks, depending on her pay level, employment status, and marital status, if she has paid Class 2 National Insurance contributions.

Employees in the United Kingdom are entitled to paternity leave if their partner is giving birth to or adopting a baby, or having a baby through a surrogacy arrangement. This includes same-sex partners. Employees can choose to take either 1 week or 2 consecutive weeks’ leave. Paternity leave cannot start before birth and must occur within 56 days of delivery.

The Paternity Leave Amendment Regulations 2024 came in effect on April 6, 2024. It is applicable in cases where the expected date of birth or adoption falls on or after April 6, 2024. It allows fathers to take their 1 or 2 weeks of paternity leave either together or in parts. This leave can be taken within 52 weeks of childbirth or adoption. The notice period required to application of this leave is 4 weeks before the expected date of childbirth.

Statutory paternity pay is GBP 187.18 (British pounds) per week or 90% of the employee's average weekly rate (whichever is lower). Employees must have been continuously employed for at least 26 weeks up to any day in the "qualifying week" (the 15th week before the due date) to be eligible for statutory pay.

Minimum Wage

Beginning April 1, 2025, the minimum wage rates are as follows:

• National Living Wage (21 and over): GBP 12.21 (British pounds)
• 18-21 year old rate: GBP 10.00
• 16-17 year old rate: GBP 7.55
• Apprentice rate: GBP 7.55
• Accommodation Offset: GBP 10.66

Overtime, Holiday & Vacation Pay

Per United Kingdom labor law, overtime is defined as any work time that exceeds the regular working hours outlined in the employment contract. While employers are not required to pay for overtime, the employees’ average pay for the total number of hours worked must not fall below the national minimum wage. Overtime rates and payment, as well as time off in lieu of overtime pay, are determined in the employment contract.

During annual leave, employees receive their standard wages. Bank or public holidays do not have to be given as paid leave. The employer can choose to include bank holidays as part of a worker’s statutory annual leave.

Notice Period

In the United Kingdom, the notice period for individual dismissal is generally determined in the employment contract. Without an express agreement, the statutory minimum notice periods will apply.

The reason for an individual’s dismissal should always be confirmed in writing, regardless of how long they’ve worked for the employer.

The statutory notice periods are as follows:

• No less than 1 week if the employee's period of continuous employment is less than 2 years
• No less than 1 week for each year of continuous employment between 2 and 12 years
• No less than 12 weeks if employment has lasted 12 years or longer

No notice is required if the employee has been working for less than 1 month (unless the employment contract provides otherwise).

Employers have to pay wages for the duration of the notice period and provide a statutory redundancy payment (if the dismissal is for the reason of redundancy and the employee is entitled to such a payment).

Severance Benefits

In the United Kingdom, an employee has the right to receive certain payments from an employer in the following cases:

• The employment contract is terminated for redundancy reasons, provided the employee has worked for at least 2 years with the employer;
• The employee's resignation is deemed constructive by an Employment Tribunal; or
• The dismissal is considered to be unfair by an Employment Tribunal.

Pay ranges from a half-week to one and a half weeks’ worth of pay for each year of service, based on the employee's age. The length of service is capped at 20 years. The maximum statutory redundancy pay is currently GBP 21,000.

Pension

The pension system of the United Kingdom, known as the “New State Pension,” is available to male employees born on or after April 6, 1951, and to female employees born on or after April 6, 1953, and retired after April 6, 2016. In addition to the above requirement, an employee must meet the criteria below for a minimum of 10 years:

• Work and pay for National Insurance
• To be a recipient of National Insurance credits
• Voluntarily pay National Insurance contributions

The full amount of State Pension an employee can receive is GBP 230.25 (British pounds) per week for the tax year 2025-2026. The New State Pension is typically paid every 4 weeks. Employees may be eligible for Additional State Pension if they defer claiming the pension beyond the State Pension Age.

The New State Pension scheme is funded through employees' and employers' monthly contributions to National Insurance. The minimum income for paying contributions is GBP 125 a week.

The United Kingdom introduced a new type of occupational pension plan - collective defined contribution (CDC) plans in August 2022. CDC schemes provide a target pension, if the scheme is under (or over) funded then the pensions it pays can be decreased (or increased accordingly). The Royal Mail Collective Pension Plan is the only CDC scheme authorized as of April 2025.

In addition, employers can also introduce private workplace pension plans, where a certain percentage of monthly income is contributed into a pension fund and benefits are paid upon retirement.

Dependents/Survivors Benefits

In the United Kingdom, the Widowed Parent's Allowance (WPA) is designed to support parents who have lost a spouse's income and experience a financial burden due to this loss. Eligibility to receive the WPA is contingent on the following:

• The spouse must have died before April 6, 2017.
• The individual must have been below the state pension age.
• The deceased spouse must have been a parent of a child and entitled to the Child Benefit.
• The spouse paid National Insurance contributions or died of a work-related accident/disease.

If a person's spouse or civil partner died on or after April 6, 2017, they are eligible for the Bereavement Support Payment, provided the deceased had paid at least 25 weekly contributions or died of a work-related accident or disease and the spouse is under retirement age. The benefit is paid as a lump-sum payment and then 18 monthly payments. If a person is entitled to receive the Child Benefit, the first payment is GBP 3,500, and the monthly payment is GBP 350. If they are not entitled to receive the Child Benefit, the first payment is GBP 2,500, and the monthly payment is GBP 100. If the beneficiary reaches State Pension age within 18 months of their partner’s death, they may get fewer monthly payments. The claim for this benefit must be made within 21 months from the death of the partner.

Invalidity Benefits

In the United Kingdom, there are 3 types of disability benefit programs:

• Disability Living Allowance (DLA)/Personal Independence Payment (PIP)
• Attendance Allowance
• Employment & Support Allowance.

The DLA is comprised of 2 parts: a care component, and a mobility component. Only people younger than 16 years can apply for DLA. When the person reaches the age of 16, they must apply for a Personal Independence Payment (PIP), which covers disabled people between the ages of 16 and 64. PIP also has 2 components: Daily Living Part and Mobility Part.

Attendance Allowance is granted to people who have a severe disability and must have someone to look after them. Employment and Support Allowance (ESA) is provided to people who have a disability or health condition that affects their work capacity. Employed, self-employed and unemployed people under the State Pension age can apply for this benefit.