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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 included in 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 7 calendar 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.

All employees are eligible to receive Statutory Sick Pay (SSP) during their sick leave, regardless of earnings or seniority. The benefit rate is 80% of the employee's earnings or the current SSP, whichever is lower.

The SSP is GBP 123.25 per week and is paid by the employer for up to 28 weeks.

Maternity leave is 52 weeks long, comprising 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 194.32, or 90% of average weekly earnings (whichever is lower), 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, but are entitled to a total of 2 weeks' leave. Paternity leave cannot start before birth and must occur within 52 weeks of delivery.

The Paternity Leave Amendment Regulations 2024 allow fathers to take their 1 or 2 weeks of paternity leave either together or in parts.

Effective April 6, 2026, employees are eligible to take paternity leave from their first day of employment.

Statutory paternity pay is GBP 194.32 (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, 2026, the minimum wage rates are as follows:

• National Living Wage (21 and over): GBP 12.71 (British pounds)
• 18-21 year old rate: GBP 10.85
• 16-17 year old rate: GBP 8.00
• Apprentice rate: GBP 8.00

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. An employee is entitled to request a written summary of the reason for dismissal if they have worked for at least 2 years on the date of termination.

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 22,530.

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.

Personal Income Tax

In the United Kingdom, residents are liable to pay income tax on all income, whether from the UK or abroad. Non-residents pay taxes only on their income from sources within the UK. Persons who stay in the UK for more than 183 days in a tax year are automatically considered residents. The tax year in the UK runs from April 6 through April 5 of the following year.

Income tax in the United Kingdom depends on the individual taxpayer's personal allowance and the income above it. The individual's personal allowance is the segment of their income that is tax-free. The current statutory personal allowance is GBP 12,570 (British pounds) This may be increased if an individual claims a marriage allowance or a blind person's allowance. The United Kingdom allows GBP 3,170 for a blind person's allowance and GBP 4,360 for a married couple's allowance. The personal allowance decreases by GBP 1 for every GBP 2 of income above GBP 100,000, and can go down to zero.

Income Tax rates range from 20-45% after allowances. Scotland's tax rates range from 19-48%.

Visas

There are several different visa categories in the United Kingdom, with multiple varieties of visa types within each category, including:

• Work visas
• Study visas - issued to individuals who wish to study in the UK
• Family visas - issued to individuals from outside of the UK to join a family member or civil partner who is permanently living in the UK
• Visitor visas - issued for a stay of up to 6 months for tourism, sports, creative events, conferences, or medical treatment.
• Other visas

Work Permits

Because the UK has left the EU, freedom of movement between the UK and EU has ended and the UK has introduced a points-based immigration system. Under the points-based immigration system, with the exception of Irish citizens, anyone coming to the UK for work must meet a specific set of requirements for which they will score points. A total of 70 points is needed to be able to apply to work in the UK.

Persons who want to be employed in the UK are required to obtain a Skilled Worker visa that allows employees to stay for a maximum of 5 years. This type of visa is issued to individuals who have been offered a skilled job in the UK. Employees must be hired by a licensed sponsor to be able to apply for a work permit in the UK. This visa can be extended for up to 5 years. After 5 years, visa holders are able to apply to settle permanently in the UK with the right to live, work and study indefinitely, and apply for benefits.

Employers must check that a job applicant is allowed to work in the UK before they are employed. A right-to-work check must be conducted before an employer hires an employee, to ensure the employee is legally allowed to do the work in question. Employers may face civil penalties if they employ an illegal employee and have not carried out a correct right-to-work check.

The minimum age to work part-time is 14, with some local areas making an exception for 13-year-olds. Children under 14 involved in acting and modeling can work with a performance permit. Children aged 14–16 may only do light work. Employees under 18 are prohibited from hazardous work and any work that would affect their education.

Children who have reached the minimum school-leaving age (16 years) can work up to 40 hours per week or eight hours a day (seven hours for employees aged 15). Young employees must receive a 30-minute break after 4.5 hours of work. They are entitled to 12 uninterrupted hours of rest in each 24-hour period and two days off each week. They also must have a two-week break from any work during the school holidays in each calendar year.

Employees above 16 years of age are eligible to receive the national minimum wage.