Capital
London
Currency
Pound
Languages
Englsih
Payroll Frequency
Monthly
GDP per Capita
$46,344
Employer Tax
Variable

Similar to many European countries, the United Kingdom of Great Britain and Northern Ireland, or simply the UK, upholds a robust system of employment laws that safeguard workers’ rights. The purpose of labor laws, sometimes referred to as employment laws, is to specify the terms of the relationship between employers and employees.

The rules of these employment laws entitle employees in the UK to a range of approved leaves. This includes a predetermined amount of paid time off per year for a range of reasons, such as annual leave, parental leave, sick days, injury days, and bereavement days.

While many businesses, not only banks, close on public holidays and bank holidays observed in the United Kingdom, employees are not entitled to reimbursement from their employers for time lost on these occasions.

This presentation will examine in detail the several kinds of leave that are accessible to all workers in the United Kingdom and clarify the nuances that fall under the purview of British labor laws and regulations.

Annual leave in the United Kingdom

Employees in the UK are legally entitled to paid annual leave. The statutory leave benefit for full-time employees is 28 days, or 5.6 weeks. Real yearly leave benefits for employees are contingent upon their employment status—full- or part-time.

Part-time workers are likewise entitled to 5.6 weeks of paid leave; however, the quantity of leave taken is determined by the typical number of workdays. A part-time employee working 2.5 days a week, for example, would be entitled to 14 days of leave per year (2.5 × 5.6 = 14).

Employees with flexible work schedules have the ability to calculate their yearly leave. A worker may take more than five days of paid leave per week, but employers are only obligated to offer paid leave for a maximum of 28 days.

Public holidays in the United Kingdom

The United Kingdom is composed of the countries of England, Wales, Scotland, and Northern Ireland. Thus, customs and legislation, particularly those related to holidays, may vary from country to country.

Apart from the eight national holidays observed throughout the United Kingdom, many holidays, such Saint Patrick’s Day and the Battle of the Boyne, are only observed in Scotland and Northern Ireland. In addition, a one-time national holiday in celebration of King Charles III’s coronation will be commemorated on May 8, 2023.

Employers are not required by law to provide paid time off on bank holidays or other public holidays.

Holiday Date for 2023
New Year’s Day January 1
St. Patrick’s Day (Northern Ireland only) March 17
Good Friday April 7
Easter Monday April 10
Early May bank holiday May 1
Coronation of King Charles III May 8
Spring bank holiday May 29
Battle of the Boyne (Northern Ireland only) July 12
Summer bank holiday August 28
St. Andrew’s Day (Scotland only) November 30
Christmas Day December 25
Boxing Day December 26

Sick leave in the United Kingdom

Employees possess the entitlement to utilize sick leave when they fall ill. If an employee falls ill during their annual leave, they have the option to use sick days instead of depleting their allocated annual leave days.

In situations where an illness persists for more than seven consecutive calendar days, employees are required to provide their employers with medical evidence of the ailment, commonly known as a fit note or sick note. This document, issued by a medical professional following an assessment of the employee’s fitness for work, specifies whether the employee is deemed “may be fit for work” or “not fit for work.” The employee is responsible for furnishing one copy of the sick note to their employer and retaining another for personal records.

Authorized professionals eligible to issue a sick note include general practitioners, registered nurses, pharmacists, occupational therapists, physiotherapists, and various other healthcare practitioners. Healthcare professionals are obligated to provide sick notes free of charge for illnesses exceeding seven days, while a fee may be applicable for assessments and sick notes for shorter durations.

In cases where obtaining a sick note is impractical, an alternative document, known as an Allied Health Professional Health and Work Report, can be submitted to the employer with their consent. A broader range of professionals, including speech and language therapists, paramedics, dietitians, and various specialists, can generate this report.

For illnesses lasting less than seven days, employees can self-certify their sickness upon returning to work. Employers and employees can collaboratively establish the self-certification process, which may involve submitting the self-certification via email.

In situations of prolonged illness hindering work, employees may qualify for Statutory Sick Pay (SSP) for a maximum period of 28 weeks. Agricultural Sick Pay serves as an additional sick pay form applicable to employees earning the agricultural minimum wage, employed before October 1, 2013, and contractually entitled to Agricultural Sick Pay.

Upon resuming work post-illness, employers should accommodate any necessary adjustments to the workplace, particularly for employees with disabilities or health conditions. These adjustments, recognized as reasonable adjustments, may involve modified working hours, the installation of ramps, or changes to equipment.

Companies can surpass mandatory minimums by formulating policies that attract and retain top talent. An employer of record, like EOR Services, can aid in developing competitive benefits packages covering various leave types, including annual leave, sick leave, and other legally mandated leaves. For personalized guidance on implementing comprehensive leave policies, seek advice from our experts at EOR Services today.

Parental leave in the United Kingdom

If an employee in the UK becomes a parent, gives birth, or adopts a kid, they are entitled to time off work. This category covers parental bereavement leave, adoption leave, shared parental leave, maternity leave, and paternity leave. Employee rights and conditions are protected when they take these types of breaks. After a hiatus, they have the right to return to work.

When a child is transitioning to a new school or childcare facility or simply wants to spend more time with their family, workers may also take unpaid parental leave to care for their children.

Shared Parental Leave in the United Kingdom

Couples who adopt, foster, surrogate, or become parents together are entitled to several types of leave. In addition to time off, workers who take this type of leave, known as Shared Parental Leave (SPL), are eligible to Statutory Shared Parental Pay (ShPP).

Both partners may divide up to 50 weeks of leave and up to 37 weeks of pay in the first year after the child is born or adopted. Either employee may take all of this leave at once or continually in blocks.

To be eligible for both ShPP and SPL, employees must take maternity or adoption leave for fewer than 52 weeks and use the remaining leave as SPL. The employee must also take less than 39 weeks of maternity leave and use their remaining earnings as SHPP.

Maternity leave in the United Kingdom

Pregnant employees in the UK are eligible to maternity leave for a maximum of 52 weeks. Ordinary Maternity Leave is the term used to describe the first 26 weeks of maternity leave. Leave may be taken as early as eleven weeks before the baby’s due date. Ordinary Maternity Leave is followed by an additional 26 weeks of leave known as Additional Maternity Leave. Maternity leave must begin and end at least two weeks after giving birth. The employee is entitled to four weeks of paid maternity leave if they work in a factory.

Statutory maternity pay up to 39 weeks is covered. For the first six weeks, the worker receives 90% of their weekly pay; for the next thirty-three weeks, they will receive either £156.66 or 90% of their average weekly earnings, whichever is lower.

Employees are eligible for maternity leave if the baby dies before the 24th week of pregnancy.

Paternity leave in the United Kingdom

Employees who adopt a child or who collaborate with a surrogate parent are eligible for paid time off and paternity leave. You may be able to take one or two weeks of paid leave for paternity leave, depending on your eligibility.

Bereavement Leave

Bereavement leave is time off from work taken to mourn the loss of a family member. Employees in the UK are entitled to two weeks of Statutory Parental Bereavement Leave if they witness the death of a child under the age of eighteen or give birth to a stillborn child after 24 weeks of pregnancy. The statutory sum for parental bereavement pay is £156.66 per week, or 90% of the employee’s average weekly earnings.

Companies can prolong bereavement vacation, but they can only claim payment for the two weeks of statutory pay lost for each deceased employee.

When establishing a leave policy in the United Kingdom, employers should integrate the fundamental statutory leave entitlements. However, companies can go beyond these minimum requirements to attract high-caliber talent, potentially offering extended time off and additional annual vacation days as essential components of a comprehensive benefits package.

For organizations with global aspirations, streamlining the hiring process for remote positions in the United Kingdom or any of the 160 other countries worldwide can be achieved. Engaging a proficient employer of record, such as EOR Services, proves advantageous.

Employers of record excel in managing various human resources responsibilities, which include:

  1. Recruitment, encompassing the hiring of employees and the formulation of compliant contracts.
  2. Ensuring strict adherence to local labor laws and regulations.
  3. Administration of employee benefits.
  4. Facilitating the onboarding process for new hires.
  5. Efficiently overseeing payroll processing.

For a seamless hiring experience, precise payroll management, benefits administration, compliance with labor laws, and timely payroll tax payments, consider collaborating with a global employer of record like EOR Services. To explore the capabilities of such a service, schedule a demonstration today.