Hiring in the UK from Australia

On this page (7 sections)

Overview
Australia and the United Kingdom at a glance
The differences that matter most
Common compliance traps
How an EOR works in the United Kingdom
FAQs
Sources

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GMT (UTC+0) or BST (UTC+1), 9 to 11 hours behind SydneyTime difference

Overview and why companies expand from Australia to the United Kingdom

London is a global hub for finance, technology and professional services, and a gateway to European customers.
Shared language and legal traditions make the UK one of the easiest markets for Australian businesses to enter.
UK working hours give Australian companies an extra half-day of coverage.
Australians aged 18 to 35 can work in the UK under the Youth Mobility Scheme, which widens the hiring pool.

For Australian employers, the UK is one of the most comfortable places to start hiring overseas. Contracts, notice, statutory leave and unfair dismissal all exist in both systems. The differences are in the numbers, the way holidays are counted, the pension and National Insurance system and a wave of reform under the Employment Rights Act 2025.

Australia and the United Kingdom at a glance

Summary only. Figures were checked against the official sources listed below on 2026-10-08. Many rules depend on the employee's award, contract, state or province.
Topic	Australia	United Kingdom
Employment contracts	A written contract is not legally required but is standard practice. Employers must give every new employee the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant. A modern award or enterprise agreement usually sets minimum terms. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts.	Every employee and worker must receive a written statement of employment particulars on or before their first day. Contracts are commonly permanent and full-time, with terms often set out in a staff handbook.
Probation	No statutory probation. In practice the unfair dismissal "minimum employment period" works as one: 6 months, or 12 months for small businesses with fewer than 15 employees.	No statutory probation; 3 to 6 months is common. The qualifying period for ordinary unfair dismissal claims is 2 years, falling to 6 months from 1 January 2027 under the Employment Rights Act 2025.
Working hours	Maximum 38 ordinary hours a week plus reasonable additional hours under the National Employment Standards. Awards set overtime rates. Employees have a right to disconnect outside working hours unless refusing is unreasonable.	Working Time Regulations limit the average working week to 48 hours unless the employee opts out in writing. Workers are entitled to 11 hours daily rest and a 20 minute break when working more than 6 hours.
Minimum wage	National Minimum Wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026. Most employees are covered by a modern award with higher minimum rates for their classification.	National Living Wage of £12.71 an hour for workers aged 21 and over from 1 April 2026, with lower rates for younger workers and apprentices.
Annual leave	4 weeks paid annual leave a year for full-time employees (5 weeks for some shift workers), accruing progressively. Untaken leave is paid out on termination. Many awards add a 17.5% leave loading.	5.6 weeks of paid statutory leave a year (28 days for a five-day week), which employers can count bank holidays towards.
Sick leave	10 days paid personal/carer's leave a year for full-time employees, plus 2 days unpaid carer's leave and 2 days paid compassionate leave per occasion. All employees can also take 10 days paid family and domestic violence leave a year.	Statutory Sick Pay is payable by the employer. From 6 April 2026 it is paid from the first day of sickness and the lower earnings limit has been removed.
Parental leave	Up to 12 months unpaid parental leave after 12 months of service, with the right to request 12 more. The government funds up to 26 weeks of Parental Leave Pay at the national minimum wage from 1 July 2026, paid through Services Australia rather than the employer.	Up to 52 weeks maternity leave with Statutory Maternity Pay for up to 39 weeks. Paternity leave and unpaid parental leave are day-one rights from April 2026. Shared parental leave is also available.
Public holidays	National public holidays such as New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day and Boxing Day, plus state and territory holidays. Employees who work on a public holiday are usually paid penalty rates under their award.	8 bank holidays in England and Wales, 9 in Scotland and 10 in Northern Ireland. There is no statutory right to take them off on top of the 5.6 weeks entitlement.
Retirement and social security	Superannuation Guarantee of 12% of qualifying earnings, paid by the employer on top of wages. Since 1 July 2026 super must be paid each payday and reach the fund within 7 business days (Payday Super). There is no separate employer social security levy.	Employer Class 1 National Insurance of 15% on earnings above £5,000 a year. Workplace pension auto-enrolment requires minimum contributions of 8% of qualifying earnings, with the employer paying at least 3%.
Payroll taxes	Employers withhold PAYG income tax from wages. Each state and territory charges payroll tax once total Australian wages pass a threshold, for example 5.45% above $1.2 million in NSW and 4.85% above $1 million in Victoria. Workers' compensation premiums are also payable.	Income tax and National Insurance are deducted through PAYE and reported in real time to HMRC. Employers with a pay bill over £3 million also pay the 0.5% Apprenticeship Levy.
Notice periods	Employer notice under the National Employment Standards: 1 week (up to 1 year of service) rising to 4 weeks (over 5 years), plus 1 week if the employee is over 45 with at least 2 years of service. Pay in lieu is allowed. Awards set employee notice.	Statutory employer notice is 1 week after 1 month of service, then 1 week per complete year of service up to 12 weeks. Contracts often give more.
Dismissal protection	Unfair dismissal protection applies after the minimum employment period to employees covered by an award or agreement, or earning under the high income threshold of $190,100 (from 1 July 2026). General protections against adverse action apply from day one. Small businesses can follow the Small Business Fair Dismissal Code.	Ordinary unfair dismissal protection after 2 years of service (6 months from January 2027). Discrimination and automatically unfair dismissal claims can be brought from day one.
Severance	Statutory redundancy pay of 4 weeks (1 to 2 years of service) rising to 16 weeks (9 to 10 years), then 12 weeks at 10 years or more, when long service leave usually takes over. Small businesses with fewer than 15 employees are generally exempt.	Statutory redundancy pay after 2 years of service, based on age, length of service (up to 20 years) and a weekly pay cap that is reviewed each April.
Mandatory benefits	Superannuation, workers' compensation insurance (state-based and compulsory), paid leave under the National Employment Standards and long service leave under state and territory laws, usually after 7 to 10 years of service.	Workplace pension auto-enrolment, Statutory Sick Pay, statutory family leave and pay, and compulsory employer's liability insurance.
IP and restraint clauses	Post-employment restraints are only enforceable if reasonable to protect a legitimate business interest. Employers generally own IP that employees create in the course of employment. The federal government has proposed banning non-compete clauses for employees under the high income threshold from 2027; this was not law at the last review.	Post-employment restrictions such as non-competes are enforceable only if they protect a legitimate interest and go no further than reasonably necessary. Employers generally own IP created by employees in the normal course of their duties.
Visas and right to work	Every worker needs Australian work rights, which employers can check through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor. Some EORs can sponsor, many cannot.	Employers must carry out right to work checks before employment starts. Sponsored hires usually need a Skilled Worker visa and a sponsor licence. Australians aged 18 to 35 can use the Youth Mobility Scheme.

The differences that matter most

No awards, but more statutory change

The UK has a national minimum wage with age bands, but no industry awards. Instead, change comes through legislation: the Employment Rights Act 2025 is rolling out day-one rights to paternity leave and sick pay (from April 2026) and a 6-month unfair dismissal qualifying period (from January 2027). Plan contracts and policies with these dates in mind.

Holiday is counted differently

UK workers get 5.6 weeks of statutory holiday, and employers can count the 8 bank holidays in England and Wales towards it. Australians are used to public holidays being in addition to annual leave, so align your expectations.

Pensions and National Insurance

Instead of 12% super, UK employers pay 15% employer National Insurance above £5,000 a year and contribute at least 3% to an auto-enrolment pension. The overall on-cost can be similar, but the structure is different.

Right to work checks

UK employers must check every employee's right to work before they start and keep evidence. Penalties for employing someone without permission are severe.

Sick pay

UK employers pay Statutory Sick Pay, from day one of sickness since April 2026, at a statutory rate that is much lower than full pay. Many employers top it up through contractual sick pay policies.

Common compliance traps

Missing the written statement, which must be given on or before day one.
Assuming bank holidays are additional when drafting holiday entitlements, or the reverse.
Not tracking the Employment Rights Act timeline, particularly for probation and dismissals from 2027.
Skipping right to work checks for candidates who are already in the UK.
Restrictive covenants that are too wide. Courts strike down restrictions that go further than necessary.
Using Australian redundancy assumptions. UK redundancy pay depends on age, service and a capped weekly pay figure, and collective consultation rules apply to larger redundancies.

How an EOR works in the United Kingdom

A UK EOR employs your hire through its own UK company:

It issues a written statement of employment particulars that meets UK law.
It registers the employee for PAYE, deducts income tax and National Insurance and reports to HMRC in real time.
It enrols the employee in a workplace pension and pays employer contributions.
It applies UK holiday, sick pay and family leave rules.
You manage the work; the EOR handles employment changes and exits.

If you later set up a UK subsidiary, employees can transfer across, and TUPE rules may protect their terms.

Frequently asked questions

What is changing in UK employment law?

The Employment Rights Act 2025 is being introduced in stages. From April 2026, Statutory Sick Pay became payable from the first day of sickness and paternity leave and unpaid parental leave became day-one rights. From January 2027 the qualifying period for unfair dismissal falls from 2 years to 6 months.

Do I need to pay National Insurance for UK employees?

Yes. Employers pay Class 1 secondary National Insurance of 15% on earnings above £5,000 a year, in addition to the employee's own contributions. An EOR handles this through PAYE.

What is workplace pension auto-enrolment?

UK employers must automatically enrol eligible workers into a workplace pension and contribute at least 3% of qualifying earnings, with total contributions of at least 8%. It is the closest UK equivalent to Australian super.

Can an Australian move to the UK to work for us?

Australians aged 18 to 35 may be eligible for the Youth Mobility Scheme visa. Otherwise, most roles need a Skilled Worker visa, which requires a licensed sponsor. Many EORs can't sponsor, so check early.

How long are notice periods in the UK?

The statutory minimum employer notice is 1 week after 1 month of service, then 1 week per complete year of service up to 12 weeks. Contracts for professional roles commonly give 1 to 3 months.

Sources

Last reviewed: 2026-10-08

Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.

New to the model? Start with what an Employer of Record is, then compareEOR costs and pricing models.

Hiring in the United Kingdom from Australia