In today’s tight labour market, employee benefits are a tried and trusted method of attracting and retaining talent. Some flexible benefits include allowing employees to work from home, private healthcare insurance, or personal use of a company car. However, there are mandatory benefits that you must provide to your employees.
In this article, we briefly outline what these mandatory benefits are so you can plan for them when you recruit new talent.
What are statutory employee benefits in the UK?
In the United Kingdom, employers are required to provide the following benefits to employees:
Holiday entitlement and pay
- All workers have the right to 5.6 weeks (28 days) of paid holiday, including bank holidays
- If a worker is employed on a part-time basis, their holiday entitlement is calculated in proportion to their hours/days of work
- If a person works three days a week, you can calculate 3 x 5.6, 16.8 days of paid holiday. Holiday pay is paid at the same rate as the worker’s regular hourly rate/salary
Pension
- Employers are legally required to auto-enrol employees into an appropriate pension.
- The minimum employer contribution is currently 3% of the employee’s earnings, although this rate is higher for some pension schemes
Sick pay
- Employees who cannot work due to an accident or illness for four consecutive days are entitled to Statutory Sick Pay
- Many employers provide a more generous sick leave allowance which is detailed in your business’ employment contracts
Maternity and paternity leave and pay
- All pregnant employees and employees who have legally adopted a child are entitled to 26 weeks of ordinary maternity leave and 26 weeks of additional maternity leave, so up to 52 weeks to look after the new family members
- Employees must take two weeks' compulsory leave directly after giving birth (or four weeks, in the case of some factory workers)
- Two weeks of paternity leave and statutory paternity pay are available to eligible employees
How to attract employees with benefits
Employee benefits provide a great way for businesses to offer protection policies for its staff, and proves that the business is interested in supporting and caring for its employees.
Many companies offer additional benefits packages on top of mandatory benefits to attract and retain better talent. Some of these benefits include:
- Private medical insurance
- Employee share schemes
- Gym membership
- Flexible working
- Employee assitance plans
- Season ticket loans
- Employee wellbeing plans
- Cycle to works schemes
- Employee rewards
- Hybrid or remote working
Insurance companies like Caspian Insurance can help your business create an affordable and customised package of employee benefits to suit the needs of your employees.
Get legal assistance from LawBite
At LawBite, we can advise you on all aspects of mandatory and voluntary benefits.
Our solicitors can also draft your employment contracts and staff handbook plus advise and represent you in disputes related to employment.
To find out how we can support you, book a free 15-minute consultation with one of our lawyers today.
Book a free 15-minute consultation today
Additional resources
- What is The Health and Safety at Work Act 1974?
- Health and safety when working from home
- Health and safety in the workplace
- Holiday time - rhe key legal issues
- An employer’s quick guide to sick pay
- The benefits of hybrid working
- Mitigating the risk of workplace discrimination
- Managing workplace conflict for small businesses
- Coronavirus – managing risk as staff return to work
