Back to Insights Back to Insights

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


  • 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

In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.

Free legal support for businesses

The LawBite Free Essentials Plan acts as your very own legal assistant, ready to provide expertise and guidance on the common legal issues that SMEs and businesses face.

Free Templates
  • X 3 legal document templates
  • Drafted by our expert lawyers
  • New documents added every month
Legal Healthcheck Tools
  • Business-specific surveys
  • Understand how compliant you are
  • Checks in, GDPR, IP, Brexit and more
Resources, Webinars and Articles
  • Access to the latest LawBite events
  • Legal guides for businesses
  • Smarter business law videos