What Is PAYE? 2026: How Pay As You Earn Works Explained
Pay As You Earn (PAYE) is HMRC’s statutory system for collecting Income Tax and National Insurance contributions (NICs) from employment income through payroll. For employers, PAYE is not optional administration. It is a legal obligation that sits at the centre of payroll governance, HR risk management and financial compliance under UK employment law. When PAYE […]
Payment in Lieu of Notice 2026 | Meaning & When It’s Used
Payment in Lieu of Notice (PILON) is an operationally attractive option for employers because it allows an exit to be executed quickly. It is also a legally sensitive decision, because PILON interacts with contract rights, tax treatment and litigation risk. Used correctly, it supports clean exits and risk control. Used casually, it can trigger avoidable […]
UK Minimum Wage 2026: Current Rates & Employer Duties
Section A: Overview of Minimum Wage 2026 By law, employers are required to meet specific obligations in relation to workers’ pay under the National Minimum Wage provisions. 1. What is the National Minimum Wage? The UK National Minimum Wage (NMW) is the legally mandated hourly wage that employers should pay their […]
SSP Rate 2026: Guide for Employers
Section A: SSP Rate in 2026 Statutory Sick Pay is the legal baseline for sick pay in the UK, but for employers it is rarely just a payroll figure. SSP sits at the point where pay, absence management and legal risk meet. Errors tend to surface not because the rules are unknown, but […]
UK National Minimum Wage 2026: Current Rates & Legal Rules
The National Minimum Wage is one of the most actively enforced areas of UK employment law. For employers, it is not simply a question of paying the correct headline hourly rate. Compliance depends on correct classification of workers, accurate calculation of working time, lawful treatment of deductions and charges and robust payroll controls that can […]
Pensions Act 2008: Employer Duties Guide
The Pensions Act 2008 established the modern legal framework for workplace pensions in the UK. It introduced a compulsory system of automatic enrolment (often referred to as auto enrolment), shifting responsibility onto employers to ensure their workers have access to, and are saving through, a workplace pension. For HR professionals and business owners, the Act […]
Tronc Systems: UK Employment Law Guide
A tronc is a formal system for collecting and distributing tips, gratuities and service charges to workers, usually in hospitality or service-led businesses. Although common in restaurants, bars, hotels and venues, a tronc carries specific legal and tax requirements that employers must understand. A properly run tronc can deliver meaningful benefits for workers while offering […]
Employment (Allocation of Tips) Act 2023: An Employers Guide
The Employment (Allocation of Tips) Act 2023 represents a significant reform in the treatment of tips, gratuities and service charges within UK workplaces where tipping is customary. The Act, which came fully into force on 1 October 2024, is designed to ensure that qualifying tips over which employers have control or significant influence are passed […]
Time Off in Lieu: Employer Legal Guide
Time off in lieu (TOIL) is widely used across UK workplaces to manage peaks in operational demand, reduce overtime costs and support flexible working arrangements. When administered properly, TOIL can provide employees with valued additional time away from work and help employers manage staffing levels more effectively. When administered poorly, TOIL becomes a significant compliance […]
Failure to Pay Employees: Employer Guide
Failure to pay employees correctly or on time is a serious breach of UK employment law. Every worker has the right to receive the full amount they are owed on the date their pay is due. When this obligation is not met, employers face legal exposure, disruption to workplace relations and a rapid loss of […]