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With the US being home to the world’s largest staffing market, it’s no surprise that many UK recruitment agencies are heading stateside to tap into new opportunities. If you're one of them, here are some key employment law differences to keep in mind as you expand across the pond.
US: Most states follow at-will employment, meaning employers or employees can terminate the relationship at any time, for any lawful reason, with or without notice.
UK: Employees are typically entitled to statutory notice periods (e.g. one week after one month of employment, increasing with tenure). Dismissal must follow a fair process after the first two years of service.
US: Not always required. Many employers operate with offer letters and at-will disclaimers. Contracts are typically reserved for executives or union roles.
UK: A written statement of employment particulars is required by law from day one, outlining key terms like pay, working hours, and holiday entitlement.
US: The distinction between employee vs contractor is defined by IRS tests (e.g. control, independence). Misclassification can lead to fines and back taxes.
UK: There are three legal categories: employee, worker, self-employed and contractor. Each has different rights, especially around holiday pay and minimum wage.
US: Employees are not usually paid for statutory holidays or vacation time, however, many companies do offer some paid vacation. They do receive PTO in many states ranging from 30 hours + per year for reasons such as sick/illness for themselves or a family member, bereavement, or violence offenses. Benefits such as healthcare and 401(k) are widely offered.
UK: Employees are entitled to:
28 days paid holiday (including public holidays)
Statutory Sick Pay (SSP)
Parental leave and shared parental pay
Pension contributions under automatic enrolment
US: Governed by federal laws like Title VII, Americans with Disabilities Act (ADA), and Age Discrimination in Employment Act (ADEA), plus state laws. Claims often go through the Equal Employment Opportunity Commission (EEOC).
UK: Covered by the Equality Act 2010, which protects against discrimination based on protected characteristics. Claims go to an employment tribunal.
US: No maximum working hours, though overtime (usually 1.5x pay but in some states, this is double pay for longer hours) must be paid for non-exempt employees under the Fair Labor Standards Act (FLSA).
UK: Capped at 48 hours per week (average over 17 weeks) under the Working Time Regulations, unless the employee opts out.
US: Unless discrimination or retaliation is involved, terminations don’t require specific procedures. Severance is not legally required but may be offered.
UK: Employers must follow fair dismissal processes, including reasons such as misconduct, redundancy, or capability. Failure to do so may result in claims for unfair dismissal.
| US | UK | |
|---|---|---|
| Employment type | At-will | Requires notice + fair dismissal |
| Written contract | Not always required | Legally required from day one |
| Paid vacation | Not mandated federally | 28 days statutory minimum |
| Sick leave | PTO as above | Statutory Sick Pay |
| Healthcare | Widely offered but varying types of plans available which are Employer-dependent | NHS covers most healthcare |
| Working hours | No cap; OT for non-exempt roles | 48-hour average cap (opt-out allowed) |
| Work categories | Employee/ Independent contractor | Employee/ Worker/ Self-employed |
| Termination protections | Limited unless illegal | Stronger protection after 2 years |
Tailor employment agreements to meet each country’s legal standards.
The amount of PTO, overtime rules, like UK auto-enrolment pensions or US state-level PTO laws.
An Employer of Record (EOR) or local legal partner can help stay compliant.
Our team of experts have got you covered, get in touch for further information.
