2026 UK Employment Law Changes

Scottish employment practice built in

Outsourced HR & HR consultants in Edinburgh

council grant for some new hires
£10,000
grant applications close
15 Mar 2027

Infinity HR is an outsourced HR and HR consultancy service for Edinburgh employers, delivered by phone and video. Employing people in Scotland is not quite the same as in England — different holiday dates, Fair Work conditions on public grants and council hiring incentives. We build that into your contracts, policies and processes for a fixed monthly fee.

Outsourced HR & HR consultants in Edinburgh
UK Regulated
Fully compliant

Key numbers for employers here

median full-time weekly pay, local jobs (2025)
£833.40
£773.80 across Scotland
ONS ASHE 2025 (Nomis)
of local employee jobs: finance and insurance (2024)
11.4%
3.4% across Scotland
ONS BRES (Nomis)
accredited Living Wage employers in the city (Nov 2025)
790
employing over 221,000 workers
City council

Employer dates to plan for

  • 4 January 2027 Scottish bank holiday (substitute for 2 January, a Saturday). (GOV.UK)
  • 15 March 2027 Applications close for the council's £4,000–£10,000 hiring incentive. (city council)
  • 31 March 2027 Hiring-incentive funding period ends. (city council)
  • 1 May 2027 Deadline for accredited employers to apply the new £14.10 real Living Wage. (Living Wage Foundation)

What employers in Edinburgh should know

Scheme you can use

A council grant of up to £10,000 for some new hires

If you are hiring, the council's Employer Recruitment Incentives can pay your business £4,000 to £10,000 towards filling a new job or vacancy on a permanent contract, depending on weekly hours.

The person must be an Edinburgh resident (postcodes EH1–EH17 and EH28–EH30) aged 16 to 67 who is disabled or D/deaf and unemployed, or at risk of long-term unemployment and receiving a reserved benefit, and the job must pay the real Living Wage for at least 10 hours a week (they must be out of work when you apply).

Funding runs from 1 April 2026 to 31 March 2027 on a first-come basis, with priority for private SMEs and third-sector organisations; applications close on 15 March 2027, and your application must be approved before the new employee starts. We can draft the contract, plan onboarding and advise on reasonable adjustments for the role.

Source: City of Edinburgh Council

Planning a funded hire? We can draft the contract and plan the onboarding.

Scheme you can use

Fair Work First conditions on Scottish business grants

If you apply for Scottish public-sector grants, expect to show that you pay the real Living Wage and have a channel for workers' voice; we can draft both policies. The Scottish Government's Fair Work First guidance (published 18 November 2024) attaches real Living Wage and effective workers' voice conditions to public-sector grants.

Source: gov.scot — Fair Work First

Holiday policies and rotas for Scottish staff

If your holiday policy or rotas came from an English template, check the dates. In Scotland, 2 January and St Andrew's Day (30 November) are bank holidays, or a substitute weekday when they fall at a weekend (2 January 2027 moves to Monday 4 January), the summer bank holiday falls on the first Monday in August, and Easter Monday is not one.

Source: GOV.UK — bank holidays (Scotland)

Competing with Living Wage employers for staff

If you are not yet accredited, check your lowest hourly rates against the real Living Wage (£14.10 an hour for 2026–27, announced on 15 October 2026; accredited employers must apply it by 1 May 2027): the council reported in November 2025 that 790 accredited Living Wage employers employ over 221,000 workers across the city.

Financial and insurance services provide 11.4% of employee jobs here (2024) against 3.4% across Scotland, so banks and insurers are a much larger part of the local job market than across Scotland as a whole; if you recruit for roles they also hire for, expect to compete with them on pay and benefits for those candidates.

Sources: City of Edinburgh Council · Living Wage Foundation · ONS BRES (Nomis)

If you face a claim

Facing a claim or planning redundancies

Employment Tribunal hearing venue

54–56 Melville Street, EH3 7HF

View on map

Staff claims against your business can be heard in the city at 54–56 Melville Street (EH3 7HF), but GOV.UK's write-to address for the Edinburgh tribunal is the Glasgow Tribunals Centre, 20 York Street, Glasgow G2 8GT, so check where any tribunal paperwork has to be sent. If you are planning a redundancy, PACE, set up by the Scottish Government and led by Skills Development Scotland, offers free support to employers of any size alongside the HR process we run for you.

Sources: GOV.UK — Edinburgh Employment Tribunal · Skills Development Scotland — PACE

Facing a claim or a redundancy? Get advice before you reply or announce anything.

Setting salaries in Edinburgh

Start from the city's own pay level, not a Scottish figure, when you set salaries or review a pay structure: ONS data for 2025 shows full-time jobs based here paying a median £833.40 a week gross, against £773.80 across Scotland.

Source: ONS ASHE 2025, workplace-based (Nomis)

We also work with employers nearby

FAQ

Common questions

Can't find what you're looking for? Our team is happy to answer any other questions.

Where can Edinburgh employers get HR advice on a funded or Living Wage hire?
From your dedicated, CIPD-qualified consultant by phone and video: we check a new role against the council's recruitment incentive rules and the real Living Wage before you offer it, and the 24/7 line covers urgent questions. The first consultation is free.
What HR does an Edinburgh start-up need for its first hire?
A written statement of terms by day one, right-to-work checks before the start date, pension auto-enrolment, a short employee handbook and a probation plan. We set those up for a fixed monthly fee by headcount, with no lock-in.
Which parts of HR can you run for an Edinburgh business?
Funded hires through the council's incentive, payroll administration, sickness and capability cases, employee relations and exits, with Scottish holiday dates built into your policies; most clients are up and running in two days.
Can you set up our HR for Scottish employment practice?
Yes. Most UK employment law applies in Scotland too, but employers here deal with different holiday dates, Fair Work First conditions, PACE for redundancies and local recruitment incentives. We build those into your policies rather than giving you an English template.

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