Employer of Record in the United Kingdom
- Fully compliant with UK employment law
- Hassle-free onboarding and employee support
- Reliable and timely payroll processing
Capital City
London
Currency
Pound sterling (£) (GBP)
Language
English
Population Size
69,138,192
Facts & Stats
Capital City
London
Currency
Pound sterling (£) (GBP)
Language
English
Ease of doing Business
Very Easy
Gross Domestic Product
$4.282 trillion
Working Hours
36 hours per week
Average Wage
£2,457 per month
Average Education Level
84% of adults aged 19–64 have a (NQF) level 2
United Kingdom, situated off the northwestern coast of mainland Europe, is renowned for its deep historical roots, iconic landmarks, and global cultural influence. It boasts a high quality of life, world-class education and healthcare systems, and a strong tradition of innovation and creativity. From the historic streets of London to the scenic landscapes of Scotland, Wales, and Northern Ireland, the UK stands as a hub of literature, music, and scientific achievement.
Capital City
London
Currency
Pound sterling (£) (GBP)
Language
English
Ease of doing Business
Very Easy
Gross Domestic Product
$4.282 trillion
Working Hours
36 hours a week
Average Wage
£2,457 per month
Average Education Level
84% of adults aged 19-64 have a (NQF) level 2
Why choose the United Kingdom
How EOR works in the UK
In the UK, businesses can hire talent as either employees or self-employed contractors.
For full-time employees:
- Employment is governed by a written contract.
- Employees are entitled to statutory rights such as minimum wage, sick pay, and holiday entitlement.
- Employers are responsible for payroll, taxes, and benefits contributions.
For contractors:
- Contractors are considered self-employed and manage their own tax contributions.
- There is no obligation to provide employee benefits.
- However, IR35 regulations may apply, impacting how contractors are taxed.
An EOR simplifies this process by becoming the legal employer, handling everything from contracts and payroll to taxes and compliance.
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Why businesses choose us
Discover why we’re the top choice for EOR services. Our comparison table showcases our unmatched support, compliance, and efficiency.
Our Competitors
What you can expect
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Decide between an EOR in the UK
or setting up a local entity
Choose the right UK EOR partner
Hire and onboard your UK employees
Run compliant UK payroll
The cost of EOR services in the United Kingdom
Taxes and payroll
Employee taxes (deducted from salary)
These are withheld by the employer through the PAYE (Pay As You Earn) system:
Tax Type | Earnings Range | Rate |
Income Tax | Up to £12,570 | 0% (Personal Allowance) |
| £12,571 – £50,270 | 20% (Basic Rate) |
| £50,271 – £125,140 | 40% (Higher Rate) |
| Over £125,140 | 45% (Additional Rate) |
National Insurance (Class 1) | Up to £12,570 | 0% |
| £12,571 – £50,270 | 8% |
| Over £50,270 | 2% |
Employer taxes
In the UK, employers are responsible for contributing to the following:
- Employer National Insurance Contributions (NICs)
Employers must pay 13.8% on employee earnings above £9,100 per year. NICs contribute to UK social security benefits, including the state pension, statutory sick pay, and maternity/paternity leave.
- Pension Auto-Enrolment
UK employers are legally required to enrol eligible employees into a workplace pension scheme and contribute a minimum of 3% of qualifying earnings (usually £6,240–£50,270 per year).
- Apprenticeship Levy
If your annual payroll exceeds £3 million, you must contribute 0.5% of your total payroll to the Apprenticeship Levy. Employers can access these funds to support training and apprenticeship programs.
- Statutory Payments
Employers must cover statutory sick pay, maternity, paternity, and adoption leave, though some of these costs can be reclaimed from HMRC depending on eligibility.
- Industry-Specific Obligations
Some industries may have additional compliance requirements or levies, such as in construction (CIS) or financial services, depending on the sector and nature of employment.
Types of payroll
When managing payroll in the UK, employers typically opt for one of four types:
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
In-house payroll
Outsourced payroll
Outsourced payroll involves a third-party provider managing all aspects of payroll, including calculations, payslips, tax deductions, and submissions to HMRC. It’s ideal for companies looking to reduce administrative burden and compliance risks. While efficient, it does mean relying on the accuracy and responsiveness of the external provider.
Umbrella company payroll
Umbrella payroll is commonly used for contractors and freelancers working through recruitment agencies. In this model, the umbrella company acts as the legal employer, handling tax, National Insurance, and payslips. It simplifies IR35 compliance but typically involves admin fees deducted from the contractor’s earnings.
PAYE via Employer of Record (EOR)
EOR payroll is ideal for foreign companies hiring UK talent without setting up a local entity. The EOR becomes the legal employer and takes care of payroll, tax compliance, contracts, and statutory benefits. It allows companies to hire quickly and compliantly while maintaining full control over day-to-day work.
Salary, compensation & benefits
National Minimum Wage: As of April 2025, workers aged 21 and over are entitled to a minimum of £12.21 per hour. (National Minimum Wage and National Living Wage rates – GOV.UK).
You can find an overview of the general salaries per industry below. (Jobted, 2025)
Sector/Industry | Average Annual Income (GBP) |
Engineering | £48,000 |
Construction | £44,500 |
Project Management | £57,500 |
Marine Engineer | £48,000 |
Electrical Engineer | £52,000 |
Nuclear Engineer | £52,500 |
IT | £38,490 |
HSE | £31,600 |
UK law requires businesses to offer a set of mandatory benefits, while many employers go beyond this by providing voluntary perks to stand out in a competitive hiring market. From pension schemes to flexible leave policies, understanding and designing a compliant and attractive benefits package is essential for any UK employer.
Key Employee Benefits in the UK:
- Pension Scheme (Mandatory): Auto-enrolment into a workplace pension is required.
- Healthcare: Access to the NHS is standard, but many companies offer private health insurance, including dental and vision care.
- Sick Pay: Employees are entitled to up to 28 weeks of Statutory Sick Pay, at a minimum of £116.75 per week.
- Holiday Leave: Full-time employees are entitled to 28 days of paid annual leave.
- Family Leave: Maternity leave provides up to 52 weeks off, with 6 weeks at 90% pay, followed by a statutory rate. Paternity leave offers 2 weeks with statutory pay.
- Financial Benefits: These may include bonuses, profit-sharing, and tax-advantaged stock options (SIP, SAYE, CSOP, EMI).
- Wellbeing Perks: Gym memberships, mental health support, cycle-to-work schemes, and employee assistance programs (EAPs) are becoming increasingly common.
State pension
The State Pension is a government-provided benefit available to individuals who have made at least 10 years of National Insurance contributions. To receive the full amount, 35 qualifying years are required. As of 2024, the full weekly State Pension is £221.20. Payments begin once you reach State Pension age, which is currently 66.
Workplace pensions
Under the auto-enrolment scheme, UK employers must enrol eligible employees into a workplace pension. A minimum of 8% of qualifying earnings must be contributed, with at least 3% from the employer. Contributions are invested and provide income after retirement, alongside the State Pension.
Personal Pension
Personal pensions are set up by individuals, often used by self-employed workers or those wanting to boost their retirement savings. These schemes allow flexible contributions and benefit from tax relief.
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In the UK, probation periods are commonly used at the start of employment, typically lasting between 3 to 6 months, though this can vary by contract. During probation, notice periods are usually shorter, and employers can assess an employee’s suitability for the role.
For termination, the UK follows statutory notice periods, starting at 1 week’s notice after one month of employment, increasing with length of service. Employees with over 2 years of service gain protection from unfair dismissal and are entitled to a valid reason and fair procedure. Employers must also comply with notice requirements, holiday pay calculations, and final salary settlements.
UK working laws are governed by the Working Time Regulations 1998, which set limits on working hours and ensure fair conditions. Employees typically work 37 to 40 hours per week, with a maximum average of 48 hours, unless they opt out.
Workers are entitled to 11 hours of rest in every 24-hour period, a 20-minute break if working more than 6 hours, and at least one day off per week. Full-time employees also receive 5.6 weeks (28 days) of paid annual leave, including public holidays. Employers must clearly outline working terms and ensure legal compliance.
Annual Leave
Employees are legally entitled to a minimum of 5.6 weeks (28 days) of paid annual leave per year, for full-time workers.
Sick Leave
Employees who are too ill to work may be eligible for Statutory Sick Pay (SSP), currently set at £116.75 per week (Statutory Sick Pay (SSP) : Overview – GOV.UK), for up to 28 weeks. To qualify, employees must earn at least £123 per week and have been off sick for four or more consecutive days. Many employers offer enhanced sick pay schemes beyond the statutory minimum.
Maternity Leave
Pregnant employees are entitled to up to 52 weeks of maternity leave, divided into 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. The first 6 weeks are paid at 90% of the employee’s average earnings, followed by either 90% or £184.03 per week (whichever is lower) for the next 33 weeks. The remaining 13 weeks are unpaid.
Paternity Leave
Eligible fathers or partners can take up to 2 weeks of paternity leave, usually paid at £184.03 per week or 90% of average weekly earnings, whichever is lower. This must be taken within 56 days of the child’s birth or adoption.
Public Holidays
There are usually 8 public holidays in England and Wales (with variations in Scotland and Northern Ireland). These are not automatically paid days off but are often included in employment contracts or counted as part of statutory annual leave.
Equal Treatment
It is unlawful to discriminate against employees based on age, gender, race, religion, disability, sexual orientation, or other protected characteristics. These protections are outlined in the Equality Act 2010.
Health and Safety
Employers have a legal duty to provide a safe and healthy working environment under the Health and Safety at Work Act 1974. This includes risk assessments, access to safety equipment, and proper training.
Trade Union and Collective Bargaining
Employees have the right to join a trade union, participate in collective bargaining, and take part in industrial action, as long as it is done lawfully.
Whistleblower Protection
The Public Interest Disclosure Act 1998 protects whistleblowers from dismissal or retaliation for reporting wrongdoing in the workplace. These protections apply when concerns are raised in good faith about health and safety risks, environmental damage, or unlawful activity.
Employee rights
In France, employees enjoy comprehensive rights under national labor law, ensuring favorable work conditions across several key areas:
Equality and Non-Discrimination: French labor law mandates equal treatment in the workplace, particularly concerning gender equality.
Leave Entitlements: Employees are entitled to various types of leave, including maternity, paternity, and family-related leaves.
Working Conditions: Regulations ensure proper work hours, rest periods, public holidays, and entitlement to paid annual leave.
Health and Safety: Stringent standards are upheld to maintain workplace health and safety.
Collective Rights: The law supports collective workplace freedoms, including the right to strike.
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Skilled Worker visa
The most common visa for foreign workers, this route is for individuals sponsored by a UK employer for a specific job role. Applicants must meet the salary threshold (£38,700) and prove English language proficiency. The employer must hold a valid Skilled Worker sponsor licence.
Global business mobility
This visa is for employees being transferred to a UK branch of an international company. It replaces the former ICT (Intra-Company Transfer) route and is suitable for senior staff or specialists. Minimum salary thresholds apply (£45,800 as of 2024), and the assignment must be temporary.
Graduate visa
International students who have completed a degree in the UK may stay and work, or look for work, for up to 2 years after graduation (3 years for PhD graduates). No employer sponsorship is required for this visa.
Scale-up visa
This visa allows fast-growing UK companies (scale-ups) to sponsor highly skilled individuals. Initially, employer sponsorship is required, but after 6 months the employee can switch to an unsponsored route. The minimum salary is £36,300 per year.
Start-up/Innovator visa
For entrepreneurs establishing UK-based businesses.
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The benefits of global EOR
Ensure Full UK Compliance
We help you navigate the UK’s employment laws, tax regulations, and reporting requirements with confidence. Our local compliance expertise reduces legal risk and ensures your workforce is aligned with national standards.
Reduce Operational Overhead
Eliminate the cost and complexity of setting up a UK legal entity. Our EOR service lets you hire talent directly without the administrative burden, saving time and resources.
Accelerate UK Market Entry
Speed matters in technical sectors. With our EOR model, you can hire and onboard talent quickly, helping you launch projects and operations in the UK without delay.
Access Top Industry Talent
Whether you need offshore engineers, renewables experts, or project consultants, our EOR solution gives you immediate access to the UK’s highly skilled talent pool and beyond.
Stay Focused on Core Projects
We handle payroll, contracts, and local employment matters, so your team can stay focused on what truly matters: executing energy projects and driving growth.
Scale Workforce with Flexibility
Our EOR service allows you to scale your team up or down in line with project demands, without the long-term obligations of traditional hiring.
Minimise Risk Exposure
From Brexit-related regulatory shifts to sector-specific employment risks, our UK EOR experts help you stay protected in a changing landscape.
Simplify Payroll & Benefits
We manage payroll, statutory contributions, and employee benefits under UK regulations, ensuring your people are paid accurately and on time, no matter where they’re based.
Reliable HR Support
Gain ongoing HR support tailored to the UK market. Whether it’s contract updates, employee relations, or policy guidance, we’ve got your back.
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of our experts →
How to get started, step-by-step
No need to limit your growth
We can assure a compliant legal entity for your business to grow in the country of your choice.
Discovery & Workforce Planning
Tailored EOR Setup
Seamless Onboarding
Ongoing HR & Payroll Support
Continuous Optimisation
EOR to help you grow in the UK
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