Employer of Record (EOR) in United Kingdom

Hiring employees in the United Kingdom means navigating complex local labor laws, payroll regulations, and tax requirements. Utilizing an employer of record, companies can easily manage employee regulations in the UK. The employer of record (EOR) model simplifies this process, allowing your company to hire talent in minutes.

G-P EOR manages payroll, employment contract best practices, statutory and market norm benefits, and employee expenses, and more via our global entity infrastructure. You can count on our team of dedicated employment experts to provide comprehensive support for every hire. 

With an EOR, you can focus on expanding without the obstacles of international compliance. This international approach enhances business reach and scalability by enabling hiring worldwide without a local entity.

Hiring in the United Kingdom with an employer of record

Engaging talent in the United Kingdom requires navigating a sophisticated legal framework. Partnering with a UK employer of record simplifies these complexities. Key considerations include:

• Employment classification: The UK has distinct legal categories for employees, workers, and self-employed contractors, each with different rights and employer obligations. Misclassification can lead to significant penalties.
• Competitive benefits: Offering robust benefits packages, including private health insurance and enhanced pension contributions, is crucial for attracting and retaining top talent in a competitive market.
• Non-compete clauses: UK courts scrutinize restrictive covenants. There's no statutory maximum length for non-compete clauses.
• Termination: UK employment is not “at-will.” Terminating an employment contract requires a fair and legally sound process to mitigate the risk of unfair dismissal claims.

G-P EOR simplifies UK hiring by managing employment classification, benefits, non-compete clauses, and terminations. G-P EOR administers compliant and competitive benefit packages, including statutory and market-norm options. It also ensures employment contracts, like non-compete clauses, are legally enforceable and provides expert guidance on compliant termination and redundancy procedures, minimizing legal risks.

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Employment contracts in the United Kingdom with an employer of record

In England, Wales, and Scotland, you must provide employees and workers with the principal “written statement of particulars of employment” by their first day. Northern Ireland allows two months. While this covers the basic terms, a comprehensive employment contract is the market standard for professional roles.

An EOR ensures that all contracts are fully compliant with UK law, drafted to protect your intellectual property, and include necessary clauses on confidentiality and data protection. An offer letter and employment contract in the UK must always state the salary and any compensation amounts in British pounds (GBP).

Working hours in the UK

While employers can set daily working hours, 1998 Working Time Regulations limit the average work week in Great Britain to 48 hours (typically over 17 weeks). Opt-outs and longer reference periods sometimes apply. Specific rules, agreements, sector exceptions, or an individual opt-out may affect this limit. It is common practice for employees to voluntarily sign an “opt-out” agreement, permitting them to work beyond this limit.

A UK employer of record ensures compliant management of public holidays and vacations by administering statutory (28 days paid leave including public holidays) and market-norm leave. They manage regional public holiday variations, calculate pro-rata entitlements for part-timers, and stay updated on UK employment law changes.

Public holidays in the UK

In 2025, England and Wales observe 8 bank holidays:

• New Year's Day (January 1)
• Good Friday (April 18)
• Easter Monday (April 21)
• Early May Bank Holiday (May 5)
• Spring Bank Holiday (May 26)
• Summer Bank Holiday (August 25)
• Christmas Day (December 25)
• Boxing Day (December 26)

Scotland and Northern Ireland have slight variations in their public holiday schedules.

Vacation days in the UK

Full-time employees are legally entitled to at least 5.6 weeks of paid annual leave per year. For someone working five days a week, this equals 28 days. This statutory vacation entitlement can include public or bank holidays. However, the market norm is to offer 20 to 25 days of vacation in addition to the 8 public holidays. Senior-level employees often negotiate for up to 30 days of vacation plus public holidays. Part-time employees are entitled to a pro-rata equivalent.

UK sick leave and Carer's Leave

Employees are eligible for Statutory Sick Pay (SSP) for up to 28 weeks from the first qualifying day of sickness absence. Since April 2026, employers pay GBP 123.25 per week, or 80% of normal weekly earnings if lower. A doctor's “fit note” is required for absences exceeding seven days. Most employers offer contractual sick pay benefits that are more generous than the statutory minimum.

Additionally, employees in England, Scotland, and Wales are entitled to up to one working week of unpaid Carer’s Leave per year to care for (or arrange care for) a dependent with a long-term care need. The entitlement is one week per employee, and the leave can be taken as half-days, full days, or a whole week. This doesn't automatically apply in Northern Ireland, which has separate employment legislation.

Maternity, paternity, and parental leave in the UK

A UK EOR ensures compliant management of paternity leave by staying updated on UK employment laws, calculating accurate paternity pay, and administering the leave process. They help businesses understand eligibility requirements, duration of leave, and statutory pay rates, ensuring adherence to the legal framework for paternity leave. This minimizes legal risks and administrative burdens for the employer.

The UK offers a comprehensive system of family leave, which includes extended redundancy protections for pregnant employees and those on family leave. Birthing parents get up to 52 weeks of maternity leave: 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. They must take at least two weeks’ compulsory leave after childbirth (four weeks for factory workers). This is part of the 52-week entitlement.

Statutory Maternity Pay (SMP) is payable for up to 39 weeks: 90% of average weekly earnings for the first six weeks, then GBP 194.32 per week or 90% of average weekly earnings, whichever is lower, for the next 33 weeks.

In England, Scotland, and Wales (rules in Northern Ireland differ), eligible employees can take one or two weeks of statutory paternity leave. These can be taken together or in separate one-week blocks. Eligible parents can share up to 50 weeks of Shared Parental Leave (SPL) and 37 weeks of Statutory Shared Parental Pay. These are combined totals, reduced by maternity or adoption leave and pay already taken. Similar provisions apply for adoption.

Health insurance and supplementary benefits in the UK

A UK EOR helps companies with health insurance and benefits by managing National Insurance Contributions for public healthcare, sourcing and administering competitive private supplementary benefits (like medical, dental, income protection, and life insurance) to meet professional expectations, and ultimately attracting and retaining UK talent.

Public healthcare is funded through National Insurance Contributions (NICs). Employers are required to contribute to this system. The secondary employer contribution is 15% on earnings above the GBP 5,000. While the National Health Service (NHS) provides comprehensive care, private supplementary benefits are a common expectation for professional roles. Highly valued benefits include private medical and dental insurance, income protection, and life insurance.

Pension plans in the UK

A competitive pension plan is one of the most important benefits for UK employees. Under the government's auto-enrolment scheme, employers must provide a workplace pension. The total minimum contribution is 8% of qualifying earnings, including at least 3% from the employer.

The employee normally funds the balance, including pension tax relief. Where relief at source applies, that 5% is usually 4% deducted from pay plus 1% tax relief. Many employers offer enhanced contributions above the statutory minimum to create a more attractive compensation package. 

A UK Employer of Record (EOR) ensures compliant workplace pension auto-enrolment, managing employer contributions (min. 3%) and the overall 8% minimum (including employee and tax relief). EORs also facilitate enhanced pension offerings to attract UK talent.

Bonuses in the UK

Bonus plans in the UK can be contractual or discretionary. Whether linked to individual, company, or team performance, it is best practice to have a clear, written policy to manage expectations and ensure fairness. An EOR can provide guidance on structuring competitive and compliant bonus schemes.

Termination and severance in the UK

Employers must provide notice to terminate an employment contract. The required notice is the longer of the statutory period or the contractual period. Statutory minimum notice from an employer is based on length of service. There's no minimum under one month. Between one month and two years, employees receive one week. After that, they receive one week for each complete year, up to 12 weeks.

Longer contractual notice may apply. Contractual notice is typically one month for junior roles and three months or more for senior positions. If an employee is made redundant after at least two years of continuous service, they are entitled to statutory redundancy pay. The calculation is based on age and length of service (capped at 20 years):

• 0.5 week’s pay for each complete year of service when aged under 22
• One week’s pay for each complete year of service when aged 22–40
• 1.5 weeks’ pay for each complete year of service when aged 41 or over

A statutory cap applies to the weekly pay used for this calculation. It is GBP 751 in England, Wales, and Scotland from April 6, 2026. Northern Ireland has separate limits. Navigating UK termination and redundancy laws is a significant compliance risk. An EOR provides expert guidance to ensure all procedures are fair, compliant, and minimize risk.

UK payroll and taxes

Employers in the UK are responsible for withholding income tax and both employer and employee National Insurance Contributions from salary payments under the Pay As You Earn (PAYE) system. This involves complex calculations and regular reporting to His Majesty's Revenue and Customs (HMRC). An EOR manages UK payroll and tax compliance, ensuring your team is paid correctly and on time while removing the administrative burden from your company.

How to select the right UK employer of record 

Choosing the right EOR partner is critical to your success in the UK. The right partner helps you navigate a complex market, hire talent quickly, and grow your business with confidence.

As you evaluate EORs, consider these key factors for UK expansion.

• UK compliance expertise Your EOR must have deep, localized knowledge of UK employment law. This includes navigating Pay As You Earn (PAYE) tax regulations, National Insurance contributions, statutory benefits like pensions auto-enrolment, and complex post-Brexit right-to-work verification. Their expertise ensures you mitigate risk and maintain full compliance.
• In-country owned entity Does the EOR operate through its own legal entity in the UK or rely on third-party partners? An employer of record with a wholly owned entity provides direct control over compliance, payroll, and data security. This model eliminates the risks and communication delays that can occur when your partner outsources critical HR functions, offering greater stability and a seamless experience for your UK team.
• Comprehensive service and support Look for a partner that manages the entire employee lifecycle, from compliant onboarding to payroll and benefits administration. Ensure they have a dedicated team of UK-based HR and legal experts available to provide guidance on complex issues and support your team in their local time zone.
• A unified technology platform A powerful global employment platform gives you real-time visibility into your UK operations. It simplifies payroll, streamlines HR tasks, and provides a consistent, high-quality experience for your employees, helping you manage your UK team with greater efficiency. Look for employer of record technology that utilizes AI to automate key workflows and provide up-to-date information on labor law changes.
• Scalability for UK growth The UK has a highly competitive talent market. Your EOR partner must be able to scale with you, whether you are hiring your first employee or building a large team. A scalable solution allows you to onboard talent quickly and grow without delays.
• Proven UK experience Choose an EOR with a strong, verifiable track record in the UK. Look for positive customer testimonials and case studies that demonstrate their expertise in the market and their ability to support companies like yours.
• Transparent, flat-rate pricing: Evaluate total cost predictability rather than low base rates. Look for standard, clear pricing models. Compare pricing structures carefully, as some EORs use percentage-of-payroll models that penalize high earners. Flat-rate pricing ensures long-term operating budget accuracy. The G-P EOR starting price of USD 599 monthly gives you full access to the G-P Global Employment Platform. We use a flat platform fee rather than charging a percentage of payroll.

Why G-P EOR for hiring in the United Kingdom?

G-P EOR is the recognized leader in global employment, ranked No. 1 in every industry analyst report. G-P’s global employment platform delivers everything companies of all sizes need to manage the full employee lifecycle with its trusted Global HR Agent, G-P Gia, and AI-powered Employer of Record (EOR) and Contractor products. G-P supports teams in 180+ countries with more than a decade of global employment experience, the largest team of in-country HR, legal, and compliance experts, and its unmatched proprietary knowledge base.

G-P is also the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while guaranteeing consistent and accurate data across your integrated systems.

Request a proposal today to start hiring in the UK today.

UK EOR FAQs