Employer of Record in United Kingdom
Hiring in United Kingdom at a glance
- The guide explains how a UK Employer of Record assumes statutory employer obligations including PAYE, NICs, and pension auto-enrolment without requiring a client entity.
- It compares four hiring paths—EOR, own entity, PEO, and contractor—across setup time, compliance ownership, cost structure, and suitability by team size.
- UK employment law obligations covered include Right to Work checks, IR35 misclassification risk, statutory leave entitlements, and recent legislative changes through April 2026.
- The guide details a six-step EOR hiring process from provider selection through offboarding, alongside criteria for evaluating provider quality and pricing transparency.
A UK Employer of Record acts as the legal employer on record, managing PAYE, National Insurance Contributions, and statutory obligations on behalf of the client company. With approximately 4.2 million remote workers in the UK, compliant entity-free employment has become a practical priority for companies entering the market, particularly given that EOR hiring typically takes two to four weeks compared to the four to eight weeks or more required to establish a local entity before payroll can run.
UK employment law imposes several compliance obligations that employers must address from the outset. Right to Work checks are mandatory and must be completed before an employee begins work on day one. Employer NICs are charged at 15 percent on earnings above the secondary threshold of approximately $6,814 (£5,000) per employee per year, and statutory notice periods begin at one week after one month of continuous service and increase with tenure. Additional considerations include IR35 misclassification risk and visa requirements, all of which apply regardless of which Employer of Record provider is used.
What Is an Employer of Record in the United Kingdom?
A UK Employer of Record signs the employment contract, registers with HMRC, and assumes all statutory employer obligations under UK employment law, including PAYE, NICs, and pension duties. The EOR is the legal employer of record for statutory purposes only.
The client company retains full responsibility for directing daily work, setting performance expectations, managing performance reviews, and running disciplinary processes. The EOR does not manage or direct the employee's work on behalf of the client.
Foreign companies use a UK EOR to employ UK-based talent without holding a registered UK entity or a sponsor licence. For a full explanation of the model, see how does EOR work.
Your Hiring Options in the United Kingdom: EOR vs. Entity vs. PEO vs. Contractor
Companies hiring in the UK can choose from four paths: setting up their own entity, using an Employer of Record, engaging a PEO, or contracting with independent contractors. The table below is a decision-support reference. Each path suits different team sizes, timelines, and risk profiles.
Note that a PEO requires an existing UK entity. If you do not already have one, the PEO path is not available to you without first completing entity setup. Explore Gloroots EOR services to see how entity-free employment works in practice.
| Path | Setup Time | Compliance Ownership | Cost Structure | Best For |
|---|---|---|---|---|
| EOR | 2 to 4 weeks | EOR provider | Monthly per-employee fee | Market entry, small teams, speed-to-hire |
| Own Entity | 4 to 8 weeks or more | Employer | High upfront and ongoing costs | Large-scale, long-term UK operations |
| PEO | Varies; requires existing UK entity | Shared between employer and PEO | Monthly per-employee fee plus entity costs | Companies with a UK entity needing HR support |
| Contractor (IR35-aware) | Fast, but high compliance risk | Employer assesses IR35 status | Lower short-term cost, high risk exposure | Genuinely independent, project-based work only |
IR35 rules require the hiring company to assess whether a contractor relationship is, in substance, employment. Roles that look like employment carry significant tax and penalty exposure if misclassified.
How to Hire in the United Kingdom Through an EOR: Step by Step
Hiring through a UK EOR follows six steps, from the initial decision to use an EOR through to managing offboarding and exit when employment ends. Each step below has an action-led heading so you can track progress against a clear checklist.
Step 1: Decide Between EOR and Direct Entity
Assess team size, market commitment, and IR35 exposure. If you are hiring fewer than 10 employees or testing the UK market, an EOR is typically faster and lower-risk than entity setup.
Step 2: Vet and Select a UK EOR Provider
Verify the EOR holds its own UK entity rather than relying on a partner network. Check the onboarding SLA in working days, confirm data security certifications, and review third-party ratings before signing.
Step 3: Draft and Issue a Compliant UK Employment Contract
The contract must cover role, salary in GBP, working hours, probation period, notice terms, and statutory entitlements. Non-compete clauses require careful drafting; UK courts apply a reasonableness test, and a proposed 3-month cap is under consideration.
Step 4: Complete Pre-Employment Checks and Onboarding Registration
Complete a Right to Work check before Day One. Collect the employee's National Insurance number and P45 or HMRC starter checklist, then register under PAYE and auto-enrol in the pension scheme.
Step 5: Run Compliant UK Payroll
Run monthly payroll, deduct income tax and NICs via PAYE, and submit RTI reports to HMRC each cycle. Most UK employers pay on the 25th to 30th of the month or the last working day. Scotland applies different income tax bands.
Step 6: Manage Offboarding and Exit
Serve statutory or contractual notice, calculate final pay including accrued holiday, and issue a P45. Submit the final RTI report to HMRC, close pension contributions, and retrieve company property.
How to Choose the Right EOR in the United Kingdom
Six criteria separate a reliable UK EOR from a partner-dependent or under-resourced provider. Evaluate each before signing a contract. These criteria apply to any provider you consider, including Gloroots.
Not every EOR operates the same way in the UK. Some subcontract employment to local partners, which adds cost, slows payroll, and reduces accountability. Others lack direct HMRC registration, creating compliance gaps that fall on your business to resolve.
Use the criteria below to assess any provider. For a broader comparison across global providers, see our guide on the best employer of record options available today.
- Owned UK entity: Confirm the EOR holds its own registered UK entity, not a subcontracted partner.
- Direct HMRC registration: The EOR should manage PAYE, NICs, and RTI filings under its own registration.
- Pension governance: Verify the EOR administers auto-enrolment and manages contributions directly.
- Contract compliance: Contracts must meet UK statutory minimums and reflect current employment law.
- IR35 management: The EOR should have a clear process for contractor classification and risk mitigation.
- Pricing transparency: Fees should be fixed and country-specific, with no hidden partner charges.
Local Legal Knowledge and Owned UK Entity
Verify the EOR holds its own registered UK entity rather than subcontracting to a local partner. Owned-entity providers have direct HMRC registration, faster payroll processing, and no hidden partner fees.
Onboarding Speed and SLA Transparency
Ask for the onboarding SLA in working days. Leading providers complete onboarding within 8 to 14 working days from contract signing to first payroll-ready status. Vague timelines are a red flag.
Data Security and UK GDPR Compliance
Under UK GDPR, the EOR is typically the data controller for employment data. A Data Processing Agreement between the EOR and the client company is required. Employees must receive a privacy notice on or before Day One.
Confirm the EOR holds ISO 27001 certification and can demonstrate a lawful basis for processing employee personal data under UK GDPR and the Data Protection Act 2018. Request their data retention policy in writing.
IP Protection Mechanisms
Confirm the EOR includes IP assignment clauses in UK employment contracts. These clauses ensure all work product created by the employee is contractually assigned to the client company, not the EOR.
Pricing Transparency and Fee Structure
Compare flat monthly fees per employee against percentage-of-payroll models. Ask what each covers: payroll, compliance, benefits administration, and pension. For more detail on fee structures, see our guide on employer of record cost.
Partner-dependent providers may add third-party surcharges not included in the headline rate. Review Gloroots' country-specific fees on the pricing page before finalising your budget.
Support Model and Integration Capability
Assess whether the EOR offers dedicated account management, HRIS integration, and a self-service portal. Check G2 and Trustpilot for verified client feedback before committing.
Workforce and Talent Pool in the United Kingdom
The UK has approximately 34 million active workers, with a median age of around 40. Over 50% hold tertiary qualifications, producing strong pipelines in STEM, finance, and the creative industries.
Around 4.2 million people in the UK work remotely, reflecting how widely distributed and flexible the workforce has become since the pandemic. Hybrid work is now standard practice across most sectors.
London leads in fintech and AI. Cambridge and Oxford concentrate biotech and R&D talent. Manchester and Edinburgh are established hubs for technology and financial services.
UK workplaces value fairness and work-life balance. English is the primary business language, and multilingual professionals are widely available in major cities. Companies expanding across Europe can also explore employer of record Germany as a complementary market for multi-country hiring strategies.
| Category | Key Facts |
|---|---|
| Workforce Size | ~34 million active workers |
| Remote Workers | ~4.2 million |
| Median Age | ~40 years |
| English Proficiency | Primary business language; high proficiency nationwide |
| Top Talent Hubs | London, Cambridge, Oxford, Manchester, Edinburgh |
| Key Industries | Fintech, AI, biotech, financial services, technology |
Employment Law Essentials in the United Kingdom
UK employment law recognises three distinct employment status categories: employee, worker, and self-employed. Each carries different rights and obligations.
Employees hold the fullest set of protections, including unfair dismissal rights after two years of continuous service. Workers are entitled to National Minimum Wage and paid holiday but do not have unfair dismissal protection. Self-employed individuals fall outside most statutory protections.
Two foundational statutes govern employment in the UK. The Employment Rights Act 1996 sets out core employee rights, including written particulars, notice periods, and unfair dismissal. The National Minimum Wage Act 1998 establishes the legal pay floor across all sectors.
The Equality Act 2010 prohibits discrimination across nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Employers must apply these protections throughout recruitment and employment.
Working Time Regulations 1998 set minimum rest requirements. Employees are entitled to a 20-minute break for shifts over six hours, 11 hours of rest between working days, and 24 consecutive hours of rest per week.
Under the Employers' Liability (Compulsory Insurance) Act 1969, all UK employers must hold employers' liability insurance with a minimum coverage of $6,766,545 ($6,813,500 (£5 million)). This protects employees who suffer illness or injury in connection with their work.
Employment Contracts
UK law requires a written statement of employment particulars on or before the first day of employment. It must cover pay, hours, leave, and termination terms.
Contracts must correctly reflect whether the individual is an employee, worker, or self-employed, as each status carries different legal rights. Non-compete clauses are enforceable only if they pass a reasonableness test covering scope, geography, and duration. The UK government has proposed capping post-termination non-competes at three months, though this has not yet been enacted.
Bonus arrangements can be contractual or discretionary. A written bonus policy is best practice in either case. Both types are taxed under PAYE.
Working Hours and Overtime
The Working Time Regulations 1998 cap average working hours at 48 per week. Employees may opt out voluntarily in writing. There is no statutory overtime rate; total pay must not fall below the National Minimum Wage.
Minimum Wage
The National Living Wage applies to workers aged 21 and over. From April 2025, the rate is $17 (£12.21) per hour. Separate rates apply to workers aged 18 to 20, those under 18, and apprentices. Total pay across all hours worked must not fall below the applicable rate.
Leave and Statutory Benefits in the United Kingdom
UK statutory leave entitlements cover annual leave, maternity, paternity, shared parental leave, parental leave, carer's leave, and sick pay. Several rates and rights changed in 2024 and 2025.
Statutory Maternity Pay (SMP) is paid at 90% of average weekly earnings for the first six weeks. For weeks 7 to 39, SMP is $255 ($256 (£188.15)) per week (confirmed April 2025 rate) or 90% of average weekly earnings, whichever is lower.
Statutory Sick Pay (SSP) is currently $158 ($159 (£116.75)) per week, payable from day four of absence. From April 2026, under the Employment Rights Bill, SSP becomes a day-one entitlement at $167 ($168 (£123.25)) per week or 80% of average weekly earnings, whichever is lower.
Carer's Leave Act 2023 introduced one week of unpaid carer's leave per year, available from day one of employment. Employees may take it to provide or arrange care for a dependant with a long-term care need.
Unpaid parental leave allows eligible employees to take up to 18 weeks per child, up to the child's 18th birthday. A maximum of four weeks per child per year applies. This right is available after one year of continuous service.
Since 6 April 2024, employees have the right to request flexible working from day one of employment. Employees may make up to two requests per year. Employers must respond within two months.
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 extended redundancy protection for pregnant employees and those on maternity, adoption, or shared parental leave. These employees have a priority right to any suitable alternative vacancy. Protection runs from notification of pregnancy through to 18 months after the birth.
Market-norm benefits
Beyond statutory minimums, UK employers commonly offer the following benefits to remain competitive:
- Private medical insurance
- Dental and vision cover
- Life assurance
- Income protection insurance
- Cycle-to-work scheme
- Gym membership
- Enhanced pension contributions above the 3% employer minimum
- Employee assistance programmes and counselling services
Annual Leave
Employees are entitled to 28 days of paid annual leave per year, including bank holidays. Part-time employees receive a pro-rata entitlement. Employers may include bank holidays within the 28-day total.
Sick Leave
Statutory Sick Pay is currently $158 ($159 (£116.75)) per week for up to 28 weeks. From April 2026, the Employment Rights Bill makes SSP a day-one entitlement at $167 ($168 (£123.25)) per week or 80% of average weekly earnings, whichever is lower.
Maternity and Paternity Leave
Statutory Maternity Pay runs for up to 39 weeks. The first six weeks pay 90% of average weekly earnings. Weeks 7 to 39 pay $255 ($256 (£188.15)) per week or 90% of average weekly earnings, whichever is lower, as of April 2025.
Employees with at least one year of service are entitled to 18 weeks of unpaid Parental Leave per child up to age 18, capped at four weeks per year. Under the Protection from Redundancy (Pregnancy and Family Leave) Act 2023, redundancy protection is extended to cover pregnancy and family leave periods.
Public Holidays
England and Wales observe eight public holidays in 2025: New Year's Day (1 Jan), Good Friday (18 Apr), Easter Monday (21 Apr), Early May Bank Holiday (5 May), Spring Bank Holiday (26 May), Summer Bank Holiday (25 Aug), Christmas Day (25 Dec), and Boxing Day (26 Dec).
Payroll, Tax and Statutory Contributions in the United Kingdom
UK payroll runs under the PAYE system. Employers submit Real Time Information reports to HMRC each pay cycle, deducting income tax and National Insurance Contributions before each payment reaches the employee.
Most UK employers pay on a monthly cycle, typically between the 25th and the last working day of the month. Bi-weekly payroll is also used, particularly in sectors with variable hours or shift-based work.
Employer NICs are charged at 15% on earnings above the $6,767 ($6,814 (£5,000)) secondary threshold per employee per year. Employee NICs apply at 8% on earnings between the primary threshold and the upper earnings limit, and at 2% above that limit.
Income tax is collected through PAYE using tax codes issued by HMRC. Scotland applies different income tax bands, so payroll must apply the correct regional tax code for each Scottish employee.
Pension auto-enrolment is mandatory. Employers must enrol eligible workers into a qualifying scheme and contribute a minimum of 3% of qualifying earnings. Employees contribute a minimum of 5%. The EOR manages enrolment, contributions, and scheme governance on behalf of the client.
Work Visas and Permits in the United Kingdom
Non-UK nationals require a valid visa to work in the United Kingdom. The Skilled Worker visa is the primary route for employer-sponsored hires. It requires the employer to hold a sponsor licence issued by the Home Office.
The visa applicant must meet a minimum salary threshold and a skill level requirement. Salary thresholds vary by occupation code. Right to Work checks are mandatory before employment starts and must be repeated when a visa is renewed or extended.
Equity and ESOP Consulting in the United Kingdom
UK employees can receive equity through several HMRC-approved schemes. The Enterprise Management Incentive (EMI) scheme is the most widely used for qualifying companies, offering significant tax advantages for both employer and employee.
Share options granted outside an approved scheme are subject to income tax and NICs on exercise. Options granted under EMI or the Company Share Option Plan (CSOP) are taxed on disposal rather than exercise, reducing the immediate tax burden on employees.
An EOR can employ workers who hold equity in the client company, but the EOR is not the issuing entity for share options. Equity grants must be structured between the client company and the employee directly. Gloroots supports clients in coordinating equity documentation alongside the employment contract to keep both records aligned.
Misclassification Risk in the United Kingdom
Misclassification in the UK means treating an employee or worker as self-employed, which triggers back-tax liability, NIC arrears, and penalties from HMRC.
IR35 rules, formally the off-payroll working rules, require the client company to assess whether a contractor engagement is, in substance, employment. If the role passes the IR35 tests, the worker is a deemed employee for tax purposes. The client bears the cost of unpaid PAYE and NICs, plus interest and penalties.
HMRC uses three primary tests: control over how work is done, obligation to offer and accept work, and whether the worker can send a substitute. A contractor who works fixed hours, uses client equipment, and cannot substitute is likely inside IR35.
Since April 2021, medium and large private-sector clients must determine IR35 status and issue a Status Determination Statement. Small companies are exempt, but the contractor then carries the liability.
An EOR removes IR35 exposure by employing the worker directly under a UK employment contract. There is no contractor relationship to assess.
Hiring, Onboarding, Termination and Offboarding in the United Kingdom
UK employment law sets clear obligations at every stage of the employment lifecycle. The EOR carries statutory employer responsibility, but the client company retains responsibility for directing daily work.
The client sets performance objectives, initiates disciplinary or capability processes, maintains health and safety at its premises, and informs the EOR of any changes that affect employment terms. This division of responsibility must be understood before hiring begins.
Hiring
Before making an offer, complete a Right to Work check using a passport or share code. Collect the employee's National Insurance number and either a P45 or a completed HMRC starter checklist. Register the employee under PAYE and auto-enrol in the pension scheme on or before Day One.
Roles in healthcare, education, or work with children require a Disclosure and Barring Service (DBS) check. The level of check depends on the role.
Redundancy pay
Statutory redundancy pay is calculated using age-banded weekly multipliers: 0.5 week's pay for each year of service under age 22, 1 week's pay for ages 22 to 40, and 1.5 weeks' pay for age 41 and over. The weekly pay used in the calculation is capped at $961 ($968 (£710)) from April 2025. Service is capped at 20 years.
Onboarding
Before Day One
- Issue the written statement of employment particulars on or before the employee's first day, covering pay, hours, leave, and notice terms.
- Issue the employee privacy notice under UK GDPR on or before Day One, explaining how personal data will be processed and retained.
- Complete the Right to Work check and collect the National Insurance number and P45 or HMRC starter checklist.
- Register the employee under PAYE and confirm pension auto-enrolment with the scheme provider.
Day One and beyond
- Provide access to company systems, equipment, and any role-specific tools required to start work.
- Confirm the employee's tax code with HMRC and submit the first Full Payment Submission via RTI on or before the first pay date.
- Complete any role-specific checks, such as a DBS check for regulated roles, before the employee begins regulated activity.
- Schedule a probation review date and confirm the process in writing to the employee.
Termination
Statutory redundancy pay uses age-banded multipliers and a weekly pay cap of $961 ($968 (£710)) from April 2025, with service capped at 20 years. Pregnant employees and those on maternity, adoption, or shared parental leave hold extended redundancy protection under the Protection from Redundancy (Pregnancy and Family Leave) Act 2023. This protection runs from the point of pregnancy notification through to 18 months after birth.
Offboarding
During notice period
- Serve statutory or contractual notice in writing and confirm the last working day and final pay date to the employee.
- Calculate accrued but untaken holiday pay and include it in the final payroll run alongside any outstanding salary.
- Revoke access to company systems, retrieve company property, and confirm return of any equipment issued at onboarding.
Final day and after
- Issue the P45 to the employee on or before the last day of employment and submit the final RTI report to HMRC.
- Close pension contributions and notify the pension scheme provider of the leaving date and final contribution amount.
- Retain employment records for the period required under UK GDPR and the Data Protection Act 2018, then securely delete.
What's New: Recent Regulatory Changes in the United Kingdom
Several UK employment law changes have taken effect since 2023, with further changes confirmed for 2025 and 2026. Each affects payroll, leave administration, or redundancy obligations.
- Flexible working from Day One (April 6, 2024): Under the Employment Relations (Flexible Working) Act 2023, employees can request flexible working arrangements from their first day of employment, with no qualifying period required.
- Carer's Leave Act 2023: Employees are entitled to one week of unpaid carer's leave per year from Day One of employment, with no minimum service requirement.
- Protection from Redundancy (Pregnancy and Family Leave) Act 2023: Extended redundancy protection now applies from the point of pregnancy notification through to 18 months after birth, covering maternity, adoption, and shared parental leave.
- Statutory redundancy pay cap updated (April 2025): The weekly pay cap used to calculate statutory redundancy pay increased to $961 ($968 (£710)) per week.
- SSP day-one entitlement (from April 2026): Under the Employment Rights Bill, Statutory Sick Pay becomes a day-one entitlement at $167 ($168 (£123.25)) per week or 80% of average weekly earnings, whichever is lower.
Costs and Financial Planning for Hiring in the United Kingdom
Employer costs in the UK extend well beyond base salary. Three mandatory obligations add predictable overhead to every hire.
Employer National Insurance Contributions are charged at 15% on earnings above the $6,767 ($6,814 (£5,000)) secondary threshold per employee per year. For an employee earning $67,665 ($68,135 (£50,000)), that adds approximately $9,135 ($9,198 (£6,750)) in NICs alone.
Pension auto-enrolment requires a minimum employer contribution of 3% of qualifying earnings. This applies from the employee's first eligible pay period and cannot be waived.
- Employer NICs: 15% on earnings above $6,767 ($6,814 (£5,000)) secondary threshold (April 2025 rate)
- Pension contribution: Minimum 3% of qualifying earnings
- Statutory leave costs: SSP, SMP, and SPP are employer-funded, with partial government rebates available only to small employers for SMP
An interactive cost calculator showing total employer cost (salary plus NICs plus pension) is a resource many buyers expect at this stage. Gloroots provides country-specific pricing with full cost transparency before you commit. See our pricing page for UK-specific figures.
Planning ahead for the April 2026 SSP reform matters. Day-one SSP entitlement removes the current three waiting days, which will increase statutory sick pay costs for all UK employers from that date.
Common Challenges and How Gloroots Solves Them in the United Kingdom
Three compliance challenges appear consistently when companies hire in the UK without a local entity.
Client responsibility boundaries. Client companies sometimes assume the EOR handles all employment matters. In practice, the client retains responsibility for directing daily work, managing performance, running disciplinary processes, maintaining health and safety at client premises, and notifying the EOR of any changes affecting employment terms. Gloroots provides a written delineation of these responsibilities at onboarding so both parties operate with clarity from Day One.
IR35 misclassification risk. IR35 rules require the hiring company to assess whether a contractor relationship is, in substance, employment. Misclassification carries significant tax and penalty exposure. Gloroots employs workers directly under compliant UK employment contracts, which removes the IR35 classification question entirely. There is no contractor relationship to assess.
SSP and SMP rate accuracy. Statutory Sick Pay and Statutory Maternity Pay rates change annually. Gloroots applies current statutory rates each pay cycle and monitors legislative changes, including the April 2026 SSP reform that introduces day-one entitlement and removes the three waiting-day rule.
Why Gloroots Is a Strong EOR Partner in the United Kingdom
Gloroots operates as a UK Employer of Record through its own registered UK entity. It holds direct HMRC registration, runs PAYE and RTI filings under its own registration, and administers pension auto-enrolment without subcontracting to local partners.
Onboarding typically completes within 8 to 14 working days from contract signing to first payroll-ready status. Contracts include IP assignment clauses that transfer all work product to the client company.
- Direct HMRC registration and RTI filing
- Pension auto-enrolment administered in-house
- UK GDPR-compliant data processing with ISO 27001 certification
- Fixed, country-specific monthly fees with no hidden partner charges
- Dedicated account management and HRIS integration support
Gloroots also monitors UK legislative changes, including annual NIC threshold adjustments and statutory pay rate updates, so clients do not need to track regulatory changes independently. For companies scaling across multiple markets, Gloroots supports employment in additional countries under the same governance model.
Conclusion
Hiring in the UK through an EOR gives foreign companies access to a workforce of approximately 34 million without the overhead of entity setup or direct HMRC registration.
The most immediate compliance deadline for UK employers is April 2026. From that date, Statutory Sick Pay becomes a day-one entitlement, removing the three waiting days that currently apply. Every employer running UK payroll needs to account for this change before it takes effect.
Companies expanding across English-speaking markets can also review employer of record Canada as a complementary hiring destination with comparable employment law structures.
Frequently Asked Questions About Employer of Record in the United Kingdom
What is an Employer of Record in the UK?
A UK Employer of Record is the legal employer on record. It signs the employment contract, registers with HMRC, runs PAYE payroll, administers pension auto-enrolment, and manages statutory obligations.
The client company directs the employee's daily work. The EOR handles all employer-side compliance, filings, and statutory payments on the client's behalf.
What is the client company responsible for when using a UK EOR?
The client retains responsibility for directing daily work, managing performance, running disciplinary processes, and maintaining health and safety at client premises.
The client must also notify the EOR of any changes affecting employment terms, such as salary adjustments, role changes, or termination decisions. The EOR handles the statutory and payroll execution that follows.
How much does it cost to employ someone in the UK through an EOR?
Employer costs include the employee's gross salary, employer NICs at 15% on earnings above the $6,767 ($6,814 (£5,000)) secondary threshold (April 2025 rate), and a minimum 3% pension contribution on qualifying earnings.
The EOR charges a fixed monthly fee per employee on top of these statutory costs. Gloroots publishes country-specific pricing so total employer cost is visible before hiring begins.
What benefits are employees entitled to in the UK?
Statutory entitlements include 28 days of paid annual leave, Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, one week of unpaid Carer's Leave, and up to 18 weeks of unpaid Parental Leave per child.
Employees also have the right to request flexible working from Day One of employment. Market-norm benefits in the UK include private medical insurance and enhanced pension contributions above the statutory 3% minimum.
How does an EOR handle IR35 in the UK?
IR35 rules require the hiring company to assess whether a contractor relationship is, in substance, employment. Misclassification carries tax liability and penalties for the hiring company.
An EOR removes this risk by employing workers directly under compliant UK employment contracts. There is no contractor relationship, so there is no IR35 assessment to conduct.
How long does it take to hire through a UK EOR?
EOR hiring in the UK typically takes 2 to 4 weeks from the decision to hire through to the employee's first day. Onboarding with Gloroots completes within 8 to 14 working days from contract signing to payroll-ready status.
Setting up a UK entity takes 4 to 8 weeks or longer before payroll can run. For companies testing the UK market or hiring small teams, the EOR timeline is materially faster.
What pre-employment checks are required in the UK?
A Right to Work check is mandatory and must be completed before the employee's first day. Employers must verify a passport or share code and retain a copy of the documentation.
Roles in healthcare, education, or work with children also require a Disclosure and Barring Service (DBS) check. The EOR collects the employee's National Insurance number and P45 or HMRC starter checklist as part of standard onboarding.
