EOR Service in United Kingdom

Hire, Onboard and Pay Employees in United Kingdom Quickly and Efficiently

Hiring in United Kingdom at a glance

CURRENCY
Pound Sterling (GBP)
working hours
48 Hours
public/bank holidays
9
capital
London
language
English
date format
YYYY-MM-DD
remote workers
1.2M
tax year
6th April to 5th April
minimum hourly salary
No minimum wage
CURRENCY
Pound Sterling (GBP)
working hours
48 Hours
public/bank holidays
9
capital
London
language
English
date format
YYYY-MM-DD
tax year
6th April to 5th April
payroll frequency
Weekly or Monthly (between the 25th-30th of the month)
GDP
$47,318

Employer of Record in United Kingdom

For foreign employers looking to hire in the UK, Employer of Record Solutions are a one-stop solution for all their cross-border hiring needs. EORs help businesses hire talent from countries where the business has no registered entity.  By offering the necessary resources to tackle compliance, enabling  payroll, and offering compliant benefits. Gloroots’ UK EOR can help you expedite your hiring process. Regardless of your expansion goals, company size, or desired pace of growth. 

Why use United Kingdom EOR?

With a talent crunch forcing businesses to adopt cross-border hiring and tapping the gig economy, etc, employers are hiring from developing economies owing to lower hiring costs. However, this doesn’t mean employers can dismiss high-cost but mature labor markets like the UK. UK houses leading universities in the tech and business space, which produce graduates with high technical and business acumen. 

Despite its lucrative talent pool, employing talent from the UK is a daunting task for foreign employers. UK’s labor laws differ greatly from employer-friendly nations such as the USA. For example, the UK has a statutory minimum of 5.6 weeks (28 days) of paid annual leave for full-time workers, regardless of their length of service. In the USA, there is no federal law mandating paid annual leave. Moreover, Collective Bargaining and Union Rights have to be constantly monitored and terms and conditions of employment have to be amended accordingly. Employers from countries where unionization rates are generally lower may find it difficult to navigate these laws.

Here’s where a UK EOR can help. Partnering with an employer of record yields several hiring benefits, such as compliance with local employment laws, availing local insurance, and access to local expertise. EORs also help you save overhead costs around creating employment contracts and entity set-up and bank accounts creation in the UK - all of  which are needed to hire permanent employees in the country compliantly. 

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EOR Costs in United Kingdom

EORs typically offer two pricing models: fixed and variable. EORs that use the fixed pricing model provide a transparent pricing structure where fees range between $200 and $1000 per employee per month. The final cost of availing Gloroots’ EOR solution for the UK depends on the complexity of the employment laws in the employee's jurisdiction. 

Please note that the benefits of using an EOR can outweigh the costs, especially for small businesses that may not have the resources to navigate complex legal and administrative requirements independently. 

Our pricing  is inclusive of legal compliance services and administrative tasks for employing staff in the UK. Our SaaS-based EOR solution ensures your employee receives full HR support and localized benefits. We also provide a dashboard that tracks your UK workforce's expenses in real time. 

Key Metrics For Foreign Employers

The UK is ranked tenth globally for ease of doing business. According to Yahoo! Finance, London is the home to at least 80 unicorns or tech companies with a value of one billion dollars or more. London also ranked high in terms of access to early-stage investment.

In addition, the UK provides international firms access to a vast pool of young, brilliant workers who migrate there from all over the world to complete their degrees at one of the nation's many prestigious colleges and then enter the workforce.

Factors Global Ranking Interpretation
Rule of law 17 Indicates effectiveness of law enforcement
Labour-employer cooperation 19 Indicates positive labor-employee relationships
Reading Maths, and Science 11 Indicates average scores in OECD's survey of 15-year old students
University Ranking 2 Indicates average QS rankings
Labour productivity per employee 24 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 71 Indicates findability of skilled talent
Workforce with tertiary education 18 Indicates % of workforce with PG degrees
Digital Skills 16 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Why work in United Kingdom?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

UK treats contractors, sole proprietors, self-employed individuals and full-time workers differently and there are significant risks associated with misclassification.

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Employing in United Kingdom

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

INCOME TAX 

Income Range Tax Rate
20% Up to $37,700
40% $37,700 - $125,140
45% Over $125,140

The majority of employees belong to category A in terms of income tax classification. 

To know about further categories, please visit : National Insurance rates and categories: Contribution rates - GOV.UK (www.gov.uk)

Other Taxes and Social Security contribution:

Employer Payroll Contributions:

Contribution Description
3.00% Workplace Pension (applied on income between £520 and £4,189.17 per month at minimum)
0.5% Apprenticeship Levy (applied on large enterprises)
13.80% National Insurance (NI) (for income above £1,048)
17.30% Total Employers Cost

Employee Payroll Contributions:

Contribution Description
5.00% Workplace Pension (applied on income between £520 and £4,189.17 per month at minimum)
12.00% National Insurance (NI) (for income between £758 and £4,189)
2.00% National Insurance (NI) (for income above £4,189)
17.00% Total Employee Cost

Separation

Termination Process:

The process of ending employment differs depending on the employment agreement and collective agreement in effect, and it is determined by the type of contract and the reason for termination. Whether a dismissal is considered fair or unfair depends on the justification and behavior associated with the termination.

It is important to note that pregnant employees or those on maternity leave are protected from termination.

Notice Period

In the UK, the duration of notice periods is determined by either the employment contract or the minimum requirements set by law, whichever is longer.

Regarding redundancy, the legally mandated notice period is a minimum of one week's notice for employees who have worked between one month and 2 years. For each additional year of service beyond 2 years, an employee is entitled to one week's notice, up to a maximum of 12 weeks' notice.

In instances of serious misconduct, it is possible for an employee to be dismissed without any notice.

Employers also have the option to provide payment in place of the notice period.

Severance Pay

Severance pay is obligatory solely in situations of redundancy. The precise sum of severance pay relies on the employee's age and their minimum two years of service:

Employee age Severance pay
< 22 years Half of a week’s pay is provided for each year of service
< 22 years One week’s pay is provided for each year of service
> 41 years One and a half weeks' pay is provided for each year of service

Note: The weekly pay used for calculation is capped at £571.

The maximum period of service considered for severance pay calculation is 20 years. 

Severance pay is not required for regular termination cases.

Probation Periods

The United Kingdom does not have specific legal regulations regarding probation periods. However, probationary periods usually range from three to six months.

The terms and conditions of the probationary period are typically specified in the employee's employment contract. 

Start Hiring in United Kingdom today

Venturing into hiring in the UK introduces a complex web of compliance requirements. Employers must navigate through a maze of employment laws, payroll procedures, DE&I compliance, data protection rules, and other legal needs for a smooth and lawful onboarding process. Building the essential infrastructure and keeping up with evolving compliance rules adds complexity to the hiring process.

But don't worry, Gloroots is here to simplify your journey. Our comprehensive solutions provide a straightforward platform to manage all aspects of hiring in the United Kingdom. With our experts, you can confidently handle cross-border employment and payroll compliance. We assist in crafting employment contracts, ensuring timely payments, and offering compliant benefits, so you can focus on choosing the right talent.

Trust Gloroots to make your global hiring experience simple and efficient.

Grow your team in United Kingdom

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in the UK must have a local legal organization and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Belgium makes compliance with employment laws demanding.

With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.

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Experience Seamless Hiring in United Kingdom?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in United Kingdom.

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