Employer of Record (EOR) in United Kingdom
Employer of Record (EOR) in United Kingdom helps companies hire employees without setting up a local entity. The UK has a workforce of over 34 million people, with strong talent pools in finance, technology, healthcare, and creative industries. Many international businesses choose EOR services in the UK to handle employment contracts, payroll, taxation, and compliance, which are often complex due to frequent changes in labor laws. Using an EOR allows companies to quickly establish teams, reduce hiring risks, and ensure compliance with UK employment legislation.
About United Kingdom
The United Kingdom, comprising England, Scotland, Wales, and Northern Ireland, is one of the world’s largest economies and a hub for international trade. With London as a global financial center, the UK attracts talent and businesses across industries such as banking, fintech, software development, life sciences, manufacturing, and media.
The country has a well-regulated labor market with a balance between worker protection and employer flexibility. The UK ranks highly in innovation, education, and digital adoption, making it a top destination for multinational companies expanding operations. Its diverse, multilingual workforce offers skills across traditional and emerging sectors.
With access to the European and global markets, strong infrastructure, and an advanced legal system, the UK remains one of the most strategic locations for global hiring through EOR solutions.
Employment Terms and Regulations
Types of Contracts
- Permanent contracts
- Fixed-term contracts
- Zero-hour contracts (casual work)
- Agency contracts
Working Hours
- Standard: 37–40 hours per week
- Overtime rules depend on contract agreements
Minimum Wage (2025)
National Living Wage: £11.44/hour (for workers aged 21+)
Probation Period
Typically 3–6 months depending on the role and employer policy
Taxation and Contributions
- Income tax ranges: 20%–45% (employee liability)
- Employers handle PAYE (Pay As You Earn) withholding
- National Insurance contributions apply to both employer and employee
Types of Leave
Annual Leave:
28 days (including public holidays)
Maternity Leave:
Up to 52 weeks
Paternity Leave:
2 weeks
Sick Leave:
Statutory Sick Pay (SSP) up to 28 weeks
Employee Benefits
- Pension contributions (auto-enrollment)
- Paid annual leave
- Public healthcare access (NHS)
- Family leave entitlements
- Statutory redundancy pay
Termination Process
Notice period:
1 week (after 1 month employment) up to 12 weeks (based on service length)
Valid reasons:
misconduct, redundancy, capability, or mutual agreement
Severance pay required in redundancy cases
Employer Taxes
National Insurance Contributions (NICs):
13.8% on earnings above £9,100/year
Apprenticeship Levy:
0.5% (for companies with payroll over £3M)
Total Employer Taxes:
Around 14%–15% of gross salary
EMPLOYER TAXES
14%–15% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
