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United Kingdom · EOR

Employer of Record in the United Kingdom

Employ staff in the UK without a UK entity. We handle employment contracts, PAYE payroll, pension auto-enrolment, Skilled Worker visa sponsorship support and compliance with UK employment law.

  • businessNo UK entity required
  • boltEmployee live in 5-10 business days
  • flight_takeoffSkilled Worker sponsorship support
  • savingsPension auto-enrolment from day one
  • how_to_regPAYE & HMRC registered
descriptionBefore you hire

What you need to know before hiring in the United Kingdom

The UK is light on statutory on-costs by European standards and heavy on process - written terms, auto-enrolment and, for overseas hires, sponsorship.

description

Employment contracts

UK employers must provide a written statement of core terms on or before the first day of employment. Indefinite ("permanent") contracts are the norm.

Fixed-term contracts are permitted, but repeated renewal risks converting the role to permanent after four years' continuous service. Probation is contractual rather than statutory - typically 3-6 months.

savings

Pension auto-enrolment

Eligible employees must be automatically enrolled into a qualifying workplace pension, with a 3% employer minimum on qualifying earnings (£6,240-£50,270 a year).

Auto-enrolment applies from day one under our scheme. Employees may opt out, but you cannot pre-empt that - the enrolment has to happen first.

beach_access

Leave and sick pay

Statutory annual leave is 28 days (5.6 weeks) for full-time employees, inclusive of bank holidays - a distinction that catches out employers used to continental "plus public holidays" models.

Statutory Sick Pay is £123.25 a week and becomes a day-one right from April 2026, with the three-day waiting period removed.

payments

Employer National Insurance

Employer Class 1 NI is 15% on earnings above the £5,000 a year secondary threshold, with no upper ceiling - unlike most EU contribution systems.

Eligible smaller employers can offset up to £10,500 a year through the Employment Allowance, though it does not apply to every structure.

calculateEmployer cost summary

What a UK employee actually costs

The headline employer burden is low, but NI is uncapped - so the on-cost scales linearly with senior salaries.

15%Employer National Insurance above the secondary threshold
£5,000Secondary threshold at which employer NI starts
3%Minimum employer pension contribution on qualifying earnings
Payroll componentRate / details
Employer National Insurance (Class 1) 15% on earnings above the £5,000/year secondary threshold; no ceiling
Pension auto-enrolment 3% employer minimum on qualifying earnings (£6,240-£50,270/year)
Employment Allowance Up to £10,500/year offset for eligible smaller employers
Statutory Sick Pay £123.25/week, day-one right from April 2026 (three-day waiting period removed)
National Living Wage £12.71/hour for workers aged 21+, effective April 2026
Annual leave (statutory) 28 days (5.6 weeks) for full-time employees, inclusive of bank holidays
Notice Statutory minimum scales with service to a cap of 12 weeks at 12+ years

updateRates verified for the 2026 tax year. Figures are indicative - your quote is calculated on the actual salary and contract type.

balanceEnding employment

Termination in the United Kingdom

Exit costs are modest by European standards, but the risk profile is about to change as the unfair dismissal qualifying period shortens.

scheduleStatutory notice

None under one month of service; 1 week from one month to two years; 1 week per year thereafter, capped at 12 weeks.

work_offStatutory redundancy

Age-banded and capped at £751 a week, for a maximum payout of £22,530 from April 2026.

gavelUnfair dismissal

The qualifying period is due to fall from 24 months to 6 months from January 2027 under the Employment Rights Act 2025.

warning_amber

The cheap-to-exit reputation has a 2027 expiry date

The UK has long been the easiest major European market to exit, largely because unfair dismissal protection only attached after two years. From January 2027 that qualifying period is due to drop to six months.

If you are building a UK team now, plan for the performance-management process you will need in 2027 - not the one the current two-year window lets you get away with.

EOR service fee
From €449/ employee / month (GBP-equivalent billing)

Charged on top of full employment costs - gross salary, employer National Insurance and pension auto-enrolment contributions.

PAYE payroll, HMRC filing and auto-enrolment included. Skilled Worker sponsorship support is available where the hire needs it.

help_outlineFAQs

Hiring in the UK - common questions

Can I employ someone in the UK without a UK entity?

Yes. Under an EOR arrangement Dhi ADT is the legal employer in the UK, holding the contract, operating PAYE payroll and running pension auto-enrolment. You direct the employee's day-to-day work.

Typical time to a live employee is 5-10 business days once we have the role, salary and start date.

How much does a UK employee cost on top of salary?

Employer National Insurance is 15% on earnings above the £5,000 a year secondary threshold, with no upper ceiling, plus a minimum 3% employer pension contribution on qualifying earnings.

That puts the typical on-cost well below most of Western Europe - but because NI is uncapped, the gap narrows as salaries rise.

Does pension auto-enrolment apply from day one?

Eligible employees are automatically enrolled into a qualifying workplace pension with a 3% employer minimum on qualifying earnings (£6,240-£50,270). Employees can opt out after enrolment, but enrolment itself is not optional for the employer.

Can you sponsor a Skilled Worker visa?

We support Skilled Worker hires where the role meets the criteria. The standard salary threshold is £41,700 a year or the occupation's going rate, whichever is higher, with reduced thresholds for new entrants, PhD-level roles and shortage occupations.

We test the role and salary against the correct band before the offer goes out, because the band determines whether the package works at all.

What does it cost to end a UK employment?

Statutory notice runs from one week at one month of service to a maximum of twelve weeks at 12+ years. Statutory redundancy pay is age-banded and capped at £751 a week, for a maximum of £22,530 from April 2026.

The bigger variable is unfair dismissal risk: the qualifying period is due to fall from 24 months to six months in January 2027.

Is the 28 days' holiday on top of bank holidays?

No. The statutory 28 days (5.6 weeks) is inclusive of the eight bank holidays, unless the contract says otherwise. Employers used to continental models frequently quote 28 plus bank holidays by accident - and then have to honour it.

eventGet started

Ready to hire in the UK?

15 minutes with our team. We'll confirm your structure, Skilled Worker eligibility and full cost breakdown.

  • check_circleYour structure and PAYE setup confirmed
  • check_circleA costed breakdown including employer NI and pension
  • check_circleSkilled Worker eligibility assessed where relevant
  • check_circleNo upfront cost, no obligation

Custom cost estimate

Five inputs. One business day. A real spreadsheet.

1 business day CSM-scoped reply