Who is the legal employer when using an EOR?

EuroDev becomes the legal employer in the UK, while you retain day‑to‑day operational control over the employee.

Do I need a UK legal entity to hire employees?

No. A UK Employer of Record allows you to hire employees without setting up a UK company, branch, or subsidiary.

What employment contracts are used in the UK?

UK EOR hires typically use permanent (open‑ended) employment contracts, compliant with UK statutory employment law.

Can I hire both full‑time and remote employees?

Yes. An EOR supports full‑time, part‑time, and fully remote employees located anywhere in the United Kingdom.

What payroll taxes and contributions apply in the UK?

Employers must pay Employer National Insurance (15%) and workplace pension contributions (minimum 3%), which EuroDev manages through payroll.

How much does it cost to employ someone in the UK?

Total employer costs are typically 15–20% on top of gross salary, depending on salary level and pension setup.

Are UK employees entitled to paid leave?

Yes. UK employees are entitled to 28 days of paid annual leave, which may include public holidays, and is pro‑rated for part‑time employees.

Does UK employment law differ across regions?

Some legal procedures differ between England & Wales, Scotland, and Northern Ireland, but statutory employment rights are largely aligned.

When should I use an EOR instead of setting up an entity?

An EOR is ideal when you want to hire quickly, test the UK market, or reduce compliance risk without long‑term infrastructure.

What are the risks of employee misclassification in the UK?

Misclassifying a worker in the UK can expose businesses to significant financial and legal risk, including backdated Income Tax and National Insurance liabilities, interest, and HMRC penalties, particularly under IR35 off‑payroll rules. Workers may also claim employment rights such as holiday pay or unfair dismissal, while businesses risk audits, legal disputes, and reputational damage.

Can a PEO help hire contractors in the UK?

No, a PEO in the UK is designed for employees under a co‑employment model, not for engaging independent contractors. For genuine contractors, companies usually work with them directly, use contractor management tools, or choose an AOR or EOR if the role risks falling under IR35 or misclassification.

PEO & EOR services · United Kingdom

Hire employees in the United Kingdom with an Employer of Record

Hiring in United Kingdom through an EOR does not require setting up a local legal entity. EuroDev becomes the legal employer running payroll and compliance while you keep full operational control.

✓ No entity required

✓ Onboard in weeks

✓ Full compliance managed

Talk to our EOR experts today →

UNITED KINGDOM · EMPLOYER COST SNAPSHOT

Avg. annual gross salary €40,000

Employer contributions ≈ 18.00%

Statutory annual leave 28 days

Standard work week 37.5- 40 hrs

Source: EuroDev EOR payroll data for the United Kingdom, 2026.

PEO & EOR services · United Kingdom

How hiring in United Kingdom through EuroDev works

An Employer of Record lets your company hire in the United Kingdom without establishing a UK subsidiary or branch. EuroDev becomes the legal employer, while your company retains day-to-day operational direction.

Employee selection

You select the candidate you want to hire in the United Kingdom .

Contract setup

EuroDev drafts a locally compliant contract, aligned with employment law and applicable workplace requirements.

Payroll & tax

We run monthly payroll and report income tax and National Insurance contributions accurately.

Ongoing compliance

Employment administration, benefits, and paid leave managed continuously.

The decision

Direct expansion vs. partner-led market entry

Both paths are legitimate. The right choice depends on how fast you need to move and how permanent your presence in the United Kingdom will be.

Most chosen

Employer of Record

When an EOR is the right choice

✓ You want to hire quickly without long setup times

✓ You are testing the United Kingdom market

✓ You plan to hire a small or distributed team

✓ You want to minimize legal and compliance risk

Local Entity

When a local entity makes sense

✓ You are building a large, long-term workforce in the United Kingdom

✓ You require a permanent commercial presence

✓ You want full internal control over payroll and HR

Employment contracts

Permanent and fixed-term contract rules

The United Kingdom permits both permanent and fixed-term employment contracts. Misuse of successive fixed-term contracts may result in employees gaining permanent status.

Contract type · default

Permanent (indefinite)

✓ No fixed end date

✓ Full statutory rights from day one

✓ Statutory notice and redundancy rights

✓ Protection against unfair dismissal after the qualifying period

✓ Probation permitted within legal limits

Contract type · limited use

Fixed-term (temporary)

✓ Only for a genuine business need

✓ Defined contract end date

✓ Equal treatment to permanent employees

✓ May convert to permanent after 4 years of successive fixed-term employment

✓ Misuse risks automatic conversion

Termination, notice & severance

The United Kingdom has strong employee protection laws

Employment "at will" does not apply when hiring through an EOR in the United Kingdom. EuroDev guides you through termination procedures to ensure compliance.

7 days

Minimum statutory notice

2 yrs.

Service required for statutory redundancy pay

12 mo.

Maximum severance cap

Probation

Probation periods

Not mandatory, but must be agreed in writing. Probation typically runs between three and six months. Either party may terminate employment during probation in line with the contractual notice provisions.

In practice

Notice & severance in practice

Notice periods increase with length of service and may be extended by contract. Statutory redundancy pay generally applies after two years of service and is subject to legal caps. Dismissals must follow fair procedures and comply with UK employment law.

Payroll & employer costs

What hiring through an EOR costs in the United Kingdom

Employer costs typically run around 18% on top of gross salary, covering all mandatory employer charges and statutory contributions.

Cost example

Estimated annual employment cost

Average annual gross salary €40,000

Employer contributions (≈29.90%) €6,262.80

Estimated total employment cost €46,262.80

Contribution breakdown

Mandatory employer contributions

Employer National Insurance

15%

Workplace pension

Apprenticeship Levy

0.20–0.60%

Professional training

0.60%

Total estimated

~29.90%

Registration

Social security registrations

✓ PAYE registration with HMRC

✓ Monthly payroll and reporting

✓ Withholding employee tax and National Insurance contributions

✓ Paying employer National Insurance contributions

Working time

Working hours & overtime

✓ Standard schedule: 37.5–40 hours/week

✓ Maximum average working time: 48 hours/week

✓ Overtime terms usually governed by employment contracts

✓ Rest breaks and weekly rest periods apply

Paid leave & public holidays

Statutory leave entitlements in the United Kingdom

EuroDev ensures every leave entitlement is tracked and administered correctly, from vacation days to parental leave.

Vacation

Annual leave

28 days

✓ Minimum 28 days of paid annual leave

✓ Public holidays may be included in the entitlement

Statutory

Public holidays

8-10 days

✓ England and Wales: 8 bank holidays

✓ Additional holidays apply in Scotland and Northern Ireland

Parental leave

Maternity leave

52 weeks

✓ Up to 52 weeks of maternity leave

✓ Statutory Maternity Pay available for eligible employees

✓ Job protection applies throughout maternity leave

✓ Additional employer benefits may apply

Parental leave

Paternity leave

2 weeks

✓ Up to 2 weeks of statutory paternity leave

✓ Must be taken after the child's birth

✓ Statutory Paternity Pay available for eligible employees

✓ Job protection applies throughout paternity leave

Ready when you are

Hire employees in Spain with confidence

Local expertise · Global support

EuroDev helps international companies hire in the United Kingdom quickly, compliantly, and without unnecessary risk whether you're onboarding your first employee or expanding an existing team.

Talk to our EOR experts → Explore EOR services

What happens after you contact us? +

1 Share your hiring needs and expected timeline.

2 Receive a compliant employment setup plan.

3 Start contract preparation and employee onboarding.

FAQ's

: EuroDev becomes the legal employer in the UK, while you retain day‑to‑day operational control over the employee.
: No. A UK Employer of Record allows you to hire employees without setting up a UK company, branch, or subsidiary.
: UK EOR hires typically use permanent (open‑ended) employment contracts, compliant with UK statutory employment law.
: Yes. An EOR supports full‑time, part‑time, and fully remote employees located anywhere in the United Kingdom.
: Employers must pay Employer National Insurance (15%) and workplace pension contributions (minimum 3%), which EuroDev manages through payroll.
: Total employer costs are typically 15–20% on top of gross salary, depending on salary level and pension setup.
: Yes. UK employees are entitled to 28 days of paid annual leave, which may include public holidays, and is pro‑rated for part‑time employees.
: Some legal procedures differ between England & Wales, Scotland, and Northern Ireland, but statutory employment rights are largely aligned.
: An EOR is ideal when you want to hire quickly, test the UK market, or reduce compliance risk without long‑term infrastructure.
: Misclassifying a worker in the UK can expose businesses to significant financial and legal risk, including backdated Income Tax and National Insurance liabilities, interest, and HMRC penalties, particularly under IR35 off‑payroll rules. Workers may also claim employment rights such as holiday pay or unfair dismissal, while businesses risk audits, legal disputes, and reputational damage.
: No, a PEO in the UK is designed for employees under a co‑employment model, not for engaging independent contractors. For genuine contractors, companies usually work with them directly, use contractor management tools, or choose an AOR or EOR if the role risks falling under IR35 or misclassification.