Hiring in the United Kingdom
To hire in the United Kingdom you either employ through your own UK company or use an Employer of Record that employs your people locally for you. With an Employer of Record you can hire in the UK without an entity: contracts, PAYE payroll, National Insurance, pension and HMRC reporting follow UK law from the first day. Contractors are a third option, but only for genuinely independent work.
United KingdomKey facts
Hiring in the United Kingdom at a glance
- Currency
- GBP
- Employer contributions
- 15%
- Pay frequency
- Monthly
- Notice period
- At least 1 week after one month's service, then 1 week per full year of service, up to 12 weeks. Employees give at least 1 week.
- Probation
- Not set by law. Three to six months is common, agreed in the contract.
- Holiday
- 5.6 weeks a year (28 days for a five-day week). Bank holidays can count towards this.
- Parental leave
- Up to 52 weeks of maternity leave, with Statutory Maternity Pay for 39 weeks paid through payroll. Paternity leave is 1 or 2 weeks.
- Collective agreements
- Rare in private companies outside a few sectors. Pay is set in the contract, and the National Minimum Wage and National Living Wage apply to everyone.
- Work permits
- No EU free movement after Brexit. Most foreign hires need a Skilled Worker visa, which requires a sponsor licence. Every employee needs a right to work check before day one.
Ways to hire
Ways to hire in the United Kingdom
Each route suits a different situation. None of them is a stopgap - many companies employ in the United Kingdom through an EOR for years.
Employer of Record
- When it fits
- You want to employ people in the UK on UK terms without registering a company here. It works for one hire or a whole team, for as long as you need.
- Time to hire
- Usually days once the terms are agreed and the right to work check is done.
- Cost
- A fixed monthly fee per employee, on top of salary and statutory employer costs.
Your own entity
- When it fits
- You plan a larger team in the UK, want your own local presence, or need a UK company to sign contracts and invoice customers.
- Time to hire
- Registering a private limited company (Ltd) can take a few days once the directors have verified their identity with Companies House. The bank account, PAYE and VAT registration usually add several weeks.
- Cost
- No minimum share capital and a small Companies House fee, plus accounting, payroll, annual accounts, Corporation Tax filings and local administration.
Contractor
- When it fits
- The work is genuinely independent: the person sets their own hours, uses their own tools and invoices for results.
- Time to hire
- Quick to start.
- Cost
- The agreed fee. The risk is misclassification: if the relationship works like employment, the IR35 tax rules and UK employment rights can apply, with tax and National Insurance owed.
How Fronted can help
Fronted can employ your people in the UK through our own UK entity, or set up your own UK company and run its accounting and payroll when you want one. Either way, you get one dedicated contact, and so does every person we employ.
Employer of Record in the United Kingdom
Hire in the United Kingdom without an entity. We employ your people and handle contracts, payroll and compliance.
Set up your entity in the United Kingdom
When you want your own company in the United Kingdom, we set it up and run it - including accounting and payroll.
Global contractor management
Hire and pay contractors compliantly anywhere in the world. We streamline onboarding, invoicing, and payments in one unified platform.
Employer costs
Employer costs in the United Kingdom
Employer National Insurance is 15% of earnings above £5,000 a year. The example applies 15% to the full salary to keep it simple. Because the first £417 a month is free of National Insurance, the real figure on a £5,000 salary is about £687. You also pay at least 3% pension on qualifying earnings between £6,240 and £50,270 a year. Paid holiday is part of the normal salary in the UK, so it is not an extra line. Statutory Sick Pay and statutory family pay come on top when they apply.
- Gross salary
- 5,000 GBP
- Employer contributions (15%)
- 750 GBP
- Employer pension (3% of qualifying earnings)
- 110 GBP
- Total monthly employer cost
- 5,860 GBP
Employment contracts in the United Kingdom
Every employee must get a written statement of the main terms on or before their first day. It covers pay, hours, holiday, notice, probation and place of work. Probation is not set by law, and three to six months is common. Before day one you must also check that the person has the right to work in the UK.
Working hours
There is no fixed legal working week. The Working Time Regulations cap the average at 48 hours a week over 17 weeks, unless the employee opts out in writing. A full-time week is typically 37.5 to 40 hours. Workers get a 20-minute break on days over 6 hours and 11 hours of rest between working days. There is no legal overtime premium, so overtime pay follows the contract.
Holiday
Workers are entitled to 5.6 weeks of paid holiday a year, which is 28 days for a five-day week and pro rata for part-time staff. Bank holidays can count towards the 28 days, so 25 days plus bank holidays is a common offer. Holiday builds up from the first day, and untaken statutory holiday is paid out when employment ends.
Parental leave
Statutory Maternity Pay is paid by the employer through payroll: 90% of average weekly earnings for 6 weeks, then the lower of £194.32 a week or 90% for 33 weeks, within up to 52 weeks of maternity leave. Paternity leave is 1 or 2 weeks at the same weekly rate, and since 6 April 2026 it is a day-one right. Shared parental leave lets parents split the leave between them. Employers can usually recover most statutory family pay from HMRC.
Notice and termination
Statutory notice from the employer is 1 week after one month of service, then 1 week for each full year, up to 12 weeks. The employee must give at least 1 week. Contracts can give more, never less. Unfair dismissal protection currently needs 2 years of service, and the Employment Rights Act 2025 is scheduled to cut this to 6 months from 1 January 2027. You need a fair reason and a fair process.
Work permits
There is no EU free movement after Brexit. EU citizens with settled or pre-settled status can work, but new arrivals from the EU need a visa like everyone else. Most foreign hires need a Skilled Worker visa, which requires the employer to hold a sponsor licence and the job to meet the skill and salary rules. Every hire needs a right to work check before day one, and employing someone without the right to work can cost up to £45,000 per worker.
Planning your next country?
Tell us where and when. We will show you what it takes, whichever way you choose to hire.