UK EOR & Employment Guide
Contracts, leave, pensions, payroll and compliance at a glance. Pick a topic to explore.
UK hiring involves employment classification, contracts, PAYE, NICs, pensions and leave. An EOR acts as the legal employer and manages payroll, contracts and compliance so you can focus on the work.
Rates and thresholds change each tax year. Check GOV.UK or your adviser for the current year.
Key rates (2025/26 & 2026/27)
| Rate | 2025/26 | 2026/27 |
|---|---|---|
| NLW (21+) | £12.21/hr | £12.71/hr |
| Employer NICs | 15% above £5k | 15% above £5k |
| SSP (weekly) | £118.75 | £123.25 or 80% AWE |
| SMP/SPP etc (weekly) | £187.18 or 90% AWE | £194.32 or 90% AWE |
| Redundancy cap (week) | £719 | See GOV.UK |
| Pension trigger | £10k; band £6,240–£50,270 | Unchanged |
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Click a topic to read the full detail on its own page. All content is accurate and linked to official sources.
UK EOR FAQs
Common questions about using an employer of record in the UK.
An employer of record (EOR) in the UK is a third party that becomes the legal employer of your workers. The EOR issues contracts, runs payroll (PAYE, NICs), handles HMRC reporting, auto-enrolment, statutory pay, and right-to-work checks. You keep day-to-day direction of the work. Using a UK EOR lets you hire in the UK without setting up your own UK employer infrastructure.
A UK EOR holds the employer obligations: PAYE and National Insurance, real-time information (RTI) to HMRC, workplace pension auto-enrolment, statutory payments (SSP, SMP, SPP, etc.), written statements and contracts from day one, and right-to-work checks. They keep up with law changes (e.g. rates, thresholds, leave) so your workforce is compliant.
The EOR, as legal employer, carries out auto-enrolment duties: assessing workers, enrolling eligible staff (age 22 to state pension age, earning above the threshold), deducting employee contributions, paying employer contributions, and submitting data to the pension scheme. Minimum total contribution is 8% (at least 3% from the employer). The EOR will use a qualifying scheme and handle opt-outs and re-enrolment.
You can hire UK workers without registering as an employer, running PAYE, or managing pensions and statutory pay yourself. The EOR takes on employment contracts, payroll, tax, and compliance so you can focus on running your business. It is especially useful for scaling quickly, using contractors compliantly, or testing the UK market without a local entity.
Need a UK EOR that handles all of this?
Paycore matches you with sector-specialist EOR providers who handle contracts, payroll, pensions, and compliance so you can focus on your business.