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Employer of Record UK
Hire staff and expand your business in the United Kingdom with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in the UK designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in the UK. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in the UK takes care of all HR, payroll, recruitment and compliance headaches, and allows you to do what you love best – driving your business forward.
UK EOR FAQs
What is an Employer of Record?
An Employer of Record (EoR) will act as the legal employer of one of more individuals on behalf of the client, in the absence of a client local entity or company registration.
Although the work activity will continue to be performed for the client, the EoR will manage the HR and payroll of the employee(s) ensuring full compliance with local legislation.
What are the benefits of using an Employer of Record?
EOR service providers offer a compliant solution for hiring internationally, removing the time, cost and risks associated with setting up your own entity abroad.
With local knowledge and expertise, using an employer of record will also reduce the administrative burden of navigating foreign employment law and payroll requirements.
How do you use an EOR in the UK?
As a registered employer in the UK, the employer of record will support you and your employee(s) from onboarding through to offboarding.
This requires: ensuring all right to work documentation is in place; executing the employment contract in line with UK employment legislation; enrolling the employee on to PAYE (the UK payroll system) and auto-enrolling the employee to the workplace pension scheme.
Throughout the employment, the EOR will manage monthly payroll deductions and payments and remittance to HM Revenue & Customs (HMRC).
Employer of Record UK Services
Download our full UK Employment Guide
Find out all about employing in the UK
getting started
EOR UK Contract of Employment
Each employee who is employed in the UK is issued with a comprehensive contract of employment which includes the following:
Termination clauses
Non-confidentiality and post termination restrictions clauses providing greater protection for your business
Statutory requirements
An overview of the UK statutory requirements such as sick pay, holiday entitlement and maternity/paternity pay, will be made available to you prior to contract offer.
Employee benefits
Salary, commissions/bonuses & benefits are agreed with the ‘workside’ employer and contractually included.
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We are UK employer of record experts
We have extensive experience helping businesses expand their workforce in the UK. Take a look at our areas of expertise below and find out more:
Find out how payroll works in the UK and what you can expect when it comes to salaries, bonuses and rates of pay
Enhance your understanding of what your employee is entitled to when working in the UK
Learn more about how you can attract and retain staff in the UK with both statutory and enhanced employee benefits
Unsure what’s required when employing staff in the UK? Find out about UK Work Permits and Visas here
Wondering what it’s like to live and work in the UK? We’ve got you covered in our extensive do’s and don’ts guide
employer of record payroll services
Payroll in the UK
Our fully-compliant payroll processing services ensures that employees and UK authorities are paid on time by whatever means.
As part of our Employer of Record payroll services, Agility EOR can also offer the following:
- Salaries paid on a monthly basis as required in local currency
- Electronic payslips provided to the employees
- All Statutory filing completed by Agility EOR
- End of year reporting completed as standard
UK PAYROLL FAQs
How is payroll processed in the UK?
The UK operates a Pay As You Earn (PAYE) system which requires the employer to calculate the tax, National Insurance (NI) contributions and all applicable deductions including pension contributions and student loan repayments. This is then deducted from the employee’s gross salary and the net amount is paid to the employee.
What are the payroll obligations in the UK?
Employers are responsible for the remittance of all deductions to HM Revenue & Customs (HMRC). Employees must be provided with a payslip and an FPS report must be sent to HMRC on or before payday each month.
What are the employer contributions in the UK?
Employers in the UK must pay Class 1 National Insurance Contributions (13.8%) and mandatory pension contributions (3%).
Large enterprises are also required to pay an apprenticeship levy (0.5%)
When is the fiscal year in the UK?
Unlike many countries that use align the calendar year with the financial year, in the UK, the tax year runs from 6th April – 5th April.
What is the 183 day rule in the UK?
Under the Statutory Residency Test (SRT), any individual who spends more than 183 days in the UK within a tax year is considered a UK tax resident.
PAID LEAVE UK
UK Statutory Leave
Agility EOR work with our UK legal experts and experienced staff to easily guide you through the myriad of complex laws and regulations.
We will help you and your staff understand the following essential statutory entitlements:
- Holiday Entitlement
- Maternity Leave
- Paternity Leave
- Parental Leave
- Sick Leave
UK STATUTORY LEAVE FAQs
What is statutory annual leave in the UK?
Employees in the UK are entitled to 5.6 weeks of paid leave per year. For full-time employees, working 5 days per week, this is equivalent to 28 days’ paid vacation days.
It is common for employers to offer more than the statutory minimum, with between 33 and 38 days considered normal for those in senior positions.
Are public holidays paid in the UK?
Employees are not legally entitled to paid leave on bank or public holidays.
Employers may also opt to count the dates towards the holiday entitlement.
How many public holidays are there in the UK?
There are 8 observed public bank holiday dates in England and Wales and 9 in Scotland and 10 in Northern Ireland.
How long is paid maternity leave in the UK?
In the UK, eligible employees can take up to 52 weeks of maternity leave. Statutory Maternity Pay (SMP) is paid for up to 39 weeks: the first 6 weeks at 90% of the average weekly earnings, followed by 33 weeks at the lower of either the statutory flat rate (£172.48 per week) or 90% of their average weekly earnings.
How long is paid paternity leave in the UK?
The partner of a pregnant mother is entitled to one to two weeks’ leave following the birth or adoption of a child.
The leave must be taken consecutively within 56 days of the birth.
They will be entitled to statutory paternity pay (SPP) during this leave.
The weekly rate for SPP is £172.48 or 90% of average weekly earnings, whichever is lower.
What is shared parental leave in the UK?
Shared parental leave (SPL) in the UK is a scheme that allows eligible parents to share up to 50 weeks of leave and up to 37 weeks of pay after the birth or adoption of their child.
What is statutory sick pay in the UK?
Sick employees in the UK are entitled to statutory sick pay (SSP) for up to 28 weeks. This is paid by the employer to all eligible employees.
The rate of SSP is currently £109. 40 per week. The first three days are classed as ‘waiting days’ and are unpaid.
Is compassionate leave paid in the UK?
Employees may require compassionate leave following the death of a dependent or close relative or for emergency situations.
Employees are legally entitled to the leave; however, it is at the employer’s discretion how much time is given and whether this is paid or unpaid.
benefits
UK Employee Benefits
As UK EOR specialists, we will provide guidance and support as to the statutory and enhanced benefits available for your employees.
As part of our employer of record services in the UK we offer:
- Auto-enrolment to workplace pension
- Private Medical Insurance Options
UK BENEFITS FAQs
Are pension contributions mandatory in the UK?
All employers in the UK are required to automatically enrol eligible workers into a pension scheme, commonly known as auto-enrolment.
Employers must pay minimum pension contributions of 3% of qualifying earnings.
Do employees pay pension contributions in the UK?
Once an employee has been auto-enrolled into the workplace pension scheme they will begin paying monthly contributions unless they choose to ‘opt-out’.
Employee contributions must reach a combined total of 8% minimum, combined with the employer contribution.
(I.e. If the employer contributes only the 3% minimum, the employee contribution will be 5%).
An employee must contact their pension provider independently should they wish to opt-out.
Employers are obliged to re-enrol all eligible employees every three years.
Is it customary to offer private medical insurance to UK employees?
Anyone living in the UK has access to the National Health Service (NHS), which is a publicly-funded healthcare system that provides free services at the point of use.
Due to increasing pressures on the NHS, more and more employees in the UK are seeking private healthcare as a perk to their employment,
How are benefits processed through payroll in the UK?
Benefits provided to employees in addition to their salary are often referred to as “benefits in kind” (BiK).
These may include benefits such as company cars or private medical insurance.
Most benefits in kind are processed through PAYE in the UK. Employers must also report and pay National Insurance contributions on any taxable benefits through a P11D form.
Right to work uk
UK Work Permits
& Visas
Before an employee can begin their employment, it is imperative to ensure they have the right to work in the UK.
All employees, including those from the European Economic Area (EEA) are required to have a visa or work permit to work in the UK.
It is extremely difficult for an EOR service provider to obtain the licensing required to sponsor a work permit or visa in the UK.
UK WORK PERMITS & VISAS FAQs
How do you apply for a work permit in the UK?
Once an employee has a a job offer from a UK-based company, the employer can then apply for a Certificate of Sponsorship. The employer must have the correct licensing in place in order to do this and the employee must also meet the eligibility criteria provided by UK Visas & Immigration (UKVI).
Can you get a work permit in the UK without a job offer?
In order to work in the UK, you must have the right to work.
There are some visas that do not require a job offer for application; however, the candidate must meet the requirements in order to apply.
These are typically aimed at young academics who are specialists in their field such as Graduate visa, Youth Mobility Scheme visa, High Potential Individual visa and Global Talent visa.
Additionally, there may be more options for applicants with ancestors in the UK.
Do EU citizens need a work permit for the UK?
Following Brexit and the UK’s withdrawal from the European Union in December 2020, all EU citizens looking to work in the UK are required to apply through the points-based immigration system and visa route unless they are able to evidence their right to work.
What is the EU Settlement Scheme?
The UK introduced the EU Settlement Scheme (EUSS) to preserve the rights of EU, EEA and Swiss citizens residing in the UK after Brexit.
Eligible applicants were able to apply for settled or pre-settled status depending on the length of their continuous residence in the UK.
Anyone with settled or pre-settled status under the EUSS has the ability to work in the UK. Employers will verify this via the right to work share code
Do Irish citizens need a visa to work in the UK?
Irish citizens have the rights to live, work and access public services in the UK under the Common Travel Area arrangement. This means that Irish citizens do not need to apply to the EU Settlement Scheme.
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UK Business Culture
The UK’s rich tapestry of history and tradition is reflected in its business culture with etiquette and punctuality being considered fundamental principles when working in the UK.
Formalities and professionalism are still upheld within many UK companies although the trend in remote working has seen changes to this with some companies adopting a more relaxed approach to dress code and business communication.
UK BUSINESS CULTURE FAQs
The standard working week is Monday to Friday, with office hours generally from 9 am to 5 pm or 5:30 pm, although this can vary. Working outside of these hours is not uncommon, particularly in certain industries or for specific professions.
Traditionally, employees in the UK would have a work wardrobe, with smart attire and a business suit being common within the working world.
Although this is still the case in some companies, many employers have relaxed their dress code policies in recent years, adopting a smart-casual approach.
That said, many employees still choose to dress more formally for external business meetings.
Business meetings play an important role in day-to-day operations and are a central part of UK work culture.
Meetings will typically be scheduled in advance with an agenda and minutes will often be recorded.
Punctuality is considered very important in British culture and being late to scheduled meetings should be avoided. where possible.
Small talk is common before and after business meetings, with the weather often being a good ice breaker!
Wondering if expanding
in the UK is right for you?
Read on or speak to a member of our team now
The Benefits
UK Employer of Record Benefits
When you choose Agility EOR to expand in the UK, we guarantee a UK EOR Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in the UK so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can be working in the UK within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the UK authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning UK payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!