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Global Expansion Guide

United Kingdom

Manage and pay your employees easily with BIPO in the UK and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

British Pound Sterling (GBP)

employment guide_language

Language

English

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Capital

London

Employer of Record UK

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in the UK

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  • Global Hiring Guide
  • United Kingdom

Employer of Record United Kingdom

Embark on your business expansion in the UK with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the UK market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

  • The UK employers are required to sign an employment contract with their employees, which must include working hours, wages, sick leave, holidays, terms for termination of the employment contract, grievance procedures and disciplinary procedures.
  • Employees may enter into a Collective Bargaining Agreement (CBA), which contains the general terms of employment for all employees covered by the agreement.
Contract Type Details
Ful-time Contract For permanent employment positions. Can be paid annually or hourly. No fixed working hours requirement, most full-time employees in the UK work more than 35 hours per week.
Part-time Contract Such contract employees have more flexible working hours than full-time contract employees and is paid hourly or pro rata of annual salary based on his or her working hours.
Fixed-term / Temporary Contract The contract is valid for a fixed period. The duration of this type of contract can be renewed for up to 4 years. After 2 years, the employees’ rights will change and enjoy benefits as full-time employees, making it more difficult to terminate their contracts. It is recommended to sign a 23-month contract for such contract employees.
Zero-hour Contract Such contract employees are on-call according to the employer’s needs, and the workload, work content and working hours are not fixed. It is an employment agreement without any benefits or guarantees.
Consultancy Contract In most cases, this type of contract has specific start and end dates or is for the purpose of completing a certain task or project. The employer is not responsible for withholding the consultants’ tax or national insurance.

Statutory Contributions

Statutory contributions include the Wales Pension Partnership (WPP) and National Insurance (NI).

National Insurance contributions are divided into four classes, and employees are further divided into eight codes. The following example is the employees’ contributions of one of the classes for your reference.

TypeDetailsEmloyer ContributionEmployee Contribution
Pension PlanRetirement benefitsMinimum: 3%Minimum: 5%
National Insurance (NI)Basic social securityWeekly earning < £96, 0%
Weekly earning ≥ £96, 15%		Weekly earning < £242, 0%
Weekly earning £242.01 – £967, 8%
Weekly earning > £967, 0 – 2%
 TotalAbout 3% – 18%About 5% – 15%

Minimum Wage

The statutory National Living Wage rates (for those aged 21 and over) and National Minimum Wage (for those of at least school leaving age) of the UK have been adjusted as following and taken effect from April 2025.

  • National Living Wage rates (workers aged 21 and over): £12.21/hour
  • Workers aged 18 to 20: £10/hour
  • Workers aged 16 to 17: £7.55/hour
  • Apprentice: £7.55/hour

Public Holidays

The Public Holidays in the UK in 2025 is shown as following. Please refer to the announcement of the government of England and Wales, Scotland, and Northern Ireland.

Holiday NameHoliday TypeDate
New Year’s DayNational Holiday1 January 2025
New Year’s HolidayScotland2 January 2025
St Patrick’s DayNorthern Ireland17 March 2025
Good FridayNational Holiday18 April 2025
Easter MondayEngland & Wales & Northern Ireland21 April 2025
Early May Bank holiday / VE dayNational Holiday5 May 2025
Spring Bank HolidayNational Holiday26 May 2025
Battle of the Boyne / Orangemen’s DayNorthern Ireland14 July 2025
Summer Bank HolidayScotland4 August 2025
Summer Bank HolidayEngland & Wales & Northern Ireland25 August 2025
St. Andrew’s DayScotland1 December 2025
Christmas DayNational Holiday25 December 2025
Boxing DayNational Holiday26 December 2025

Working Hours

Normal Working Hours

  • Under the ‘Working Time Directive’, employees must not work more than 48 hours per week on average over a 17-week reference period.
  • Employees over 18 years old can opt out the ‘maximum working hours restriction’ by signing written agreements with their employers.
  • Employees can cancel the opt-out agreement anytime, but must give their employers 7 days’ notice in advance.
  • Employers must keep records of working hours.

  • The following are not allowed to opt out the ‘maximum working hours restriction’:

    1. Airline staff
    2. Workers on ships or boats
    3. Workers in the road transport industry
    4. Bus conductors
    5. Taxi drivers
    6. Train and tube drivers
    7. Security guards on vehicles carrying high-value goods

Flexible Working Arrangements

Employment Relations (Flexible Working) Act 2023 has been approved and taken effective from 6th of April 2024, with specific changes shown below:

  • The new act extends the right of the employees to submit applications for statutory flexible working arrangements from the first day of the employment.
  • An employee can make two requests under the statutory regime in any 12-month period (once in the past).
  • Employers need to respond to employees’ requests for flexible working arrangements within two months (three months in the past).
  • If the employer has good business (eight) reasons, the employee’s application can be rejected, but the employer must fully discuss with the employee and provide alternatives. (The employer could reject the employee’s application based on the eight reasons in the past).
  • Employees applying for flexible working arrangements do not need to explain the impact of such arrangements on their employers and how they will deal with the changes (employees must explain these two contents when submitting such applications in the past).

Rest Time

According to ‘Working Time Directive’, the employees are entitled to:

  • A 20-minute break per every six consecutive hours, with or without pay, which is determined by the employer.
  • 11 consecutive hours of rest between two shifts.
  • 24 consecutive hours of rest per week or 48 consecutive hours per every 14 days.

Night Work

  • The night working hours are between 11:00 pm one day and 6:00 am the next day. However, employers and employees can agree on a different night shift period, which is 7 hours, including the time slots from midnight to 5am.
  • Employees who regularly work during the night working hours for at least 3 hours are considered as night shift workers, while those who occasionally work during the night working hours are not.
  • The average working hours of night shift workers should not exceed 8 hours in any 24-hour period (excluding overtime), and employees cannot opt out the ‘maximum night work hours restriction’.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.
  • Employers are not legally required to pay employees overtime pay, but overtime pay must not be less than the UK minimum wage rates.
  • Part-time employees who work beyond their contracted hours are usually paid an additional hourly rate rather than overtime pay, unless met certain conditions.
  • In practice, employers often choose to provide Time-off-in-lieu (TOIL)instead of overtime pay. But the relevant terms must be agreed by both employers and employees.

Other Regulations

  • Protection against minor employees
  • Prohibition of gender discrimination
  • Rights of pregnant employees
  • Employee stock ownership plans
  • Business transfer regulations

Probationary Period

  • There is no law determining the length of a probationary period, although this will usually be for no more than six months.
  • A three-month probationary period can be set for entry-level positions.

Leave

Statutory leaves in the UK include:

Type Applicable to Details
Paid Annual Leave All Employees

Full-time employees: 28 working days

Part-time employees:5.6 weeks, prorated based on their working hours.
Sick Leave All Employees Paid for up to 28 weeks Statutory Sick Pay (SSP).
Pregnancy and Maternity Leave Female Employees

Maternity leave: 26 weeks + additional 26 weeks (39 weeks are paid)

Leave for Ante-Natal Care: 6.5 hours, two or more occasions can be permitted.
Neonatal Care Leave Employees with sick or premature babies 12 weeks (effective 6th of April 2025)
Paternity Leave Male Employees 1 – 2 weeks
Shared Parental Leave All Employees 50 weeks (37 weeks are paid)
Carer’s leave All Employees 1 week (unpaid)
Child Care Leave All Employees 18 weeks (unpaid)
Parental Bereavement Leave All Employees 2 weeks
Adoption Leave All Employees 52 weeks (39 weeks are paid)
Time off for Job Hunting and Training Dismissed Employees Look for job opportunities according to actual situations
Time off for Public Duties Employees performing public duties According to actual situations, e.g. performing juror duties
Time off for Trade Union Duties and Activities Employees holding trade union positions or serving as employee representatives According to actual situations to perform trade union duties
Time off for Training or Study Employees who have served for an organisation with 250 or more employees for at least 26 weeks Based on actual situations to receive a training or education (unpaid)

Termination and Compensation

Termination Notice

Executed according to Employment Contract, Collective Bargaining Agreement.

  • Resignation by the employee: Served more than 1 month, 1 week notice period
  • Redundancy by the employer
    • At least one week’s notice if employed between one month and 2 years.
    • One week’s notice for each year if employed between 2 and 12 years.
    • 12 weeks’ notice if employed for 12 years or more.
  • Expiration of fixed-term contract: The employer doesn’t have to give any notice. In case of early termination or renewal, it can be negotiated in advance or implemented in accordance with the contract.
  • In some cases, the employer can dismiss an employee without any notice, such as when the employee steals, is violent, or endangers others or social security. However, the disciplinary procedures and grievance procedures stated in the contract and employee handbook must be followed. In this case the employer is not required to pay any compensation.

Compensation

When terminating employees, UK employers are generally required to pay
statutory redundancy compensation to employees who have worked for them for two years or more. The rules are as follows:

AgeCompensation
< 22 years of ageHalf a week’s pay for each full year of employment
≥ 22 years of age, < 41 years of ageOne week’s pay for each full year of employment
≥ 41 years of ageOne and half week’s pay for each full year of employment

Length of service is capped at 20 years.
Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with the UK’s regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with the UK’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Germany’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with the UK’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Germany

Unlock your growth potential with BIPO’s Employer of Record service in Germany. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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