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!

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Currency

British Pound Sterling (GBP)

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Language

English

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Capital

London

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.

This guide was last updated on 30 March 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

An employment contract outlines the terms, rights, duties, and responsibilities of both the employee and employer, which must be adhered to unless amended or terminated. Under United Kingdom law, employers are required to provide a written statement of employment particulars on or before the employee’s start date, including:

  1. Employer’s name;
  2. Employee’s name, job title or description, and start date;
  3. Salary and payment frequency;
  4. Working hours and days, including whether these may vary (e.g. Sunday, night, or overtime work);
  5. Paid annual leave entitlement, including whether public or statutory holidays are included;
  6. Place of work and any requirement for relocation;
  7. Details of multiple work locations and the employer’s address;
  8. Duration of employment (with end date specified for fixed-term contracts);
  9. Probation period and applicable conditions;
  10. Additional benefits (e.g. childcare allowance, meal subsidies);
  11. Any mandatory training and responsibility for associated costs;
  12. Recognition of continuous employment from a previous role, where applicable.

Statutory Contributions

Type of Social InsuranceEarnings ThresholdEmployee ContributionEmployer Contribution
National Insurance

Employee (EE): < GBP 242/week

Employer (ER): < GBP 96/week

0%0%

EE: GBP 242/week – GBP 967/week

ER: ≥ GBP 96/week

8%15%

EE: > GBP 967/week

ER: ≥ GBP 96/week

2%
Pension Insurance

EE: Voluntary

ER: < GBP 120/week, GBP 520/month or GBP 480/4 weeks

Minimum 5%0%

EE: Voluntary

 

ER: ≥ GBP 120/week, GBP 520/month or GBP 480/4 weeks

Minimum 3%
Work Injury InsuranceMinimum cover GBP 5,000,000Employer bears full cost

Minimum Wage

Effective Date: 1 April 2026

Category Minimum Wage
21+ Years Old GBP 12.71
18 – 20 Years Old GBP 10.85
< 18 Years Old GBP 8
Apprentice GBP 8

Public Holidays

The public holidays listed below are national public holidays observed across the UK. Individual constituent countries may observe additional public holidays. Please refer to official government announcements in England and Wales, Scotland, and Northern Ireland for the latest updates.

  • New Year’s Day
  • Good Friday
  • Early May Bank Holiday
  • Spring Bank Holiday
  • Summer Bank Holiday
  • Christmas Day
  • Boxing Day

Notes:

  • Employees do not have an automatic entitlement to paid public holidays. Employers may choose to include public holidays within annual leave or provide them as additional paid leave.
  • Overtime Compensation: Not prescribed by law; subject to agreement between the employer and employee.
  • Public Holiday Overtime Compensation: Not regulated; any compensation for work performed on public holidays is determined by mutual agreement between the parties.

Working Hours

Normal Working Hours

Category Daily Weekly
Average limit N/A 48 hours (17-week reference period)
Young Worker limit 8 hours 40 hours

Work Breaks

Employees are entitled to a minimum uninterrupted break of 20 minutes when working more than six hours.

Daily Rest

A minimum rest period of 11 consecutive hours must be provided between working days.

Weekly Rest

Employees are entitled to either:

  • 24 consecutive hours of rest per week; or
  • 48 consecutive hours of rest per fortnight.

Overtime Limits

Overtime may be required where contractually agreed but must not cause the employee’s average working time to exceed 48 hours per week (unless an opt-out applies).

Overtime Compensation

Employers are not legally required to pay an overtime premium; compensation is subject to agreement between the employer and employee.

Exemptions from Overtime Rules

Certain roles and arrangements may be exempt from standard working time and overtime provisions, including:

  • Employees who have signed a written voluntary opt-out of the 48-hour weekly limit;
  • Roles requiring continuous or 24-hour presence;
  • Armed forces, emergency services, and police personnel;
  • Security and surveillance roles;
  • Seafarers, offshore fishermen, and inland waterway crew;
  • Senior management or executives with autonomous, self-determined working hours.

Leave

Annual Leave

  • Employer Type: Single employer.
  • Eligibility: All employees, including agency workers, zero-hours, and part-year employees.
  • Entitlement: 5.6 weeks per year, capped at 28 days.
  • Pay: Full wages, paid by the employer.
  • Unused Leave: Must be paid in lieu upon termination of employment.

Sick Leave

  • Eligibility:

    • Employer must pay Class 1 National Insurance contributions.
    • Employee is sick for 4 or more consecutive days (including non-working days).
    • Notification provided within the required timeframe (typically within 7 days).
    • Medical certification required for absences exceeding 7 consecutive days.
  • Entitlement: Up to 28 weeks.
  • Pay: GBP 118.75 per week, paid by the employer.

Maternity Leave

  • Eligibility: Employees under a contract of employment who notify the employer within the required timeframe.
  • Statutory Pay Eligibility:

    • Employed during the “qualifying week” (15 weeks before the expected due date).
    • Continuous employment of at least 26 weeks by the qualifying week.
    • Average weekly pre-tax earnings of at least GBP 125 during the 8-week “relevant period”.
    • Timely notification and proof of pregnancy provided.
  • Entitlement: Up to 52 weeks (26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave), commencing up to 11 weeks before the due date, with a compulsory 2-week postnatal leave period.
  • Pay: Up to 39 weeks — 90% of average weekly pre-tax earnings for the first 6 weeks; thereafter the lower of 90% of earnings or GBP 187.18 per week, paid by the employer.

Other Leave Types

  • Paternity, Adoption, and Surrogacy Leave:

    • Eligibility: Employees whose spouse or partner is giving birth, adopting, or having a child via surrogacy.
    • Duration: 1 or 2 weeks, to be taken within 52 weeks of birth or placement.
    • Pay: Lower of 90% of average weekly pre-tax earnings or GBP 187.18 per week, paid by the employer.
  • Time Off for Antenatal Appointments:

    • Eligibility: Fathers, spouses or partners, long-term partners, or intended parents in surrogacy arrangements.
    • Duration: Up to 6.5 hours per appointment, for a maximum of two appointments.
    • This leave is unpaid.
  • Shared Parental Leave (SPL):

    • Eligibility: Parents following childbirth or adoption.
    • Duration: Up to 50 weeks (remaining maternity leave), which may be taken in up to three blocks within the first year.
    • Pay: Up to 37 weeks, based on remaining statutory maternity pay entitlement.
  • Neonatal Care Leave:

    • Eligibility: Where a child (of the employee or their partner) requires neonatal care within 28 days of birth for at least 7 consecutive days.
    • Duration: Up to 12 weeks, to be taken within 68 weeks of birth.
    • Pay: Lower of 90% of average weekly pre-tax earnings or GBP 187.18 per week, paid by the employer.
  • Bereavement Leave:

    • Eligibility: Loss of a child under 18 or stillbirth after 24 weeks of pregnancy.
    • Duration: Up to 2 weeks per child, to be taken within 56 weeks.
    • Pay: Lower of 90% of average weekly pre-tax earnings or GBP 187.18 per week, paid by the employer.
  • Study or Training Leave:

    • Eligibility: Employees with at least 26 weeks of continuous service; training must be relevant to the role; employer must have 250 or more employees.
    • Duration: As agreed between employer and employee.
    • This leave is unpaid.
  • Public Duties Leave:

    • Eligibility: Individuals serving in public roles (e.g. magistrates, local councillors, trade union officials, reservists).
    • Duration: As required.
    • This leave is unpaid.

Termination and Compensation

Notice Period

Length of Service Notice Period / Lieu of Notice Pay (If agreed)
1 month – 2 years 1 week
2 years – 12 years 1 week / full year service
12 years 12 weeks

Notes:

  • Agency, casual, and zero‑hours workers are exempt from statutory notice.
  • Employees dismissed for gross misconduct are not entitled to notice.
  • Employees resigning in response to unfair dismissal are not required to give notice.

Compensation

  • Eligibility: Employees made redundant after 2 or more consecutive years with the same employer.
  • Statutory Minimum Entitlement:

    • Under 22 years old: 0.5 week’s pay per full year of service.
    • Aged 22 – 40: 1 week’s pay per full year of service.
    • Aged 41 and above: 1.5 weeks’ pay per full year of service.
  • Caps:

    • Weekly pay: GBP 643.
    • Maximum total payout: GBP 21,390 (for 2025/26).

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 the UK

Unlock your growth potential with BIPO’s Employer of Record service in the UK. 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!

Find out more?

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One-all-one HR global platform with integrated features to manage your business.

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