Currency
British Pound Sterling (GBP)
EOR IN United Kingdom
Employer of Record in United Kingdom
Yes, you can hire an employee in United Kingdom without setting up your own company there. Swivelt acts as the Employer of Record in United Kingdom through our own local entity, so you can hire, onboard, and pay staff compliantly, usually within a couple of weeks. No local entity, and no third-party partner.
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A guide to employing and growing your team in United Kingdom
Fast and compliant market entry. Hire top local talent without the need for a legal entity
The United Kingdom maintains a highly developed, service-oriented economy with a strong emphasis on finance, technology, and professional services. The UK employment framework is governed primarily by the Employment Rights Act, which provides comprehensive protections for workers. As of April 1, 2026, the National Living Wage for those aged 21 and over is £12.71 per hour.
Employer Contributions
National Insurance Contribution: 15% (Exempt from the first £5,000 of pay per year)
Pension Fund: 3% minimum
Total Employer Contribution: 18%
Employee Payroll Taxes
National Insurance Contribution: 12% (for weekly pay range £1,048 to £4,189) and 2% (for amount exceeding £4,189)
Pension Fund: 5% minimum
Total Employee Contribution: 17%
Employee Income Tax Rates
Up to £12,570: 0%
£12,570 – £50,270: 20%
£50,270 – £125,140: 40%
Above £125,140: 45%
Statutory Leave
Employees are entitled to 5.6 weeks of paid annual leave per year (capped at 28 days). This includes the 8 public bank holidays commonly observed in England and Wales.
Pregnancy and Maternity Leave
Female employees are entitled to 52 weeks of maternity leave. Statutory Maternity Pay (SMP) is paid for up to 39 weeks; for the first 6 weeks, it is 90% of average gross weekly earnings, and for the following 33 weeks, it is £156.66 per week or 90% of average earnings (whichever is lower).
Paternity Leave
Eligible employees are entitled to 1 or 2 weeks of paid paternity leave, which must be taken within 52 weeks of the child’s birth. Statutory Paternity Pay is £194.32 per week or 90% of average weekly earnings (whichever is lower).
Other leaves
Parental Leave: Employees may be eligible to share up to 50 weeks of leave and 37 weeks of pay between parents through the Shared Parental Leave (SPL) scheme.
Other Leaves: Includes up to 28 weeks of Statutory Sick Pay (SSP) at £99.35 per week for qualifying illnesses, unpaid time off for public duties (e.g., jury service), and statutory bereavement leave.
Termination Process
Termination of employment must be handled fairly and in accordance with the contract and employment law. Employers must provide a valid reason for dismissal and follow a fair disciplinary or redundancy process to avoid claims of unfair dismissal.
Notice Period
Notice periods are typically defined by the employment contract, but statutory minimums apply: one week’s notice for each year of continuous service, up to a maximum of 12 weeks after 12 years of service.
Probation Period
Probation periods are not strictly mandated by law but are commonly included in employment contracts, typically lasting between 3 to 6 months. During this time, notice periods for termination may be reduced as specified in the contract.
Can you hire in United Kingdom without a local entity?
Yes. Through Swivelt’s EOR service, we become the legal employer in United Kingdom on your behalf. You choose and manage the employee. We handle the local employment contract, payroll, tax, benefits, and compliance.
What Swivelt handles in United Kingdom
1
A compliant United Kingdom employment contract
2
Monthly payroll in British Pound Sterling (GBP)
3
Local income tax and social contributions
4
Statutory benefits and leave
5
Ongoing compliance with United Kingdom labour law
EOR FAQs
How long does it take to hire in United Kingdom?
Usually one to two weeks once we have the candidate’s details, because our United Kingdom entity is already in place.
Do we need our own company in United Kingdom?
No. Swivelt’s local entity is the legal employer, so you do not need to register anything.
Does Swivelt use a local partner in United Kingdom?
No. We operate through our own entity in United Kingdom.