Employer of Record

Hire in the United Kingdom with an Employer of Record

UK employees are entitled to 5.6 weeks' paid holiday a year, capped at 28 days — but staff with irregular hours or part-year contracts accrue it hour by hour, not on a fixed weekly schedule, and employer National Insurance is a separate cost on top of gross salary. Share the role, work pattern and intended start date, and PIO confirms the arrangement, then coordinates the contract, PAYE payroll and leave.

Illustration representing hiring an employee in the United Kingdom through PIO's Employer of Record service

What to plan for

Practical points to line up before you hire in the United Kingdom.

Payroll, PAYE & employer National Insurance

Employers register with HMRC to run PAYE and pay employer National Insurance on top of an employee's gross salary, with the rate depending on the employee's National Insurance category letter — budget for the full cost of employment, not just the base salary.

Source:National Insurance rates and categories

Statutory holiday entitlement

Most UK workers are legally entitled to 5.6 weeks' paid holiday a year, capped at 28 days for a standard five-day week, with part-time entitlement calculated pro rata — bank holidays only count toward this if the employer chooses to include them.

Source:Holiday entitlement

Leave accrual for irregular-hours and part-year staff

Workers with irregular hours or part-year contracts build up holiday based on the hours they've actually worked rather than a fixed weekly allowance, so leave balances for these arrangements need to be tracked differently from a standard five-day role.

Source:Holiday entitlement

Fair dismissal: reason and process

Ending someone's employment in the United Kingdom must be fair both in the reason for it and in how the process is carried out — mishandling either can expose the employer to an unfair, constructive or wrongful dismissal claim.

Source:Dismiss staff

What PIO helps coordinate / What you provide

What PIO helps coordinate

Once your hire is confirmed, here's what we help you coordinate.

  • Confirming country availability and the arrangement for your hire
  • Coordinating the information and documents needed for onboarding
  • Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
  • Explaining the process for changes, leave and offboarding

What you provide

You stay in control of the decisions that are yours to make.

  • The role, compensation and any company-specific policies
  • Final approval on the offer and any changes to it
  • A point of contact for escalations during employment

How it works

A straightforward path from sign-up to your employee's first day.

  1. Step 1

    Tell us about the hire

    Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.

  2. Step 2

    We coordinate onboarding

    Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.

  3. Step 3

    Your employee starts

    You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.

Frequently asked questions

Do bank holidays count toward the UK's 5.6-week statutory holiday entitlement?

Not automatically — bank holidays only count within the 5.6-week (up to 28-day) entitlement if the employer chooses to include them there; otherwise they're additional to it. Staff with irregular hours or part-year contracts build up their share of that leave based on hours actually worked, not a fixed weekly amount, so confirm which basis applies before the offer goes out.

Source:Holiday entitlement

Can I use PIO to start an EOR hire in the United Kingdom?

Yes — share the role, the work pattern (regular hours, part-year or irregular) and your intended start date, and PIO confirms the available arrangement for that specific hire before onboarding begins, then helps coordinate the documents needed to get started.

What's the difference between unfair, constructive and wrongful dismissal in the UK?

They cover different problems: unfair dismissal challenges whether the reason for ending someone's employment and the process followed were fair; constructive dismissal is when an employee resigns because of a serious breach of contract by the employer; and wrongful dismissal is a contract claim about how the dismissal itself was carried out. All three are risks if the reason and process aren't handled and documented carefully.

Source:Dismiss staff

Does employer National Insurance cost the same for every employee we hire in the UK?

No — the rate is set by the employee's National Insurance category letter, which depends on factors such as their age and pension arrangement, so employer National Insurance isn't a flat percentage across your whole team. It's paid on top of gross salary through HMRC registration, separate from the National Insurance deducted from the employee's own pay.

Source:National Insurance rates and categories

What do we need to provide before onboarding starts in the United Kingdom?

You provide the role details, compensation and any company-specific policies for the hire. We coordinate the local documentation, contract and payroll setup around what you decide, and confirm the arrangement for that specific role before onboarding begins.

3 official sources

Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.

Ready to hire in the United Kingdom?

Sign up to start an EOR hire in the United Kingdom. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.