United Kingdom

Companies hiring in the UK typically choose between four models. You can run payroll from your HQ, engage a contractor, set up a local entity, or use an Employer of Record (EOR). Each comes with trade-offs around compliance, cost, and complexity. For example, contractor models may fall under IR35 rules, while entity setup takes time. Many teams use an EOR to employ staff compliantly without opening a UK entity.

Contractors work well when the relationship is project-based, and the person serves multiple clients. If an individual gives their full and undivided attention to your company in the UK, employment is the right structure under UK law, covering entitlements like paid holiday, statutory sick pay, and National Insurance. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in the UK.

HR compliance in the UK means that your policies and procedures comply with all applicable UK employment laws and regulations. When you hire in the UK, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour laws, statutory sick pay, annual leave (5.6 weeks), minimum wage (£12.21/hour), National Insurance, and working hours. Following these is fundamental for the correct running of your business.

An Employer of Record is the legal employer of the individual in the UK for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as up to 52 weeks of maternity leave and 5.6 weeks’ annual leave. You continue to source talent, manage day-to-day work, and fund payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including the UK. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues. Boundless ensures compliance with UK-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

Any new employee that is locally employed through an Employer of record gets full employment rights and benefits as specified in UK employment law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, and many more. All UK-based employees receive healthcare through the public healthcare system.

In the United Kingdom, both employers and employees have to pay taxes. For employers, these include National Insurance and pension, and for employees, they include National Insurance, pension and income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator.