Workers must be correctly classified as employee, worker, or self-employed — each has different rights (e.g. holiday pay, sick pay, pension). An EOR will ensure the right status and contract type. UK employment is not at-will: termination must follow contract and statutory notice and fair procedures. Post-employment restrictions (e.g. non-compete clauses) may be subject to future legal limits; an EOR will ensure contracts reflect current law. Benefits (pension, leave, sick pay) follow the applicable regime for the classification.
Rates and thresholds change each tax year. Check GOV.UK or your adviser for the current year.
Key rates (2025/26 & 2026/27)
| Rate | 2025/26 | 2026/27 |
|---|---|---|
| NLW (21+) | £12.21/hr | £12.71/hr |
| Employer NICs | 15% above £5k | 15% above £5k |
| SSP (weekly) | £118.75 | £123.25 or 80% AWE |
| SMP/SPP etc (weekly) | £187.18 or 90% AWE | £194.32 or 90% AWE |
| Redundancy cap (week) | £719 | See GOV.UK |
| Pension trigger | £10k; band £6,240–£50,270 | Unchanged |
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