25 Jan 2026•12 min read

Are There Any Free HR Software Options Available for Startups?

Q: Is free HR software good enough for a startup?

It depends on your size and needs. Free HR software can work well for very early-stage startups (under 10 people) with simple requirements. As you grow, you'll likely hit caps on employees, features, or exports. The key is to pilot carefully, understand the limits, and have a plan for when you outgrow free tiers.

Q: What's the difference between a leave tool and an HRIS?

A leave management tool focuses specifically on time-off requests, approvals, calendars, and balances. An HRIS (Human Resource Information System) is broader: it typically includes employee directory, time off, onboarding, documents, and sometimes performance management. Leave tools are simpler and faster to set up; HRIS covers more but requires more configuration.

Q: What limits should I expect on free HR plans?

Common limits include: employee caps (often 5 to 25), admin seat limits, no approval workflows, limited reporting or export, no audit trail, basic support only, and watermarks or branding. Always verify current limits on the official pricing page; these change without notice.

Q: When should I switch from spreadsheets to HR software?

Consider switching when: (1) you have more than 10 employees, (2) you have part-time workers needing pro-rated balances, (3) approvals get lost in email or Slack, (4) you cannot answer who is out this week quickly, (5) balance disputes are becoming common, or (6) your accountant or ops lead needs cleaner exports. The tipping point is usually errors and visibility, not headcount alone.

Q: How do I handle pro-rated leave on a free tool?

Check if the free tier supports automatic pro-rating for part-time employees and mid-year joiners. Many free tiers do not include this, requiring manual calculation. If pro-rating is not supported, you will need to calculate balances yourself and enter them manually, which increases error risk.

Q: How can I pilot free HR software before committing?

Run a 14-day pilot: (1) configure leave year and policy, (2) add employees and approvers, (3) run 10 real leave requests, (4) verify balances and pro-rating, (5) check the who-is-out calendar, (6) export a report for your accountant, (7) check the audit trail, and (8) measure approval time and adoption. If all these work, the tool is a good fit.

Yes — but "free" means different things. Templates are truly free; freemium tools have caps; free trials expire. The right choice is the lightest option that still gives you accurate tracking.

TL;DR Answer

Yes — but "free HR software" usually means one of three things: (1) truly free templates and spreadsheets (more manual), (2) freemium HR tools with caps on employees, features, or exports, or (3) free trials that aren't free long-term. The best choice is the lightest option that still gives you accurate leave balances, a shared "who's out" view, and records you can trust. Use the tables and checklists below to avoid free-tier traps and choose an option that won't break as you grow.

Key Takeaways

"Free" has multiple meanings: templates, freemium, trials, open-source, and ecosystem bundles.
Freemium tiers usually cap employees (5–25), admin seats, exports, or approvals — verify before committing.
Micro businesses are ~95% of UK businesses [R4] — most need simple tools, not enterprise suites.
UK statutory leave baseline is 5.6 weeks (28 days for full-time) [R1], [R2] — any tool must handle this correctly.
Pilot for 14 days with real leave requests before committing to any option.

Q: What counts as "free HR software" for startups (and what doesn't)?

A: "Free HR software" comes in several forms:

Templates + spreadsheets: Truly free. Manual work for tracking, no automation, error-prone at scale [R6].
Freemium tools: Free tier with caps on employees, features, or exports. Works if you stay within limits.
Free trials: Full features for a limited time. Not free long-term.
Open-source/self-hosted: Software is free, but setup and maintenance require technical effort.
Ecosystem-bundled: HR features included free with another product (payroll, accounting). Terms vary.

Warning: Free plans change without notice. Always verify current limits on the official pricing page before committing.

Q: What minimum HR workflows should be easy on day one?

A: For most startups, leave management is the first HR pain point. On day one, you need:

Employee directory: Who's on the team, contact details, start date.
Leave requests + approvals: Request → approve → calendar update.
Shared "who's out" view: Visible to managers and team.
Balances + pro-rating: How many days left? (Including part-time and mid-year joiners.)
Public holidays: By location (UK bank holidays differ from US/EU).
Permissions: Who can approve? Who can see what?
Exports: For accountant, ops lead, or your own records.
Audit trail: Who approved what and when?

Q: What baseline leave rules should your tool support (UK)?

A: UK statutory requirements:

ACAS confirms workers are entitled to 5.6 weeks' statutory paid holiday [R1].
GOV.UK specifies at least 28 days' paid annual leave for someone working a 5-day week [R2].

Important: This is not legal advice. Confirm specific requirements with your HR advisor or ACAS. If you need a simple leave policy to start with, we have a template.

Q: Why startups feel leave is "small" until it creates delivery risk

A: The ONS reports that in 2024, around 2.0% of all working hours were lost to sickness absence, totalling 148.9 million working days lost [R3].

Capacity math for startups:

1 person off in a 10-person team = 10% capacity gone
1 person off in a 20-person team = 5% capacity gone
1 person off in a 30-person team = 3.3% capacity gone

Smaller teams feel absence more acutely. A shared calendar showing who's out — planned and unplanned — helps founders and managers adjust before it becomes a crisis.

Q: Comparison table — free HR option types (what's available)

A: Different "free" options suit different stages:

Free option type	What it covers	Pros	Cons	Best for	Watch-outs
Templates + spreadsheet	Manual leave tracking + shared calendar	Truly free; familiar	Manual; error-prone [R6]	1–5 people	Breaking points at scale
Freemium leave tool	Requests, approvals, calendar, balances	Fast setup; focused	Employee/feature caps	5–15 people	Verify caps; no approvals on some
Freemium HRIS	Directory + time off + docs	More features	More caps; complexity	10–25 people	Verify export + audit trail
Open-source/self-hosted	Full control; no vendor lock-in	Free; customisable	Technical setup; maintenance	Tech-savvy founders	Time cost to maintain
Free trial HR suite	Full features for limited time	Full power to evaluate	Not free long-term	Evaluating paid options	Plan for post-trial cost
Ecosystem-bundled	HR bundled with payroll/accounting	No extra cost if using parent	Limited to that ecosystem	Already in that ecosystem	Features may be basic
Integrated ops	HR + invoicing + expenses (e.g., Zotrack)	Fewer tools; flat pricing	Usually not free	Outgrowing free tiers	Verify features fit

Q: What free tiers usually limit (and why it matters)

A: Common limits on free HR plans:

Limit type	Why it matters	Typical cap	What to check	Risk if ignored
Employee cap	Limits team size	5–25 employees	Pricing page	Forced upgrade mid-growth
Admin/manager seats	Who can approve	1–2 admins	User roles page	Bottleneck on approvals
Approvals/roles	Who can do what	Often limited or missing	Feature list	No approval workflow
Audit trail	Who changed what	Often paid-only	Feature list	No accountability
Exports/reporting	For accountant/ops	Often paywalled	Export options	Manual compilation
Document storage	Contracts, policies	Limited or none	Storage limits	Separate doc storage
Integrations	Connect to other tools	Often paid-only	Integration list	Manual data entry
Multi-location holidays	Different bank holidays	Sometimes limited	Holiday calendar settings	Wrong holiday calendars
Policy customisation	Different leave types	Basic only	Policy settings	Workarounds needed
Support level	Help when stuck	Community/email only	Support page	Stuck if issues arise
Data portability	Export if you leave	May be limited	Export all data option	Data trapped
Security (SSO/SCIM)	Enterprise security	Usually paid-only	Security page	Manual user management

"Hidden costs of free": Admin time, export paywalls, migration hassle later, and policy mistakes that cause disputes.

Q: Feature checklist — the minimum you need to avoid chaos

A: What to look for:

Feature	Why it matters	Minimum acceptable	Evidence to request	Notes
Employee directory	Who's on the team	Name, email, start date	Employee list view	Must-have
Leave requests/approvals	Request → approve workflow	Basic approval flow	Approval demo	Must-have
Shared "who's out"	Visibility for planning	Team calendar view	Calendar screenshot	Must-have
Balances + pro-rating	Accurate days remaining	Auto-calculated	Balance view	Must-have
Public holidays	Correct by location	UK bank holidays	Holiday calendar settings	Must-have
Permissions	Who sees/approves what	Basic roles	Roles settings	Must-have for teams
Reporting/export	For ops/accountant	CSV or PDF	Export test	Must-have
Audit trail	Who approved what	Timestamps visible	History view	Must-have
Onboarding checklist	New starter tasks	Basic list	Onboarding feature	Nice-to-have
Document storage	Contracts, policies	Basic upload	Docs feature	Nice-to-have
GDPR/data portability	Export/delete on request	Full export option	Data export	Must-have
Reminders	Pending approvals	Email or in-app	Notification settings	Nice-to-have

Must-have: Approvals, calendar visibility, balances, export, audit trail.

Nice-to-have: Performance reviews, deep automation, heavy customisation.

Q: When free stops working (10 vs 20 vs 30 employees)

A: Different pain points emerge at different sizes:

Team size	What breaks first	Symptoms	Risk	What to standardise next	Upgrade trigger
~10	Approvals stuck	Requests lost in Slack/email	No audit trail	One approval workflow	Approvals needed
~20	Balance errors	Disputes; manual pro-rating	Wrong balances	Auto-balance calculation	Part-time/pro-rating
~30+	Multi-location holidays	Wrong calendars; policy drift	Compliance risk	Location-based calendars	Multiple offices

Practical upgrade triggers:

Approvals stuck in email/Slack
Reporting/export needed for ops or accountant
Multiple locations with different holiday calendars
Need audit trail and proper permissions

Q: Spreadsheet vs free tools — what the evidence says about errors (fairly)

A: Research shows spreadsheets contain errors in one percent or more of all formula cells [R6]. The Dartmouth literature review confirms spreadsheet errors are common and risks often under-recognised [R7].

Fair perspective: Spreadsheets can work early when you have 1–5 people and simple needs. The risk increases with: more people, part-time employees, multiple approvers, and compliance requirements.

Research shows organisations accumulate SaaS tools over time, many with overlapping functions [R8]. Too many tools increases admin overhead. Choose one source of truth for leave tracking.

Quick Picks (60 seconds) — best-fit free approach by stage

Pre-hire / 1–5 people: Templates + shared calendar may be fine.
5–15 people: Freemium leave tool (if it supports approvals + balances).
15–30 people: Freemium HRIS if permissions + exports exist.
If free limits block you: Consider a predictable paid option (see pricing) or integrated ops approach.

Free Plan Trap Checklist (copy/paste) — verify before choosing

Truly free or time-limited trial?
Employee cap: How many employees can you add?
Admin/manager seats: How many approvers?
Leave approvals: Included on free tier?
Balance calculations + pro-rating: Automatic?
Public holidays by location: Supported?
Export/reporting: CSV/PDF included?
Audit trail: Who approved what visible?
Data portability: Can you export everything?
Document storage: Any limits?
Support: What's included on free?
Security basics: Roles/permissions; SSO if needed?

Pass criteria:

If you can answer "yes" or "acceptable" to all 12, the free tier may work. If 3+ are "no," factor in admin time or plan for upgrade.

14-Day Pilot Checklist (copy/paste) — prove it works in real life

Set leave year + basic policy: Start date, entitlement, carryover.
Configure holiday calendars: UK bank holidays + any other offices.
Add employees/teams: At least 10 people for realistic test.
Set approvers + backup approver: Who approves for each team?
Run 10 real leave requests: End-to-end with real dates.
Verify balances (incl. pro-rating): Part-time and mid-year joiners.
Validate "who's out" visibility: Can managers see the calendar?
Export upcoming leave + balances: For ops or accountant.
Check audit trail: Who approved/changed what and when?
Measure: Approval time, adoption %, overlap surprises.

Pass criteria:

≥90% task success; approval time <24 hours; no balance errors; ≥80% adoption in pilot group.

Minimum Leave + HR Setup (copy/paste) — a simple starter template

Leave types: Annual, sick, unpaid (minimum).
Approver rules: Line manager approves; backup if manager is off.
Submission deadline: At least 2 weeks notice for planned leave.
Carry-over stance: Max 5 days or "use it or lose it."
"Who's out" visibility: All team members can see team calendar.
Monthly export routine: First of month, ops lead exports upcoming leave.

Owner:

Assign one person (founder, ops lead, or office manager) to own leave policy and exports.

Q: Before vs after — what changes when HR is standardised

A: Measurable outcomes:

Scenario	Before (manual/email/spreadsheets)	After (standard HR workflow)	Outcome
Leave overlap surprises	2–3 per quarter	Near zero (calendar visible)	Better planning
Time-to-approve leave	2–3 days (lost in Slack)	2–4 hours (notification)	Employees can plan
Balance disputes	1–2 per quarter	Rare (automated)	Less friction; trust
Month-end reporting	2–3 hours compiling	10 minutes (export)	Admin time saved

Q: Risk register — worst-case scenarios and how to avoid them

A: Common risks with free HR software:

Risk	Worst-case impact	Early warning signs	Mitigation	Owner
Data lock-in	Can't leave; painful migration	No export option	Verify full export before commit	Ops lead
Policy misconfig	Wrong balances; disputes	Balance complaints	Pilot with test data first	Founder/HR
Missing audit trail	No accountability; disputes	Can't see who approved	Choose tool with history	Ops lead
Security gaps	Data breach; GDPR issues	No roles; no SSO	Check security page	IT/Founder
Lack of support	Stuck; can't fix issues	Community-only support	Know support tier upfront	Ops lead
Shadow systems	Requests in email/Slack	Duplicate requests	Single source of truth rule	Founder
Compliance confusion	Legal risk; penalties	No holiday calendar; wrong fields	Verify UK baseline support	Founder/HR
Migration pain	Lost data; rework	No import/export	Test export before committing	Ops lead

Worst case emphasis: Wrong balances = disputes and lost trust. Missing audit trail = accountability gaps. Data lock-in = painful migration later.

Q: A data-backed PR angle (credible, not salesy)

A: If writing about free HR software for press:

Micro businesses are ~95% of UK businesses: UK Parliament briefing [R4]. Most startups need simple tools, not enterprise suites.
Statutory holiday baseline: UK workers are entitled to 5.6 weeks' (28 days for full-time) statutory paid holiday [R1], [R2] — any HR tool must handle this correctly.
Absence reality: ONS reports 148.9 million working days lost to sickness absence in 2024 [R3] — visibility matters even for small teams.

"The best free HR software for a startup isn't the one with the most features — it's the lightest option that gives you accurate leave tracking, visibility, and records you can rely on."

Q: FAQ

1) Is free HR software good enough for a startup?

It depends on your size and needs. Free HR software can work well for very early-stage startups (under 10 people) with simple requirements. As you grow, you'll likely hit caps on employees, features, or exports. The key is to pilot carefully, understand the limits, and have a plan for when you outgrow free tiers.

2) What's the difference between a leave tool and an HRIS?

A leave management tool focuses specifically on time-off requests, approvals, calendars, and balances. An HRIS (Human Resource Information System) is broader: it typically includes employee directory, time off, onboarding, documents, and sometimes performance management. Leave tools are simpler and faster to set up; HRIS covers more but requires more configuration.

3) What limits should I expect on free HR plans?

Common limits include: employee caps (often 5 to 25), admin seat limits, no approval workflows, limited reporting or export, no audit trail, basic support only, and watermarks or branding. Always verify current limits on the official pricing page; these change without notice.

4) When should I switch from spreadsheets to HR software?

Consider switching when: (1) you have more than 10 employees, (2) you have part-time workers needing pro-rated balances, (3) approvals get lost in email or Slack, (4) you cannot answer "who is out this week" quickly, (5) balance disputes are becoming common, or (6) your accountant or ops lead needs cleaner exports. The tipping point is usually errors and visibility, not headcount alone.

5) How do I handle pro-rated leave on a free tool?

Check if the free tier supports automatic pro-rating for part-time employees and mid-year joiners. Many free tiers do not include this, requiring manual calculation. If pro-rating is not supported, you will need to calculate balances yourself and enter them manually, which increases error risk.

6) How can I pilot free HR software before committing?

Run a 14-day pilot: (1) configure leave year and policy, (2) add employees and approvers, (3) run 10 real leave requests, (4) verify balances and pro-rating, (5) check the who-is-out calendar, (6) export a report for your accountant, (7) check the audit trail, and (8) measure approval time and adoption. If all these work, the tool is a good fit.

When you outgrow free tiers

If free-tier limits are blocking your team — approval caps, export paywalls, or no audit trail — it may be time for a predictable paid option. Zotrack offers leave management alongside invoicing and expense tracking in one platform with flat pricing. Run the 14-day pilot checklist to see if it fits your stage.

References

Last updated: 25 Jan 2026