PEO & EOR in UK - Hire in 48h Without an Entity | INS Global

PEO in the UK

Hire Globally, Pay Locally, Expand Effortlessly

For many companies looking to expand or enter the UK market, establishing a separate branch or legal entity may not be the best option. The process required to do so can be complex, requiring a lot of upkeep. Instead, these companies could benefit from a PEO relationship.  

A PEO (Professional Employer Organisation) is a third-party services provider who hires or manages regulatory compliance on your behalf in a type of “co-employment” situation. Often considered alongside an EOR (Employer of Record), a PEO is a great way to enter a new market with flexibility while also avoiding costly and arduous administrative requirements.  

For more than 15 years, INS Global has been helping companies worldwide as a global employer of record. INS Global offers world-class PEO and Employer of Record services in the UK and 80+ other countries.  

PEO in the UK - Summary

The Advantages of Professional Employer Organisation/Employer of Record Services in the UK

No Compliance Burden

Have a team of legal experts ensuring complete compliance with every law and regulation at every step.

Accelerated Market Entry 

Begin operating in the UK in a matter of days, rather than the months it can take to incorporate a company.

Company Structure Streamlining

Work with one point of contact to enjoy the services that would usually be done by an entire team or department.

Fast Market Entry

For companies that may not have the budget or staffing to operate entire HR departments that can manage HR operations for overseas workers, PEOs provide all the services required to function efficiently.

Expert Support and Guidance

Have the right people for the job, for every HR service you need.

Why Consider a PEO in the UK Over Company Incorporation?

PEOs allow companies to avoid many administrative hurdles associated with incorporating a company in a foreign country. At the same time, the company can benefit from expert legal assistance and HR outsourcing services. For one monthly fee, expanding into the UK can be done in a matter of days, rather than the months it would usually take.  

A PEO:
  • Saves you money on unnecessary fees or potential fines
  • Organises complex tasks on your behalf 
  • Gives you access to networks or resources you may be otherwise unaware of 
  • Can provide onboarding and training services 
testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How Does INS Global's PEO in the UK work?

Our PEO solution in the UK is made to provide you with the perfect outsourcing solution in 4 simple steps: 

  1. Meet with us to discuss your needs and choose the services that best meet your requirements.
  2. We provide you with a local entity in the UK through which you can employ or transfer your staff.
  3. INS Global handles every HR service you require.
  4. You and your staff continue to function as normal, working on the tasks that matter for your success while we take care of the rest.

The Differences Between a PEO and an EOR

Often confused or falsely associated, PEOs and EORs offer similar services. However, they vary in how they relate those services and the range of services they provide. When looking for a services provider, it’s useful to know the differences between tHem so you can choose well.

  • A PEO provides HR outsourcing services to employees of other clients on their behalf.
  • These services can include payroll, legal compliance, payslips, annual or sick leave management, etc.
  • An EOR fully and legally hires employees on behalf of a client company.
  • They can provide all of the same services as a PEO, as well as anything required related to liability as an employer.
  • In the case of a PEO, the employee’s contract remains with their company. With an EOR the contract is signed between the provider and the employee, as directed by the client.

In the UK, INS offers the full range of services available to both as your global PEO and EOR services partner.  

Labour Law in the UK

Generally, labour law in the UK follows regulations established by the UK Government. However, there may be differences in rules in the constituent parts of the UK: England, Scotland, Wales, and Northern Ireland.  

 Many labour laws in the UK allow for a lot of flexibility and agreement between the employer and employee. However, employees can make use of labour dispute boards in the case of a grievance.  

Employment Contracts

Typically, employment contracts in the UK do not have to be written. However, key aspects of the job are expected to be given to the employee in writing.  

Most contracts in the UK are open-ended, though fixed-term contracts aren’t unusual for temporary workers or those hired for a project.  

There are no set terms for probation periods, though employees must be given a notice period of at least a week for up to 2 years of service. For each year of service after that, an employee must be given an additional week of notice up to 12 weeks.   

There is a minimum wage in the UK, the amount being based on age.

Working Hours and Overtime

The maximum weekly working hours possible in the UK is 48 (including overtime). However, there are exemptions for those who “opt-out” of this by agreement within certain circumstances. The actual amount of weekly work hours depends on what is agreed between the employer and employee. 

Overtime in the UK means any hours worked outside of the working hours set down in an employee’s work agreement. An employer is not automatically obliged to pay for overtime. However, this must be agreed upon between the employer and employee.   

Holidays and Annual Leave

Public holidays (referred to as “bank holidays” in the UK) may differ depending on the location. Typically, there are 8-10 per year.  

Workers are also not automatically guaranteed paid leave on public holidays. This is, however, expected unless an employer offers a higher rate of pay for the day. 

All full-time (35 hours per week or more) workers in the UK are entitled to 5.6 weeks of paid annual leave per year. Part-time workers are entitled to a proportional amount depending on their hours.  

Sick Leave

There is no standard number of sick leave days in the UK; however, employees in the UK must provide their employers with proof if they are sick for more than 28 days.  

The employer pays sick leave at a standard Statutory Sick Pay (SSP).

Maternity and Paternity Leave

Maternity leave in the UK is currently 52 weeks, divided between “ordinary” and “additional” maternity leave. At least 2 weeks must be taken directly after the birth of a child.  

 The Statutory Maternity Pay that a worker is eligible for during maternity leave is: 

  • Weeks 1-6     –   90% of average weekly earnings 
  • Weeks 6-39   –   90% of average weekly earnings OR a set rate (whichever is lower)  

 

 Paternity leave in the UK is traditionally 1 or 2 weeks paid leave.  

 Currently, there is also the option for parents to take 50 weeks of Shared Parental Leave, 37 weeks of which is paid at a set rate.

Tax and Insurances

The UK has a universal health care system, a state pension scheme, and unemployment benefits, funded by taxes.  

Employers usually organize these taxes on behalf of the employee.  

Corporate tax in the UK is currently at 19%.  

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.