PEO in the UK & Employer of Record UK INS Global
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Employer of Record in the UK & PEO 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.  

As a safe and simple way to offer compliance assured HR functions for employees in an overseas target market, a PEO (Professional Employer Organization) gives companies a way to hire and manage employees in less than 48h. INS Global’s PEO in the United Kingdom is a professional third-party supplier of expert global mobility services.

An EOR (Employer of Record) offers employment outsourcing solutions to take care of HR and administrative responsibilities and streamline the global expansion process. INS Global is a provider of third-party EOR in the United Kingdom solutions to companies looking to improve and accelerate their international mobility.

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Want to have a Team in the UK TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Employer of Record in the UK & PEO UK - Summary

Employer of Record in the UK & PEO UK

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 

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 - 9%
ROI
27%
Closed During Pandemic
-58%
Employer of Record UK

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. 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 - 2024 Updated

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%.  

Employer of Record in the UK & PEO UK

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FAQs

Working with a reputable PEO in the UK to handle all crucial HR duties such as payroll, contract administration, and tax compliance, comes at a cost that is calculated as a monthly charge based on a percentage of the wages of the co-employed workers. 

You may recruit or move individuals to the UK safely, practically, and legally by working with an EOR. While establishing your own business structure overseas, you can employ this outsourcing option on a short- or long-term basis. 

Employees who are handled by a PEO have access to a wide variety of benefits, including complete legal protection, local knowledge of all employer obligations, prompt and correct payment, and employee perks. 

Contractors that connect with customers through a PEO or EOR have access to all the same benefits and protections as normal employees while still keeping control over their work process. 

Yes, a PEO considers any variations in local or regional employment laws to provide you with worldwide protection wherever you are. 

Indirect costs like social insurance contributions, bonuses, or incentives must be included in payroll expenses in addition to basic salaries and any payments made to recruiting agencies or specialists. 

Also, even though signing bonuses are optional, they should be taken into account when calculating recruitment expenses if you choose to use them because they may help you stand out to possible new employees. 

There can sometimes be a minimum or maximum number of employees you may hire. However, with can recruit with some PEO companies. With INS Global, however, you are free to co-employ as many or as few workers as your development plan dictates. 

Since the COVID-19 pandemic, the UK, like many other nations, has successfully adapted to integrating employee remote work choices. For fair employment practices and as a competitive incentive, employees of a British-based company should have the choice between a physical workspace and a home office. 

Members of our recruiting team have access to professional networks, are knowledgeable about offline and online business resources, are familiar with local best practices, and much more. INS Global recruiters are ready to support your local hiring needs. 

Professional staffing firms or recruiting agencies commonly charge a hiring fee in the UK that is determined as a percentage of the first first gross monthly pay of the new hire. 

Yes, both British citizens and international residents can benefit from INS Global’s recruiting, PEO, and Employer of Record services. 

Employees in the UK are typically paid every month, with payroll taxes being deducted at source by employers as part of the PAYE (Pay As You Earn) system. All employers are obliged to do this for employees  

The minimum wage in the UK for 2023 is £10.42 for adults above the age of 22.

Since Brexit, all non-British workers are required to have a visa to live and work in the country. There are 29 current visa types available, with 8 of these being designed specifically for employees of overseas companies. You can find specific information on the UK government website here 

As part of payroll taxes, employers are expected to contribute to an employee’s National Insurance (15.05% on earning above £719 per month), Pension (depending on the mandatory pension scheme chosen but starting at a minimum of 3%), and any Extra Benefits Taxes (based on individual rates for specific insurance added as perks). 

In addition to the usual mandatory employee benefits of annual leave, sick leave, family leave, and insurance types mentioned above, many workers in the UK benefit from additional health and disability insurance, as well as any perks you may choose to offer. 

Employers in the UK must get the permission of their employees before making changes to a work contract. In some cases, employees are able to require employers to make changes to a contract if it covers a statutory right.  

The NHS (National Health Service) is an entirely free and open option funded mainly through taxes that is available to anyone in the UK, regardless of residency status.  

In addition to this, many companies will offer supplementary private medical insurance as a perk.  

When terminating an employee’s contract without fault, the employee is entitled to severance pay based on age and seniority.  

0.5 weeks’ salary for each complete year of service for those who are under 21. 

One week’s compensation for every complete year of service, from 22 to 40. 

For every complete year of service after age 41, receive 1.5 weeks’ salary. 

 

In 2022, the law set a weekly wage ceiling of £571 for severance purposes.  

 The Employment Agency Standards Inspectorate is the body that oversees most investigations into workplace conditions, contract disputes, and questions of employment rights. As UK law is not based on a single constitution or document, workplace regulations are determined by acts of government as they are passed.

There are typically 8 days of public holiday per year in the UK. Called “bank holidays”, these holidays are paid or unpaid based on the contents of an employee’s work contract.  

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