Employer of Record in the United Kingdom (EOR in the United Kingdom)

Hire Globally, Pay Locally, Expand Effortlessly

The United Kingdom, with its dynamic economy and strategic position in global trade, offers immense opportunities for international businesses. However, entering the UK market involves navigating complex labor laws and tax regulations. An Employer of Record (EOR) in the United Kingdom can simplify this process, acting as your local partner to ensure effortless market entry and ongoing compliance with all necessary regulations.

Want to have a Team in United Kingdom TODAY?

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Want to Have a Team in the United Kingdom TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in the United Kingdom Streamlines Operations in 3 Steps

Step 1 – Comprehensive Planning & Needs Assessment

Partnering with an EOR in the UK, such as INS Global, starts with a detailed assessment of your business objectives. This includes understanding the number of employees, their roles, and your timeline for expanding into the UK. The EOR then tailors its services to meet your specific requirements, ensuring a seamless integration into the market.

Step 2 – Streamlined Setup, Recruitment & Onboarding

Whether you are forming a new team in the UK or transferring existing staff, an EOR handles all necessary legal processes. This includes managing visas, work permits, payroll, and contract management, ensuring full compliance with UK labor laws. Acting as your legal employer in the UK, the EOR saves you the time and expense of setting up a local entity.

Step 3 – Ongoing Management & Compliance Assurance

Once your employees are operational in the UK, an EOR manages ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The EOR acts as the HR liaison between you and your UK team, handling administrative tasks and addressing employee concerns, allowing you to focus on business growth.

The Advantages of a UK EOR On Your Business

Efficient Setup

An EOR simplifies the complexities of entering the UK market by managing intricate tax systems and labor laws, ensuring compliance from the start.

Consistent Compliance Management

Navigating the UK’s regulatory environment can be demanding, but EORs have the expertise to ensure your business complies with local tax laws, labor regulations, and social security contributions.

Minimized Risk and Liability

As your legal employer in the UK, an EOR mitigates the risks associated with employment regulations, ensuring full compliance.

Cost Planning and Management

EOR services are typically more cost-effective than setting up a local subsidiary, especially for smaller teams or temporary projects, helping you avoid initial incorporation costs and ongoing administrative burdens.

The Ability to Focus on Core Business Objectives

Outsourcing repeated HR tasks such as recruitment, payroll processing, and tax management to your UK EOR means you can concentrate on your core business activities.

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

Choosing Between an EOR and Company Incorporation in the UK

While setting up a subsidiary in the UK is an option, using an EOR provides several advantages:

Speed – The process of setting up in the UK is faster with an EOR like INS Global, enabling you to begin operations and hire staff much sooner. Company incorporation can take several months, whereas an EOR can have your team operational within weeks or even days.
Compliance – Both EORs and subsidiaries must adhere to UK tax laws and labor regulations. EORs bring specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
Cost – For smaller teams or temporary needs, EOR services can be more cost-effective than establishing a subsidiary, as they help you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, EORs provide efficient integration into multi-country payroll systems.
Control – While incorporation offers complete control over HR, finances, and operations, EORs provide similar control over your workforce while reducing administrative responsibilities and liability.

5 Essential Factors for Selecting the Best Employer of Record in the United Kingdom

Choosing the right EOR in the UK is crucial for successful market entry. Consider these 5 key factors:

Experience and Track Record – Look for an EOR in the UK with a proven track record and a strong industry reputation, such as INS Global. Client testimonials and industry awards can indicate reliability.
Comprehensive Service Offerings – Ensure the EOR in the UK offers all necessary services or can customize their offerings to meet your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating the UK’s tax and labor regulations.
Scalability – Choose an EOR in the UK that can scale its services as your business grows. They should be able to manage an increasing workforce and evolving business needs.
Clear Communication and Transparency – Opt for an EOR in the UK known for clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to vital information.
Transparent Cost Structure – Compare the pricing models of various EOR providers in the UK. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your EOR in the UK.

United Kingdom Labor Law Overview

Employment Contracts – Contracts must be in English and outline employment terms including salary, benefits, working hours, termination clauses, and minimum wage requirements. An EOR in the UK ensures your contracts comply with local labor laws.
Probationary Periods – Probation periods in the UK typically last up to 6 months. An EOR can help set up probation periods that comply with local laws while allowing you to assess new employees.
Working Hours – Standard work hours in the UK are usually 37.5 hours per week with limits on overtime. EOR services assist in tracking work hours and ensuring compliance with overtime regulations.
Paid Leave – Employees in the UK are entitled to various types of paid leave including public holidays, annual leave, sick leave, and maternity leave. An EOR manages leave requests and ensures proper compensation according to UK labor laws.
Health Insurance and Social Security – Both employers and employees contribute to health insurance and social security schemes. Your EOR handles these contributions as part of the payroll process.
Severance Pay – Severance pay is required in certain situations such as termination without cause. An EOR guides you through severance pay practices and calculations to ensure compliance with local laws.

Navigating these complexities in-house can be challenging and time-consuming. Partnering with an EOR in the UK ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.

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FAQs

How does an EOR assist in entering the UK market?

An EOR manages all legal, HR, and compliance tasks, allowing businesses to enter the UK market quickly without needing to establish a local entity.

What financial benefits does an EOR offer for expanding into the UK?

Using an EOR in the UK can be more cost-effective than setting up a local subsidiary, eliminating initial incorporation costs and reducing ongoing administrative expenses.

Can an EOR handle visa and work permit applications in the UK?

Yes, a UK EOR manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

Which industries benefit most from using EOR services in the UK?

Industries such as finance, technology, and healthcare benefit significantly from EOR services in the UK due to the specialized knowledge required for compliance.

How does an EOR help maintain compliance with UK tax laws?

EORs have local experts who stay updated on regulatory changes, managing all compliance aspects to ensure your business adheres to UK tax laws.

What level of operational control do I retain when using an EOR in the UK?

While the EOR is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.