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An Employer of Record (EOR) is a third-party organisation that employs workers on your behalf. In the UK, this means:
The EOR model is often compared with a Professional Employer Organisation (PEO), but the difference is important: a PEO requires you to have a UK entity and co-employs staff with you. An EOR, on the other hand, allows you to hire without setting up a company, since the EOR itself is the legal employer.
The UK is one of Europe’s most attractive hiring destinations. With a large, educated workforce, English as the working language, and established employment protections, it provides access to talent across industries like finance, technology, consulting, and creative services.
However, hiring directly can be complicated. Setting up a UK company involves incorporation, tax registration, payroll setup, and compliance with pensions and employment law. This process takes time and creates ongoing administrative responsibilities.
Hiring with an EOR avoids these barriers by:
For example:Â A US tech company wanting to hire one sales manager in London can either spend months incorporating a UK subsidiary or use an EOR to have the employee legally onboarded within weeks. The EOR route avoids upfront costs while allowing the company to start selling immediately.
| Factor | UK Entity | UK EOR |
| Setup time | Several weeks to months | A few days to weeks |
| Compliance responsibility | Employer holds all obligations | EOR assumes legal obligations |
| Control | Full control over contracts and HR | Limited control, EOR manages contracts |
| Cost | Higher upfront and ongoing | Service fees, but no entity costs |
| Best for | Long-term market commitment | Fast market entry or testing phase |
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Many companies choose to start with an EOR when testing the UK market, then transition employees to their own entity once revenue and scale justify it.
Hiring in the UK comes with several mandatory rules that all employers must follow. A UK EOR ensures these are managed correctly.
Employees must receive a written statement of employment particulars on or before their first day. This includes salary, hours, holiday entitlement, and notice periods. Most EORs issue full employment contracts that cover these obligations.
The Working Time Regulations cap the average work week at 48 hours over a 17-week period. Employees can opt out in writing. Workers must also have:
The UK uses a Pay As You Earn (PAYE) system. Employers deduct income tax and National Insurance from wages and pay them directly to HMRC. Employers also pay their own National Insurance contribution on top.
All employers must automatically enrol eligible workers into a qualifying workplace pension and make minimum contributions. This obligation applies from day one. EORs manage assessments, enrolment, and re-enrolment cycles.
Employees are entitled to 5.6 weeks of paid annual leave (28 days for a full-time worker). Bank holidays can be included. Additional statutory leave includes:
UK law protects employees against unfair dismissal after two years of service. Employers must follow proper procedures for notice, consultation, and redundancy pay. Employees with two or more years’ service are entitled to statutory redundancy pay, calculated by age, service length, and capped weekly pay.
Example:Â If a company makes 25 employees redundant at once, it must engage in collective consultation with representatives, provide minimum consultation periods, and follow statutory redundancy pay rules. An EOR helps structure this process correctly.
| 1. Remote People | Remote People is a global provider with EOR services in over 150 countries, including the UK. Alongside EOR, it offers contractor management, recruitment support, and company incorporation services, making it a strong option for businesses with global ambitions. Its tech-driven platform simplifies onboarding and payroll, while its competitive pricing makes it especially attractive for SMEs that want to manage international hires without excessive overhead. |
| 2. Teamed | Teamed is a UK-based EOR that focuses on domestic expertise. It is known for its personalised service and in-depth knowledge of local compliance, including pensions and HR regulations. Because it is smaller and UK-focused, Teamed is often a better fit for companies that want a hands-on partner rather than a global platform. Its clients tend to value responsive support and customised solutions, particularly in industries where compliance requirements are nuanced. |
| 3. Omnipresent | Omnipresent is a fast-growing EOR provider that supports distributed global teams. It combines compliance services with a sophisticated HR platform, giving employers clear visibility of payroll, benefits, and leave across multiple jurisdictions. For scaling start-ups and tech firms that want a modern interface and fast onboarding, Omnipresent is a strong choice. Its focus on user-friendly technology and automation makes it particularly appealing to venture-backed companies that are expanding internationally. |
| 4. Target HR | Target HR is an HR outsourcing company that also provides EOR services. In addition to payroll and compliance, it supports recruitment and business process outsourcing (BPO), making it a good option for larger organisations that want an all-in-one HR solution. Unlike leaner EOR-only providers, Target HR offers more of a consulting-led model, with HR professionals advising on workforce planning, employee relations, and compliance. |
| 5. Expandys | Expandys offers EOR services alongside company incorporation and market entry support. It positions itself as a bridge for companies that want to test the UK market before committing to their own subsidiary. By combining EOR with incorporation expertise, Expandys helps businesses transition smoothly from temporary hiring arrangements to permanent local structures. This makes it a strong option for firms that see the UK as a strategic long-term hub but want to keep their options open in the early stages. |
When comparing providers, consider:
Using an EOR is not just about compliance – it’s about flexibility. A company may use an EOR to test the waters in the UK with one employee, expand to five within a year, and then establish its own subsidiary once revenues justify it. Throughout, the EOR reduces risk and ensures legal compliance.
EORs can also help with cultural expectations. In the UK, many professional employees expect benefits beyond the statutory minimum, such as private healthcare, life insurance, or enhanced sick pay. An experienced EOR in UK can advise on what’s typical in your sector so you remain competitive in the talent market.
The UK is one of the most attractive hiring markets in Europe, but its employment laws are precise and must be followed carefully. From PAYE payroll to pensions and redundancy pay, compliance mistakes can be costly.
A UK Employer of Record allows you to enter the market quickly and safely, providing compliant contracts, payroll, and benefits while you manage performance and culture. For many companies, the best path is to start with an EOR to build momentum, then transition to a direct entity later.
By selecting the right EOR provider, you can avoid risks, attract talent, and focus on growing your business in one of the world’s most dynamic economies.
For more information on the best providers in the United Kingdom, get in touch with our experts at RemotePad.
