Home to the fifth largest economy in the world,1 The United Kingdom is an attractive country for ambitious business owners and expansion-oriented organizations. Not only does the UK have a highly educated workforce2 and a relatively low corporate tax rate, but it's also a central hub for global commerce.
But if your company is thinking about expanding into the UK, you might be weighing up your options for establishing a presence there. For a lot of companies, setting up your own legal entity in the UK can be costly.
Luckily, you can outsource this process and its associated responsibilities to an Employer of Record (EOR).
To learn more about UK Employer of Record services, keep reading. We’ll explain how UK EORs work, what services they offer, and what benefits they provide.
EOR in the UK: A Paradigm Shift in Workforce Management
An EOR is a third-party organization that serves as the legal employer for a company’s workers in a foreign country, eliminating the need for the client company to go through the hassle and expense of setting up a legal entity on its own.
Working with an EOR in the UK also means that you’re getting help with any and all of the following aspects of global employment.
Recruiting and onboarding in the UK
Your EOR can help you quickly attract top talent from across the UK and gradually grow your workforce as needed. It can also help you facilitate a legally compliant onboarding process that assures new hires they made the right job acceptance decision.
Global payroll automation and tax compliance
Every country has its own payroll laws and tax regulations. For example, the UK’s minimum wages differ depending on workers’ ages—as of 2024, workers who are 23 and older are entitled to £11.44 per hour, while younger workers can receive anywhere from £5.28 to £8.60.4
Using advanced payroll automation, an EOR can ensure your UK-based workers are paid accurately, on time, and in their local currency, all while factoring in the proper tax and social security withholdings. In turn, you can prevent costly errors and enjoy greater peace of mind.
Legal compliance
As with global payroll processing, you must ensure you satisfy all UK employment laws, from providing compliant employment contracts to facilitating legal terminations. A UK EOR can help you remain compliant as you hire in the UK and beyond.
Employee experience
In today’s labor market, you need to provide an excellent employee experience if you want to retain top talent. This is especially true in the UK, as its workers enjoy a wide range of global employment opportunities. A trusted EOR UK service can help ensure your employees are satisfied and engaged in their positions. They can also help your company overcome any potential language barriers.
Benefits of Adopting UK Employer of Record Solutions
Partnering with an EOR UK service can provide many benefits. Most notably, you’ll enjoy a quicker expansion into the United Kingdom since you won’t have to go through the hassle and headache of establishing a legal entity on your own.
Your EOR partnership can also help you save money while establishing global teams. Not only will your EOR reduce the required upfront investment involved in hiring workers abroad, but it will also assume liability for certain employment issues that may arise. While you’ll need to pay your EORs’ fees, these are less than the ongoing administrative costs of maintaining a legal entity in a foreign country.
If you select a global EOR service, you can position your company as a global employer to expand into other countries beyond the UK when the time is right.
Implementing EOR Solutions: A Practical Guide for Success
We’ve covered the benefits of using an EOR. But how do you go about finding the right EOR for your business needs?
First, you must select an EOR service with local expertise, an easy-to-use platform, and excellent customer service. At Omnipresent, we’re proud to report that we provide all three.
Once you choose your EOR, you can sign your contract and start onboarding. During this time, you’ll get to know your EOR’s point of contact, discuss your business goals, and upload your global employment data to their platform.
After the initial onboarding process, you can start hiring workers in the UK and enacting your expansion initiatives. As you do, you’ll enjoy hands-on support from your EOR’s team every step of the way.
