Hiring in the UK sounds straightforward—until payroll, HMRC rules, employment law, visas, and compliance hit all at once. That’s where employer of record services in the UK become a game-changer.
An Employer of Record UK solution allows international companies to hire UK talent without setting up a legal entity, while staying fully compliant with UK employment law and HMRC regulations. Whether you’re expanding into Britain, testing the market, or hiring one key employee, a global EoR agency like Remire removes the friction.
In this guide, we’ll break down how employer of record services in the UK work, costs, compliance, visa sponsorship, risks, and how global HR platforms simplify everything—from onboarding to payroll to offboarding.
Employer of Record Services in the UK: A Quick Guide
What is an Employer of Record (EOR)?
An Employer of Record is a third-party organization that legally employs workers on your behalf. While you manage daily work, the EOR handles payroll, taxes, benefits, contracts, and compliance.
Why companies use employer of record services in the UK:
- No UK entity required
- Faster hiring timelines
- Reduced legal and compliance risk
- Full HMRC compliance
What are Employer of Record Services in the UK?
Employer of Record services in the UK act as the legal employer under UK law, registering with HMRC, issuing compliant contracts, and ensuring statutory benefits are delivered correctly.
In the UK, EORs must comply with:
- HMRC PAYE regulations
- Employment Rights Act
- National Minimum Wage laws
- GDPR
This makes choosing one of the top Employer of Record companies critical. Global HR platforms like Remire, a leading global EoR agency, specialize in managing UK-specific requirements while supporting global hiring strategies.
How Employer of Record Services in the UK Work
| Responsibility | Your Company | Employer of Record UK |
|---|---|---|
| Daily management | ✅ | ❌ |
| Payroll & HMRC | ❌ | ✅ |
| Employment contracts | ❌ | ✅ |
| Statutory benefits | ❌ | ✅ |
| Compliance & audits | ❌ | ✅ |
Pros, Cons, and Risks of Using an Employer of Record
An employer of record service in the UK enables fast market entry and simplifies compliance by handling payroll, HMRC, and employment laws, but it may not be the best fit for long-term scaling.
Benefits of using an EOR in the UK
- Speed: hire in weeks, not months
- No entity setup costs
- Built-in compliance with HMRC
Business advantages of UK EOR solutions
Using an employer of record service in the UK lets companies:
- Test the UK market
- Hire niche talent
- Scale flexibly
Protecting business interests when using an EOR
- IP protection clauses
- GDPR-compliant data handling
- Confidentiality agreements
Risks of employee misclassification in the UK
Misclassifying employees as contractors can trigger:
- HMRC penalties
- Backdated taxes
- Legal disputes
Limitations and risks of using an Employer of Record
- Monthly per-employee fees
- Less flexibility in custom benefits
- Limited control over HR policies and processes
When an Employer of Record may not be the right solution
- Large UK workforce
- Long-term establishment plans
- Need for full legal entity control and governance.
Commercial and operational trade-offs of EOR models
| Factor | EOR | UK Entity |
|---|---|---|
| Speed | High | Low |
| Cost upfront | Low | High |
| Compliance risk | Low | Medium |
United Kingdom Overview
The United Kingdom is known for its stable economy and position as a global business hub, making it a prime destination for companies looking to expand internationally.
With a well-established regulatory framework and strong employment protections, the UK offers a reliable environment for businesses seeking compliance and growth. For companies using Employer of Record services in the UK, this stability ensures that employees are legally protected while operations run smoothly.
Employment in the UK at a glance
The UK labor market is structured to balance employer flexibility with employee protections. Key employment metrics include:
| Metric | Overview |
|---|---|
| Standard workweek | 37–40 hours |
| Paid leave | 28 days |
| Termination | Notice-based |
United Kingdom & the Channel Islands
- Many Employer of Record services in the UK also cover the Channel Islands, including Jersey and Guernsey.
- Each territory has its own employment laws, payroll requirements, and tax rules that must be followed.
- Companies can use a global EoR agency like Remire to manage compliance, ensuring smooth operations across multiple jurisdictions.
- Using an EOR helps reduce administrative burden while maintaining full legal compliance for employees in these regions.
Business Environment and ease of doing business in the UK
- The UK is a transparent, business-friendly market attracting companies across tech, finance, and professional services.
- Strict regulatory compliance is required, making an Employer of Record service in the UK an ideal solution for foreign businesses.
- EOR services allow companies to operate without establishing a local entity, saving time and reducing cost.
- Partnering with a global HR platform like Remire ensures that payroll, benefits, and employment obligations are handled efficiently.
UK talent pool and market conditions
- The UK has a highly skilled workforce, especially in technology, finance, and creative industries.
- Companies using Employer of Record services in the UK can hire top talent quickly without setting up a legal entity.
- Salary competitiveness and talent demand vary across sectors, making benchmarking essential.
- Global EoR agencies help manage recruitment, onboarding, and compliance to streamline talent acquisition.
Employment Law & Compliance in the UK
Employment conditions in the United Kingdom
- Written employment contracts are mandatory.
- Statutory benefits include paid leave, sick pay, and pensions.
- Standard workweek: 37–40 hours.
- EOR services in the UK, like Remire, handle compliance.
- Employees get full legal entitlements without a local entity.
Employee rights and protections
- Protection against unfair dismissal and discrimination.
- Statutory sick pay and parental leave are guaranteed.
- UK EOR ensures employee rights are upheld.
- Remire, a global HR platform, simplifies legal compliance.
- Employees retain full UK labor protections.
Employment compliance requirements
- HMRC registration is mandatory for payroll and taxes.
- EOR services manage payroll, NICs, and statutory filings.
- Remire ensures GDPR and employment law compliance.
- Businesses can employ UK staff without a local setup.
- Reduces risk of compliance breaches for global companies.
Key Employment Rules & EOR Compliance in the UK
| Topic | Key Points | Notes / EOR Advantage |
|---|---|---|
| Working hours and overtime rules in the UK | Max 48-hour workweek unless opted out | EOR services like Remire manage compliance automatically |
| Termination protections under UK employment law | Notice periods are legally enforceable | UK EOR ensures proper termination processes |
| Legal entity requirements in the UK | Companies usually need a local entity | Avoided using a global EoR agency like Remire entirely |
| Employment vs contractor classification in the UK | Correct classification critical | EOR services handle classification and compliance |
| IR35 rules and contractor misclassification risks | Misclassification risks apply to contractors | The major reason companies use Employer of Record services in the UK |
Employment Contracts in the UK
Navigating employment contracts in the UK can be complex, especially for foreign companies hiring without a local entity. Using Employer of Record services in the UK, like Remire, a global HR platform, simplifies this process.
From contract types to notice periods, an EOR manages everything while adhering to UK labor laws.
Employment Contracts: Requirements & Agreements
All UK employees must receive a written contract on their first day of employment. Key requirements include:
- Pay and benefits: Clearly stated salary, allowances, and statutory benefits.
- Working hours and leave: Standard hours, overtime policies, and paid leave entitlements.
- Notice periods: Minimum statutory notice for probation and confirmed employment.
- Statutory protections: Rights related to unfair dismissal, sick pay, and parental leave.
Fixed-Term vs Permanent Contracts
UK employment law accommodates both fixed-term and permanent contracts. Employer of Record services in the UK handle both seamlessly:
- Fixed-term contracts: Perfect for project-based hires, pilots, or seasonal staff, with statutory rights fully applied.
- Permanent contracts: Ideal for long-term hires, providing complete access to statutory benefits, pensions, and leave entitlements.
- Flexibility: Companies can scale staff quickly without establishing a UK legal entity.
Probation Periods & Notice Clauses
Probation periods allow employers to evaluate performance before confirming permanent employment. Key points include:
- Typical duration: 3–6 months
- Probation notice: Usually 1 week
- Post-probation notice: 1–3 months, depending on tenure
- Statutory minimum notice compliance
Restrictive Covenants & Post-Termination Clauses
Restrictive covenants protect a company’s intellectual property, confidential information, and competitive interests after employment. Important elements include:
- Non-compete clauses: Limit employee engagement with competitors.
- Non-solicitation clauses: Prevent poaching of clients or colleagues.
- IP ownership: Ensures work created during employment belongs to the employer.
Employee Benefits & Compensation in the UK
Offering competitive benefits and compensation is essential to attract and retain top talent in the UK. Using Employer of Record services in the UK, such as Remire, ensures that companies provide fully compliant benefits while streamlining HR administration and payroll compliance.
Mandatory Employee Benefits
Every UK employee is entitled to statutory benefits, which are automatically included when using Employer of Record UK solutions:
- Paid annual leave: Employees receive a minimum of 28 days per year.
- Public holidays: Typically 8 statutory holidays per year.
- Sick pay: Statutory Sick Pay (SSP) ensures income during short-term illness.
- Maternity, paternity, and parental leave: Employees are entitled to leave according to UK law.
- UK workplace pension: Automatic enrollment in a workplace pension scheme.
Global EoR agencies like Remire ensure these benefits are administered correctly, avoiding compliance risks and payroll errors.
Additional Statutory Benefits
Beyond mandatory benefits, the UK provides additional protections that all employees must receive:
- Redundancy pay: Statutory entitlements for employees with two or more years of service.
- Parental protections: Rights for parents returning from leave.
- Sick leave extensions: Some employees may qualify for extended protections in certain circumstances.
- Flexible working rights: Employees can request flexible schedules.
Using Employer of Record services in the UK ensures companies automatically comply with these rules while focusing on core business operations.
Common Non-Mandatory Benefits
Many UK employers offer additional perks to remain competitive, particularly for high-demand roles:
- Private healthcare plans: Supplemental health coverage for employees.
- Performance bonuses: Incentives tied to individual or company performance.
- Training and development programs: Upskilling opportunities to retain talent.
- Wellness initiatives: Gym memberships, mental health support, and flexible benefits.
A global HR platform like Remire can manage these perks for international companies, ensuring benefits are both attractive and legally compliant.
Salary Benchmarking and Compensation Planning
Competitive compensation is crucial to hiring and retaining top UK talent. Key elements include:
- Market benchmarking: Remire provides access to real-time salary data for tech, finance, marketing, and other sectors.
- Role-based adjustments: Salaries vary by location, seniority, and demand.
- Total rewards planning: Combines salary, bonuses, and benefits into a complete package.
- Compliance with UK payroll regulations: Ensures all remuneration aligns with HMRC rules.
Using Employer of Record services in the UK, companies can offer attractive pay packages without setting up a local entity, making global hiring easier and more efficient.
Payroll, Taxes & Minimum Wage in the UK
Payroll and Payroll Taxes
Employer of Record services in the UK manage payroll end-to-end:
- Calculate gross-to-net pay for employees.
- Deduct Income Tax and National Insurance Contributions (NICs).
- Submit payroll information to HMRC on time.
- Generate payslips and statutory reports.
A global HR platform like Remire ensures payroll is accurate, timely, and fully compliant, reducing risk for international companies.
PAYE System and RTI Reporting
PAYE (Pay As You Earn) is the UK system for withholding taxes from wages, and RTI (Real-Time Information) reporting is mandatory:
- Employer of Record UK services handle all RTI submissions each pay period.
- Ensure all employee tax codes are up to date.
- Manage statutory forms like P60s and P45s.
- Maintain compliance with HMRC reporting deadlines.
A global EoR platform like Remire automates this, reducing administrative burden for international employers.
Payroll Processing Requirements
Employer of Record services in the UK simplify payroll administration for international companies:
- Standard monthly pay cycles, adaptable to company policies.
- Automated calculation of gross-to-net pay and deductions.
- Integration with benefits administration (pensions, leave, bonuses).
- Full compliance with HMRC, NICs, and statutory reporting.
With Remire, payroll is processed seamlessly, allowing companies to focus on hiring and growth rather than administrative complexity.
Employer National Insurance Contributions (NICs)
UK employers must pay NICs on employee wages. Using Employer of Record services in the UK ensures correct contributions:
| Contribution Type | Rate | Notes |
|---|---|---|
| Employer NICs | 13.8% | Paid on earnings above £9,100/year |
| Employee NICs | 12% | On earnings £12,570–£50,270 |
| Employee NICs | 2% | On earnings above £50,270 |
With Remire, NICs are automatically calculated and submitted to HMRC, avoiding penalties or late fees.
Income Tax in the UK
The UK income tax system is progressive, and Employer of Record UK services ensure proper deductions:
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571–£50,270 | 20% |
| Higher Rate | £50,271–£125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Remire handles PAYE calculations and reporting, so international employers never have to worry about compliance errors.
UK Payroll Compliance Checklist (2026)
Companies using Employer of Record services in the UK can rely on structured compliance workflows. Example checklist:
| Requirement | Status | Notes |
|---|---|---|
| PAYE Registration | Required | Must register before the first payroll |
| RTI Filing | Required | Submit each pay period |
| NIC Calculations | Required | Both employer and employee contributions |
| Payslip Delivery | Required | Must provide for every pay period |
| Statutory Reporting | Required | P60s, P45s, pension reporting |
Remire ensures each step is completed accurately and on time.
Hiring in the United Kingdom
Hiring employees in the UK involves understanding local labor laws, compliance requirements, salary expectations, and industry-specific considerations. Companies using Employer of Record services in the UK can hire faster, avoid legal pitfalls, and leverage local expertise through global HR platforms like Remire.
Key Considerations Before Hiring
Before hiring in the UK, companies should focus on:
- Salary expectations: Benchmark salaries against local market standards to attract top talent.
- Benefits compliance: Ensure statutory benefits like paid leave, pension contributions, and sick pay are included.
- Employment contracts: Clearly define roles, hours, and notice periods to comply with UK labor laws.
- Tax and payroll obligations: An Employer of Record UK handles PAYE, NICs, and HMRC reporting, reducing administrative burden.
Hiring Employees in the UK
Employing staff in the UK is faster and simpler with the Employer of Record service in the UK. Key points include:
- Onboard employees quickly without establishing a local legal entity.
- Access local HR expertise for contracts, compliance, and payroll management.
- Avoid common pitfalls related to tax, employment law, and benefits administration.
- Ensure employees receive full statutory protections and competitive compensation.
A global EoR agency like Remire streamlines the entire process, from recruitment to payroll, helping companies expand efficiently.
Industry-Specific Hiring Considerations in the UK
Certain industries require specialized hiring approaches. Employer of Record services in the UK provide guidance across sectors:
- Tech & SaaS talent: High competition and flexible working expectations.
- Finance & regulated roles: Compliance with FCA and financial regulations is essential.
- Contractors vs employees: Proper classification avoids IR35 misclassification risks and protects the company legally.
- Creative & professional services: Tailored benefits packages help attract niche talent.
Using Remire ensures companies meet all industry-specific hiring requirements while maintaining compliance.
How to Use an Employer of Record in the UK
| Step | Action | Description | Benefits with Remire (Global EoR Agency) |
|---|---|---|---|
| 1 | Assess the need for an EOR | Determine if your company needs an Employer of Record to hire in the UK without setting up a legal entity. | Fast UK market entry, reduced compliance burden, and expert guidance from Remire. |
| 2 | Compare alternatives | Evaluate other hiring options such as local entity setup, payroll services, or contractors. | Understand cost, flexibility, and legal implications while leveraging Remire’s expertise. |
| 3 | Hire and onboard employees | Engage talent in the UK with compliant contracts and benefits. | Seamless onboarding, full statutory compliance, and HR support through Remire, a leading Employer of Record UK service. |
| 4 | Run payroll and manage compliance | Handle PAYE, NICs, taxes, and reporting to HMRC. | End-to-end payroll, accurate tax submissions, and legal compliance are ensured by Remire, a trusted global HR platform. |
Understanding Co-Employment and EOR Responsibilities in the UK
- How co-employment works: There is a clear division of responsibilities between your company and the Employer of Record.
- Legal vs operational employer: The EOR acts as the legal employer, while your company remains the operational employer.
- EOR responsibilities: The EOR manages compliance, payroll, statutory benefits, and HR administration.
- Implementation timelines: Setup and onboarding usually take 2–4 weeks with a global EoR agency like Remire.
Onboarding Employees with a UK EOR
- Using an EOR for onboarding: Streamlined and fully compliant with UK employment regulations.
- Typical onboarding timelines: Faster than setting up a local entity, saving time and resources.
- Employees can be onboarded in as little as 10 business days with the help of EoR.
- Employee experience when hired through an EOR is smooth, professional, and well-supported from day one.
| Stage | Activities & Support Provided | Notes |
|---|---|---|
| Before the first day | Contracts issued, payroll setup, documentation completed | Ensures compliance and a smooth start |
| The first week | Benefits enrollment, compliance briefings, and initial training | Fast integration into the company |
| Beyond the first week | Ongoing HR support, payroll management, and employee engagement | Continued assistance via Remire EoR |
Offboarding & Termination in the UK
- End of employment: Legally structured and fully compliant with UK employment law.
- Termination and severance: Statutory requirements for severance and final payments are applied.
- Notice periods: Clearly defined in employment contracts and enforced by law.
- Probation and dismissal rules: Strictly regulated to protect both employee and employer rights.
- Redundancy procedures and statutory redundancy pay: Managed efficiently by Employer of Record services in the UK, ensuring full compliance.
Immigration & Work Visas in the UK
- Work permits and sponsorship: Can be arranged through Employer of Record services in the UK via visa sponsorship, allowing companies to hire talent without a local entity.
- Sponsor licence requirements for UK employers: Managed by global HR platforms like Remire to ensure full compliance with UK immigration law.
- Skilled Worker Visa: The most common route for hiring foreign talent under Employer of Record services in the UK.
- Alternative UK work visas: Options include Global Talent, Temporary Worker, and other relevant visa categories.
- Temporary vs long-term visas: Visa type depends on the employee’s role, project duration, and long-term hiring plans.
- Eligibility requirements: Based on skill level, salary thresholds, and other UK Home Office criteria to ensure compliance.
EOR vs Alternatives in the UK
EOR vs UK legal entity
| Option | Speed | Cost |
|---|---|---|
| EOR | Fast | Medium |
| Entity | Slow | High |
EOR vs Payroll Services
| Factor | EOR | Payroll Service |
|---|---|---|
| Compliance | Fully handled | Only payroll, partial |
| Legal employer | Yes | No |
| HR support | Included | Limited |
Employer of Record vs PEO
| Feature | EOR | PEO |
|---|---|---|
| Legal employment | Yes | Co-employment model |
| Compliance responsibility | Full | Shared |
| Ideal use case | International hiring | Domestic HR support |
When to choose an EOR vs a PEO
| Scenario | Recommendation |
|---|---|
| Hiring internationally | EOR |
| Expanding domestically | PEO |
| Compliance-sensitive roles | EOR |
EOR vs Contractor Hiring in the UK
| Aspect | EOR | Contractor |
|---|---|---|
| Compliance with IR35 | Fully compliant | Risk of misclassification |
| Legal employment | Yes | No |
| Benefits & protections | Included | Limited |
Costs & Employee Cost Calculators
- Cost of hiring in the UK – Includes salary, NICs, pensions, and benefits.
- Cost of using an EOR – Monthly per-employee fee; handled by global EoR platforms like Remire.
Employee cost calculator – Estimate total costs via Remire’s online tool. - Quick cost estimate – Instant projections including taxes, benefits, and fees.
Cost comparison: EOR vs UK entity vs contractors
| Model | Risk | Cost |
|---|---|---|
| EOR | Low | Medium |
| UK Entity | Medium | High |
| Contractor | High | Low |
Best Employer of Record Services in the UK
| Provider | Key Feature |
|---|---|
| Remire | Global EoR agency, seamless compliance, fast onboarding, and full UK & Channel Islands coverage. |
| RemoFirst | Affordable, flexible, and user-friendly platform. |
| Remote | Strong tech platform with robust HR tools. |
| Oyster | Extensive global reach for international hiring. |
| Deel | Fast onboarding and automated payroll management. |
| Multiplier | Asia-focused expansion with UK support. |
| Globalization Partners | Enterprise-scale compliance and HR solutions. |
| Velocity Global | Handles complex compliance across multiple jurisdictions. |
How We Evaluated UK EOR Providers
- Compliance with UK employment law and HMRC regulations.
- Competitive pricing and transparent fee structures.
- Coverage across the UK, Channel Islands, and international locations.
- Robust global HR platform capabilities.
When Should Companies Use an Employer of Record in the UK?
- Market entry without a UK entity – Ideal for quick expansion.
- Hiring one or two employees – A cost-effective solution.
- Short-term or pilot expansions – Minimal commitment required.
Transitioning from an EOR to a UK Legal Entity
- When to switch from EOR to entity – Ideal for scaling operations.
- How employee transfers work – TUPE-compliant and seamless.
- Risks to manage during EOR-to-entity transition – Ensure continuity and benefits alignment.
FAQ
Why use an Employer of Record?
An EOR allows companies to hire staff in the UK without setting up a local entity. It simplifies compliance and payroll management.
Are Employers of Record legal?
Yes, an EOR is the legal employer and handles contracts, taxes, benefits, and local labor law compliance.
What is an Employer of Record and a visa?
An EOR legally employs workers on your behalf and can manage work visas, payroll, and HR compliance.
Can my employer record me at work in the UK?
Monitoring is legal if transparent and justified, but excessive surveillance may breach UK data protection laws.
Get Started with a UK Employer of Record
Using an Employer of Record service in the UK allows companies to hire top talent quickly without setting up a local entity. With Remire, a trusted global EoR agency, businesses can streamline compliance, payroll, and HR administration, making UK market entry seamless and low-risk.
Whether you’re hiring a few employees or scaling operations, Remire’s global HR platform ensures your workforce is fully compliant with UK employment laws. Our Employer of Record UK solutions handle contracts, benefits, taxes, and work visas efficiently, so you can focus on growth and operations.
Partnering with Remire, one of the best Employer of Record UK providers, gives you peace of mind and flexibility. From onboarding to ongoing HR support, we make international hiring simple, cost-effective, and fully compliant for your business expansion.
Start Hiring in the UK Today with Ease and Compliance
