United Kingdom

Employer Of Record In UK

Being one of the major globalized economies in the world, the UK is one of the most appealing nations for those looking to expand their businesses globally. 

What works favorably for the UK is that there is no language barrier. English is the most commonly spoken language here. 

Furthermore, the country has a commendable standard of living and ranks fifth in total goods imported globally and tenth in total goods exported.

In addition, the UK has a highly skilled talent pool. In fact, according to researchers, the UK workforce makes up 78% of the population. 

Last but not least, the UK boasts the lowest tax rate in the G7 countries, as low as 25%. 

For all these reasons, this region is the target of many business organizations seeking global expansion. However, hiring in the UK is easier said than done. 

From understanding the labor laws to maintaining compliance with tax regulations, numerous factors must be considered in order to hire successfully and avoid legal challenges. 

Partnering with an employer of record in the UK may prove handy in this aspect. 

An EOR in the UK helps eliminate outsourcing-related barriers by taking over end-to-end employment-related processes, including payroll, taxation, visas, benefits, leaves, etc.

Skuad's Employer of Record (EOR) is a comprehensive solution to hiring a local workforce in the UK without investing in a UK entity. 

It boasts several unique capabilities, such as global onboarding, payroll, benefits administration and guaranteed compliance, all of which make the hiring process much more manageable.

Hire Employees

There are three main ways by which you can hire employees in the UK.

• Hiring directly, without the help of UK EOR service.
• Hiring via Professional Employer Organization
• Partnering with an EOR to guide you through the hiring journey.

1. Hiring Directly

To hire employees in the UK, the traditional route for global companies is to first set up their branch offices or subsidiaries in the UK. 

However, it can be time-consuming for the process to complete, delaying your global plans substantially. Also, it could increase your costs significantly.

A UK subsidiary is formed in the UK and incorporated as per company formation laws. 

The subsidiary capital can be run by the company with a local partner or wholly owned by the parent company.

The first step is to have a registered office address. You can open up a sole director subsidiary, for which you need to provide your residential and service address. 

The Companies House takes about 24 hours to get back to you with its decision. Changes to the subsidiary are allowed after incorporation. 

There are multiple business opportunities in the UK, and different structures are available. Understanding all of it and picking the right one can be tricky.

Another way is to use job search portals or online hiring companies in the UK like Indeed, Reed, Monster, Glassdoor, CV-Library, WikiJob, Adzuna, LinkedIn, and more. 

While most of these sites have gained credibility in the past several years because of the quality of talent companies can hire online, there are cons. 

You or your HR department has to handle the entire hiring and onboarding process. 

If you are not well-versed with the employment laws and compliances in the UK, it could be a big problem. Additionally, you lose crucial time during the process.

2. Hiring via a Professional Service Organization (PEO)

A Professional Employer Organization (PEO) leases employees to an employer. 

The PEO handles multiple employee-related liabilities where organizations can outsource their HR functions, including payroll, compensation, benefits, taxes, and payroll administration.

Comparing the services of a professional employer organization in the UK and an EOR in the UK. 

• A PEO  works as a co-employer, whereas an EOR works as a full-legal employer of the payroll employees.
• A PEO handles some liabilities of the workers, whereas an EOR takes on complete liabilities.
• You must arrange employee insurance with a PEO, whereas an EOR takes care of employee insurance. 
• A PEO handles State Unemployment Tax and Federal Unemployment Tax Act rates, while EOR offers insurance coverage for all.
• With a PEO, you need to make decisions constantly; with an EOR, all HR-related decisions and paperwork are made by the EOR, giving you more time to manage your business.

How can Skuad help?

Skuad handles all the HR-related functions in the backend, including compensation and payroll, contracts, visas, and document collection, ensuring compliance with UK laws, taxation, and more. 

Skuad’s Employer Of Record UK solution helps discover global talent and facilitates the optimal, cost-effective, and flawless onboarding of full-time employees and contractors.

3. Hiring Through UK EOR Service, such as Skuad

Another popular fast-becoming route is using an Employer of Record UK solution, like Skuad. 

Our futuristic solution hires full-time employees and contractors on your behalf and you can assign them to work as per their employment contract in the UK. 

Skuad's progressive tech platform helps organizations hire both types of workers easily and simply. 

With Skuad's resources, you can also make informed decisions about making employment offers to full-time employees and contractors.

Our unified employment platform has automated workflows, digital signatures, employee payroll, contractor payout, and all compliance solutions.

General UK Employer of Record Services Terms:

• Taxes that apply to invoices for a UK business is 7% GST while it is zero GST for a foreign company.
• The minimum duration of service is three months.
• The currency accepted is the British Pound Sterling.
• The required details and documents for UK citizens include personal information, a copy of their passport, bank details, a copy of their NRIC (for permanent residents), and a job description.
• For foreigners, the required documents include personal information, job description, educational qualifications, technical qualifications, a CV, passport copy, ID, bank details, photographs, police verification, and medical exam results.

 Learn more about leveraging Skuad's expertise to meet your hiring needs in the UK.

Onboarding and Agreements

Onboarding remote employees refers to integrating new candidates into an organization, making them acquainted with the company's work culture or ethos, and providing them with the tools or equipment required to succeed in their job roles. 

One of the most important steps in this employee onboarding is to draft a proper employment agreement. 

According to United Kingdom Labor law, a detailed contract of employment is mandatory. 

The contract should mention all aspects of the employment terms, including compensation, working hours, salaries, wages, etc.

Employment contracts in the UK can be divided into the following types:  

• Full-time agreement: A full-time agreement is a permanent employment contract in which employees are compensated for their work by receiving paid holidays, pension benefits, and statutory sick pay.
• Part-time agreement: As the name implies, a part-time agreement refers to contractors that specify the number of hours expected to be worked per week by the employee. 
• Fixed-term agreements: These are the types of contracts that end when a specific task or project is completed. Under UK labor laws, fixed-term employees must be treated in the same manner as full-time permanent staff.
• Agency staff: Agency agreements are contracts that allow employers to hire temporary staff through agencies. One key aspect of this type of contract is that, upon completion of 12 months of continuous service in the same role, agency workers become entitled to the same benefits and pay as permanent employees.
• Freelancers/Contractors: UK labor laws also allow employers to hire freelancers/ contractors, who are essentially self-employed individuals who need to pay their own taxes and NICs (National Insurance Contributions).
• Zero-hour agreements: Also referred to as casual agreements, these types of contracts are usually required for ‘on call’ or ‘piece’ work.

If hiring directly, you must comply with all these requirements and take care of other key considerations. 

These include managing payroll, conducting background checks, preparing new hire paperwork, and more. 

However, with Skuad’s UK employer of record solutions, managing all these aspects becomes hassle-free. 

Business entities abroad can quickly source and hire the right professionals per the organization's requirements. 

Hired employees get onboard seamlessly, helping your business save up to 85% of hiring and onboarding costs. 

End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage the overall administration of the backend HR processes. 

Taxes

Yet another challenging aspect of global hiring is managing international taxation requirements and ensuring compliance. 

Whether you hire local British workers or relocate professionals from your country, ensuring complete compliance with the local laws on payroll & taxes in the UK is important. 

All these formalities can be a long-drawn and daunting process for foreigners. 

So, hiring a local specialist for payroll outsourcing in the UK is helpful to help you manage all of this.

Employee Tax in the UK

Income tax depends on how much higher the employee's income is above the Personal Allowance. 

The standard Personal Allowance in the UK is £12,570. If employees claim Marriage Allowance and Blind Person's Allowance, their Allowance is higher. If the income exceeds £100,000, then the Personal Allowance is lower.

Employer Tax in the UK

UK employers need to operate the Her Majesty's Revenue and Customs (HMRC) PAYE system, which collects income tax and National Insurance. 

It is mandatory to make deductions while making payments to employees, such as salary, wages, bonus, tips, maternity pay, Statutory Sick pay for PAYE, etc.

Employers with in-house payroll management must inform the HMRC about employee payments and deductions just before payday. Employees need to submit another report in case of a reduction claim. Skuad's EOR solution manages all of this on your behalf by a team of professionals. Talk to us for more information.

Compliance

Labor laws in the UK can be complicated since they are comprised of many different regulations. 

Maintaining compliance can be even more difficult, especially if you do not have a team of experts to handle it. This can lead to legal challenges and hefty penalties. 

To make things easier for you, we have provided you with a detailed overview of the employment laws in the UK, as mentioned below. 

In addition to understanding all these regulations, you also need to be aware of the distinction between employee and independent contractor in the UK to avoid the risk of employee misclassification. 

Contractors vs Full-Time Employees

Here is the difference between a contractor and a full-time employee. In the UK, an employee works with an employer under an employment contract. 

Employers are responsible for determining the worker's status as per taxation and employment laws.

Full-time employees are entitled to Statutory Sick Pay, statutory maternity and paternity leaves, minimum notice periods, legal protection from unfair dismissal, Statutory Redundancy Pay, time off for emergencies, and flexible work requests. 

These benefits are extended only to employees who meet the continuous employment criteria as per the employment contract in the UK.

Employees must fulfill certain statutory hours of work and be paid on time. They cannot send in another worker to replace themselves. 

The employment agreement in the UK mentions all these details in length.

On the other hand, a contractor in the UK can be self-employed, an employee, or a worker of an agency working for a client. 

Contractors work on a project-to-project basis, have their own entity, pay their taxes, work for multiple clients simultaneously, and are not part of the payroll.

It is wise to hire full-time employees when the role is long-term, and you want your workers to be committed to the company's vision and mission. 

Consider hiring contractors for seasonal or short-term roles where the worker is not involved in the core business areas. 

If the role requires regular monitoring, supervision, and reports, it is best to hire an employee.

Either way, compliance with the statutory laws and the right classification of workers is essential to avoid penalties. 

Learn more about how Skuad can help you achieve compliance.

IP Protection in the UK

Intellectual property refers to something that is created using your mind. 

This can include anything from a story or an invention to an artistic work or symbol. 

In the UK, a person is considered to be the owner of an intellectual property only if they meet the following criteria,

• Created it (meets all the guidelines for a patent, copyright, or design)
• Bought the intellectual property rights from the creator or previous owner.
• Owns a brand that can be a trademark, such as a popular product name.

To safeguard the intellectual property of individuals, the UK laws offer several types of protection. They include the following,

Types of Visas in the UK

The UK work visa is based on the Points-Based System (PBS). There are five tiers of work visas, and applicants need to apply for one of the tiers. 

Each tier is associated with specific entitlements, conditions, and entry requirements. 

The types of work visas in the UK are as follows:

Work visa requirements in the UK

• Requirements differ based on the tier type.
• Work visas in the UK need to be sponsored by a sponsor or an employer.
• The general requirement includes an application form, two colored photos, a valid passport, accommodation proof, financial proof, TB test results, a travel itinerary, paid visa fees, biometric information, and translated documents in English and Welsh.

Work Permits

For non-EU workers, obtaining a work permit in the UK is mandatory. The permit must be sponsored by a licensed incorporated business entity in the UK. 

A Certificate of Sponsorship from the UK government is also mandatory.

The relevant UK work permit for foreigners is usually the General or Tier 2 visa. Only Tier 1 applicants can apply for a UK work permit without a job offer. 

As per the laws in the UK, an EOR or any other third-party organization cannot sponsor work permits. 

Skuad’s hi-tech platform and expertise can greatly help obtain UK work permits optimally and comply with the UK immigration system.

Payroll

One of the most traditional approaches to paying employees in the UK is through cash, bank transfers, digital wallets, or electronic fund transfers. 

While this method is undoubtedly convenient and gives complete transparency over the payment process, it also comes with a few associated challenges. 

When paying directly, you will need to be aware of the various salary laws in the UK. 

For example, you can only pay your employees in the official currency, which is Pound Sterling (GBP, £). 

In addition to this, you will also have to navigate through the United Kingdom payroll tax requirements, which we discussed above, understand the recent currency conversion rates, maintain accurate records, and ensure compliance. 

Guaranteeing smooth and successful global payroll processing can become very hectic, especially if you do not have a proper in-house team to manage such tasks. 

A cost-effective alternative to this is to manage payroll in the UK with the help of Skuad EOR. 

Skuad’s unified platform features various amazing capabilities that make international payment processing streamlined. They include,

• Global payroll in over 100 currencies.
• Built-in compliance
• Automated invoicing and payslip generation
• Expense management and real-time reporting.

Benefits and Compensation

Here are some benefits and compensation that employees are obligated to get: 

Bonus

Bonuses are not mandatory in the UK salary system and are completely at the employer's discretion. 

Some industrial segments, such as engineering, R&D, science, public service, media, and technology, are awarded bonus payments. Certain roles, such as directors, senior managers, etc., are also likely to get bonuses.

Employee Health Coverage

The National Insurance Contributions (NICs) are a form of tax collected to fund employee health benefits in the UK. 

The contribution comes from employees' salaries and employers’ contributions. Employers can provide additional health benefits to their employees in addition to the federal program. 

Skuad's Employer Of Record UK solution helps business entities offer their employees supplementary health benefits at substantially economical rates.

Worker Rights

In addition to the benefits and compensation discussed above, under the United Kingdom labor laws, employees are also entitled to a few other rights and protections. 

They include the following. 

1. Statutory Working Hours in the UK

A maximum of 40 hours over five days with the flexibility to distribute the hours across the weekdays, Monday to Friday. 

However, employees can choose to work beyond these limitations voluntarily.

2. Minimum Wage in the United Kingdom

The minimum wage is between £6.56 and £8.91 hourly. The wage is dependent on the employee's age. 

Besides, the Living Wage Foundation, UK, has determined a better living wage for employees, and most employers in the UK follow the same, even though it is not mandatory.

3. Probation Period in the UK

The UK's standard probation period is three months from joining, especially if it is an internal move. 

However, the general probationary period is six months from the date of joining. 

Please note that probation in the UK does not come under statutory law.

4. Overtime Eligibility

Employees can work overtime only if their contract permits. By law, no one can be forced to work more than 48 hours, averaging over 17 weeks. 

Overtime is usually not paid for by employers until mentioned otherwise in the contract, provided the employee's average pay is not below the National Minimum Wage. 

However, employees can be entitled to 'Time off in lieu' of overtime work; this should be mentioned in the contract.

5. Employee Protection and Anti-Discrimination Rights

This law offers protection from discrimination at work, including recruitment, dismissal, pay, benefits, training, redundancy, promotions and transfers, and employment terms and conditions. 

This law protects employees from discrimination based on marital status, age, gender reassignment, pregnancy, disability, race, color, nationality, ethnicity, origin, religion, sex, belief, and sexual orientation.

6. Confidentiality of Personal Information

The Data Protection Act 2018 protects personal information in the UK and implements the General Data Protection Regulations (GDPR) guidelines. 

Six data protection principles govern how personal data will be used lawfully and fairly.

Further, the principles state that the data will be used for an explicit purpose in a relevant manner and with accuracy. 

Only updated data should be used and removed when no longer required. Organizations are obliged to handle data securely to protect it from unauthorized access and harm.

7. Workplace Health and Safety

Three main legislations in the UK primarily regulate workplace health and safety. They include,

• The Health and Safety at Work Act 1974 outlines the roles and responsibilities of employers, employees, and self-employed individuals regarding workplace safety.
• The Workplace (Health, Safety, and Welfare) Regulations: Comfortable appropriate temperatures, waste and cleanliness, building access, lighting, and equipment maintenance are some of the many key aspects included under this act. 
• The Management of Health and Safety Regulations 1999 outlines specific responsibilities for employers and employees to guarantee a safe workplace. For example, under this law, employers are legally obliged to conduct risk assessments for the safety and welfare of their employees, the public, and visitors.

Remote & Hybrid Work in the UK

While a deep understanding of country-specific labor and tax laws is definitely important for successful international hiring, you also need to check whether or not your business organization is prepared enough to facilitate remote work. 

This is what is loosely referred to as remote readiness. 

As a company that hires remote workers, you must tick all the boxes below to provide the best experience for your employees.

• Technology and Infrastructure 

A careful evaluation of your organization's existing technology and infrastructure is extremely important to ensure that you have all the tools and resources required to promote remote work. 

This includes a reliable internet connection, collaboration software, and suitable hardware, such as laptops and mobile devices.

• Flexible Work Arrangements

Make sure that you have proper remote work policies and guidelines that ensure clarity, relevance, and effectiveness. 

They should address all the key areas of remote work, such as performance evaluation, communication expectations, and work hours. 

Additionally, feel free to incorporate appropriate training programs for your employees and managers to further strengthen your company's remote readiness foundation.

• Feedback and Continuous Improvement

Last but not least, be very proactive about collecting feedback (both good and bad) from your employees and team members on their remote work experiences. 

This will help you understand potential issues (if any) and take the necessary corrective action.

Salary

An employee's salary in the UK usually differs based on multiple factors, such as their experience level, the kind of work they are required to perform, the industry they work in, and location. 

For example, a UK employee working in the IT domain earns up to £52,968 per annum. Meanwhile, an individual from the healthcare sector usually commands an average salary of £36,092 per year. 

Similarly, the salaries of your selected candidates may also differ based on their experience. Someone with many years of experience will likely charge you more than someone who has just graduated.

Check out our salary insight tool offered by the best employer of record in the UK, Skuad. 

With the help of this, you can unlock robust compensation data, uncover all the salary trends and comparisons, and provide your international employees with fair and competitive packages.

Leave Policy

Below, we have highlighted the mandatory leave entitlements as provided by United Kingdom labor laws.

These also include statutory holidays in the UK. Let’s take a look.

Annual Leave in the UK

• Full-time employees in the UK are eligible for 5.6 weeks or 28 days' paid holiday annually. This is called annual leave or statutory leave entitlement. 
• Part-time employees have the same entitlement of 5.6 weeks of paid holidays, but the number of days is less than 28. Of the 28 days, only eight days can be carried over to the subsequent year. 
• The accrued unused leaves are paid out at the end of flexible work.

Sick Leave

• As per the statutory requirements, employees earning a minimum of £120 per week are eligible for Statutory Sick Pay (SSP). 
• These employees are entitled to £96.35 per week if they cannot work consecutively for more than four days a week. 
• The SSP is valid for up to 28 weeks. 
• Employers can extend Sick Pay as contractual or occupational pay, but they cannot reduce sick pay. 
• Employees are not required to contribute towards the payments of sick leaves.

Maternity Leave

• The statutory leave period is 52 weeks, consisting of 26 weeks of ordinary maternity leave. This can be extended to another 26 weeks. 
• While it is not mandatory for the entire 52 weeks, new mothers need to take two weeks' leave after the baby's birth. 
• In the case of women employees working in a factory, it is mandatory to take four weeks off after delivery.

Paternity Leave

• Fathers are eligible to take up to 2 weeks of paternity leave, provided the leaves are taken in one go.

Paid Public Holidays

There are eight public holidays in the UK:

• Good Friday
• Easter Monday
• Spring Bank Holiday
• Early May Bank Holiday
• Summer Bank Holiday
• Christmas
• Boxing Day
• New Year's Day
  

However, employers are not obliged to give these days off. 

Employers may choose not to include bank holidays as part of paid leave or holidays or include them in the statutory annual leave package. 

This means that employees are not eligible for extra pay if they work on these eight public holidays.

Background Checks

When hiring new employees for your business, it is extremely important to run thorough background checks to avoid liabilities and ensure that you are onboarding the best talent. 

On that note, we have highlighted some of the most common types of background checks that are legal in the United Kingdom, as mentioned below.

• Criminal Background Check

DBS (Disclosure and Barring Service) checks are one of the most commonly conducted background verifications in the UK. 

They provide an overview of a person’s criminal record, including unspent convictions and conditional cautions. 

Criminal background checks are deemed essential for job positions that involve working with children or vulnerable adults. 

Additionally, healthcare, education, or finance employers might ask for a DBS check.

• Employment Verification 

Employment verification refers to gauging the accuracy of a person’s previous work experience. 

This includes their years of service, positions, responsibilities, and more. The standard process in the UK is to seek information related to employment history from the HM Revenue and Customs (HMRC). 

However, if you wish for a more comprehensive check, you can contact the candidate’s previous employers directly.

• Education Verification 

Candidates may often lie in their resumes/CVs about their educational degrees to secure a high-paying job position. 

To prevent such occurrences, conducting an education verification in advance is always advisable. 

This includes carefully scrutinizing the validity of the candidate’s educational certificates and credentials.

• Credit Checks

In the UK, credit checks are often part of the hiring process for jobs that involve handling money. 

These checks help employers look at an applicant's financial background, giving them an idea of how well someone manages money and financial tasks. 

By checking for any outstanding debts and overall credit history, companies can decide if a candidate is suitable for roles that require trust in financial matters. 

Overall, credit checks help create a workplace where both employees and employers can feel secure and responsible.

Other similar types of background checks in the UK include medical screening, and social media background checks.

Termination and Offboarding

Termination or dismissal is when the employer terminates or ends the employment contract. 

In case of termination, the employer needs to give the employee the statutory notice period or, as mentioned in the contract, whichever is more. 

According to the labor laws, the statutory notice period in the UK during probation consists of the following:

• One week if the employee has worked in the company for less than one month.
• Two weeks for employees who have worked for more than one month.

Employers who terminate employees upon completion of the probationary period need to provide them with a notice period corresponding to,

• A minimum of one week’s notice if employed between one month and two years.
• For employees who have worked for two to 12 years, one week's notice is given for each year of service.
• Twelve weeks’ notice for employees employed for 12 years or more.

However, there are circumstances when the employee can be terminated immediately. 

As per the law, employers must give the reason for dismissal within 14 days of asking you to leave and the reason behind it.

Some of the most common grounds for employee offboarding in the UK include,

• Employee resignation
• Mutual decision by both employer and employee
• Termination during the probationary period
• Misconduct
• Performance issues
• Absence without leave

Skuad’s expertise and its robust global employment platform will help you achieve all your goals for your global expansion. To learn more about Skuad's EOR services, click here.

Cultural Considerations

When hiring remote employees from the UK, it is also important to determine whether or not they are the right cultural fit for your organization. 

This not only helps to promote employee satisfaction and retention but also leads to overall productivity. 

Here, we have highlighted three key characteristics of the UK’s workplace culture.

• Professionalism and Punctuality

Both professionalism and punctuality are highly valued in the UK workplace. 

Employees are expected to ensure compliance with all professional standards, display a strong work ethic, and, most importantly, take their job responsibilities seriously. 

They are also required to always prioritize punctuality, whether it is for meetings, appointments, or other work commitments.

• Communication Style

Polite, formal, and indirect communication are important in the UK. 

Emails are widely used to disburse crucial information, and employees must maintain professionalism in the workplace and avoid confrontation as much as possible. 

Although open dialogue and feedback are encouraged, it is usually done respectfully and diplomatically.

• Top-Down Hierarchy

Last but not least, the UK work culture follows a hierarchical structure, with a clear outline of company roles and responsibilities. 

Seniority is highly valued, and every decision-making process follows a top-down approach, with input from higher authorities.

• Diversity and Inclusion

Diversity in the workplace has become an essential part of business culture in the UK. 

Companies are increasingly recognizing the importance of fostering a more inclusive environment. 

Many larger organizations have even created dedicated roles focused on addressing diversity issues, while various sector-specific initiatives are in place to encourage and monitor progress in this area.

• Flexible Working Arrangements

In recent years, the UK has embraced flexible working arrangements, allowing employees to find a balance that suits their lifestyles. 

Hybrid working, which combines remote work with time in the office, has gained popularity. 

This shift not only helps employees feel more in control of their work-life balance but also empowers them to work in a way that enhances their overall well-being.

• Employment Laws and Regulations

The hiring process in the UK is grounded in a structured legal framework designed to ensure fairness and equal opportunities for all candidates. 

Important aspects include employment contracts, minimum wage standards, working hours, and anti-discrimination laws. 

This framework plays a crucial role in creating a fair workplace where everyone has a chance to thrive.

Conclusion

When your organization decides to expand its business into the United Kingdom, it is prudent to analyze the various options and decide which route to take. 

Building a subsidiary from the ground up while managing all tasks, from finding talent to hiring and managing payroll, can be an extremely cumbersome and difficult process. 

This is where outsourcing employment through an EOR can be useful. 

An EOR will manage not only hiring or payroll but the entire employee lifecycle.

Skuad is an HR-tech platform with expertise in building remote teams for your businesses. As the top management, you focus on your core business operations. 

To learn more about how our unique tech-enriched platform can add value to your global expansion plans, book a demo with Skuad today.

FAQs

1) What is an employer of record in the UK?

Ans: An Employer of Record (EOR), like Skuad, legally employs staff in the UK on behalf of other companies without a local entity, managing all human resources responsibilities such as payroll, taxes, and compliance with labor laws.

2) Is the employer of record legal in the UK?

Yes, an Employer of Record is completely legal in the UK. An EOR becomes the legal employer of the distributed workforce of other businesses without a local entity.

3) What are the benefits and challenges of hiring in the United Kingdom?

Hiring in the United Kingdom offers benefits like access to a skilled and diverse workforce and a robust legal framework that protects employers and employees. However, challenges include navigating complex employment laws and dealing with high employment costs, which Brexit has further complicated.

4) What are the benefits of EOR?

An EOR ensures compliance with local laws, enables quick hiring without a local entity, reduces costs and legal risks, and lets businesses focus on core operations while handling administrative tasks.

5) What is the difference between EOR and PEO?

A PEO co-manages HR duties as a third-party co-employer, while an EOR fully employs your workforce in regions where your business lacks a local entity.

‍6) How much does an EOR cost?

The cost of an EOR changes based on local labor laws and the number of employees. EOR providers usually charge a monthly fee per employee, ranging from $100 to $1000 or even more. Pricing structures depend on local regulations and workforce requirements, providing transparency for businesses.