HR, PEO & Employer of Record (EOR) Services in the UK

Introduction

The UK is quickly becoming one of the most attractive destinations for global expansion. With a growing economy, competitive labor costs, and a highly skilled workforce, it’s no surprise that businesses worldwide are looking to hire in the UK.

EOR & PEO Solutions in United Kingdom

If you’re looking to hire employees in United Kingdom without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in United Kingdom acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into United Kingdom quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in United Kingdom?

An Employer of Record United Kingdom (also known as an EOR provider) enables businesses to hire and onboard United Kingdom employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in United Kingdom, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in United Kingdom but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your United Kingdom hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in United Kingdom

By using an EOR solution, companies can confidently build their team in United Kingdom, access top talent in United Kingdom, and stay focused on business growth — without getting tangled in bureaucracy.

Hiring in United Kingdom

United Kingdom is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in United Kingdom successfully, it’s important to understand your options especially when you don’t have a legal entity in United Kingdom.

That’s where using an Employer of Record in United Kingdom makes all the difference.

Your Hiring Options in United Kingdom

Businesses have two main paths to hire employees in United Kingdom:

The second option is faster, lower-risk, and ideal for companies that want to test the British market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in United Kingdom?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in United Kingdom

Understanding how employment in United Kingdom works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow British labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in United Kingdom to handle these responsibilities with confidence.

Employment Contracts in United Kingdom

All employees in United Kingdom must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of United Kingdom, and are usually signed before or on the first day of work.

By working with a United Kingdom employer of record, you can ensure that all employment contracts in United Kingdom are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in United Kingdom involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in United Kingdom handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

British labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in United Kingdom receives all required benefits and that your business remains fully compliant with British employment law.

Termination & Notice Periods

Under UK labor law, the termination of an employment contract requires a fair reason and a fair process. Fair reasons include redundancy, conduct, capability, or a statutory illegality. Employees are entitled to a statutory minimum notice period, which is one week for employees with one month to two years of service, and then one week for each year of service up to a maximum of 12 weeks.

The employment contract can specify a longer notice period. Severance pay, known as Statutory Redundancy Pay, is only applicable if the termination is due to redundancy and the employee has a minimum of two years of service. It is not paid for other forms of termination, such as dismissal for cause.

Visas & Permits in United Kingdom

If you’re planning to hire employees in United Kingdom or bring in foreign talent, understanding United Kingdom’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in United Kingdom makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in United Kingdom with confidence.

Work Permits for Foreign Employees in United Kingdom

Foreign nationals require a specific work visa to be employed. The most common route is the Skilled Worker visa, which requires a job offer from an employer that holds a valid sponsor license from the Home Office. The employer must issue a Certificate of Sponsorship (CoS), which is a unique reference number tied to a specific job role, and the employee then uses this to apply for their visa.

The process is managed by the UK Visas and Immigration (UKVI) department of the Home Office, not the British Department of Labor. The visa is tied to the sponsoring employer and job, and there are specific requirements for salary, skill level, and English language proficiency that must be met.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in United Kingdom, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in United Kingdom or send international staff temporarily, an EOR United Kingdom solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in United Kingdom, foreign companies typically need to register a legal entity in United Kingdom and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with British labor laws.

Alternatively, you can use an EOR in United Kingdom to bypass the need for a local entity. The United Kingdom employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in United Kingdom.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in United Kingdom, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in United Kingdom

How quickly can an EOR help me hire an employee in the UK?

EORs are a fast-track solution, allowing companies to onboard employees in the UK quickly, often within a few weeks, without the significant time and cost of establishing a local entity.

Who is the legal employer of the worker?

The EOR is the legal employer in the UK, responsible for all statutory and legal obligations. The client company, however, maintains full control over the employee's daily tasks, performance management, and project assignments.

How does an EOR handle payroll, taxes, and mandatory contributions?

The EOR manages the entire payroll process, ensuring timely payments, and handles all tax deductions (PAYE), National Insurance Contributions (NICs), and auto-enrolment pension contributions in accordance with UK law.

Can an EOR assist with work permits and visas for foreign employees?

Yes, EORs commonly assist with the complex process of obtaining the necessary work visas for foreign employees, such as the Skilled Worker visa. This includes helping with sponsorship and coordinating with the relevant authorities.

What mandatory benefits does an EOR provide to employees?

An EOR ensures employees receive all legally mandated benefits, including the statutory minimum of 5.6 weeks of annual leave, Statutory Sick Pay (SSP), pension contributions under auto-enrolment, and Statutory Maternity/Paternity Pay.