Why use Employer of Record services when expanding your business in the UK?

Expanding your global workforce with employees in the UK? Turn to Mauve's Employer of Record solution to hire and pay your overseas team compliantly. Get in touch with our team to learn more.

• Rapid and compliant UK market entry: Employer of Record (EoR) services allow businesses to quickly hire and manage UK-based employees without establishing a legal entity, while ensuring full compliance with local laws and employment regulations.
• Cost and time efficiency: EoR solutions eliminate the need for office setup, legal consultation, and payroll infrastructure, significantly reducing overheads and streamlining operations.
• Flexibility and risk mitigation: Companies can test the UK market, hire remote or short-term workers, and adapt to regulatory changes without long-term commitments or administrative burdens.

Is your business ready to take the leap and enter the United Kingdom (UK) market? Doing so is easier than ever. Gone are the days of expensive and time-consuming entity set-up and payroll establishment. Today, you can leverage an experienced Employer of Record (EoR) solution to seamlessly hire, onboard, pay, and provide HR to your staff in the UK – all while you continue to manage the day-to-day running of your business.

So, what is EoR and why is it so useful to businesses wishing to commence UK operations?

What is Employer of Record (EoR)?

Employer of Record (EoR) is an overseas employment solution provided by global hiring services. This solution involves the service provider hiring staff on behalf of a client that does not have an entity in the desired country. EoRs have established entities all over the world and navigate complex tax and employment law with experience.

For example, if a US tech company wishes to hire talent in London but does not wish to undertake the time and cost commitment of setting up a company branch in the UK, it can compliantly hire its desired worker or workers via an Employer of Record service. Partnering through an EoR means organisations can reduce overheads associated with establishing permanent entities. They can also ensure compliance with all local laws in the new country.

Organisations of all sizes and industries utilise EoR. These include SMEs, NGOs, educational institutions, and major corporations wishing to hire global talent. An EoR provider will hire, onboard and provide in-country payroll and HR, in line with all local laws and regulations. Meanwhile, clients retain responsibility for the day-to-day management of employees. Utilising an EoR allows businesses to reduce costs, ensure compliance, and test out new markets for future growth opportunities, without the long-term commitment of entity set-up.

How does an EoR service support entry into the UK market?

EoR allows for rapid market entry in the UK.

Using an Employer of Record means that companies wishing to expand into the UK can hire UK-based workers immediately. They can do this without needing to register with Companies House or set up UK bank accounts.

It allows companies to bypass the extensive time periods and costs associated with entity set-up. For start-ups, NGOs, and other organisations working within limited timeframes, EoR presents the perfect solution.

EoRs ensure compliance with UK laws

When entering the UK market, companies need to ensure compliance with all local laws. Navigating the complex world of foreign employment and tax law can be a huge headache for busy teams.

Engaging an EoR means guaranteeing your company remains in compliance with UK-specific laws. These include statutory sick pay (SSP), holiday entitlement (28 days including bank holidays), IR35 contractor legislation, National Minimum Wage, and Working Time Regulations.

Using an EoR means saving time and money

Time and cost efficiency are paramount to all organisations when undertaking a new project. EoR means no need to invest in office space. It also eliminates the need to source and pay multiple vendors such as accountants, immigration support, and legal services to manage a UK branch.

By using an EoR, you are consolidating your costs and saving time. This allows for a more focused and streamlined market entry.

EoRs handle payroll and benefits locally

Rather than business leaders spending time and incurring risk trying to navigate overseas payroll and benefits, they can turn to an EoR. An EoR handles payroll and HR in-country for your global teams. This means that you will ensure your employees receive payment in their local currency, following all local tax laws. They will also receive their benefits and as well as making all required tax and social security contributions.

In the UK, EoRs will handle PAYE, National Insurance contributions, and pension enrolments, as well as benefits such as private healthcare.

EoRs simplify the hiring of remote and hybrid worker

In today’s globalised world, flexible work options are a must to maintain a happy workforce. A recent survey from YouGov revealed that 57% of U.K. workers want a remote work option. Better work-life balance is reported by those enjoying the option of remote or hybrid working, resulting in a 35% retention increase. According to Forbes, offering flexible working options is “non-negotiable” when it comes to attracting and retaining top talent.

EoRs simplify supporting remote employees by handling payroll in-country, providing on the ground HR support, and making it easy for your workers to spend time abroad compliantly.

For example, a business from France could hire across the UK without needing to establish legal entities in England, Wales, Scotland, and Northern Ireland.

Businesses increase flexibility using EoR

EoR provides a helpful solution for companies in industries in which short-term fixed contracts are common. These include construction, media, and consultancy. Using an EoR to support short-term employment in the UK means that you are ensuring all insurance, holiday pay, and termination requirements are covered.

EoR means testing markets without commitment

If you are curious about expanding into the UK, but would like to test it out and assess the market before committing, EoR is for you. This solution allows companies to expand into new markets without sinking the time and cost before being certain.

EoR supports adaptability to UK regulatory change

When you’re employing overseas, it’s crucial that your employment model and processes remain in line with evolving regulations. An EoR will stay on top of UK-specific legislative updates.

These may include IR35 reforms, post-Brexit immigration changes, or updates to employment tribunal fees.

Mauve provides trusted local UK expertise and representation

EoRs understand regional employment expectations – from London’s tech salaries to holiday pay norms in Cardiff. Mauve Group is a UK-based company whose founders, Ann and John Ellis, hail from Wales and England, respectively.

With a number of UK citizens on staff, and almost 30 years providing global mobility services, Mauve is perfectly placed to support organisations with all their UK hiring needs. To find out how we can help your business to expand into the UK, contact us today.