Employer of Record in the UK – your guide to seamless hiring

Want to take your business to the next level and hire international talent, without the cost and hassle of overseas entity set up? Contact our experts today to learn why our Employer of Record (EOR) solution is the answer.

• The European Employer of Record (EOR) market is booming post-pandemic, with the UK commanding about 35% of the region’s $456.7M market (2024), expected to nearly double by 2030.
• UK businesses use EORs to hire globally without setting up entities, streamlining compliance, payroll, and HR while reducing cost and risk.
• EORs also support domestic hiring, M&A transitions, and project-based employment, ensuring adherence to evolving UK labour laws.

In the wake of the shift to remote and hybrid working, the Employer of Record (EOR) industry is booming like never before. The EoR market expanded from $2.45 billion in 2020 to $5.23 billion in 2024 and shows no signs of slowing down. It is estimated to hit $12 billion by 2030.

Closer to home, in 2024, the European EOR market was valued at roughly $456.7 million, projected to reach $892.3 million by 2030. Of this, the UK accounts for close to 35%.

So, what exactly is Employer of Record, and how is it supporting UK businesses to hire seamlessly both at home and abroad?

For more information on Employer of Record, visit our Ultimate guide to Employer of Record.

What is Employer of Record?

An Employer of Record (EOR) is a third-party partner, trusted with hiring and employing overseas staff on behalf of a client organisation. EORs will either have established in-country entities in the desired locations, or else will work with vetted local partners to ensure the seamless and compliant hiring and ongoing employment of workers.

EOR is a global hiring solution utilised by organisations of all sizes from SMEs and NGOs to multinationals, corporations, and educational institutions. 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 EOR support UK businesses?

With 35% of the European EOR market accounted for in the UK alone, British businesses are increasingly leveraging EoR services to broaden their horizons.

EOR means global hiring without local entity set-up

If you want to test out a new market without the cost and time commitment of setting up a local entity – or you wish to drive innovation by hiring international talent, EOR is your friend.

An EOR solution allows you to hire, onboard, and pay workers in your chosen country without worrying about setting up your own business there. You can leave compliance with employment and tax laws in the hands of the experts.

For example, a tech SME in Wales wishes to hire an expert in India. However, the SME does not have a branch in India, and lacks local knowledge of employment and tax regulations.

By engaging an EOR, the SME can compliantly hire the worker in India. The EOR will ensure the worker is hired, onboarded, and remunerated compliantly and efficiently. The EOR will also provide on-the-ground HR support for the worker, so any concerns can be dealt with within the employee’s working hours.

Global hiring services save time and money

Using an EOR is by far the most time and cost-effective route to global expansion. Using this service eliminates the need to spend months researching complex local laws and navigating bureaucratic red tape.

It also relieves you of administrative burdens like office rental and engaging multiple vendors such as in-country payroll providers and legal support. By consolidating these services into a single, streamlined solution, you save significant time and money, while ensuring a simplified and compliant process.

Employer of Record is ideal for start-ups, scaleups, or project-based work where efficiency is key to success.

Employer of Record is key to compliance

Navigating compliance in a new country can be complex. Employment and tax laws differ greatly between countries, and even regions. For example, different rules apply in England, Scotland, Wales, and Northern Ireland.

Attempting to get to grips with a new set of complicated regulations can be extremely time consuming. It also leaves room for human error and accidental non-compliance.

Even if your business has not meant to go against local law, if you fail to comply with the specific requirements of your country of business, your organisation can be subject to penalties. These can include significant fines and other legal proceedings, as well as reputational damage.

Leaving your overseas employment in the hands of seasoned experts means avoiding the risk of costly errors and ensuring the smooth running of your overseas operations.

EOR manages global payroll

When hiring abroad, navigating cross-border payroll can be tricky. For a company in the UK, managing payroll in overseas locations with in-country expertise can present compliance risks.

By using a global hiring service like EOR, UK businesses can ensure that their international workers are paid on time, in their local currency, with the correct taxes withheld, and the right benefits provided.

For businesses that only require payroll support, find out more about Mauve’s Global Payroll service.

Global hiring supports flexible working

Flexible and remote work models have become the norm since 2020. For UK companies, supporting employees’ work-life balance is a must in order to maintain a satisfied workforce and strong reputation.

Meanwhile, a recent study reveals that if more UK businesses implemented flexibility policies catering to families, over £10 billion could be added to the UK economy in annual productivity gains.

Hiring globally via Employer of Record allows UK businesses to support their employees who may wish to work from different countries. It does so by legally employing the workers abroad, so they are not subject to time limits and are working with the correct permits.

How Mauve Group hires seamlessly on your behalf

The UK is also home to a number of the world’s leading EOR providers, including trailblazers of the industry, Mauve Group.

Pioneers of the Employer of Record model since 1996, Mauve Group has amassed almost three decades of experience in global mobility. We offer EOR solutions in 150+ countries worldwide.

Our highly sought-after Employer of Record service hires overseas talent on behalf of organisations – eliminating the need for costly and time consuming entity establishment.

With wholly owned entities in 70 countries and thoroughly vetted, trusted local partners in the remainder, we ensure our clients’ workers are employed in total compliance with all local laws.

At Mauve, we manage your workers’ onboarding, offboarding, HR, and payroll, leaving you free to focus on the day-to-day management of your employees.

Our team of experts ensure that your organisation, no matter your size or industry, can begin your global journey with ease and expert guidance.

Contact our team today to find out more about how Mauve Group’s Employer of Record service can help your business to go global.