Expanding a business into the United Kingdom can unlock huge opportunities. The UK is one of the world’s biggest and most stable economic markets and is known for its highly skilled workforce, modern business infrastructure and flexible remote-working culture. However, for international companies, the process of hiring employees in the UK is not always easy. It involves understanding strict employment laws, handling payroll and tax rules, and ensuring full compliance with government regulations.
When it comes to making a significant difference through hiring talent globally in the international market, the majority of companies find it challenging. It includes struggles with labour contracts, tax calculations and statutory employee benefits. This delay slows expansion and increases risk. That is why Employer of record UK has become an essential solution.
An employer of record (EOR) is an organisation that takes responsibility for legally employing staff on behalf of another company. The EOR becomes the official employer in government records and handles HR administration, while the actual company manages day-to-day work and performance. This helps businesses hire talent in the UK without needing to open a legal entity or spend months dealing with paperwork.
Key Takeaways
- Employers of record in the UK are an effective solution for companies wanting to hire local employees without building a physical entity.
- EOR services handle HR administration, payroll, tax, compliance and benefits so businesses can focus on growth instead of paperwork.
- They enable fast and flexible hiring, especially helpful for startups, remote-first companies, and organisations exploring new markets.
- EORs remove risk, reduce operational costs and offer legal protection.
- They allow businesses to hire in both major cities and smaller regions with less competition, supporting access to diverse talent.
- Partnering with an EOR saves months of effort and enables market entry within days.
Why Employers of Record in the UK Are Becoming a Popular Choice
Partnering with an EOR makes hiring simpler, faster and more cost-efficient. Here’s why global businesses rely on them:
1. Faster Market Entry
Opening a local company or subsidiary in the UK can take months and requires legal support, financial investment and multiple approvals. An EOR allows businesses to:
- Hire employees in days instead of months
- Start operations immediately
- Avoid complicated entity setup
This speed is valuable for companies testing the UK market or running short-term projects.
2. Full Support With Compliance and UK Labour Law
UK employment regulations are detailed and updated often. Mistakes can lead to penalties and reputational damage. An EOR supports compliance with:
- Minimum wage and salary rules
- National Insurance contributions
- Pension requirements
- Holiday entitlement and sick leave
- Maternity and paternity benefits
- Fair dismissal and dispute procedures
This keeps both employers and employees protected.
3. Payroll, Tax and Benefits Management
Running payroll in another country is complex. An EOR manages:
- Monthly salary payments in GBP
- PAYE tax deductions
- National Insurance contributions
- Mandatory pension enrolment
- Employee benefits and reimbursements
This saves time and avoids accounting errors.
4. Cost-Effective Hiring
Entity setup can be expensive, including regional registration fees, office space and local HR staffing. Using an EOR removes overhead costs and allows businesses to pay only for services used. This is particularly useful for startups, scale-ups and project-based hiring.
5. Remote and Distributed Team Hiring
Remote working has grown rapidly, and UK employees are open to flexible work models. An EOR enables companies to hire:
- Full-time remote workers
- Hybrid employees in different cities
- Contract workers for specialised projects
Businesses can access talent across the UK without needing a physical office.
6. Reduced Risk and Legal Protection
Since the EOR is the legal employer, they take responsibility for:
- Compliance-related issues
- Employment disputes
- Termination processes
- Document management
This lowers risk significantly for global companies.
7. Access to Talent Beyond Major Cities
Many companies want to hire outside of London to reduce costs and access fresh talent. EOR services support hiring in locations such as:
- Cardiff, Wales
- Dundee and Inverness, Scotland
- Belfast, Northern Ireland
- Leeds, Sheffield, Newcastle and Manchester
- Smaller regional towns where competition is low
This gives businesses a wider talent pool and better workforce stability.
Top Employers of Record Firms in the UK
Here are some leading EOR service providers used by global companies expanding into the UK. These organisations have strong credibility and support businesses in managing compliance, payroll and HR operations.
1. Remote
Remote supports international companies by offering fast onboarding, local legal compliance, payroll management and full employee benefits for UK talent. It is known for its easy-to-use HR platform and strong support for distributed teams.
2. Deel
Deel simplifies international hiring with digital contracts, automated payroll and support in more than 100 countries. They manage taxes, statutory benefits and employment documentation while the hiring company controls day-to-day work.
3. Oyster HR
Oyster HR focuses on compliance and transparent pricing. It supports employers in hiring remote talent legally in the UK, offering guidance on fair employment policies, benefits and entitlements.
4. Papaya Global
Papaya Global provides globally integrated payroll and workforce management services. Their technology-driven platform is popular with larger companies managing multi-country teams and payroll reporting across regions.
5. Safeguard Global
Safeguard Global specialises in enterprise-level workforce expansion and compliance services. They provide strategic support for businesses planning to scale their teams and need strong HR and payroll infrastructure.
6. Globalization Partners
One of the longest-established providers, Globalization Partners, supports companies hiring internationally while ensuring legal compliance across multiple countries, including the United Kingdom. Their structured onboarding and HR support is valued by many enterprise-level brands.
7. ADP Employer Services
ADP is a trusted partner for payroll and HR technology. Their employer services arm enables international hiring and ensures compliance, accurate payroll and supported employee benefits programmes across the UK.
Conclusion
Choosing the right partner for hiring talent in the United Kingdom can transform the speed and success of global expansion. Employers of record in the UK make it easier for international businesses to hire legally, manage payroll confidently and ensure full compliance with employment laws, all without needing to set up a local entity. For companies seeking a trusted and reliable EOR partner, Multiplier provides complete UK workforce support, including local onboarding, payroll, statutory benefits, contract management and compliance guidance, helping businesses grow smoothly, reduce risk and build strong teams across the region.
Frequently Asked Questions (FAQs)
1. Is an Employer of Record legal in the UK?
Yes, Employers of Record are legally permitted in the UK and operate within UK labour laws to manage employment responsibilities on behalf of global companies.
2. Who is responsible for paying taxes and employee benefits?
The EOR calculates and pays taxes, pension contributions, and employee benefits accurately, ensuring full compliance with British employment regulations.
3. Do companies lose control of employees when using an EOR?
No. The company still manages day-to-day work and performance. The EOR only manages legal and administrative employment responsibilities.
4. How quickly can an international business hire using an EOR?
Hiring can be completed within a few days instead of months required for entity setup.
