Employer of Record services are the fastest, most compliant way to simplify your UK business setup—particularly when hiring or relocating international talent without a local entity.
For global employers, setting up shop in the UK can be a maze of regulation, payroll conundrums, and HR compliance. Using an Employer of Record is the smarter shortcut. It eliminates the need to create a UK legal entity and lets you onboard staff in days, not months.
What Is an Employer of Record?
An Employer of Record (EOR) acts as the legal employer for your team in the UK, handling compliance, payroll, HR admin, and onboarding—so you don’t have to set up a local entity. This structure allows companies to employ people legally and quickly in new jurisdictions without getting tangled in red tape.
Think of a Shortcut Through UK Red Tape
They make things like:
- Employment contracts
- Tax registration
- PAYE setup
- Pension auto-enrolment
- Right to work checks
…someone else’s problem.
All you need to do is manage the work, while the EOR manages the paperwork.
Key Benefits of Using an Employer of Record for UK Business Setup
Why use an Employer of Record?
Let’s face it—setting up a UK legal entity isn’t exactly a Sunday stroll along the Thames. Between Companies House registration, appointing directors, and registering for PAYE, it’s easy to lose momentum.
Instead, an Employer of Record enables:
- Faster time-to-hire.
- Full compliance with UK labour laws.
- Simplified payroll and benefits admin.
- Lower setup costs.
The Top Three Reasons Businesses Use EORs in the UK:
- Speed: You can hire in a matter of days, not months.
- Simplicity: No need to hire local legal or HR teams.
- Security: Everything’s done by the book—HMRC won’t be knocking on your door.
What Types of Companies Benefit Most?
In our experience, we see a wide variety of companies turning to EOR services:
- Startups testing new markets.
- Scaling tech firms with remote teams.
- US-based companies looking to tap into UK talent.
- International companies relocating employees post-Brexit.
How Employer of Record Supports International Relocation
Relocating staff to the UK comes with its fair share of hurdles. Visas, housing, cultural adjustment—and of course, making sure they’re employed legally.
An EOR becomes a key player in the relocation process:
- Offering UK-compliant employment contracts from day one.
- Handling tax and National Insurance setup.
- Ensuring eligibility to work and stay.
- Integrating payroll and local benefits.
For those relocating for work, this removes delays and uncertainty. For HR and mobility teams, it means fewer moving parts to juggle.
UK government guide to right-to-work checks
What About Pensions and Benefits?
Many international businesses forget the UK’s auto-enrolment pension rules. EORs won’t.
- Pension compliance? Tick.
- Holiday pay and statutory leave? Tick.
- Statutory sick pay and parental leave? Also tick.
In fact, in our experience at Adleo, EORs are a simple way to guarantee your relocated employee’s employment rights aren’t lost in translation.
EOR vs Setting Up a Legal Entity: A Quick Comparison
| Feature | Employer of Record | Own UK Entity |
|---|---|---|
| Setup Time | Days | Months |
| Upfront Costs | Low | High |
| Payroll & HR | Outsourced | In-house |
| Legal Risk | Shared | Yours entirely |
EORs Help You Test The UK Market Without Commitment
This is particularly useful for:
- Trialling UK operations before full expansion.
- Hiring project-based staff.
- Scaling gradually without administrative burden.
Common Misconceptions
Some assume using an EOR means giving up control. In our experience, it’s quite the opposite.
- You manage your employee’s day-to-day work.
- You determine salary, benefits, and progression.
- You control the hire, the role, and the results.
The EOR just ensures everything is compliant, so your business isn’t caught out by unfamiliar laws.
Isn’t That Just a Payroll Company?
Nope. Payroll companies just pay people. EORs employ them.
They’re legally responsible for employment contracts, tax, and compliance. That’s a big difference.
Final Thoughts on Employer of Record
If you need to hire or relocate staff quickly into the UK—without the rigmarole of forming a legal entity—an Employer of Record is your best route.
In addition to offering full UK business setup support, EORs reduce risk, cost, and admin. For growth-minded companies, they open the door to expansion without slowing you down.
Speak to one of our experts or send a message today and find out how we can add value to your relocation programme.
