An EOR helps you outsource your legal obligation to a third party responsible for taking care of the compliance elements of legal employment. This includes factors like payroll, taxes, contracts, and more.
Essentially, you pay a fee to have an EOR act as a proxy or stand-in legal employer for an overseas employee.
In the UK, an EOR will deal with your:
- Employee taxes
- Benefits
- Insurance
- Payroll
- Compliance
Read on to find out how your company can benefit from having an EOR in the UK.
EOR Benefits in the UK
Using an EOR in the UK is a cost-effective way to outsource your payroll and HR functions. EORs know the legal fundamentals behind global employment regulations so that you don’t have to.
With an EOR, you save time on administrative tasks including onboarding, paperwork, and payroll, so you have more time to focus on growing your business.
An EOR also lets you operate in the UK without a physical entity based there. Setting up an entity for your company can take several months and waste valuable time that you could be spending growing your company. By outsourcing to an EOR like Borderless, you can actually get down to doing business right away.
Since we handle the hard part, you have more time to expand, inspire and onboard your UK-based team.
Contractual Relationships
When looking into an EOR service in the UK, make sure you stay up to date on how UK work contracts operate.
In the UK specifically, employers are required to provide employees with both a contract (written or verbal) outlining the terms of employment and a written statement of employment particulars highlighting the main conditions of employment once they begin to work.
You can read this overview from the UK government website to see a full breakdown of what you should include in contracts and statements for your UK employees.
EOR Duties and Responsibilities
You can use an EOR to manage setting up your HR and payroll, but the client company is in control of day-to-day working tasks and allocating the duties of a given position.
Sometimes an EOR operates as an employer in name only and takes a hands-off approach to management. But depending on the size of your team, EORs can handle some disciplinary processes including termination, employee misconduct, and poor performance for your UK team.
Risk and Considerations
Calculating an employee’s working time in the UK works differently than in many other countries.
This means UK employees are allowed to work more than 48 hours in one week, only if the weekly average does not exceed 48 hours over the reference period.
How Borderless Can Help
If it all feels complicated, Borderless is here to help. We want to eliminate the guesswork so you don't misclassify or miscalculate and face costly penalties.
Book a demo with us to see how Borderless can serve your company's needs in the UK and beyond!
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
