Employer of Record in the UK: The Best and the Rest

Overview

Hiring in the UK through an Employer of Record lets a foreign company employ staff without first registering a UK company, PAYE scheme or pension scheme. The provider becomes the employee’s legal employer: it issues the contract, runs PAYE and Real Time Information filings to HMRC, enrols the employee in a pension and carries out the right-to-work check, while your company directs the day-to-day work.

The UK has no dedicated EOR statute, so the choice turns on practical points: which UK company employs your hire, whether it holds a sponsor licence, how it applies the agency-work rules and how it is handling the Employment Rights Act 2025, phased in during 2026 and 2027.

TheEORDirectory’s guide brings together EOR providers serving the UK in alphabetical order. It begins with a selection of prominent providers, shown in editorial order, followed by the full directory. Neither list is a ranking: the right choice depends on your hiring plans, budget and support requirements.

How to Compare UK EOR Providers

Start with the legal employer. Ask whether the provider employs through its own UK limited company or a local partner, and for the employing company’s name and number. The free Companies House register shows its status, directors, incorporation date and any overdue filings. If a partner is used, ask who handles payroll and employee queries.

If you may need to hire someone who requires a visa, check the employing company against the register of licensed sponsors. A licence held by a group company does not cover a different employing entity.

Next, ask how it applies the rules that can cover workers supplied to work under a client’s direction:

• Employment Agencies Act 1973 and Conduct Regulations 2003: these govern employment businesses, including fees when a worker moves to the client; the Fair Work Agency enforces them.
• Agency Workers Regulations 2010: equal basic pay and conditions after 12 weeks in the same role, and access to facilities and vacancies from day one.

Finally, request an itemised quote, including deposits, currency conversion and any exit or transfer charges.

How an Employer of Record Works in the UK

The provider signs an ordinary contract of employment with your hire and handles the statutory duties of a UK employer:

• PAYE and RTI: income tax and employee National Insurance (8% between £12,570 and £50,270, 2% above) are deducted, with a submission to HMRC on or before each payday.
• Pension auto-enrolment: staff aged 22 to State Pension age earning £10,000 or more must be enrolled, with 8% of qualifying earnings (£6,240–£50,270), at least 3% from the employer. Source: GOV.UK
• Statutory Sick Pay: £123.25 a week or 80% of average weekly earnings, whichever is lower, for up to 28 weeks. Source: GOV.UK
• Holiday: 5.6 weeks of paid leave, 28 days for a five-day week, which may include bank holidays.
• Notice: at least one week after one month’s service, then one week per complete year from two years, up to 12 weeks.
• Right to work: a check is required before the start; without one, the penalty can reach £60,000 per illegal worker.

Your company still has duties as the business directing the work, such as workplace safety. Agree the division of responsibilities in writing.

Employment Rights Act 2025: Changes and Timeline

The Employment Rights Act 2025 received Royal Assent in December 2025 and is commenced in stages. The government’s timeline update (last revised 22 October 2026) gives these dates, with future ones subject to change:

• 6 April 2026: paternity leave and unpaid parental leave became day-one rights; SSP became payable from the first day of sickness, with the lower earnings limit removed; the maximum protective award for collective redundancy doubled to 180 days’ pay.
• 7 April 2026: the Fair Work Agency began operating, enforcing the minimum wage and agency rules.
• 1 October 2026: the time limit for most employment tribunal claims rose from three to six months.
• 30 October 2026: a duty to take ‘all reasonable steps’ to prevent sexual harassment, including by third parties.
• 1 January 2027: the unfair dismissal qualifying period falls from two years to six months, and the compensatory award cap is removed.
• Later in 2027: fire-and-rehire protections (March), bereavement leave (April), and pregnancy dismissal protection and flexible working changes (October).

Day-one unfair dismissal protection, as originally proposed, was replaced by the six-month period. Ask how the provider’s contracts reflect these dates.

Contracts Beyond Employment

EOR employees are on the provider’s PAYE payroll, so the off-payroll rules do not apply to them. Other models differ:

• Contractors and IR35: where a contractor works through their own limited company, the off-payroll working rules apply. A medium or large client must decide the contractor’s status. A company is small if it meets two of three tests: turnover up to £15 million, balance sheet up to £7.5 million, 50 employees or fewer.
• Umbrella companies: since 6 April 2026, the agency that contracts with the end client, or the end client where no agency is involved, has been liable for PAYE that an umbrella company fails to pay. Source: HMRC The government’s timeline separately lists employment-law regulation of umbrella companies for December 2027.
• Contractor of record: some providers engage self-employed workers and take on part of the classification risk.

The contract’s label does not decide status; control and personal service do. If a role resembles employment, an EOR contract is usually the lower-risk route.

What an EOR Costs in the UK

The service fee is only one part of the budget, alongside salary, employer National Insurance, pension, any levy passed through and benefits.

For 2026/27, employer National Insurance is 15% on earnings above the secondary threshold of £5,000 a year. The £10,500 Employment Allowance belongs to the legal employer, one claim per group, so it is rarely passed on. The Apprenticeship Levy is 0.5% of pay bills over £3 million, less a £15,000 allowance. The National Living Wage is £12.71 an hour from 1 April 2026.

Published fees vary. RemotePeople lists EOR Select from $199 a month for selected countries and salary ranges, and EOR Global from $499; ask whether a UK hire qualifies. Deel starts at about $599 per employee per month. Teamed lists from $599 on its UK page, with no setup or exit fee. Revolut GlobalHire charges £499, not pro-rated, plus a one-month offboarding fee. Agility EOR quotes on request.

For illustration, assume a £60,000 salary, minimum pension, the levy passed through and an EOR fee of £450 a month:

This is a budgeting example, not a provider quote. Benefits and deposits, often one to two months of employment cost, would add to the cash required.

The Hiring Process and Visas

British and Irish citizens and people with settled or pre-settled status can often start within days. Most other nationals need a visa:

• Skilled Worker: since 22 July 2025, new applications generally require a job at graduate level (RQF 6) and a salary of at least £41,700 or the going rate for the occupation, whichever is higher. New entrants and some others qualify from £33,400.
• Sponsor costs: a licence costs £611 for small sponsors or £1,682 for medium and large sponsors and takes about eight weeks; each certificate costs £525. The Immigration Skills Charge, raised on 16 December 2025, is £480 or £1,320 for the first year and £240 or £660 for each further six months.
• Global Talent: an unsponsored route for leaders in research, arts and culture or digital technology, usually needing an endorsement.

Sponsorship through an EOR is limited. Home Office guidance for sponsors does not allow a sponsor to supply a sponsored worker to fill an ongoing routine role for a third party, and acting as an employment agency for sponsored staff can lead to revocation. Many EORs therefore do not sponsor UK visas.

Questions to Ask Before Signing

• Which UK company will employ the worker, and what is its Companies House number?
• Do you use your own UK entity or a partner, and who supports the employee?
• Does the employing company appear on the register of licensed sponsors, and can it sponsor this role?
• How do you apply the Conduct Regulations and Agency Workers Regulations to this hire?
• What is the complete monthly cost, including employer National Insurance, pension, levy, deposits and exit fees?
• How are your contracts and procedures updated for the Employment Rights Act 2025 dates?
• What support and charges apply if we move the employee to direct employment?

Clear answers make it easier to compare the providers in the directory and choose an arrangement that fits your plans.