Benefits of working in the United Kingdom (UK)

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Gino Peters

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Gino Peters

Reviewed By: Belinda E.

June 3, 2026 7:35 pm

Category Tag: News

The rise of remote work made international expansion much easier in recent years, but hiring abroad still comes with legal and administrative complexity, as every country has its own labour laws and payroll rules that must be followed. In addition, not many companies can open a new entity in every new market that they are expanding into. That is when the Employer of Record (EOR) solution comes in handy.

The EOR serves as the legal employer on paper, while the client company manages important activities related to the employees responsibilities and performance.

In this guide we will cover what an employer of record is, how it works in detail, how much it can cost and which business should consider an EOR solution.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third party service provider that legally employs a person on behalf of another company in the country where the employee officially resides. As an official employer the responsibilities of EOR include issuance of an employment contract, processing payroll and withholding taxes and necessary social security contributions, as well as preparation of offboarding documents or any documentation that need to be signed by the employer. In addition, EOR ensures the compliance with local labour laws and serves as a first point of contact for any legal disputes.

The client company that hired the employee through an EOR also has a list of responsibilities. As an Employer of Record does not have the visibility on operational activities behind the scenes a client company needs to provide direction and ensure proper team integration.

In simple terms, the EOR provider acts as a legal employer in the country of the employee’s residence, while the client company takes on day-to-day manager work.

Responsibility	Employer of Record (EOR)	Client Company
Employment contracts & any other official documentation
Payroll processing
Income tax & social security contributions
Compliance with local labour laws
Statutory benefits administration
Managing daily work and projects
Setting goals and performance expectations
Providing equipment and tools
Leading the employee’s team and workflow

Employer of Record solutions gain more and more popularity in the field of global expansion as they allow businesses to hire best candidates fast and easy while staying compliant with local employment regulations. More information about EOR service are available if you would like to understand more.

EOR Meaning

The term “EOR” is the abbreviation for Employer of Record.

Employer in this instance stands for the company that hires the employee and takes on duties related to it, such as onboarding and offboarding process, payment of wages and compliance with other legal requirements.

“Record” from the EOR perspective refers to official registration with government authorities. The name of the EOR provider is stated in all payslips and tax filings, and should also be listed by the employee in any documents where employer must be stated, such as mortgage or loan applications.

One might ask a question of why this legal structure exists. As it is not possible to provide an employment contract directly to a person that legally resides in another country, the business expanding abroad typically needs to establish a local entity. That involves legal registration, arrangement of local bank accounts and organisation of payroll structure, as well as compliance with local law.

EOR allows to simplify the global hiring and reduce administrative burden through their existing legal entity.

There are some other hiring models that can be confused with EOR.

EOR and PEO

Many sources online refer to EOR as “international PEO”, which may create confusion as these models have 1 important difference.

A Professional Employer Organisation (PEO) serves as a co-employer of a client company. In other words, a business must already have an established entity in the country. The hiring tasks are, therefore, shared between 2 companies, while legal liability stays only with the client company. In the EOR model all legal risks are being taken by the official employer. Read more about the difference between PEO and EOR here.

EOR and staffing agency

Staffing companies mainly provide assistance for short-term projects by providing temporary workers. If the client wishes to employ a person for a longer time, EOR approach must be chosen.

EOR and contractor model

Contractor agreements assume the involvement of independent workers rather than employees. This model is also often used for temporary, project-based assignments. It is important to remember that there is a big misclassification risk between a contractor and an employee in the company which can lead to potential legal issues. An EOR ensures that employment is legally compliant with local labour law.

How does an Employer of Record work?

While it may sound complicated at first, a process behind the employer of record model is relatively straightforward.

The operating company selects a candidate

The client company recruits the employee they want to hire in another country

The EOR becomes the legal employer & local employment contract is issued

The Employer of Record uses its local legal entity to prepare and issue an employment contract that complies with labour law of the country where the employee is based. Depending on case-by- case situation, the work visa might need to be secured beforehand. Our company provides immigration services, more details can be found here.

Payroll and taxes are managed

The EOR takes on recurring responsibilities related to a payroll and ensures correct processing of income tax, social security contributions etc

Benefits are administered

Paid leave, sick leave, pension contributions and any other statutory benefits are being managed by the EOR.

Ongoing compliance and HR support

It is the responsibility of the EOR to monitor changes in local labour law and ensure ongoing compliance.

Example:

Imagine a UK-based tech company found a perfect candidate in Germany for a position of a software developer.

Instead of going through the administrative burden of opening a legal entity in Germany, the company chooses to work with an Employer of Record. The EOR hires the developer under a German employment contract and manages payroll and taxes. At the same time the UK company welcomes the new employee in the team and manages the daily work of a developer.

What services does an Employer of Record provide?

The Employer of Record does more than just providing an employment contract to the employee. Typically a wide range of HR and compliance services is included in the EOR offer. For example, read about the services included in our EOR package here.

Employment and HR administration

Locally compliant employment contracts and support with other documents requested by authorities
Employee onboarding
Employee record management. For example, control over PTO

Payroll and tax management

Regular payroll processing
Tax withholding and reporting of social security contributions with authorities
Payslip generation and creation of annual wage tax certificates

Benefits administration

Management of statutory benefits
Pension contributions (where required)
Support with benefits such as maternity leave allowance, sick leave allowance etc

Compliance and risk management

Insuring compliance with local labour law
Management of onboarding and offboarding processes
Representation in difficult legal and court cases

Additional services:

Some EOR providers ( such as ThisWorks EOR Services) provide additional services such as:

Work permit and dependent visa support
Background checks
Relocation support
Value added services: support with housing, company car, banking, etc ( depending on the country).

This vast list of services allows businesses to manage international teams, while staying compliant and avoiding complex local employment administration.

Benefits of using an EOR service

There are multiple advantages the businesses can get from working with an Employer of Record provider.

Faster global hiring

Setting up a new entity can take up to several months. With an EOR the hiring process can take several days.

Reduced compliance risk

A trustworthy EOR provider ensures the compliance with all local regulations. As the labour law varies greatly between countries, having a knowledgeable party to rely on can make a big difference.

Lower expansion costs

Establishment of a new entity is not only a time-consuming process, but also costly. With EOR services these costs can be avoided.

Access to global talent

The location of a remote candidate is not a problem if the company uses Employer of Record services. In other words, the best candidate for specific business purposes can be chosen.

Scalable hiring model

EOR services are ideal for organisations that want to scale international hiring quickly. They are particularly useful in the following situations:

Remote-first teams and organisations
Companies testing new markets abroad
Startups expanding internationally

How to choose the right Employer of Record

Choosing between several EOR providers is important, as it influences not only compliance, but also employee experience for new hires and how your company is perceived on the job market.

Here are some important things to keep in mind when deciding on your EOR partner:

Geographic coverage

Make sure that EOR provider can cover the country where you want to expand globally. Read about our EOR coverage here.

Pricing transparency

Check that EOR provider does not have any hidden costs and the pricing is clearly outlined in your MSA.

Compliance expertise

A strong EOR provider should have a team of experienced local HR specialists who understands all in and outs of a national labour law.

In-house vs partner model

Some EOR providers rely on their third-party partners, while others manage employment directly through their own local entities.

Customer support

It is important to find a EOR partner that helps with any questions or concerns in a quick and professional manner. That can be crucial when dealing with employee offboarding or any legal disputes.

Warning signs

Understanding the importance of choosing a right party, your company should be cautious of providers that lack local expertise and cannot give clear answers to your labour law questions. In addition, companies with slow response times can prove to be unreliable in critical situations. Furthermore, providers with complex pricing models with many hidden fees can create a lack of cost transparency and result in unforeseen expenses.

By selecting a provider with strong expertise in local labour law and reliable support from dedicated teams, your company can ensure a smooth international growth. Learn why companies choose ThisWorks as their EOR partner.

How much does an employer of record cost

The vast coverage of services the employer of record provides makes many businesses ask how much an EOR costs.

Pricing models vary greatly on the provider and the country of coverage, but most EORs use one or more of the following structures.

Flat monthly fee per employee.

The EOR provider charges a fixed monthly fee for each employee they have on the payroll from the client.

Percentage of salary

While not being a popular approach, some EOR providers charge a percentage of the employee’s salary, typically ranging between 5%-15%.

Setup fees

Some providers charge onboarding or offboarding fee for each employee.

The fee that the business needs to pay to an EOR provider also depend on the location of a service. Local labour law complexity of some countries can influence the fee. In addition, some countries have specific statutory benefits and payroll administration requirements. Furthermore, employee headcount in the specific location can influence the fee.

EOR vs setting up a legal entity

To establish a new entity the organisations needs to go through legal and tax registration. In addition, accounting support and ongoing compliance costs such as the fees for local labour lawyers can make setting up a legal entity significantly more expensive.

An EOR allows companies to expand globally without these upfront investments.

EOR vs hiring contractors

Some businesses decide to hire international workers as contractors. However, this approach can often lead to a misclassification risk, which can cause legal and tax liabilities.

A professional EOR provider ensures that the new starters are compliantly onboarded under local employment regulations.

EOR FAQs

Is an EOR the same as a PEO?

No. PEO model assumes co-employment and requires the business to already have established local entity, while EOR employs new talents through its own entity only.

Can an EOR hire contractors?

While some EOR providers can support hiring contractors, it is important to remember that main function of EOR is the employment of full-time workers legally in a country. A risk of misclassification between EOR and contractor should be also considered carefully.

Is an employer of record legal?

Yes, when established and structured properly, Employer of Record entities are legal and widely used for international expansion by many companies.

When should you use an EOR?

The most common reason for using EOR include:

Hiring employees located in another countries remotely
Testing new markets before establishing an entity
Expanding internationally

Can you switch from EOR to your own entity?

Yes. Many companies initially hire through an EOR for the ease and speed of expansion and later transition employees to own legal entities upon their establishment. It is important to remember that some countries require specific procedure to be followed in such a scenario.

Get in touch with ThisWorks

Expanding your team globally does not need to be long and administratively complex.

With the use of Employer of Record the businesses can have access to the best talent from around the world while ensuring full compliance with local labour laws.

ThisWorks can support your global expansion with our compliant Employer of Record services.

Contact our team to find our how we can help your international team glow fast and compliantly!

Discovering the Benefits of Employment in the United Kingdom

Professionals from all over the world come to work in the UK because it has so many chances and benefits. The UK is a great place to grow professionally and personally. It has a strong job market, a lot of different cultures, and a good healthcare system. This article will talk about the many benefits of working in the UK, such as IT job prospects, living standards, healthcare, work-life balance, cultural experiences, and how to get a work visa.

Thriving Job Market and Career Growth Opportunities

A lot of different kinds of jobs are available in the UK, especially in Information Technology (IT) and Sales Specialists. IT workers are in high demand all over the country because technology is becoming more and more important in many fields. IT professionals are in high demand because companies of all sizes, from small businesses to multinational conglomerates, are constantly looking for skilled workers to drive innovation and growth.

Fueling Innovation and Collaboration

In the UK, the IT industry is thriving and gives stable jobs. It also encourages creativity and teamwork, which helps professionals grow and do well in their careers. The UK is a hub for tech-driven progress because it brings together a wide range of skills with cutting-edge technologies.

Investing in Career Advancement

Also, there are many chances to move up in your career ladder and improve your skills in the UK. Employees can improve their skills and move up in their careers through a variety of training programs, classes, and social events. Also, having top universities and study centers nearby encourages people to keep learning and coming up with new ideas, which helps career growth even more.

Nurturing Potential and Achieving Goals

People in the UK can reach their work goals and reach their full potential thanks to the supportive environment for professional development. Professionals in the UK’s IT business have access to tools that help them succeed in the fast-paced field through mentorship programs, industry certifications, and partnerships with academic institutions.

IT Job Opportunities in the United Kingdom:

In the UK, the need for IT professionals has grown a lot in recent years, making it an appealing place for tech workers to move to. Cities like London, Manchester, and Edinburgh have become tech hubs, home to many start-ups, established businesses, and digital companies. This has created a lively and busy environment for IT professionals.

Thriving Tech Hubs: Epicenters of Innovation

London, Manchester, and Edinburgh have become thriving tech hubs that offer a huge number of job chances for IT experts. Professionals from a wide range of backgrounds and skill sets move to these places, which helps the UK’s tech ecosystem grow and change. The way people work together in these tech hubs encourages new ideas, inspiration, and the sharing of information, which helps the IT industry grow even more.

Diverse Range of Roles: Catering to Varied Skill Sets

IT experts can find work in a wide range of areas, from making software and keeping data safe to analyzing data and working with artificial intelligence. There are many IT job possibilities for professionals with a wide range of skills and knowledge. This means that everyone can find a job that fits their interests and career goals. There are opportunities for growth and progress in the UK’s tech sector, whether you are a seasoned software engineer or a new data scientist.

Government Initiatives: Nurturing the Tech Ecosystem

The UK government has also set up programs to help the tech business because it knows how important it is for driving innovation and economic growth. Some of the things that are being done to make things better for tech professionals are tax breaks, funding programs, and visa programs for skilled workers. The government wants to encourage innovation and long-term growth in the IT industry by giving people tax breaks for investing in technology and digital infrastructure.

Attracting Talent: A Global Magnet for Tech Enthusiasts

This good environment not only brings in talented people from the UK, but also pushes professionals from other countries to look for work in the country. Tech talent from all over the world wants to work in the UK because it is known as a global tech hub and has policies and programs that support this. The UK’s international vibe and wide range of cultures make working in the tech community there even more appealing.

Commitment to Innovation: Driving Economic Prosperity

The UK’s policies and programs that help the tech industry show that the country wants to encourage new ideas and boost the economy through technology and digitalization. The UK wants to keep being a world leader in technology by putting money into the business and making it easier for new ideas to come up. The UK continues to lead the way for ground-breaking technological advances and move its economy forward by getting the government, businesses, and universities to work together.

Living Standards and Healthcare in the UK: A Comprehensive Overview

The high standard of living and complete health care system in the UK are two of the best things about working there. People who live in the UK have easy access to public services, healthcare, and education, which is why it has a high quality of life ranking.

Universal Healthcare Coverage: The Pillar of Public Health

Universal healthcare coverage is provided by the National Health Service (NHS). This means that everyone can get medical care and help without having to worry about money. The NHS provides many different types of healthcare services to meet the needs of the people. These range from regular check-ups to emergency care. This strong healthcare system not only improves people’s physical health, but also makes society more stable and promotes general well-being, making people healthier and more resilient.

Diverse Housing Options: Tailored to Individual Preferences

Also, the UK has a lot of different housing choices for people with different tastes and ways of life. The places people live are very different, from apartments in busy city areas to homes in quiet suburbs. People can choose the places that work best for them. The UK’s housing market has choices for people with a wide range of tastes and budgets, whether they want to live in the city for convenience or in the suburbs for peace and quiet.

Enhanced Quality of Life: Beyond Basic Needs

Amenities like public transportation, leisure centers, and cultural sites also improve the health and happiness of residents, making their quality of life better. Public transportation systems that work well make it easy for people to get to work or explore the city, and parks, gyms, and amusement centers offer ways to relax and have fun. Museums, theaters, and art galleries are examples of cultural sites that offer ways to express creativity and think critically. These places make people’s lives better and help create a lively cultural scene.

Attractive Destination for Growth: Balancing Work and Life

The UK’s high living standards and high quality of life make it a desirable place to move to for people who want to grow personally and professionally. There are many chances for people to thrive and succeed in the UK, such as access to high-quality healthcare, a wide range of housing choices, and enriching cultural experiences. The UK keeps up its image as a great place to live and work by putting the health and happiness of its citizens first and investing in public services and infrastructure.

Guide to Obtaining a Work Visa for the United Kingdom

As someone looking for work in the UK, getting a work visa is an important step in the process. The UK has different types of visas for different types of jobs, such as visas for skilled workers, businesses, and transfers within the same company. The Tier 2 (General) visa is the most popular way for skilled workers to get into the UK. To get this visa, you need to be sponsored by a UK-based employer. The full guide to getting a work visa in the UK explains who can apply, how to apply, and what documents are needed to make sure the application goes smoothly.

To get a work visa, candidates must meet certain requirements, such as having a job offer from a licensed sponsor, being able to speak and understand English well, and making a certain amount of money. As part of the visa application process, people may also need to show proof of their education, work experience, and ability to pay their bills. The step-by-step guide to getting a work visa in the UK makes it easier for people to understand the complicated immigration system and start working and living in the country. You can read more about the UK Work Visas on the official government page.

Cultural Activities for People Living Abroad in the UK

When people from other countries work in the UK, they have the chance to fully experience the country’s rich and varied culture. In the UK, there are many cultural events to choose from, such as world-famous museums, famous places in history, captivating theaters, and lively music festivals. Expats are always surrounded by the rich history and artistic expression that make up British culture, whether they are walking through the streets of London or going out into the beautiful countryside.

Promoting acceptance and a sense of belonging

British society is very multicultural, so people from all walks of life feel welcome and included. This helps expats feel like they fit in and are part of a group. There are a lot of different languages, foods, and customs in the area, so expats can meet people from all over the world and make real bonds with them. Expats are welcomed by Britain’s varied society, which makes their lives better and contributes to their general health and happiness. This is true whether they are at cultural fairs, trying new foods from around the world, or taking part in community events.

UK Education System for Expatriates’ Children

The school system is an important thing for ex-pats moving to the UK with their children to think about. The UK has a world-class education system that includes a wide range of schools from elementary to college. International schools and British curriculum schools offer high-quality education and a safe place to learn to children who live and work abroad. The UK’s education system puts a lot of emphasis on academic performance, critical thought, and overall growth. This helps students be successful in a world that is becoming more globalized.

Universities in the UK are also known for their high standards of teaching and study, which bring students from all over the world. Families who live abroad can send their children to top-notch schools, which can help them do well in school and in the workplace. Children of expatriates in the UK get a world-class education and have access to a wide range of learning options. This gives them the tools they need to reach their goals and meet their potential.

Conclusion

There are a lot of chances and perks for professionals looking for personal and professional satisfaction who work in the UK. There are lots of job options and high living standards in the UK. There is also good healthcare and a lot of cultural activities to do. Overall, it is a great place to live and work. People who know about the different benefits of working in the UK and how to get a work visa can start a fulfilling journey toward building a successful career in one of the world’s most dynamic and varied countries.

FAQs

What are the benefits of working in the United Kingdom?

There are many good things about working in the UK, such as a good healthcare system, a wide range of job possibilities, high living standards, cultural enrichment, and a strong social support network. The UK’s progressive policies also support diversity, equality, and work-life balance, which makes workers happier with their jobs overall.

How does the job market in the UK contribute to career opportunities?

The UK’s job market is always changing, which is great for work growth and development. IT, banking, healthcare, and the creative industries are all doing very well, giving workers a lot of different ways to move up. The UK’s culture of entrepreneurship and helpful business environment also encourage new ideas and entrepreneurship, which opens up more job paths.

What is the standard of living like in the UK, beyond stereotypes?

Despite what some people think, the UK has a high standard of living, with good healthcare, education, public services, and cultural facilities. The UK has a comfortable lifestyle for many people, with lots of chances for leisure, recreation, and personal growth. However, living prices can range from region to region.

What skills are crucial for success in the UK IT job market?

To do well in the UK IT job market, you need both professional knowledge and “soft skills.” Important technology skills include knowing how to code, being good at hacking, being able to analyze data, and knowing how to use the cloud. Soft skills, like being able to solve problems, being flexible, working as a team, and communicating clearly, are just as important for getting ahead in the fast-paced world of technology.

Which industries are driving job growth in the UK IT sector?

There are a lot more jobs opening up in the UK IT field in many areas, such as cybersecurity, fintech, AI, e-commerce, healthcare technology, and digital transformation services. These fields are at the cutting edge of new ideas and are actively looking for skilled IT workers to lead digital projects and technological progress.

What is the importance of acquiring the right technical skills for IT professionals?

IT workers must get the right technical skills if they want to stay competitive and useful in a tech world that is changing quickly. Upskilling and continuing to learn to make sure that professionals can meet the needs of their business, learn how to use new technologies, and add successfully to the goals of the company. Additionally, keeping up with the latest tech trends can help your job search and create new chances in the IT field.

What are the salary structures for different levels in the UK IT industry?

It depends on things like experience, skill level, job role, and area how much someone is paid in the UK IT business. Starting wages for entry-level jobs are usually between £20,000 and £30,000 per year. Senior positions and specialized jobs can pay much more, sometimes over £100,000 per year. It’s also possible for IT workers to make more money through bonuses, rewards, and benefit packages.

How does the UK support work-life balance for professionals?

The UK supports work-life balance through a number of programs and laws that aim to improve workers’ health and output. Professionals can handle their time well with flexible work setups like working from home and shorter workweeks. In addition, family benefits, paid leave, and employee assistance programs all help to create a welcoming workplace that puts health and happiness first.

What cultural aspects make the UK a unique working destination?

The UK is a special place to work because of its rich cultural history, diverse population, lively arts scene, historic sites, and global impact. Professionals can engage themselves in cultural events, relationships with people from other cultures, and different points of view, which can make their personal and professional lives better. In addition, the UK’s cosmopolitan towns have a mix of old-fashioned beauty and modern conveniences that make them great places to work.

What is the process for obtaining a work visa in the UK?

There are several steps needed to get a work visa in the UK. The first is to get a job offer from an approved employer. Then, applicants must meet the requirements, such as being able to speak and write English well and making a certain amount of money. People can apply for a visa online or at a visa application center after getting the necessary papers and filling out the application form. Applicants get their work visa when they are approved, which lets them legally live and work in the UK.