Do PAYE, National Insurance, and my other employment rights still apply on an EOR?

Yes — that's the point of the route. The EOR is your legal employer of record, so it runs PAYE and employer National Insurance. Statutory sick pay, holiday entitlement, pension auto-enrolment, and redundancy protection all apply the same as if a local company had hired you directly.

What does this actually cost my employer, including National Insurance?

Your salary, plus employer National Insurance, plus a monthly EOR fee per employee (commonly a flat fee rather than a percentage). It's almost always cheaper and faster than incorporating a local entity for one or two hires — ask each provider for an all-in quote before comparing.

How long does an EOR take to set up, compared with DPNI?

Typically days to a couple of weeks once your employer signs the service agreement — far faster than DPNI (up to ~2 months) or opening a local entity (8–12+ weeks).

Is being paid through an EOR actually legal, or does IR35 apply?

Yes — it's a well-established, regulated structure used by companies of every size to hire across borders without opening a local entity. An EOR employs you, so this is not an IR35 contractor arrangement. It's a different question from whether a specific provider is licensed to operate in your country, which is worth confirming directly.

For employees · United Kingdom edition

Your employer overseas wants to hire you. Here's how to make it legal.

Q: What happens to my pension?

The EOR enrols you the same way a direct local employer must — auto-enrolment applies, and contributions show up on your payslip. Ask the provider directly how transfers work if you later move to a different employer.

Q: Can we switch EOR providers later without disrupting my job?

Generally yes — your actual employment relationship with the company doesn't change, only the administrative employer on paper. Ask about transfer timelines and any gap-in-service risk before switching.

Q: My employer wants to just "figure it out" with invoices instead — how do I push back if the work is really subordination?

Point them at the misclassification risk in Exhibit A: if the work looks like employment, IR35 exposure is theirs (backdated employer costs) as much as yours (lost protections, a tax correction). Forwarding Exhibit D usually reframes it as a cost-and-risk decision rather than a favor they’re asking of you.

If your employer doesn't have a company in the United Kingdom, there's no automatic way for them to put you on payroll. This page lays out the routes that actually exist, why an Employer of Record is usually the one to recommend, and a side-by-side of the providers you could suggest — so you walk into that conversation with your manager already prepared.

Compare providers See your options first

The situation

You're not the problem. The paperwork is.

A company with no legal entity in the United Kingdom can't run for you or pay employer , so it can't simply put you on a local payroll. That's not your employer being difficult — it's a structural gap that a handful of fixes have grown up around.

8–12+ wks

Own entity · time to first payslip

~2 months

Direct Payment scheme · time to first payslip

Days

Employer of Record · time to first payslip

Exhibit A

Four routes — and when each one actually makes sense

Open a UK entity, use the Direct Payment scheme, invoice as a contractor, or hire through an Employer of Record.

Slow and permanent

Open a UK entity

Setup takes 8–12+ weeks. Your employer owns the filings through a new legal entity.

Prefer this when 3 or more UK hires are planned within the year, or the role is genuinely permanent and strategic enough to justify a lasting local presence.
Ongoing accounting, payroll, and employer admin stay with them after the entity exists.

Self-filed

Direct Payment scheme ()

Setup takes up to about 2 months. You personally own the HMRC filings.

Prefer this when the engagement is short, you are comfortable owning HMRC filings directly, or the budget can’t absorb a monthly EOR fee.
You remain an employee, but you register and run the scheme yourself because your employer has no UK payroll.

Fastest — if genuine

Contractor invoice

Setup takes days. Filings sit with the contractor’s own company, and only when the work is honestly outside .

Prefer this when the work is genuinely project-based and deliverable-priced, hours and methods aren’t set by the employer, and you already invoice multiple clients.
Watch out: fixed hours, one client, and employer-set tasks mean misclassification risk (), regardless of where the client is based.

Usually the practical default

Employer of Record (EOR)

Setup takes days to about 2 weeks. The EOR owns , , and pension auto-enrolment.

Prefer this when the role is ongoing and employer-directed, but neither side wants entity overhead or misclassification exposure.
This is the most common shape for a single cross-border hire.
Your employer pays a monthly fee on top of salary. You do not run the HMRC filings yourself.

Exhibit B

Why an EOR beats the alternatives (most of the time)

Zoomed out from the four routes above — the trade-off your employer is weighing, dimension by dimension.

Own entity, Direct Payment scheme, Contractor invoice, and Employer of Record compared for a hire in the United Kingdom
Dimension	Own entity	Direct Payment scheme	Contractor invoice	Employer of Record
Time to first payslip	8–12+ weeks	Up to about 2 months	Days	Days to about 2 weeks
Who owns the filings	Employer, via a new legal entity	You, personally	The contractor’s own company — risky if the work is employment	The EOR
Statutory rights retained	Full	Full, but self-managed	None while treated as a contractor	Full, employer-managed
Pension auto-enrolment	Yes, once set up	You self-arrange	No	Yes, automatic
Realistic cost to employer	High fixed cost, plus ongoing admin	Near-zero direct cost	Lowest — until reclassified	Salary plus a monthly EOR fee
Makes sense when…	3 or more UK hires, or a lasting local presence	A short engagement, and you will own the HMRC filings	Genuine project work, honestly outside	One ongoing hire, without entity overhead

Four columns, because the UK has a self-filed Direct Payment scheme as well as contracting. This is general information, not advice for a specific contract.

Exhibit C

Compare EOR providers for a hire in the United Kingdom

This is the comparison. Sort the topics that matter for your situation, then leave with a shortlist of providers worth a quote — self-serve where you can, a sales call where you can't.

1. Your topics (current step)
2. Your shortlist

Step 1 of 2

What should this shortlist pay attention to?

This shortlist is for working in United Kingdom. Drag each topic into a bucket, or use the move buttons. Important topics count in full, No opinion at 60%, and Not important at 20%.

Important

Counts in full

Drag a topic here

No opinion

Counts at 60%

General
Local entity
Move Local entity
General
Net pay & cost transparency
Move Net pay & cost transparency
General
Equity support
Move Equity support
General
Employee support
Move Employee support
General
Fee
Move Fee
General
Minimum contract term
Move Minimum contract term
General
Exit & conversion fees
Move Exit & conversion fees
General
Global footprint
Move Global footprint
General
Compliance track record
Move Compliance track record
benefits
Local benefits
Move Local benefits
contract terms
Contract terms
Move Contract terms
benefits
Private medical & protection
Move Private medical & protection
benefits
Pension
Move Pension
benefits
Holiday & sick pay
Move Holiday & sick pay
benefits
Family leave
Move Family leave
contract terms
Equity & EMI
Move Equity & EMI
contract terms
Payroll, tax & right to work
Move Payroll, tax & right to work
contract terms
Probation, notice & dismissal
Move Probation, notice & dismissal
contract terms
IP, covenants & jurisdiction
Move IP, covenants & jurisdiction
contract terms
Continuity on transfer
Move Continuity on transfer

Not important

Counts at 20%

Drag a topic here

Exhibit D

Send this to whoever signs off — not a wall of text

The comparison tool turns the exhibits above into a briefing you can forward: your situation, why an EOR is the route, and three providers worth a quote.

Your situation in three lines — no jargon
Why an EOR is the recommended route, and what it costs them
Three providers worth getting a quote from

The briefing

Build it in the comparison tool

Sort what matters, review the shortlist, and email yourself the PDF. That document is what your employer can read instead of this page.

Compare providers

FAQ

Questions people in your position actually ask

Do , , and my other employment rights still apply on an EOR?

Yes — that's the point of the route. The EOR is your legal employer of record, so it runs and employer . Statutory sick pay, holiday entitlement, pension auto-enrolment, and redundancy protection all apply the same as if a local company had hired you directly.

Your employer overseas wants to hire you. Here's how to make it legal.

You're not the problem. The paperwork is.

Four routes — and when each one actually makes sense

Open a UK entity

Direct Payment scheme ()

Contractor invoice

Employer of Record (EOR)

Why an EOR beats the alternatives (most of the time)

Compare EOR providers for a hire in the United Kingdom

What should this shortlist pay attention to?

Important

No opinion

Not important

Send this to whoever signs off — not a wall of text

Questions people in your position actually ask

Do , , and my other employment rights still apply on an EOR?

What does this actually cost my employer, including ?

How long does an EOR take to set up, compared with ?

Is being paid through an EOR actually legal, or does apply?

What happens to my pension?

Can we switch EOR providers later without disrupting my job?

My employer wants to just "figure it out" with invoices instead — how do I push back if the work is really ?

Your employer overseas wants to hire you. Here's how to make it legal.

You're not the problem. The paperwork is.

Four routes — and when each one actually makes sense

Open a UK entity

Direct Payment scheme (DPNI)

Contractor invoice

Employer of Record (EOR)

Why an EOR beats the alternatives (most of the time)

Compare EOR providers for a hire in the United Kingdom

What should this shortlist pay attention to?

Important

No opinion

Not important

Send this to whoever signs off — not a wall of text

Questions people in your position actually ask

Do PAYE, National Insurance, and my other employment rights still apply on an EOR?+

What does this actually cost my employer, including National Insurance?+

How long does an EOR take to set up, compared with DPNI?+

Is being paid through an EOR actually legal, or does IR35 apply?+

What happens to my pension?+

Can we switch EOR providers later without disrupting my job?+

My employer wants to just "figure it out" with invoices instead — how do I push back if the work is really subordination?+

Direct Payment scheme ()

Do , , and my other employment rights still apply on an EOR?

What does this actually cost my employer, including ?

How long does an EOR take to set up, compared with ?

Is being paid through an EOR actually legal, or does apply?

What happens to my pension?

Can we switch EOR providers later without disrupting my job?

My employer wants to just "figure it out" with invoices instead — how do I push back if the work is really ?