What is a PEO in the UK?
The phrase ‘PEO’ in the UK stands for Professional Employer Organization. This is a type of company that provides HR and employment-related services to businesses operating outside of the United Kingdom. These services are more commonly known as ‘Employer of Record’ (EOR) as the PEO company will also be the legal employer of the individual worker.
PEO is a term more commonly known in the United States, and was originally related to companies in the US that operated with the main purpose of being able allow smaller companies to pool together with other small companies to increase their buying power, and hence reduce costs for private healthcare and other employee benefits.
What is the difference between a PEO and an EOR?
A PEO is what the company is, and Employer of Record (EOR) is what a company does. Importantly the EOR service includes:
- Legally employing the worker on behalf of the client
- HR, benefits and payroll administration
- Full compliance and onboarding of the worker
- Management of annual leave and sickness records
How can a UK Employer of Record help US businesses expand in the UK?
In addition, we provide customized HR solutions tailored to the unique needs and challenges of each of our clients. As well as this, we offer benefits such as group insurance rates and retirement plans that may not be available to US businesses otherwise.
By outsourcing all of these tasks to us, businesses in the US can reduce their administrative burdens and stay compliant with UK employment regulations.
Staying Compliant with UK Employment Regulations
It is crucial to stay compliant with UK employment regulations when expanding your operations in the UK. While the regulatory environment for EORs in the UK is still developing, we stay up to date with all relevant UK employment laws and regulations to ensure that we are always in compliance. Therefore, by working with a UK EOR like Employer of Record UK, businesses in the US can expand their operations in the UK with confidence.
Ready to expand your US business operations into the UK?
Don’t hesitate to contact us today to learn more about our customized HR solutions and personalized approach to client service. Remember, when it comes to expanding your business in the UK, only a UK Employer of Record based in the United Kingdom will is the partner you can trust.
Get in touch today to find out more, and please take a look at downloading our full UK employment guide here.
Scott Winter
HR Director
