We’re looking at hiring someone based outside of our country for the first time. This employee is based in the UK, and we are exploring our current options. The role would sit in customer success/operations, so it would involve regular hours, direct contact with our team, access to internal tools, and some responsibility for ongoing client work.

I’ve done a lot of research, and there were a few different ways. You can hire them as a contractor, or start a local entity in the UK ( but this is definitely something we would want to avoid ), and finally, use EOR, as they actually have legal entities based in multiple countries. From what I understood while reading about using EOR in the UK, one thing that makes the UK a bit different is that there are separate categories for employees, workers, and self-employed contractors. So it is not only about how we pay the person. I’ve noticed a few things I hadn’t fully thought through, like PAYE, National Insurance, workplace pensions, written employment terms from day one, and the fact that UK employment is not “at-will” in the same way some founders might expect.

So now it seems to us that this kind of service would be the best way to go. Has anyone from the USA looked to hire in the UK? What would you do differently if you had to make that first global hire again?

  • purplepudding@sopuli.xyz
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    15 hours ago

    Am on the other side of one of these, and worked for a UK based firm hiring overseas in the past too. Am not a lawyer or any other legal person and am not capable of giving valid legal advice (which you should definitely get).

    EOR is often easiest to start as they take on a lot of burdens but are spendy (monthly fee on top of employee costs). They then work for the EOR, permanently seconded to your company.

    Uk working norms are much closer to Europe - we take holiday/PTO/leave and expect to not only use it all but carry it over if we can’t use it. Working hours are generally max 40/week, there’s a legal right to under* 48/week on a rolling average that has to be opted out of contractually, and there are rights to parental leave, flexible working and other things that you’d have to cater for as well.

    Repeat and echo - speak to a lawyer/solicitor/HR professional with experience 😁