'Employer of record' service company
Discussion
Has anybody got any experience of using an employer of record (EoR) company for their employment?
My situation is that I have a potential job offer from an overseas company whereby I would be working for them remotely in the UK. They have no other UK based employees or company set up, so they are proposing using a third party EoR company to handle the basic contractual legalities and things like payroll. I have not heard of this type of setup before so I thought I would ask if anyone else has done this or if there are any obvious pitfalls I should be aware of.
The overseas company is known to me and already employ several ex-colleagues of mine, which is where the first contact about a position came from, so I am not worried about that side of things, just the legal/contractual side of doing it through a third party.
For information, the proposed third party EoR provider is called Mauve Group - https://mauvegroup.com/services/employer-of-record...
My situation is that I have a potential job offer from an overseas company whereby I would be working for them remotely in the UK. They have no other UK based employees or company set up, so they are proposing using a third party EoR company to handle the basic contractual legalities and things like payroll. I have not heard of this type of setup before so I thought I would ask if anyone else has done this or if there are any obvious pitfalls I should be aware of.
The overseas company is known to me and already employ several ex-colleagues of mine, which is where the first contact about a position came from, so I am not worried about that side of things, just the legal/contractual side of doing it through a third party.
For information, the proposed third party EoR provider is called Mauve Group - https://mauvegroup.com/services/employer-of-record...
If you Google "Umbrella companies" lots of contractors work through these after the recent IR35 changes were introduced.
I now work through one of these, and they are my employer. They have a contract with the end customer, who pays a set rate. They pay me out of this rate after taking out the relevant taxes - Employers NIC, PAYE etc. Note that the Employers NIC contributions (13%) will come out of the money the company receives.
They have options for holiday pay (they retain a certain percentage of the end customer payment to cover your holidays) Auto enrolment pensions, sick pay (statutory only) etc
Not sure if your situation would be similar, but there are a lot of these type of companies operating successfully
I now work through one of these, and they are my employer. They have a contract with the end customer, who pays a set rate. They pay me out of this rate after taking out the relevant taxes - Employers NIC, PAYE etc. Note that the Employers NIC contributions (13%) will come out of the money the company receives.
They have options for holiday pay (they retain a certain percentage of the end customer payment to cover your holidays) Auto enrolment pensions, sick pay (statutory only) etc
Not sure if your situation would be similar, but there are a lot of these type of companies operating successfully
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