Remote work hiring is becoming a standard practice for many UK companies. But while finding talent is simple, hiring that talent legally is a different story. Each country plays by its own rules, and what works in London might get you fined in another part of the world.
This article walks you through the realities of hiring in key European markets and shows how to keep risk low while you build the team you need. We’ll also cover why and how Employer of Record (EOR) services are quietly becoming the smart approach that pairs fast hires with legal certainty.
Post-Brexit Britain’s global outlook
After Brexit, UK firms stopped assuming Europe was only a sales market. Many now treat European cities as places to find talent, not just customers. You can recruit a developer in Berlin or a designer in Lisbon without relocating your whole team.
That movement is two-way. Insights from Blick Rothenberg show German firms increasingly treat the UK as an innovation hotspot, and more of them say they are planning to increase investment there. That ongoing confidence shows that cross-border hiring remains viable and valuable.
Still, each country’s employment system works differently. What might be a simple contractor setup in the UK could require an official employment registration in Germany. Without proper local guidance, missed compliance could trigger various penalties. Getting the right counsel up front prevents those surprises.
Germany employment laws you must know
Germany’s employment laws are known for their precision and worker protection. For UK employers, that means getting familiar with rules that might not exist at home.
In Germany, works councils get a significant say. They may need to be consulted and sometimes even jointly decide on issues. If you hire in Germany, expect to consult council reps or at least tell them about big workplace changes.
Then there are social contributions. Employer contributions for social insurance, which cover health, pension, unemployment, and other insurances, add a percentage on top of gross pay for employer social contributions. The actual rates vary by year and wage base.
Contract rules are also specific. You’re expected to provide written contracts that clearly define roles, pay, and working hours. Contracts in Germany also commonly default to permanent employment with clearly stated notice periods and probation clauses. Termination without proper procedure can expose you to claims for unfair dismissal or severance.
It’s a lot to juggle if you don’t have local expertise. For example, failing to issue the right type of contract or missing a social contribution payment can trigger penalties quickly.
According to Mercans, with a trusted Employer of Record in Germany, those risks sit on their shoulders, not yours. The EOR signs the contracts and runs payroll and taxes, while your team manages the day-to-day. It’s a quick way to hire in Germany and lowers compliance risk.
UK rules for remote workers
When someone in the UK works for you, some UK employment laws apply. Many companies assume remote work is informal and overlook this part. But remote workers in the UK are also entitled to some of the basic rights that UK on-site employees have.
One practical example of this is the UK’s law on flexible working hours. Employees can request flexible hours from their first day of employment. You must follow the statutory process and give a reasoned reply if you refuse for legitimate business reasons. Being aware of such local laws ensures you hire UK-based staff under full compliance.
Omnipresent notes that a UK Employer of Record can help with this. These services handle everything from compliant contracts to proper payroll deductions. They can help your company avoid fines and the administrative confusion of where UK employment laws apply for remote workers.
Spain: When your next hire is in Madrid
Spain has become a favourite destination for remote hiring. It’s full of skilled professionals, and the labour costs are often lower than in the UK. But like Germany, Spain has its own legal nuances.
Spanish employment law is protective of workers and places great emphasis on formal contracts. Contracts must be detailed and formal. If you bring someone temporarily, you need to justify why. Otherwise, Spanish authorities might treat it as a permanent role, which comes with stronger protections. Social contributions are also mandatory, and dismissals require solid legal grounds.
A Spain Employer of Record takes care of all this for you. They ensure contracts meet Spanish requirements, file social security payments on time, and manage payroll seamlessly. But their value isn’t only in paperwork. The best ones help you understand local expectations too, like Spain’s emphasis on work-life balance and flexible schedules. When you respect those cultural norms, retention improves naturally.
EORs: The bridge for UK businesses going global
An Employer of Record model offers a faster path to hire abroad while avoiding the need to set up a local company in every jurisdiction. These partners handle the legal side so you can build global teams without getting buried in bureaucracy.
As Deloitte explains, this structure works because it shifts much of the legal burden to a local entity that understands and follows country-specific rules. It makes hiring fast and helps you stay compliant as you scale into new markets.
Of course, not all EORs are the same. The best partners go beyond basic payroll processing. They act like an extension of your HR team, giving clear, actionable advice on contracts, statutory benefits, and country selection. Look for providers that offer prompt human support, legal and tax expertise in the countries you care about, and transparent contract terms that explain who takes responsibility for specific employment liabilities.
Conclusion
Hiring globally isn’t just for big corporations anymore. UK startups are also building international teams faster than ever, and they’re doing it safely by partnering with experienced EOR providers.
Choose a partner that behaves like an extension of your HR team. The right EOR is human-centred, offers local legal depth, and gives you clear, practical guidance. Companies like Rivermate have built their reputation on this model, offering responsive, expert-led support that helps you grow globally with confidence.
