umbrella vs EOR vs direct hire, how are UK teams handling contractors after JSL?
i'm head of people at a UK scale-up and 5 weeks after JSL came in on 6 April we still don't have a clean answer on what to do with our 14 long-running contractors.
our employment lawyer's read is that the umbrella route we've used for years now lands the PAYE and NIC liability on us if the umbrella ever falls over, with no due diligence defence.
Fine in theory, but I've got 14 people who've been embedded for 2 to 5 years, consider themselves part of the team, and half are at career stages where a move to PAYE means an £8-12k drop in net pay that's utterly destabilizing.
the options are keep them on umbrella and live with the exposure, move them to PAYE under direct employment (which is cleanest for us and worst for them), or shift to a real EOR where they sit as employees of the EOR entity with proper contracts of employment.
CIPD guidance leans real-EOR but is thin on the practical comparison.
shortlist is Deel, Remote, Oyster, and Workmotion, and i can't get a straight answer from any of them on which run UK as a true Employer of Record vs which run umbrella structures with EOR painted on the door, since the second one walks us straight back into the JSL liability we're trying to escape.
if anyone's been through this in the last few weeks, how did you handle the contractor side of the conversation, and which provider held up once you got past the sales pitch?