--- title: "Moving Employees to Your Own UK Company 2026" description: "TUPE moves employment automatically, keeping continuous service, terms and holiday. Why resign and rehire costs more than it looks." canonical: https://www.teamed.global/country-hiring-guides/united-kingdom/moving-from-eor-to-your-own-entity --- ![A London street scene with people walking past period buildings.](/cluster-assets/country-hiring-guides/united-kingdom/moving-from-eor-to-your-own-entity/images/hero.webp) # Moving your peopleto your own company. In most cases the employment transfers automatically under TUPE, which keeps continuous service, terms and accrued holiday intact. Teamed plans the date and runs both payrolls through the change. Served by Teamed's own legal entity in the UK Last reviewed 17 September 2026 · the UK guide Two routes, one of them worse ## How do people move from an employer of record to your company There are two ways to do this and they are not equivalent, whatever a spreadsheet says. One preserves everything your people have built up. The other quietly throws it away and hopes nobody notices for a year. The UK has TUPE, the transfer of undertakings rules. Where they apply, the employment moves to the new employer automatically, on the same terms, with continuous service intact. Nobody resigns and nobody is rehired. The contract simply has a different employer on it. The alternative is to end the employment and start a new one. It is faster to arrange, which is exactly why it gets chosen, and it resets the clock on every right that depends on length of service. ### Why continuous service is the whole argument Two of the most important protections in UK employment law are earned through time served, and both restart if you break the chain. Unfair dismissal protection Ordinarily needs two years of continuous service. Break it and a three year employee is back to being a new starter with none of it. Statutory redundancy pay Also needs two years, and the amount is calculated from service. A resign and rehire wipes what has accrued and starts it again at zero. What moves and what does not ## What actually transfers Where TUPE applies, the terms move with the person. Salary, notice, holiday entitlement, accrued but untaken holiday, contractual benefits and the original start date all carry over. So do liabilities. A grievance or a claim that existed the day before the transfer still exists the day after, now against you. Pension is the significant carve out. Occupational pension rights are treated differently from the rest of the package, so an existing arrangement does not simply follow the employee across. Automatic enrolment duties still apply to the new employer from the transfer date, so this needs designing rather than assuming. There is also a duty to inform and, where you plan measures affecting people, to consult. Employees or their representatives have to be told in good time before the transfer rather than alongside the payslip. Timing ## Pick the date around payroll, not around the paperwork The cleanest transfer lands on the first day of a pay period, and ideally at the start of a tax month. Move somebody mid month and two employers each run a part period, which means two payslips, two sets of deductions and a much higher chance of somebody being paid twice or not at all. 1. Confirm the entity can employThe company exists, the PAYE reference is live, a pension scheme is in place and the bank account can pay salaries. 2. Inform and consultWritten information to employees or their representatives in good time, covering what is changing, when, and why. 3. Mirror the termsContracts on the same terms with continuous service preserved and the original start date carried over. 4. Transfer on the first day of a pay periodThe old payroll closes, the new one opens, and holiday balances carry across as they stood the night before. 5. Check every payslip by hand, onceTax codes and cumulative figures are where errors surface, and they are far cheaper to fix in month one than in month six. Worth saying plainly ## This is the step where doing it cheaply costs the most A resign and rehire can be arranged in a fortnight and looks like a saving. What it actually does is remove protections your people already hold, without most of them realising until the day it matters. If your timeline is too tight to do this properly, the better answer is usually to stay where you are for another quarter and move cleanly. Teamed's employer of record in the UK is a flat £479 per employee per month, with zero FX mark-up in any currency pairing and one invoice at the end of it. Contractors, employer of record and your own entity all run on one platform, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work, not a ticket queue. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it for the UK. Talk to a member of the team Model the crossover for the UK Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for corporation tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In the UK that matters a little more than elsewhere, because Teamed employs through its own local entity rather than a partner. The people who would run your company are the people already running ours. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about setting up in the UK Questions ## Questions about moving people across Do employees have to agree to the move? Where TUPE applies the employment moves automatically, so it does not depend on each person agreeing. They do have to be informed, and an employee can object, which has consequences worth understanding before you start. Does their start date change? No. Continuous service carries across, so the original start date stays. That is the main reason to use a transfer rather than a resign and rehire. What happens to unused holiday? Accrued holiday moves with the employee as it stood on the transfer date. It is not paid out and it does not reset. What about the pension? Occupational pension rights are treated differently from the rest of the package and do not simply follow across. Automatic enrolment duties apply to the new employer from the transfer date, so design that part deliberately. Can we change terms at the same time? Changing terms because of the transfer is the thing TUPE exists to prevent. Changes need a reason of their own and, usually, agreement. Sources 1. TUPE, the Transfer of Undertakings regulations 2. Employment Rights Act, continuous service and unfair dismissal 3. The Pensions Regulator, automatic enrolment on a transfer The rest of the the UK guides Setting up Running costs and filings Permanent establishment risk When an entity makes sense ## More on entities in United Kingdom - [Hiring in United Kingdom, overview](/country-hiring-guides/united-kingdom)parent - [United Kingdom setting up](/country-hiring-guides/united-kingdom/entity-setup)sibling - [United Kingdom running costs and filings](/country-hiring-guides/united-kingdom/entity-running-costs-and-filings)sibling - [United Kingdom tax presence risk](/country-hiring-guides/united-kingdom/permanent-establishment-risk)sibling - [United Kingdom entity or EOR](/country-hiring-guides/united-kingdom/eor-vs-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about United Kingdom](https://www.teamed.global/contact?from=moving-from-eor)CTA