What is

Employer of Record (EOR)


An EOR is a third-party entity that hires employees on behalf of another company. The EOR takes on the other company’s employer-related responsibilities and ensures all contract, payroll, insurance, banking, and tax requirements are met. EORs allow companies to compliantly employ and pay hires abroad without having to set up new offices in those other countries.

An Employer of Record (EOR) is a middleman for companies hiring workers in countries around the world. Here's how it works:

  • Contractual Agreement: A company hires the EOR to handle a range of HR process, like payroll, taxes, and benefits, for a group of employees. This is useful when expanding to new countries where you don't have a legal presence.
  • Employment Relationship: The employees work for your company as per usual, but on paper, they become employees of the EOR. So, the EOR takes care of all the responsibilities associated with being a legal employer.
  • Administrative Tasks: The EOR deals with payroll, taxes, benefits, and a range of HR related tasks, such as generating contracts, etc. 
  • Compliance: The EOR makes sure your company follows all the local employment laws and regulations in the country and region your worker is based. 
  • IP Protection: An Employer of Record (EOR) plays a crucial role in protecting a company's Intellectual Property (IP) when hiring workers in different countries by implementing confidentiality agreements, ensuring clear IP ownership, and adhering to local IP laws and regulations.

The Value EORs Bring 

EOR’s remove the hassle and expenses involved in expanding your company beyond your physical borders. Let’s get into the benefits of partnering with an EOR. 

Global Expansion Made Easy
When your company wants to hire people in different countries, things can get tricky with all the different rules and regulations. An EOR swoops in to save the day! They handle all the complicated stuff, like dealing with local employment laws and tax stuff, making it way easier for you to hire people globally.

Time and Cost Savings

Think about it - setting up legal entities in every country you want to hire people would take forever and cost a fortune. But with an EOR, you can skip all that hassle and get right to business. It's like having a global HR team without all the headaches.

Compliance Assurance

Nobody likes breaking rules, especially when it comes to employment laws. But don't worry, an EOR makes sure everything is above board. They keep you in the clear by making sure your HR processes, payroll, and taxes are all in line with the local laws.

Efficient Administrative Support

Dealing with paperwork, payroll, and all that HR jazz can be a real pain. Good thing EORs are pros at it! They handle all the nitty-gritty tasks, like payroll, taxes, benefits, and even generating contracts. So you can focus on running your business smoothly.

Risk Mitigation

Hiring in a new country can feel like stepping into the unknown. You never know what employment laws or regulations might catch you off guard. But with an EOR on your side, they've got your back, and you can rest easy knowing they've got it all under control.

Seamless Onboarding

Starting a new job can be overwhelming, especially if you're dealing with new countries and unfamiliar laws. EORs take care of the onboarding process, making it super smooth for your new hires. They'll feel welcomed and ready to tackle their new roles.

Access to Local Expertise

EORs know the ins and outs of the countries they operate in. They've got the local know-how to help you make informed decisions and navigate any HR challenges that pop up.

Scalability and Flexibility

Sometimes you need to ramp up your workforce quickly or scale it back. EORs are flexible, so you can hire and fire without all the usual headaches.

Employee Benefits Management

Want to attract top talent? EORs often offer sweet benefits packages that'll make your company an appealing place to work. Happy employees, happy business!

Focus on Core Business

Instead of getting bogged down in HR tasks, you can focus on what you do best - growing your business and making it awesome!

So, working with an EOR can be a game-changer for your company. They handle all the complicated HR stuff, leaving you with more time to rock your business and expand worldwide. Just make sure to pick a reliable EOR that knows their stuff and fits your specific needs. Happy hiring!

Just remember, before you go ahead, review the EOR's terms carefully and make sure they're reputable and experienced in the location you need.