Hiring across borders isn’t just a "big company thing" anymore. Startups, mid-sized companies, and even scrappy side hustles are all thinking globally from day one. But while the ambition is exciting, the reality is complicated. Different countries mean different laws, taxes, benefits, and risks. One misstep, and what was supposed to be an exciting new market entry could turn into an expensive legal mess.
That’s where Employer of Record (EOR) providers come in. They let you hire international employees legally without setting up a foreign entity. They handle the heavy lifting such as payroll, taxes, and compliance, while you focus on, you know, actually building your business.
But not all EORs are created equal. In fact, the wrong choice can slow you down just as much as doing it yourself. This guide breaks down what an EOR is, how they help with global expansion, what to look for, and, perhaps most importantly, which providers are actually worth your time (and money) in 2025.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs workers on your behalf. The EOR takes care of official employment responsibilities: issuing contracts, running payroll, managing taxes, and, ensuring compliance with local labour laws. Meanwhile, you direct the day-to-day work of your employees, just like you would if they were on your own payroll.
In short, they make international hiring possible without the bureaucracy of setting up a company in every country you want to hire from. If you've ever tried to navigate foreign tax codes, you know that's not a small thing.
Here’s how the relationship typically works:
Legal Employer: The EOR is officially listed as the employer for legal and tax purposes.
Work Management: You control your employees’ projects, goals, and daily operations.
Compliance: The EOR ensures employment contracts, benefits, taxes, and terminations meet local laws.
It sounds simple because that's the whole point: simplicity.
Why EORs Are Essential for Global Expansion
Scaling internationally is thrilling, but it's also a minefield. Different legal systems, varying tax rates, and unpredictable compliance risks meanthere’s a lot that can go wrong. An EOR acts as your guide through this unfamiliar territory.
1. Reducing Risk
Labour laws differ dramatically. What's legal in Germany might get you fined in Brazil. A good EOR navigates those nuances for youand reduces your exposure to costly errors.
2. Speed to Market
Setting up a legal entity can take 6 to 12 months. Working with an EOR means your new hire could start next week.
3. Cost Efficiency
Entity setup isn't just slow; it's expensive. Accounting, legal fees, and in-country compliance officers all add up. EORs provide a pay-as-you-go model that saves you cash until you're sure a market is worth investing heavily into.
4. Focus on Core Business
Do you really want your HR team becoming international law experts? Probably not. EORs let your team stay focused on what they do best.
Culturally, it’s also a game-changer. Different countries have different work expectations. A local EOR partner can help you adapt your HR practices to match, because a Silicon Valley approach doesn't always fly in Tokyo.
Key Factors When Choosing an EOR Provider
Now, not to sound too dramatic, but choosing the right EOR is a bit like choosing a climbing partner: they’re keeping you from falling off the mountain. Here’s what to watch for.
Global Reach vs. Local Expertise
Does the EOR have actual legal entities in the countries you’re hiring in?
Or are they relying on third-party partners?
Owned-entity models are typically stronger for compliance, while partner-based models can be riskier and slower.
Transparent Pricing
Flat fee or percentage of salary?
Are there hidden fees such as setup, termination, or benefits administration?
The cheapest option upfront often ends up costing more in the long run.
Technology Platform
Is it intuitive for both HR managers and employees?
Can employees access contracts, pay stubs, and benefits easily?
Does it integrate with your existing HR tools?
Customer Support
Is there a dedicated account manager or do you get bounced around?
What’s the response time?
Is multilingual support available?
When something inevitably goes wrong, because it always does, you’ll want a responsive, knowledgeable human on the other end.
Innovation and Future-Readiness
Are they using AI to automate and speed up processes?
Are they building new features or sitting on outdated tech?
This last oneis often overlooked but critical. The future of global work is being written now. You want an EOR that’s actively innovating, not one resting on old wins.
The Top 10 EOR Providers for 2025
1. Borderless AI
Borderless AI is shaking up the EOR space with something legacy players can't touch: real AI-driven employment management.
Their platform uses AI to process payments in 5 to7 days (the industry standard is over 20), create compliant contracts in minutes, and handle real-time compliance checks across more than 170 countries. Plus, their AI agent HRGPT answers HR questions instantly, so your team spends less time Googling "labour laws in France" and more time hiring.
Borderless AI doesn’t require upfront salary deposits, which is a massive cash flow advantage. Their in-house Canada-based support team provides 24/7 help, a rare thing in this industry.
If you're serious about scaling globally and hate bureaucratic slowdowns, they’re the clear frontrunner.
2. Deel
Deel offers coverage in more than 150 countries and has become a darling among tech startups. They combine a user-friendly platform with decent automation and provide visa support services, which is great if you need to relocate talent.
Their pricing is straightforward but not necessarily cheap. Deel works best for companies that are scaling fast and need a broad global footprint immediately.
3. Remote
Remote’s big strength is control. They own legal entities in the countries they operate in, meaning they can guarantee stronger compliance.
Their platform emphasizes data security and IP protection, which is critical if you’re handling sensitive tech or R&D employees abroad. Pricing is transparent, and they offer localized benefits packages, which can be a real differentiator for employee satisfaction.
4. Papaya Global
Papaya blends EOR services with an enterprise-grade payroll platform. If you love dashboards, reporting, and analytics, you’ll be at home here.
They’re strong in multi-currency payroll processing and complex tax compliance, making them a solid choice for larger companies juggling lots of moving parts.
5. Oyster HR
Oyster’s brand ethos leans heavily into "making global hiring simple," and they do a good job of it. Their templates and workflows help first-time global employers feel less overwhelmed.
They offer strong support for hiring in emerging markets, and their flat-fee pricing makes budgeting easier.
6. Rippling
Rippling integrates international hiring into a broader HR-IT stack. You can manage not just payroll, but employee devices, apps, and access rights, all through one system.
If you’re already a Rippling customer domestically, layering on EOR services can be seamless. If not, it’s still a compelling "one platform to rule them all" option.
7. Velocity Global
Velocity Global focuses on high-touch service. They provide dedicated account managers and immigration support, which ishelpful if you’re hiring execs abroad who need work visas.
Their compliance expertise is strong, but some users report their tech platform feels dated compared to newer competitors.
8. Multiplier
Multiplier is known for being extremely easy to use. They’ve built clean workflows for onboarding and documentation, which isideal for companies that don’t have large HR teams.
Their pricing is transparent, and they’re particularly strong in Asia-Pacific and emerging markets.
9. RemoFirst
RemoFirst targets small businesses and startups with affordable EOR services. If you’re hiring just one or two international employees and don't need fancy bells and whistles, they could be a good fit.
Cost-effective, no-frills, and refreshingly straightforward.
10. Skuad
Skuad covers over 160 countries and offers automated compliance checks and streamlined payroll.
They have industry-specific packages for tech, education, and healthcare sectors, which can save time if you’re hiring lots of similar roles internationally.
EOR vs. PEO: What’s the Difference?
If you've heard of PEOs (Professional Employer Organizations), you might wonder: what's the difference?
An EOR becomes the legal employer. A PEO, on the other hand, shares legal responsibilities with you under a co-employment model. PEOs are great if you already have a legal entity in the country and just want HR support.
If you don’t have a local entity, EOR is the way to go.
How AI and Automation Are Changing the EOR Industry
Something remarkable is happening in the global employment world: AI isn’t just assisting, it is taking over the heavy lifting.
Platforms like Borderless AI are using AI to:
Auto-generate contracts tailored to each country.
Monitor compliance changes in real time.
Process payments faster than banks.
Provide immediate HR support through chat-based assistants.
This isn’t just a tech upgrade. It is a fundamental shift. Companies that adapt to AI-powered EORs will have a speed and efficiency advantage in global hiring that others simply will not be able to match.
And in a world where talent wars are fought globally, speed matters.
Final Thoughts
Picking an EOR isn’t just about cost. It is about risk management, speed, employee experience, and how easily you can scale across borders.
The old world of faxing documents to foreign governments is dying. The new world is real-time compliance updates, mobile-first platforms, and AI-generated contracts delivered in minutes.
Borderless AI leads that new world. But depending on your specific needs, industry, company size, and growth stage, there are other great choices too.
Take your time. Ask hard questions. Think about where your company will be two years from now, not just where it is today.
Global hiring is no longer a "nice to have." It is the competitive edge.
Ready to learn more? Book a demo with our experts today.
