Employer of Record (EOR)

Before selecting an EOR provider, ask these important questions to ensure they meet your needs:  

• What countries do you operate in, and do you have your own local entities or established partners in those regions?
• How do you ensure compliance with local employment laws, labor regulations, and tax requirements
• What specific services do you offer, and can they be tailored to fit our organization’s unique needs?
• How do you manage payroll, benefits administration, and tax compliance for international employees?
• What level of customer support can we expect, and what are your typical response times for urgent issues?

By carefully evaluating EOR providers using these criteria and questions, you can confidently choose a partner that will help you expand globally, ensure compliance with local employment laws, and provide seamless support for your international employees.

An employer of record (EOR) is a third-party organization that hires and pays employees on behalf of another company. The EOR acts as a record service, managing employment records and handling administrative tasks such as payroll, benefits, and compliance. This allows businesses to hire employees in different countries without setting up a local entity.

While both EORs and PEOs help companies manage HR functions, an EOR becomes the legal employer of your staff and assumes full employer responsibilities, including compliance, payroll, and benefits administration. In contrast, a PEO typically shares employer responsibilities with your company through a co-employment arrangement, but your business remains the legal employer.

An EOR is the preferred method for companies looking to onboard international employees quickly and compliantly. 

Read more here.

You should use an EOR when you want to hire employees in a country where you don’t have a legal entity. EORs act as legal employers for your international staff, ensuring compliance with local labor laws and managing all employment-related tasks on your behalf.