What Is an EOR Employee? Understanding Roles and Benefits
{Glossary} What Is an EOR Employee?
Employer of Record (EOR) employees are becoming more common, but sometimes it can be hard to understand the definition of an EOR employee or how EOR employees work. Read on to learn the EOR employee definition, how an EOR employee functions, and what kind of benefits they receive.
What is the definition of an EOR employee?
An EOR employee is defined as a worker whose legal employment is handled by a partner company. Similar to a staffing agency but with a focus on global employment, an EOR like Safeguard Global allows companies to hire internationally in full compliance with local laws and offer benefits in line with local expectations
How does an employer of record employee differ from a traditional employee?
EOR employees and traditional employees perform their jobs in the same way. However, instead of being employed directly by the company they’re working for, EOR employees are legally employed by a partner company. This partner company (the EOR) ensures compliance with local laws about employment contracts, tax withholding, paid holidays, health insurance benefits, and more.
From an employee perspective, what is the difference between a payroll provider and an EOR?
Except for where your pay comes from, as an EOR employee, you may see no real difference between being employed by an EOR and being employed directly by the company you work for. But an EOR does much more than simply administer payroll — it helps create a better experience for employees, from competitive benefits packages to straightforward onboarding. Safeguard Global even offers local HR experts that ensure employees have culturally sensitive support in their own language and time zone.
What type of employee is an EOR employee?
Using an employer of record is a way to employ workers outside of your home country while still ensuring that they receive the legally required benefits, have the correct income tax withheld, and remain compliant with local laws. All types of employees can be EOR employees. For instance, an EOR employee can be:
- Full-time or part-time
- On-site or remote
Temporary or permanent
In other words, the definition of an EOR employee is determined by what legal entity hires and pays them, not by what type of employee they are.
How does EOR employment work?
For the most part, EOR employees work just the same as any other type of employee. However, their employment paperwork and payroll is processed through a partner company (the EOR). EORs like Safeguard Global can also handle a full suite of HR functions like recruitment, onboarding, and benefits administration.
What kind of jobs do EOR employees work?
EOR employees work all kinds of jobs, all over the world. Employer of record employees allow companies, universities, and nonprofits to be more nimble, do global work, and achieve their expansion goals quicker and with less risk. EOR employees are growing in numbers and are utilized by more organizations than ever before.
Do EOR employees receive benefits?
Yes, EOR employees receive benefits commensurate with their employment status (e.g., full time). In fact, offering benefits that are in line with local laws and expectations is one of the main reasons a company might partner with an EOR to employ their workers.
What types of EOR employee benefits are typically available?
EORs typically offer the same benefits (or better) as other local employers in the industry. This includes paid leave, health insurance, and other fringe benefits that are common in that country like life insurance, childcare contributions, or transportation vouchers.
How do I partner with an EOR?
Safeguard Global is a pioneer in the EOR space, with the ability to help clients hire and pay employees in full compliance in nearly 190 countries. Want to know more about how EOR employees work? Get in touch today.
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