What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organisation that becomes the legal employer of a company’s workers in a country where that company has no registered entity. The EOR handles the legal and administrative side of employment payroll, tax withholding, statutory benefits, and compliance with local labour law while the client
company continues to direct the employee’s day-to-day work, tasks, and performance.
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Schedule a strategy callWho uses an EOR?
Companies typically use an EOR when they want to test a new market, hire a small number of employees abroad, or move quickly without the cost and complexity of entity registration.
How it differs from a PEO?
An EOR is the sole legal employer where you have no entity. A Professional Employer Organisation (PEO), by contrast, operates a co-employment model and only works in countries where you already have a registered entity.
Key responsibilities of an EOR
Drafting and issuing compliant local employment contracts
– Running payroll and remitting statutory tax and social contributions
– Administering local benefits
– Managing terminations in line with local labour law
For more information see our Employer of Record services.