Employer of Record (EOR) is a third-party service provider that legally employs workers on behalf of another company. The EOR handles all HR, payroll, benefits, compliance, and tax responsibilities while the client company retains full control over the employee’s day-to-day tasks and work performance.

An EOR allows businesses to hire employees in foreign countries without establishing a local entity. The EOR manages all legal, tax, and compliance issues, enabling companies to quickly expand globally while ensuring full adherence to local labor laws.

The main benefits of using an EOR include:

• Fast and hassle-free international hiring
• Legal and tax compliance in foreign markets
• Reduced administrative workload
• Minimized risks related to cross-border employment
• Greater flexibility in scaling teams globally

Yes, an EOR can handle various types of employees, including full-time, part-time, temporary, and contract workers. It also supports a wide range of industries, from IT and finance to healthcare and manufacturing, ensuring compliance with local labor laws for each type of employment.

While the EOR manages all legal, payroll, and compliance responsibilities, you maintain control over the employee’s day-to-day tasks, project assignments, and performance. The EOR acts as the legal employer, but you direct their work.

An EOR is the legal employer of the workers and handles all employment-related obligations, while outsourcinginvolves contracting an external company to perform specific business functions, and outstaffing means hiring remote workers who are still officially employed by your company or a third party.

EOR services can be cost-effective, especially for businesses looking to expand internationally without the need to set up a local office. By outsourcing administrative and compliance tasks to an EOR, you can avoid costs related to legal entity formation, HR departments, and international payroll management.

An EOR service can help you hire employees in virtually any country where they offer services, including regions like North America, Europe, Asia, and Latin America. The service handles all local compliance, ensuring adherence to labor laws and tax regulations specific to each country.

Yes, the EOR manages the employment contract. The employee signs a contract with the EOR, which outlines the terms of employment, salary, benefits, and job responsibilities. The EOR ensures that the contract complies with local labor laws.

In the case of a legal dispute or issue, the EOR takes on the responsibility for managing the situation, as they are the official employer. They will handle any legal matters related to employment, ensuring that the process adheres to local labor laws. The client company remains responsible for directing the employee’s work.