Understanding Employer of Record (EOR) Services
Learn everything you need to know about Employer of Record services, how they enable rapid global expansion, and when they're the right choice for your organization.
What is an Employer of Record?
Definition
An Employer of Record (EOR) is a third-party organization that serves as the official employer for your workers in countries where you don't have a legal entity. The EOR handles all employment-related responsibilities including payroll, benefits, tax compliance, and legal obligations, while you maintain day-to-day management of your employees.
How EOR Works
You Choose Your Candidate
Find and interview candidates through your normal hiring process in any country where the EOR operates.
EOR Becomes Legal Employer
The EOR creates a compliant employment contract and becomes the legal employer of record in that jurisdiction.
You Manage Day-to-Day
Your employee reports to you and works on your projects while the EOR handles all administrative and legal responsibilities.
EOR Handles Compliance
Payroll, taxes, benefits, and all legal compliance requirements are managed by the EOR according to local laws.
Key Benefits of EOR Services
Speed to Market
Hire globally in weeks, not months
Legal Compliance
Navigate local employment laws automatically
Cost Efficiency
Avoid expensive legal entity setup costs
Risk Mitigation
Transfer employment liability to EOR provider
When to Use EOR Services
Ideal Use Cases
- Testing new markets with 1-5 employees
- Hiring remote talent in countries without local presence
- Expanding quickly without regulatory delays
- Managing compliance in complex jurisdictions
- Short-term projects or contractor conversions
When EOR Might Not Be Right
- • Large-scale operations (50+ employees in one country)
- • Long-term presence with significant local operations
- • Need for complete control over employment terms
- • Industry-specific licensing requirements
Ready to Expand Globally?
Explore these guides to understand the complete EOR process and global hiring strategy: