What is an Employer of Record?

Adam Drew

Firstly What is an EOR?

An Employer of Record (EOR) service, is a third-party provider that assumes the role of your legal employer in a foreign country. This comprehensive service handles all HR-related aspects associated with hiring and managing your workforce, including:

Recruiting and onboarding
Payroll and taxes
Benefits and insurance
Compliance and regulations

Why Consider Using an EOR?

Embarking on international expansion or hiring individuals in non-domestic countries, presents an excellent avenue for businesses to enhance growth and tap into new customer markets. However, this endeavour brings forth a multitude of challenges, encompassing legal, financial, and compliance considerations. Among the crucial decisions lies the choice of using an EOR or establishing a presence in a foreign country. Each option boasts its advantages and drawbacks, necessitating a thoughtful selection aligned with your business goals and requirements.

The Benefits of Using an EOR?

Speed: Initiate the hiring process within days, bypassing the protracted and intricate procedures of establishing a legal entity.

Simplicity: The EOR manages all local laws and regulations on your behalf, assuming complete responsibility for tasks like payroll, tax deductions, and employee benefits.

Cost Savings: In the initial stages, capitalise on immediate savings by avoiding the costs and resource investments associated with establishing a legal entity—comprising incorporation fees, bank accounts, legal consultations, HR consultancy and accounting services.