Agent of Record (AOR)
An Agent of Record contracts and pays independent contractors on a company's behalf, absorbing misclassification and compliance risk. Unlike an EOR (which employs workers), an AOR manages 1099/contractor relationships across countries under one master agreement.
AOR is used when a company works with independent contractors, freelancers, or agencies across multiple jurisdictions and wants a single compliant paper trail. The AOR vets each contractor's classification, issues local contracts, handles invoicing and payments in local currency, and carries the misclassification liability. AOR is not a replacement for EOR when a worker is functionally an employee; it's the correct model when the engagement is genuinely independent.
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Related terms
- Employer of Record (EOR)An Employer of Record is a third-party organization that legally employs workers on behalf of anothe…
- Worker MisclassificationWorker misclassification is treating a person who legally qualifies as an employee as an independent…
- Contractor ManagementContractor management is the process of onboarding, contracting, paying, and compliance-monitoring i…
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