Employer of Record (EOR)
An Employer of Record is a third-party organization that legally employs workers on behalf of another company in a country where that company has no local entity. The EOR handles payroll, taxes, benefits, and compliance while the client directs day-to-day work.
EOR is the fastest way to hire full-time employees in a new country without incorporating a subsidiary. The EOR assumes all statutory employer liability, tax withholding, social contributions, statutory benefits, and terminations under local labor law. The client retains full operational control of the employee's role, priorities, and performance. Typical use cases: hiring a first few employees before entity setup is justified, retaining talent after an acquisition, or supporting global remote hiring at scale.
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Related terms
- Agent of Record (AOR)An Agent of Record contracts and pays independent contractors on a company's behalf, absorbing miscl…
- Professional Employer Organization (PEO)A PEO co-employs workers alongside the client under a US-specific arrangement, sharing HR, benefits,…
- Global PayrollGlobal payroll is the consolidated administration of employee pay, tax withholding, and statutory co…
- Worker MisclassificationWorker misclassification is treating a person who legally qualifies as an employee as an independent…
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