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, 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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