Employer-of-Record (EoR) Service
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A Employer-of-Record (EoR) Service is a human resources service that enables companies to legally hire and work with employees in foreign countries without the need to establish their own legal entity in those countries.
- Context:
- It can allow companies to hire employees across the globe without setting up a local entity, thus facilitating global expansion.
- It can manage all legal requirements of employment such as payroll, employment contracts, vacation, leave, and taxes, allowing companies to manage employees’ day-to-day work.
- It can significantly reduce the compliance risk and simplify the hiring process by providing immigration assistance, handling onboarding, payroll, terminations, and managing the most sensitive regulated aspects of hiring and managing workers in another country.
- It can eliminate the complexities and costs that come with opening a company's own legal entity in a foreign country.
- It can accelerate the hiring process and avoid losing out on promising candidates by generating locally compliant employment contracts.
- It can streamline payroll by handling local taxes, pensions, and statutory benefits, and offer full-time global employees competitive benefits.
- ...
- Example(s):
- Rippling EOR Service.
- ...
- Counter-Example(s):
- Setting up a company's own legal entity in a foreign country for hiring and payroll processing.
- Using a Professional Employer Organization (PEO) for co-employment in countries where the company already has a legal entity.
- See: Employer of Record, Global Payroll, Legal Entity Setup, Compliance Risk Management, International Hiring.