Employer of Record (EOR) in Global Hiring
An employer of record (EOR) is a third-party company that legally employs workers on behalf of another company in a different country.
What Is an Employer of Record?
An EOR handles payroll, tax, and legal compliance for employees in countries where the hiring company does not have a local legal entity.
Why Companies Use EORs
- Hire in new countries without setting up entities
- Reduce compliance risk
- Streamline payroll and benefits
- Scale global teams faster
Limitations
- Service fees per employee
- Limited customization of benefits in some regions
- Dependence on the EOR's local expertise and processes
Related Terms
Related Guides
- Global Hiring
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- Remote Compensation
Remote compensation refers to how companies structure salaries for globally distributed teams.
- Fully Remote Companies: What to Know
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