What is an Employer of Record (EoR)?

An Employer of Record (EoR), also known as a global Professional Employer Organization (PEO), is a third-party organization that serves as the legal employer on behalf of another company in a foreign country.

What Does an EoR Do?

By acting as the legal employer, an EoR enables businesses to hire international talent without setting up a legal entity in the employee’s country. The EoR is responsible for:

• Issuing legally compliant employment contracts
• Administering payroll and tax withholdings
• Managing statutory benefits and leave entitlements
• Ensuring ongoing compliance with local labor laws

Client Responsibilities

While the EoR handles legal employment matters, the client retains full control over the employee’s day-to-day work, responsibilities, and performance management.

Benefits of Using an EoR

• Quick and compliant international hiring
• No need to establish a local entity
• Reduced administrative and legal overhead
• Enhanced global expansion flexibility