What is an Employer of Record (EOR)?
An Employer of Record is a company that legally employs someone on your behalf in a country where you have no entity. It issues the local contract, runs payroll, withholds tax and pays statutory contributions, while you direct the person's day-to-day work.
- Legal employer
- The EOR
- Day-to-day manager
- You
- Entity required
- None
- Typical setup
- 10 business days
03The split of responsibilities
The EOR owns the employment relationship in law; you own the working relationship in practice. That split is what makes it legal to employ someone in a country where you have no presence.
- EOR — contract, payroll, tax withholding, statutory contributions, benefits administration, termination process
- You — hiring decision, salary, objectives, tools, performance management, termination decision
04What an EOR is not
It is not a staffing agency supplying its own bench, and it is not a contractor platform. The person is a properly employed worker with local rights, working exclusively for you.
Frequently asked
Does the employee know they work for an EOR?+
Yes — their contract names the EOR as employer. In practice they sit in your team, use your tools and report to your managers.
Is an EOR the same as a PEO?+
No. A PEO co-employs alongside your existing local entity. An EOR is the sole legal employer and needs no entity from you.
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