Benefits of using a Contractor of Record to manage a global workforce

If your business is looking for skilled professionals while also keeping costs in check, working with independent contractors can be the ideal solution,

But, let’s be honest — handling a team of contractors, (especially if they are in different countries), isn’t always smooth sailing. Compliance headaches, payment hassles, and misclassification risks can quickly turn into roadblocks. 

Unless you have the right tool on hand. Using a contractor of record (COR) can take the stress out of contractor management, reduce non-compliance risks and make global expansion a whole lot easier.

In this article, we’ll explain the benefits of using a contractor of record to scale your workforce and how a Remote’s COR solution can make is simple, fast, and quick to work with contractors all over the world.

Who benefits from using a contractor of record (COR)?

A Contractor of Record is useful for companies that engage independent contractors but want to ensure compliance, reduce risk, and streamline payments.

• Startups and SMBs scaling quickly but lacking HR/legal infrastructure.

• Enterprises expanding globally without setting up legal entities.

• Freelancer-heavy businesses needing smooth payment & compliance solutions.

• Tech and creative agencies hiring international talent.

The COR typically acts as the intermediary between businesses and contractors. Businesses can rely on a COR to take responsibility for managing the legal, administrative, and compliance aspects of engaging independent contractors on their behalf.

With a COR, companies can confidently expand their global workforce without the burden of navigating complex international regulations.

Global Employment & Expansion —

3 min

Employer of Record vs. Contractor of Record: Which is better for global hiring?

Learn more about the key differences between Employer of Record (EOR) and Contractor of Record (COR) to help you decide which solution can help your business scale globally.

Top benefits of using a contractor of record 

Without a COR, businesses must handle various legal and administrative processes on their own, which can be time-consuming and legally risky. 

A COR simplifies this process by taking full responsibility for contractor compliance, payments, and legal obligations, allowing businesses to focus on growth and operations instead.

Let’s take a closer look at how using contractor of record can address key pain points.

Compliance with labor laws

One of the most significant challenges businesses face when hiring international contractors is the risk of worker misclassification.

 Research shows that 40% of freelancers believe they have been misclassified at some point, which can lead to legal consequences, fines, and reputational damage for businesses.

A contractor of record (COR) ensures that all engagements comply with local labor laws by handling contracts and worker classification. This reduces the risk of penalties and legal complications. 

Risk mitigation

Hiring contractors without proper compliance measures can expose a company to legal and financial risks. If a contractor claims they were misclassified and demands employee benefits such as paid leave, health insurance, or severance pay, the company could face costly disputes. 

A COR absorbs this liability by ensuring that contractors are correctly classified and that all legal requirements are met. This helps businesses avoid fines, lawsuits, and reputational damage. Furthermore, a COR stays up to date with ever-changing labor laws, ensuring that companies remain compliant as regulations evolve.

With a Contractor of Record like Remote, businesses gain instant access to compliance expertise and uncapped indemnity protection. Remote assumes liability from day one, shielding businesses from potential legal exposure while ensuring seamless contractor management.

Payment processing and currency management

Late payments are a significant issue for freelancers worldwide, with 85% of freelancers reporting that they have been paid late at least once. Additionally, managing payments for contractors across different regions can be complex, involving currency conversions and compliance with various financial regulations.

Remote COR eliminates this problem by offering streamlined, automated payment solutions that ensure timely and accurate payments in over 70 currencies.

Remote’s COR payment solutions include:

• Bulk payment workflows

• Automated invoice approvals

• Real-time payment tracking and alerts

Faster and smoother onboarding

Onboarding independent contractors can be a time-consuming process, especially when working with talent in different countries. A COR streamlines this process by handling all administrative requirements, including contractor agreements, nondisclosure agreements (NDAs), and background checks.

 This ensures that every contractor is legally set up to work with the company from day one. Additionally, businesses looking to engage international contractors can do so without needing to establish a legal entity in each country, saving both time and resources.

Simplified contractor management

As businesses scale and hire more independent contractors across multiple regions, managing contracts, payments, and compliance can become overwhelming. A contractor of record provides a centralized platform to streamline these processes, reducing administrative overhead and ensuring compliance with local regulations.

By outsourcing contractor management to Remote, companies can consolidate these essential tasks from a single platform:

• Onboarding, offboarding, and contract management

• Contractor classification and compliance tracking

• Quick and secure global payments

This eliminates manual administrative burdens, allowing HR and legal teams to focus on strategic initiatives rather than paperwork. A COR helps businesses scale efficiently, reduce legal risks, and ensure seamless contractor operations.

Remote Contractor of Record makes global workforce management quick, easy, and simple 

Remote’s contractor of record solution offers businesses a seamless and secure way to manage international contractors while ensuring compliance, efficiency, and reliability. 

If your company is looking to scale globally while ensuring legal compliance and operational efficiency, Remote’s contractor of record is the perfect solution.

With Remote COR, you can:

• Reduce misclassification risks and legal exposure with our compliance expertise with uncapped indemnity protection

• Make admin workflows efficient with one platform to manage onboarding, compliance, and payments.

• Automate payments and pay contractors quickly and accurately in over 70 currencies.

• Secure contracts and IP protection via localized agreements and a 2-step IP process to safeguard assets.

• Facilitate rapid global expansion: Hire in new markets without setting up local entities.

Eliminate administrative burdens, minimize legal risks, and ensure timely payments — all while expanding into new markets with confidence!

Ready to simplify your global workforce management and transform your business? Learn more about Remote Contractor of Record or get started today.