The short answer is yes, but you'll need to either set up your own legal entity in the country or hire workers as contractors. Both options have their pros and cons.

Creating your own legal entity means managing your entire presence in the country. This involves hiring lawyers, payroll experts, benefits administrators, and other specialists. It's a good move if you plan to hire hundreds of people, but for just a few (or even a couple of dozen), an EOR might be more cost-effective.

If you decide to hire contractors, you must be diligent. International contractor misclassification is a significant issue and can lead to hefty fines and penalties. Using an EOR protects your business from compliance risks by turning contractors into employees.

An Employer of Record, or EOR, is a company that legally employs workers on behalf of another business.

It’s crucial to realise that not all EORs work the same way. Some, like Remote, have their own legal entities in each country they operate. Others act purely as intermediaries without owning any entities. Some may mix their own entities with those of partners. You should choose an EOR that aligns with your employment compliance needs in the countries where you intend to hire.

A Professional Employer Organisation (PEO) generally doesn't employ workers directly but assists in managing various HR tasks. In contrast, an Employer of Record (EOR) hires employees on behalf of your company in different countries. PEOs often operate under a “co-employment” model where the PEO takes care of payroll, benefits, and other HR functions, while the company handles the core business operations. If you want to hire in a country where you don’t have a legal entity, an EOR is essential. Using a PEO typically means you still need to have a legal entity in any country where you employ staff.

To put it simply: if you're looking to hire someone in a country where you don't have a legal entity, you'll need an EOR. On the other hand, if you already have a legal entity in the country and just need help managing HR functions like payroll and benefits, a PEO might be the right choice. Essentially, a PEO offers HR support but doesn't manage the legal employment of your employees in other countries.

Learn more about the differences between an EOR and a PEO in our detailed guide.

The cost of an Employer of Record (EOR) service typically falls into either a flat fee or percentage pricing model. Flat fees are straightforward, charging a set amount per employee regardless of their role or salary. The percentage model, on the other hand, bases the fee on a percentage of the employee's salary, meaning costs can fluctuate.

Beware of percentage-based pricing models. Global employment costs can be unpredictable, but a reliable EOR will factor in these variations and give you a transparent quote upfront. Percentage models might incentivise companies to keep wages low, funnelling more money to the service provider.

Remote offers EOR services at a flat rate of $599 per month (billed annually) or $699 per month (billed monthly). There are no hidden charges, minimums, long-term contracts, or exclusivity requirements. Choose the plan that suits your team best. Visit our pricing page to see how easy and cost-effective expanding your global team can be.

The main job of an employer of record (EOR) is to act as the legal employer for your staff in other countries. Your EOR protects your business from legal and compliance issues by hiring workers on your behalf.

An EOR also takes care of the complex HR tasks involved with employing people overseas. Different countries have varying rules about payment frequency, accepted currencies, mandatory paid leave, and more. EORs manage these details for you, so you can focus on hiring and growing your business instead of getting bogged down in admin work.

It's important to note that an EOR doesn't manage the day-to-day tasks or performance of your employees. You interact with employees hired through an EOR just like you do with any other staff members. The only difference is who handles the paperwork.

An Employer of Record (EOR) acts as a third-party that legally employs your staff in different countries. The EOR handles various responsibilities, such as managing payroll for overseas employees. When you hire someone abroad through an EOR, you send the funds to the EOR, which then distributes salaries, deducts taxes, handles superannuation, and manages other contributions.

Partnering with an EOR helps you navigate international payroll complexities and ensures compliance with local laws. This allows you to hire workers overseas without needing to master foreign payroll regulations. You can focus on finding the right candidate, while the EOR takes care of the administrative tasks.

When evaluating employer of record (EOR) services, it's important to consider the number of countries where they offer direct services, the range of global HR solutions they provide (such as payroll, benefits administration, onboarding, and local taxes), and their ability to ensure compliance with local laws in each country. Additionally, the quality of their user interface is crucial.

Always choose an EOR that owns its own local entity in the country where you want to hire. If they don't, you risk having your employees managed by an unknown third party, which can lead to issues with oversight and quality control.

Furthermore, your EOR should offer strong protections for your intellectual property. Without these protections, you could face legal disputes over IP ownership in different countries, which can be costly and time-consuming.

Key questions to ask include:

• Do you have your own entity in this country, or do you use a third party for employment and compliance?

• How do you protect intellectual property and invention rights here?

• Is employee data shared with any third parties?

• Do you maintain all employee documentation in a single, accessible hub?

Remote owns all our entities, offers top-notch IP protections and data security, and provides leading global employment software to support your needs.

Hiring an Employer of Record (EOR) is fully legal in most parts of the world. However, you’ll ensure the highest level of compliance by choosing EORs that have their own business entities in the countries where you plan to hire.

Before you begin working with an EOR, make sure they own a local entity and have sufficient knowledge to properly handle localized payroll, health benefits, taxes, and any other benefits or compensation you might offer, such as stock options. This ensures that all aspects of employment are handled correctly.