Employ compliantly, quickly and confidently – worldwide

The short answer is yes. However, it requires either opening your own legal entity in the country or engaging workers as contractors. Both strategies have their pros and cons.

If you establish your own legal entity, you will be responsible for running the entire operation there. That means hiring attorneys, payroll specialists, benefits administrators and other professionals. This may make sense if you plan to hire hundreds in a new country, but if you only intend to employ a handful (or a few dozen), an EOR is usually more cost-effective.

Hiring workers as contractors requires vigilance. International contractor misclassification is a serious issue and can lead to significant fines and penalties. Using an EOR shields your business from potential compliance risks by ensuring workers are properly classified as employees.

An Employer of Record, or EOR, legally employs workers on behalf of another business.

It's important to understand that not all Employers of Record operate the same way; there are major differences in how EOR services are delivered. Some EORs, like Remote, own their own legal entities in each country they operate in, while others serve as intermediaries without owning any entities. Some EORs may even use a mix of their own and partner entities. It is crucial to choose an EOR that fits your specific compliance needs in the countries where you plan to hire.

An Employer of Record (EOR) can hire employees on your behalf in other countries, while a Professional Employer Organization (PEO) may not. Some providers call themselves 'international PEOs' and offer EOR services; others using the 'international PEO' label only support companies that already have legal entities abroad.

Put simply: if you need to hire in a country where you don't have a legal entity, you need an EOR. If you need help managing HR functions such as payroll and benefits administration in a country where you already have an entity, a PEO is appropriate. In short, a PEO offers many of the same services as an EOR but does not handle the legal employment of staff in other countries.

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

Employer of Record (EOR) costs typically use either a flat fee or a percentage-based pricing model. Flat fees are charged per employee regardless of role or salary. Percentage models charge a fee based on a percentage of the employee's salary; these fees can vary depending on level and pay.

Beware of percentage-based EOR pricing. Global employment costs can fluctuate considerably, but a reliable EOR will account for these and present a clear bill upfront. Percentage structures can incentivise keeping salaries low while increasing payments to third-party providers.

Remote’s EOR pricing is $599 per month when paid annually, or $699 when paid monthly. There are no hidden fees, minimums, contract lengths, or exclusivity agreements. Choose the plan that best fits your team’s needs. View our pricing page to see how easy, quick, and affordable growing your global team can be.

The primary role of an Employer of Record (EOR) is to act as the legal employer for your employees in other countries. Your EOR protects your company from liability and compliance risks by legally employing workers on your behalf.

An EOR also manages the complex HR tasks associated with hiring in different jurisdictions. Regulations differ widely, including pay frequency, acceptable currencies, required paid time off and more. EORs handle these complexities so you can spend less time on administration and more on recruiting to expand your business.

Note that an EOR does not manage an employee’s daily tasks or performance. You interact with employees hired through an EOR as you would with any other employee. The only difference between a local employee and one under an EOR abroad is who manages the paperwork.

An Employer of Record (EOR) is a third-party provider legally responsible for another organisation's employees. Among other responsibilities, an EOR administers payroll for employees in other countries. When you hire someone through an EOR, you provide the funds to the EOR and they handle salary distribution, including required tax deductions, social security contributions and retirement payments.

Working with an EOR lets you manage international payroll complexities in compliance with local laws. An EOR enables you to employ workers abroad without becoming an expert in each country's payroll rules—you hire the right candidate and let the EOR handle the details.

When comparing employer of record services, look at how many countries they serve directly, the breadth of global HR solutions they provide—payroll, benefits administration, onboarding and local tax support—and how thoroughly they ensure compliance in each jurisdiction. Also evaluate the quality of the user interface.

Only work with an EOR that owns local entities in the countries where you plan to hire. Otherwise, you may discover employees are hired through an unknown third party, leaving you with little oversight or control over their experience.

Furthermore, your EOR should provide robust protections for your intellectual property.

Without robust protections, you could become involved in protracted legal disputes over IP ownership across different countries—a serious problem for any business. Here are a few questions to consider:

• Do you own an entity in this country, or do you outsource employment and compliance to a third party?

• How do you safeguard intellectual property and invention rights in this country?

• Do you share employee data with any third parties?

• Do you store all employee documents for employees in all countries in one easy-to-access location?

Remote owns all our entities, delivers top-tier IP protection and data security in the industry, and provides best-in-class global employment software to meet your needs.

Yes, using an Employer of Record is completely legal in most countries. However, the highest level of legal compliance is typically offered by EORs that own their own business entities in the countries where you want to hire.

Before you start working with an EOR, confirm they own a local entity and have the necessary expertise to properly manage localised payroll, health benefits, taxes and any other benefits or compensation you might offer, such as stock options.

If you are unsure when to use an employer of record, learn more about why an EOR is often the most straightforward approach to international employment.

When you partner with Remote, we guide you through an efficient five-step process to establish a foundation for long-term success.

• Personalized start: Receive a welcome message from your assigned Customer Success Implementation manager to begin your onboarding with us.

• Comprehensive overview: You’ll meet your Remote expert who will walk you through the implementation programme, offering clear insights and setting expectations for a successful partnership.

• Product walkthrough: Receive a detailed demo of key EOR features to deliver fast, effective results for your team.

• Ongoing support: Access educational content and immediate assistance for continuous support and peace of mind.

• Smooth onboarding: Your implementation manager will guide your first EOR onboarding, ensuring a seamless setup and laying a solid foundation for future hires.

After onboarding your first employee, you will work with your named Customer Success Manager who will be your trusted advisor for all your employment needs.