In short, yes, but you’ll either need to set up your own legal entity or hire workers as contractors. Both have their pros and cons.

Setting up your own legal entity means you’ll manage everything in the country, including hiring solicitors, payroll experts, benefits administrators, and other necessary professionals. This makes sense if you plan on hiring hundreds of people, but for smaller teams (a few or even a couple-dozen), an EOR is often more cost-effective.

Hiring contractors means you need to be vigilant. International contractor misclassification is a serious issue that can lead to hefty fines and penalties. Using an EOR reduces compliance risks by making contractors full employees.

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

It’s key to understand that not all EORs operate similarly. Some, like Remote, own their own legal entities in the countries they serve, while others act as intermediaries without owning any entities. There are also those that use a mix of their own and partner entities. Choosing an EOR that suits your employment compliance needs in the countries where you plan to hire is crucial.

A Professional Employer Organisation (PEO) typically doesn't directly employ workers but helps manage HR functions. On the other hand, an Employer of Record (EOR) hires employees on your behalf in other countries. PEOs engage in a “co-employment” model, where they manage payroll, benefits, and other HR services, while your company oversees business operations. To hire in a country where you don’t have a legal entity, an EOR is necessary. Using a PEO generally means your company must have a legal entity in any country where you employ people.

To clarify: if you need to hire someone in a country where you don’t have a legal entity, you will require an EOR. If you need assistance with managing HR tasks like payroll and benefits in a country where you already have a legal entity, a PEO might be a suitable option. Essentially, a PEO provides HR support but does not handle the legal employment of your staff in other countries.

Discover the differences between an EOR and a PEO in our comprehensive guide.

Employer of Record (EOR) pricing generally comes in two forms: flat fees or percentage-based models. Flat fees are the same for every employee, regardless of their role or pay. In contrast, percentage models charge a fee based on a percentage of the employee's salary, leading to variable costs.

Watch out for percentage-based pricing models. Employment costs can vary greatly across countries, but a good EOR will provide a clear cost estimate upfront. Percentage fees may lead companies to keep salaries lower, benefiting the service provider instead.

Remote charges a flat rate of $599 per month (when paid annually) or $699 per month (when paid monthly) for its EOR services. There are no hidden charges, minimums, long-term contracts, or exclusivity clauses. Select the plan that works best for your team. Visit our pricing page to learn how easy and affordable it is to expand your global workforce.

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

An EOR also manages the complex HR processes involved in hiring internationally. Different countries have unique rules regarding pay frequency, accepted currencies, required paid leave, and more. EORs handle these intricate details, freeing up your time to focus on hiring and business growth rather than administrative tasks.

Importantly, an EOR does not get involved in managing the employee’s tasks or performance. You interact with employees hired through an EOR the same way you do with your in-house staff. The only difference is that the EOR manages the paperwork.

An Employer of Record (EOR) serves as a third-party entity that legally employs your workers in foreign countries. The EOR takes care of numerous administrative tasks, including the payroll for international staff. When you hire through an EOR, you transfer funds to them, and they handle salary payments, tax deductions, social security, and retirement contributions.

Collaborating with an EOR simplifies the management of international payroll and ensures compliance with local regulations. This allows you to recruit talent from other countries without needing to understand the intricacies of foreign payroll laws. You focus on hiring the best people, and the EOR handles the paperwork.

When choosing an Employer of Record (EOR) service, it's important to consider how many countries they offer direct services in, the breadth of global HR solutions they provide (like payroll, benefits administration, onboarding, and local taxes), and their local compliance capabilities. The quality of their user interface is also worth noting.

Ensure your EOR owns its local entity in the country where you intend to hire. If they don’t, your employees might end up being managed by a third party you have no control over, which can compromise the quality of their experience.

Your EOR should also offer robust protections for your intellectual property. Without these protections, you could end up in protracted legal disputes over IP ownership across different countries.

Ask these questions to evaluate your EOR:

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

• How do you ensure the protection of intellectual property and invention rights here?

• Do you share employee data with third parties?

• Is all employee documentation stored in a single, easily accessible hub?

Remote owns all its entities, provides industry-leading IP protections and data security, and offers premier global employment software to support your needs.

Utilising an Employer of Record (EOR) is legally permissible in the majority of countries. However, you’ll get the most thorough legal compliance from EORs that have their own business entities in the countries where you intend to hire.

Before engaging with an EOR, ensure they have a local entity and the expertise to manage localized payroll, health benefits, taxes, and other forms of compensation such as stock options. This will ensure all employment matters are handled properly.