Employ compliantly, quickly and confidently – worldwide

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

If you open your own legal entity, you will be responsible for managing the entire operation in that country. That involves hiring solicitors, payroll specialists, benefits administrators and other professionals. This approach may make sense if you plan to hire hundreds of people locally, but if you only intend to employ a handful or a few dozen, an EOR is usually more cost effective.

Hiring workers as contractors demands vigilance. International contractor misclassification is a serious issue and can lead to significant fines and penalties. Using an EOR protects your business from these compliance risks by ensuring workers are legally employed.

It is important to recognise that not all Employers of Record operate in the same way, and there are meaningful differences in how EOR services are delivered.

It's important to understand that not all Employers of Record operate in the same way, and there are significant differences in how EOR services are provided. Some EORs, like Remote, own their own legal entities in each country they operate in, while others act as intermediaries without owning entities. Some providers may use a combination of their own and partner entities. It is crucial to select an EOR that matches your compliance needs in the countries where you intend to hire.while others serve as intermediaries without owning any entities. Some EORs might even use a combination of their own and partner entities. It’s crucial to choose an EOR that fits your specific needs for employment compliance 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 Organisation (PEO) may not. Some firms label themselves as 'international PEOs' yet offer EOR services; others using that term only provide services where the hiring company already has a local legal entity.

Think of it this way: if you need to hire in a country where you do not have a legal entity, you require an EOR. If you need help managing HR functions such as payroll and benefits 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 usually follow two common approaches: a flat fee or a percentage-based model. Flat fees are charged per employee regardless of role or salary, while percentage models charge a fee based on a portion of the employee's salary and can vary by level and pay.

Be cautious of EOR pricing that relies on percentages. Global employment costs fluctuate, and a trustworthy EOR will factor these variations in and present a clear view of your costs up front. Percentage-based structures may incentivise providers to keep salaries low while increasing payments to third parties.

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 workers in other countries. Your EOR shields your company from liability and compliance risk by legally employing staff on your behalf.

An EOR also manages the complex HR tasks tied to hiring in different jurisdictions. Rules vary widely — frequency of pay, acceptable currencies, statutory annual leave and more. EORs handle these complexities so you can focus on recruiting and growing your business.

Note that an EOR does not supervise the employee’s daily tasks or performance. You will manage employees hired through an EOR just as you would any other team member; the difference lies in who handles the employment paperwork.

An Employer of Record (EOR) is a third‑party provider legally responsible for another organisation's employees. Among other duties, an EOR manages payroll administration for employees in other countries. When you hire through an EOR, you provide the funds and the EOR handles salary distribution, tax deductions, social security contributions and retirement funding as required.

Working with an EOR lets you handle international payroll complexities in line with local laws. You do not need to become an expert in the payroll customs of each country — you find the right candidate, and the EOR takes care of the rest.

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

Only partner with an EOR that owns its local entities in the countries where you plan to hire. Otherwise your employees may be employed via an unknown third party, limiting your oversight and control over their experience.

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

Without robust protections you could face protracted legal disputes over intellectual property ownership across different countries — a serious risk for any organisation. Here are some 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 staff in every country in a single, easy-to-access location?

Remote owns all our entities, provides industry-leading IP protection and data security, and offers 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 standard of legal compliance is generally provided by EORs that own their own business entities in the countries where you wish to hire.

Before engaging an EOR, confirm they own a local entity and possess the necessary expertise to manage localised payroll, health benefits, taxes and any other benefits or compensation you may offer, such as share options.

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

When you partner with Remote, you will be guided through an efficient five-step process designed to establish long-term success.

• Personalised Start: You will receive a welcome message from your assigned Customer Success Implementation manager to begin your engagement with us.

• Comprehensive overview: You will meet your Remote expert who will walk you through the implementation programme, offering clear guidance and establishing the foundations for a successful partnership.

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

• Ongoing support: Access educational materials and prompt assistance for continuous support and reassurance.

• Smooth onboarding: Your implementation manager will guide you through your first EOR onboarding, ensuring a seamless setup and establishing a firm foundation for future hires.

After your first employee is successfully onboarded, you will work with your named Customer Success Manager who will serve as your trusted adviser for all employment matters.