Yes, but you must either establish a legal entity in the country or hire workers as contractors. Both approaches have their advantages and disadvantages.

Establishing your own legal entity means you'll manage your entire presence in the country. This includes hiring lawyers, payroll specialists, benefits administrators, and other professionals. It’s practical if you plan to hire hundreds of people, but for smaller numbers (a few or even a few dozen), an EOR is more cost-effective.

If you hire workers as contractors, diligence is key. International contractor misclassification is a major concern and can result in hefty fines and penalties. An EOR shields your business from these risks by classifying contractors as employees.

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

EORs can differ greatly in their operations. For example, some EORs, like Remote, have their own legal entities in the countries they operate in, while others only act as intermediaries and don’t own any entities. Some may use a combination of their own entities and those of partners. It’s essential to choose an EOR that matches your employment compliance requirements in the countries where you want to hire.

A Professional Employer Organisation (PEO) usually doesn’t hire or employ workers directly. Instead, an Employer of Record (EOR) hires employees on your behalf in various countries. PEOs are often referred to as engaging in “co-employment,” where they handle payroll, benefits, and other HR responsibilities, while your company manages other aspects. If you want to hire in a country where you don’t have a legal entity, you will need an EOR. Generally, using a PEO still requires your company to have a legal entity in any country where you have employees.

To put it simply: if you need to hire someone in a country where you don’t have a legal entity, you need an EOR. If you need help managing HR functions like payroll and benefits in a country where you already have a legal entity, a PEO might be useful. Essentially, a PEO provides HR support but doesn’t handle the legal employment of your employees in other countries.

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

The cost structure for Employer of Record (EOR) services typically involves either a flat fee or a percentage of the employee’s salary. Flat fees are charged per employee regardless of their job title or salary. Percentage-based models, however, charge a fee based on a percentage of the employee’s salary, resulting in variable costs.

Be mindful of percentage-based pricing models. Global employment expenses can be highly variable, but a reputable EOR will provide a clear and upfront billing structure. Percentage fee models can incentivise companies to lower salaries, which ultimately benefits the service provider more.

Remote offers its EOR services at a flat rate of $599 per month (paid annually) or $699 per month (paid monthly). There are no hidden fees, minimums, long-term contracts, or exclusivity requirements. Choose the plan that fits your team best. Check our pricing page to see how straightforward and affordable it is to grow your global team.

An Employer of Record (EOR) acts as the legal employer for your employees in foreign countries, helping protect your company from legal liabilities and compliance risks by hiring workers on your behalf.

The EOR also takes care of the complicated HR tasks associated with international hiring. Each country has its own regulations for payment schedules, accepted currencies, mandatory leave, and more. EORs manage these complexities, allowing you to focus on growing your business instead of administrative work.

It’s important to note that an EOR does not manage the daily tasks or performance of your employees. You will work with employees hired through an EOR just like you work with your direct employees. The only difference is who handles the legal paperwork.

An Employer of Record (EOR) is a third-party organisation that legally employs your international staff. The EOR manages various administrative functions, such as payroll for employees working abroad. When you hire someone overseas via an EOR, you send the required funds to the EOR, which then manages salary payments, tax deductions, provident fund contributions, and other statutory obligations.

Engaging an EOR helps you navigate the complexities of international payroll and stay compliant with local laws. This enables you to hire workers in other countries without having to learn their payroll systems. You find the right person for the job, and the EOR takes care of the rest.

When evaluating Employer of Record (EOR) services, consider the number of countries where they provide direct services, the range of global HR solutions they offer (including payroll, benefits administration, onboarding, and local taxes), and their compliance with local laws in each country. The quality of their user interface is also an important factor.

Choose an EOR that owns its local entity in the country where you wish to hire. If they don’t, your employees might be managed by an unknown third party, which could lead to issues with oversight and service quality.

Additionally, your EOR should provide strong protections for your intellectual property. Without these protections, you could face lengthy legal disputes over IP ownership in various countries.

Important questions to ask include:

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

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

• Is employee data shared with any third parties?

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

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

Using an Employer of Record (EOR) is perfectly legal in many countries around the world. However, to ensure maximum compliance, it’s best to partner with EORs that have established their own business entities in the countries where you intend to hire.

Before starting with an EOR, make sure they own a local entity and have sufficient expertise to handle localized payroll, health benefits, taxes, and any other compensation like stock options. This will ensure that all aspects of employment are managed correctly and in compliance with local laws.