Employ compliantly, quickly and confidently – worldwide

In short, yes. You’ll either need to set up your own legal entity in that country or engage the people as contractors. Each approach brings its own advantages and disadvantages.

If you create your own legal entity, you’re responsible for running the full local operation. That means bringing on lawyers, payroll experts, benefits administrators and other specialists. It can make sense when you plan to recruit hundreds in a new market, but if you only need a handful—or even a few dozen—an EOR is usually far more cost-effective.

Engaging workers as contractors requires close attention. International contractor misclassification is a serious risk and can lead to substantial fines and penalties. An EOR reduces your compliance exposure by ensuring those workers are legally recognised as employees.

An Employer of Record (EOR) is an organisation that legally employs workers on behalf of another business.

It’s important to realise EORs don’t all operate the same way, so their services can differ significantly. Some EORs, like Remote, own their own legal entities in each country they operate in, while others act as intermediaries without owning local entities. Some providers combine their own entities with partner networks. It’s essential to pick an EOR model that matches your compliance needs in the countries where you plan to hire.

An Employer of Record (EOR) can hire employees on your behalf in other countries; a Professional Employer Organisation (PEO) may not be able to do that. Some businesses describe themselves as 'international PEOs' and also offer EOR capabilities. Others using the 'international PEO' label only support companies that already have local legal entities.

Put simply: if you need to employ someone in a country where you don’t have a legal entity, you need an EOR. If you already have a local entity and want help with HR tasks—like payroll and benefits administration—you’d use a PEO. Essentially, a PEO can offer many of the same services as an EOR but won’t be the legal employer for hires in other countries.

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

EOR fees typically follow one of two models: a flat fee or a percentage-based charge. Flat fees are levied per employee regardless of role or salary. Percentage fees are calculated as a share of the employee’s pay and may vary by level and remuneration.

Be cautious of percentage-based pricing. International employment costs can swing significantly, and a trustworthy EOR will account for those variations and give you a clear idea of your costs up front. Percentage models can create incentives to keep worker pay low while increasing payments to third-party providers.

Remote’s EOR pricing is $599 USD per month when paid annually, or NZ$1,155 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 EOR is to act as the legal employer for your staff in other countries. Your EOR protects your company from liability and compliance exposure by legally employing workers on your behalf.

An EOR also handles complex HR tasks involved in hiring across borders. Regulations differ on pay frequency, acceptable currencies, minimum annual leave and more. EORs manage these details so you spend less time on admin and more time recruiting to grow the business.

An EOR does not direct an employee’s daily tasks or manage their performance. You work with employees hired through an EOR the same way you would with any other team member—the difference is who looks after the paperwork.

An Employer of Record (EOR) is a third-party provider legally responsible for another organisation’s employees. Among other duties, an EOR administers payroll for employees in other countries. When you hire someone abroad through an EOR, you supply the funds to the EOR and they distribute salaries, including required tax withholdings, social security contributions and retirement payments.

Working with an EOR lets you manage international payroll complexities in line with local laws. An EOR enables you to hire overseas without becoming an expert in each country’s payroll rules — you find the candidate and let the EOR handle the operational details.

When comparing EORs, consider how many countries they directly serve, the breadth of global HR services they offer—payroll, benefits administration, onboarding, local tax support—and how thoroughly they ensure compliance with local laws. Also evaluate the quality of the user interface.consider the number of countries where they provide direct services, the range of global HR solutions they offer such as payroll, benefits administration, onboarding, and local taxes, as well as how thoroughly they ensure compliance with local laws in each country they serve. Additionally, the quality of the user interface should be taken into account.

Choose only an EOR that owns its local entities in the countries where you want to hire. If they don’t, your employees could be engaged through an unknown third party, leaving you with limited oversight or control over their experience.

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

Without robust protections you could face awkward disputes and long legal battles over IP ownership across jurisdictions—a nightmare for any business. Here are a few questions you should consider asking:

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

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

• Do you disclose employee data to any third parties?

• Are employee documents for all countries stored in a single, easy-to-access location?

Remote owns all its 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 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 engage an EOR, confirm they operate a local entity and have the expertise to properly manage localised payroll, health benefits, taxes and any other compensation you may offer, such as share options.

If you’re 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, you’ll be guided through a streamlined five-step process designed to set you up for long-term success.

• Personalised start: Receive a welcome message from your assigned Customer Success Implementation manager for an engaging introduction to working with us.

• Comprehensive overview: Meet your Remote specialist to walk through the implementation programme, outline clear next steps and set the foundation for a successful partnership.

• Product walkthrough: Receive a detailed demo of key EOR features so your team can achieve quick, effective results.

• Ongoing support: Access educational resources and prompt assistance whenever questions arise for continuous support and reassurance.

• Smooth onboarding: Your implementation manager will guide you through your first EOR onboarding to ensure a seamless setup and a strong base for future hires.

After your first employee is successfully onboarded, you’ll be supported by your named Customer Success Manager who will act as your trusted adviser for all employment matters.