Employer of record (EOR)

What is an EOR?

An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company. The EOR handles core HR responsibilities like payroll, taxes, benefits, and compliance, while the client company directs the employee’s day-to-day work.

How does an EOR work?

When a company wants to hire talent in a country where it doesn’t have a legal entity, it can partner with an EOR. The EOR becomes the legal employer and takes care of:

• Employment contracts compliant with local laws
• Payroll processing and tax withholdings
• Mandatory benefits, contributions, and insurance
• Termination compliance and risk mitigation
  
  

The employee works for the client company operationally but is legally employed by the EOR.

Why do companies use an EOR?

Businesses use EORs to:

• Hire international employees quickly and compliantly
• Avoid the cost and complexity of setting up a local entity
• Offset legal and HR risks in foreign jurisdictions
• Scale global teams faster and more flexibly
  
  

It’s an ideal solution for startups, small and medium-sized businesses, and enterprises expanding into new markets.

How Remote can help

Remote offers full-service EOR globally, including:

• Locally compliant employment contracts
• Payroll, taxes, and benefits administration
• IP protection and global equity support
• Centralized team management through a single HRIS 
• Transparent pricing with no hidden fees
  
  

With Remote as your EOR, you can legally hire, pay, and support employees anywhere without opening a local entity. Employ compliantly and confidently with Remote EOR today.