Employ compliantly, quickly and confidently – worldwide

In short, yes. However, that route means you must either establish a local legal entity in the country or engage the people as contractors. Each approach has its own benefits and drawbacks.

Setting up your own legal entity places the full responsibility for operating in that market on you. You’ll need to instruct lawyers, payroll specialists, benefits administrators and other local experts. That option can make sense if you intend to hire hundreds in that country, but for just a handful or a few dozen hires an EOR is usually more cost-effective.

Hiring people as contractors requires careful oversight. International contractor misclassification is a serious compliance risk that can lead to substantial fines and penalties. Using an EOR reduces your exposure by ensuring workers are correctly employed.

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

Not all Employers of Record deliver services the same way, and there are important differences in how EOR solutions are structured. Some EORs, like Remote, own their own legal entities in each country they operate in, whereas others act purely as intermediaries without holding any entities themselves. Some providers combine their own entities with partner arrangements. Select an EOR model that matches your compliance needs in the countries where you intend to hire.

An Employer of Record (EOR) can legally employ staff on your behalf in foreign jurisdictions; a Professional Employer Organisation (PEO) may not always do so. Some firms market themselves as 'international PEOs' while providing full EOR services, whereas others using that label only support companies that already have legal entities overseas.

Think of it like this: if you need to hire someone in a country where you don't have a legal entity, you need an EOR. If you're looking for help managing HR functions, such as payroll and benefits administration, in a country where you already have your own entity, you need a PEO. Basically, a PEO provides many of the same services as an EOR 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 practical guide.

Employer of Record (EOR) costs usually come in two forms: a flat fee or a percentage-based pricing model. Flat fees are charged per employee, regardless of their position or salary. Percentage models charge a fee based on a percentage of the employee's salary; these fees can vary depending on the employee's level and pay.

Be cautious of EOR fee models that charge a percentage. Global employment expenses can vary considerably, and a trustworthy EOR will account for those fluctuations and present a clear estimate of your total outlay up front. Percentage fees can incentivise keeping salaries low while increasing amounts passed to third-party suppliers.

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 straightforward, rapid, and cost-effective expanding your international team can be.

The primary function of an Employer of Record (EOR) is to act as the legal employer for your staff in other jurisdictions. An EOR shields your organisation from liability and compliance exposure by employing workers on your behalf under local law.

An EOR also takes care of the complex HR tasks associated with hiring workers in different countries. Regulations vary widely, including how often employees should be paid, which currencies are acceptable, how much annual leave is required, and much more. EORs handle all these complexities for you, allowing you to spend less time on administrative tasks and more on recruiting staff to expand your business.

Bear in mind an EOR does not supervise day-to-day tasks or performance. You will manage people hired through an EOR in the same way as any other employee; the only distinction is which party handles the employment paperwork.

An Employer of Record (EOR) is a third-party provider that is legally accountable for employees hired by another organisation. Among its duties, an EOR administers payroll for staff in other countries. When you hire someone abroad through an EOR, you supply the funds and the EOR handles salary payments, including any required tax withholdings, social security contributions and retirement provision payments.

Engaging an EOR lets you manage international payroll complexities with confidence and in compliance with local legislation. You can recruit the right person and rely on the EOR to handle the payroll rules and local practices on your behalf.

When evaluating EOR providers, look at how many countries they serve directly, the breadth of their global HR offerings (payroll, benefits administration, onboarding and local tax handling), how rigorously they enforce local compliance in each market, and the overall quality of their user interface.

Only work with an EOR that owns its local entities in the countries where you plan to hire. Otherwise, your employees may be employed through a third party you don’t know, leaving you with limited visibility and control over their experience.

In addition, your EOR should provide robust safeguards for your intellectual property.

Without strong protections you could end up in protracted disputes over IP ownership across different jurisdictions—an unwelcome situation for any company. Consider asking the following questions:

• Do you operate an entity in this country, or do you outsource employment and compliance to a partner?

• How are intellectual property and invention rights protected in this jurisdiction?

• Do you transfer any employee data to third parties?

• Are all employee documents for every country stored in one easy-to-access location?

Remote owns all our own entities, provides the strongest IP protection and data security in the industry, and offers best-in-class global employment software to meet your needs.

Yes, using an Employer of Record is completely legal in most countries. That said, the strongest legal compliance typically comes from EORs that own their own local business entities in the markets where you intend to hire.

Before engaging an EOR, confirm they own a local entity and have the expertise to manage local payroll, healthcare benefits, taxes and any other compensation elements 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 simplest path to international employment.

When you partner with Remote, you’ll be guided through an efficient five-step process to set the stage for your long-term success.

• Personalised Start: You’ll receive a welcome note from your dedicated Customer Success Implementation manager to begin your onboarding with clear direction and support.

• Comprehensive overview: You’ll meet your Remote specialist to review the implementation programme, gain clear guidance and lay the groundwork for a successful collaboration.

• Product walkthrough: Receive a thorough demonstration of the key EOR features to help your team deliver fast, effective outcomes.

• Ongoing support: Access educational resources and prompt assistance for any queries, ensuring continuous support and reassurance.

• Smooth onboarding: Your implementation manager will lead you through the first EOR onboarding to ensure a seamless setup and establish a strong foundation for future hires.

Once your first employee is onboarded successfully, you will be handed over to a named Customer Success Manager who will act as your trusted adviser for ongoing employment matters.