Employer of record (EoR): providers at a glance

What an employer of record does

The EoR provider concludes the employment contract through its local entity, runs payroll and pays taxes and social contributions under local law, and provides customary benefits. Day-to-day direction of the work remains with the client company.

Typical use cases are individual hires abroad, entering a market without founding a subsidiary, or continuing to employ staff who relocate to another country. Many providers add contractor management, international payroll for a client's own entities, or support with visas and entity setup.

What to look for in an EoR provider

Because the provider becomes the legal employer, the choice carries more weight than a pure software decision. The points to check:

• Country coverage: where does the provider have its own entity, and where does it work through partners?
• Legal classification: handling of local employment law, dismissal protection and the rules on temporary agency work, which differ from country to country.
• Scope of service: contract drafting, benefits, equipment, visas, offboarding – included or charged separately?
• Data protection and security: processing of employee data across borders, GDPR, certifications.
• Cost and service: monthly fee per employee, deposits, exchange rates; named contacts and response times.

EoR, Payroll or HR Admin / Core HR?

Payroll pays the employees of a company's own entity; the EoR is the employer itself. HR Admin / Core HR manages employee data without taking on employer obligations – EoR employees are often recorded there as well. Recruiting and Sourcing help find the people who are then hired through an EoR.