An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company. While the employee performs work for your business, the EOR is the official employer on paper, handling all local employment responsibilities such as payroll, taxes, compliance, and benefits.

This model is especially useful for companies that want to hire internationally without setting up a legal entity in every country.

How Does a Global EOR Work?

Here’s how it works step-by-step:

1. You Select the Candidate
   Your company finds and selects the person you want to hire in a foreign country.

2. The EOR Becomes the Legal Employer
   The EOR company, which already has a registered entity in that country, officially hires the person on your behalf.

3. Employee Works for You
   The employee works under your direction, just like any other team member, but the EOR handles all administrative and legal tasks.

4. The EOR Handles the Rest

   • Employment contracts (locally compliant)

   • Payroll and tax filing

   • Social security and benefits

   • Labor law compliance

   • Termination procedures, if needed

Why Use a Global EOR?

• No need to open a legal entity in every country

• Hire faster, often within days

• Avoid legal risks of misclassification or non-compliance

• Scale your global team without operational overhead

• Focus on business, while the EOR handles HR, legal, and payroll

Use Case Example

You’re a UK-based software company wanting to hire a developer in Brazil.
Instead of setting up a subsidiary in Brazil (which could take months), you work with a Global EOR provider. They legally employ the developer, run compliant payroll, and provide the necessary benefits—while the developer works full-time on your product team.

When Should You Consider a Global EOR?

• Expanding into new markets

• Hiring remote employees in different countries

• Testing a market before setting up a full entity

• Employing workers in countries with complex labor laws

• Managing short-term projects or consultants abroad