Engagement models
Employer of record (EOR)
A company that legally employs someone abroad on your behalf.
Definition
A provider that becomes the legal employer of a worker in a country where you have no entity, handling the employment contract, payroll, taxes and statutory benefits, while you direct the day-to-day work. It lets you hire in a market without incorporating there.
Why it matters
It solves compliance, not management: the person is your responsibility in every way that affects delivery. Check termination terms and notice in the local jurisdiction before you hire, because employment protection varies enormously by country and the EOR will apply local law, not yours.
Related
Read next
Contractor misclassification
Treating someone as a contractor when the law would call them an employee.
Read the definition ›Staff augmentation
Adding external people to your own team, under your management.
Read the definition ›Offshoring
Moving work to another country, whether nearby or far away.
Read the definition ›Withholding tax
Tax a buyer may be required to deduct from a cross-border invoice.
Read the definition ›Next step
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