What is an Employer of Record (EOR) and how does it work?

As more companies look to expand into new markets without increasing operational complexity, the Employer of Record (EOR) model has gained traction as a fast, legal, and secure way to hire international talent.

Hiring employees abroad typically involves setting up a legal entity, understanding local labor laws, managing payroll, and ensuring compliance with tax regulations. For many businesses—especially startups or fast-scaling companies—these steps require significant time, resources, and risk management.

An EOR simplifies that entire process. It is a company that acts as the legal employer of a worker on behalf of another business. This allows the client company to hire international talent without opening a local entity. The EOR takes care of employment contracts, salary payments, social security contributions, taxes, and compliance with labor and tax laws.

How does the model work?

The process is straightforward:

• The client identifies a candidate abroad or requests recruitment support.

• The EOR assists and manages the recruitment and selection process.

• The EOR legally hires the employee under the local labor laws of the destination country.

• The employee works directly with the client company, but is legally employed by the EOR.

• The EOR handles payroll, benefits, taxes, and all compliance requirements with local authorities.

What are the benefits?

• Partnering with an EOR enables companies to:

• Expand faster without setting up a legal entity in each country.

• Minimize legal risks by working through a compliant local partner.

• Access international talent without facing administrative or legal hurdles.

• Stay focused on core business activities while the EOR manages legal and operational tasks.

Far beyond an administrative shortcut, the EOR model has become a strategic solution for global hiring and remote team expansion. For companies aiming to grow quickly and compliantly across borders, it offers a flexible, secure, and efficient path forward.