For many companies and businesses around the globe, things may get confusing on just what could be the finest solution for your company, where you may benefit in the operational functions and what is going to be the finest cost savings.

Now, talking about an Employer of Record (EOR), it is an alternative payroll solution that manages timekeeping, payroll, overall compliance, benefits, unemployment claims, overall worker’s comp, and more. It essentially turs out to be a full legal employer of the payroll employee. This is the reason that the EOR holds all the liabilities as well as responsibilities of the workers. This is mostly a preferred method for most of the companies. You can even talk to global employer of record services and ensure that you get the guidance and help you need for your business. Actually, various companies are ignorant of these solutions and the perks it can bring your organization.

In other words, an Employer of Record (EOR) is a type of third-party organization that recruits and pays an employee on behalf of another business or company and takes responsibility for all sort of formal employment tasks. With the usage of an Employer of Records your company can legally and efficiently involve with overseas workers either in a fresh nation, without even need to set up a local entity or that of risk violating local employment rules and laws.

Here you should know that there a few types of terms that get used to underline a third-party Employer of Record has been engaged, like that of a local employer, local EOR, local partner, back-office staffing, and even that of in places like China, a FESCO (Foreign Enterprise Service Company). Below are the main benefits of using an EOR services: but before that, you should know what exactly Employer of Record does for you.

What does an Employer of Record can do for your business?

The commonest explanation of an Employer of Record is simply a third-party local entity. It is placed as kind of an intermediary in a current employee-employer relationship.  The EOR is charged with performing the legal and regulatory needs of immigration, employment and even that of overall payroll, but does not take part in day-to-day work tasks and activity.

In essence, the EOR is really the registered employer for the worker, but does not actually have any supervisory or management role vis a vis the staff or employee’s position.  The original employer is going to maintain the substantive work relationship, making all sorts of decisions on compensation, proper position duties, overall projects and even that of termination. Particularly, the employer of record is kind of the legal entity that:

  • Make arrangement of all visas and work permits for your employee, avoiding delays or even that of refusals
  • Offers a registered entity for running a local, type of compliant payroll within the country
  • Fulfills all host country labor laws on the subject of local contracts as well as worker protections
  • Advises the overall client of required notice periods, then the termination rules and even that of compensation pay
  • It works as the host country interface between the employee and that of the government authorities

Why should you Use an Employer of Record?

The reasons for you to use an Employer of Record are primarily to face the regulatory and cost hurdles when staffing or employing workers in a distant location.  Every nation (and some states or even that of provinces or regions) have their own type of employment, payroll and work permit needs for non-resident companies doing business.  The challenge of fulfilling those rules may be a major obstacle to business expansion throughout the international borders.

In case a company has a commitment to a country, the DIY approach of that of combination, registration and running a type of local payroll could be worthwhile.  But for many companies and businesses just entering a new market, or that of smaller firms with limited human resources, an EOR can be a perfect alternative.

Actually, the Employer of Record is characteristically used as the main ingredient or center of a comprehensive GEO (Global Employment Organization) solution. It makes foreign employment absolutely simple for any size company.  It is equally powerful and productive for both local residents as well as that of expats since it is in complete compliance with the host country laws.  There is no reason to danger violating labor, tax and even that of employment regulations when you can get the assistance of an EOR solution in almost any region or country.

Focus on your business

By making use of a good EOR service, you are going to be in a position to focus on the main ingredient of your business and remove the stress of taxes, benefits, payroll, etc. All these types of functions are essential; however, it is true that they can get quite confusing along with extremely costly if not done properly. By hiring an agency to handle this, it permits you to focus on other crucial tasks as well as operational functions.


Then talking about this, it is one of the most complicated, as it is ever altering. It can be challenging to keep up with on-going alternatives to federal and state laws. By recruiting a company to serve as a human resource function, this is going to ensure you are keeping proper compliant and you are not going to be running into any pricy fines that might arise, if not done in a legal manner.

Saving a lot of costs

Not just are you gaining the assurance of evading costly fines, but there are even other cost saving options that EORs can offer. You are even able to reduce the hidden expense in hiring and terminating any employee, compensation and benefit costs, abridging processes and minimizing payroll procedure workload.

The point is EOR services may give your company an alternative payroll solution that is continuously giving them cost savings. It removes the hassle of tensing about the liabilities linked to payroll and gives you overall peace of mind that your business is safe and compliant.


So, you can talk to an eor service and ensure that you get the perfect outcomes for your business growth, reach and effectivity.