What is an Employer of Record (EOR)?

 

An Employer of Record (EOR) is a third-party organization that manages employment responsibilities—such as payroll, taxes, benefits, and compliance—on behalf of another company. This arrangement allows businesses to hire employees in regions where they lack a legal entity, simplifying global expansion and ensuring adherence to local labor laws. While the EOR handles administrative and legal tasks, the client company retains control over the employees' daily activities and performance. This post delves into the functions of an EOR, its benefits for businesses, and how it facilitates international operations without the need to establish a physical presence in new markets.

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