Scale your team, globally

An Employer of Record (EOR) is a service that allows businesses to hire and manage employees in other countries without needing to establish a local legal entity. The EOR acts as the legal employer for the workers, handling compliance, payroll, taxes, and other administrative tasks on behalf of the business. This enables companies to expand globally while minimising liability and administrative complexity.

An EOR takes on the complex HR and legal responsibilities associated with hiring employees in different countries. These include:

• Managing payroll and ensuring timely payment in local currencies.

• Handling taxes, benefits, and compliance with local labor laws.

• Drafting and maintaining legally compliant employment contracts.

• Administering paid time off, sick leave, and other statutory benefits.

It’s important to note that while the EOR manages these administrative and legal aspects, the day-to-day management of employees, including task delegation and performance evaluation, remains the responsibility of the client company.

Yes, using an EOR is completely legal in most countries. However, the level of compliance and expertise varies between providers. The most reliable EORs, like Remote, own their own local entities in the countries where they operate, ensuring they can navigate local regulations effectively. It is important to note that our partner, Remote, has the necessary infrastructure to manage localised payroll, taxes, and benefits. This reduces the risk of non-compliance and ensures a smooth hiring process.

While contractors are valuable, hiring international employees can help businesses attract and retain top talent by offering full-time roles with benefits. Employees also feel more connected and integrated into the company culture, fostering collaboration and long-term commitment. This is critical for finding and retaining top talent in competitive markets. 

Personio, through our partnership with Remote, makes it easy to hire international employees or manage contractor payments in +100 countries, giving you the flexibility to scale globally.

Hiring employees in other countries without an EOR can expose businesses to significant risks, including:

• Non-compliance with local labor laws, which can result in fines or legal action.

• Misclassification of employees as contractors, leading to penalties and back payments.

• Administrative delays and errors in managing payroll, taxes, and benefits.

An EOR mitigates these risks by serving as the legal employer and ensuring compliance with local regulations, allowing businesses to focus on growth and expansion.

When comparing Employer of Record (EOR) services, it's crucial to assess whether providers own their entities directly or rely on third-party aggregator networks. The entity ownership structure significantly impacts compliance management, communication efficiency, risk exposure, and intellectual property protection. Key evaluation factors must include how providers handle regulatory changes across global markets, their response times, pricing transparency. It's important to consider how data sharing practices and intermediary handoffs might affect service quality and create potential compliance gaps. Ask specifically if they own entities in your target countries and how they safeguard intellectual property rights in each jurisdiction. 

Our partner Remote owns 100% of its international entities directly, eliminating intermediary complexities while providing proactive compliance monitoring.

Personio has partnered with Remote to provide a seamless EOR solution that simplifies global hiring. Through this partnership, Personio handles the entire lifecycle of international employment, including:

• Hiring and onboarding employees in compliance with local laws.

• Managing payroll, taxes, and benefits administration.

• Ensuring compliance with labor regulations to minimize legal and financial risks.

• Supporting offboarding processes when necessary.

With Personio’s EOR service, powered by Remote, businesses can confidently expand into new markets without the need for local entities or additional administrative burdens.