Employer of record (EOR)
An employer of record, or EOR, employs someone to work for another company and handles agreed employment administration.
The company whose team you join may use an EOR to hire in a country where it has no employing entity. Your employment contract can therefore name a different company from the one advertising the role. EOR services commonly cover payroll, employment paperwork, taxes and benefits, while the client company directs the day-to-day work. Read the documents to establish the actual division of responsibilities.
EOR is a commercial term, and the legal structure needs checking in the country concerned. The Netherlands, for example, has specific rules for payrolling, where a payroll company formally employs staff recruited and supervised by its client. Those rules should not be assumed to describe every international EOR arrangement. Ask who handles workplace concerns and what happens to your employment if the client ends its agreement with the provider.
Example
A software company offers a remote role through a local EOR. The candidate confirms the employing entity, local contract, payroll currency and the contacts responsible for leave and workplace complaints.
What to check
- Which entity is your employer under the contract?
- Who handles pay, benefits, leave and employment disputes?
- What happens if the client changes provider or ends the assignment?