Featured Webinar
What is an Employer of Record (EOR)?
On-Demand
54 minutes
As a company starts to hire internationally, there are several employment methods these teams can utilize to do so compliantly. For many, hiring international workers through an Employer of Record (EOR) is a great solution. Not only does the EOR handle all of the typical administrative work associated with hiring and paying someone in a foreign location, but it mitigates any risk of contractor misclassification, a rising legal concern that can bankrupt an unsuspecting employer. Watch this session to learn how partnering with an EOR makes it easy to compliantly hire international workers and grow your global workforce in a cost-effective way.
Caroline Esser
Lead Counsel
Stefanie San Juan
EOR HR Advisor
In this webinar, you'll learn:
The key benefits of using an EOR
When it makes sense to use an EOR
Common questions about EORs
How to choose the right EOR
Back
What is an Employer of Record (EOR)?
Learn how partnering with an EOR makes it easy to compliantly hire international workers. In this session, Rippling legal experts explain the key benefits of an EOR, when it makes sense to use an EOR, and how to choose the right EOR.
Speakers
Key Takeaways
01
Hiring a global workforce has many advantages.
International recruiting unlocks cost-effective talent markets. International contractors provide financial benefits (don't need to provide equipment or benefits), better flexibility (can hire for temporary periods of time), and increased productivity (specialized skills and fewer meetings).
02
The cost of contractor misclassification can be steep.
Misclassification is when a business treats a worker as a contractor, when it should have treated that worker as an employee. It can result in claims and financial penalties, as well as reputational damage. Many foreign countries have higher consequences than the US.
03
EORs help you hire international talent via third-party entities
Employers of Record (EORs) take on all the responsibilities and liabilities associated with being an employer, while you manage and oversee the worker’s day-to-day work. This allows employers to outsource admin work related to employment while reducing compliance risk.
Questions
Do employees work for me or for the EOR?
The EOR. Legally, the EOR takes on all the responsibilities and liabilities associated with being an employer, while the workers are providing services to you, the client company. You will manage and oversee the worker’s day-to-day work.
Can't I just engage who I want as an independent contractor?
Do so at your own risk. If you have misclassified them as a contractor, you could be at risk of falling foul of employment and tax laws in the contractor’s country. Misclassification can result in costly fines and penalties.
Do I have to set up a foreign entity or bank account to use an EOR?
Nope. EORs utilize their own entities and associated bank accounts to issue payments in the appropriate currency.
What’s the difference between a PEO and EOR?
While PEOs and EORs may seem similar, there are a few important distinctions. A PEO co-employs a company’s workforce for administrative purposes in the U.S., whereas an EOR is the sole employer of record and allows you to hire globally without your own local entity.
Do I need a minimum number of overseas employees to use an EOR?
Nope. You can get started with an EOR with a single employee.
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