An EOR, or Employer of Record, is a service that makes it possible for organizations to hire employees in countries where they do not have a local entity.

Establishing a local entity in a foreign country is time consuming and expensive. If a company is not prepared to make a long-term commitment to building a workforce in a given country, an EOR is a great alternative to compliantly employ internationally without the overhead of establishing an entity.

An EOR employs your international employee on your behalf and is responsible for payroll, remitting local taxes, providing required benefits, and other compliance obligations.

An EOR platform is a secure online portal where payroll, documentation, and HR compliance for global teams are managed.

Processes such as employee onboarding–including signing local employment contracts and agreements, payroll processing, and employee benefits administration are done on an EOR platform. .

A professional Employer Organization (PEO) is a co-employer model in the U.S., where the PEO is responsible for a specific portion of the employer responsibilities, typically payroll, taxes, benefits, and workers' compensation insurance. An EOR, by contrast, is a global service where the EOR is the sole employer of record; the EOR employs workers on behalf of client companies without requiring them to open a local entity there. Learn more here.

An EOR works by legally employing your international employees through it’s own local entities. 
EORs have expert knowledge and familiarity with local employment laws, and can ensure compliance regarding onboarding, payroll, compensation, benefits, severance and termination, and more. 

The EOR co-signs the employment contract with the employee, and then assigns the employee to your company through a service agreement. Your company is responsible for the daily management of the employee.