What Is an Employer of Record and How Does EOR Work?

Employee onboarding through an Employer of Record in IsraelEmployee onboarding through an Employer of Record in Israel

An Employer of Record, commonly known as an EOR, is a local company that legally employs workers on behalf of another business. The EOR handles employment contracts, payroll, taxes, pension contributions, statutory benefits and labor-law compliance, while the client company manages the employee’s daily work. This allows a foreign company to hire employees in Israel without first establishing a local legal entity.