Global Employer of Record (EOR) is a service that helps companies hire and manage employees in foreign countries. An EOR acts as an intermediary between the employer and the employee, handling all the legal, financial, and administrative responsibilities of hiring and managing employees in different countries.
The EOR provider becomes the legal employer of record for the employee, taking on all legal, financial, and administrative responsibilities, such as payroll processing, benefits administration, tax withholding, and compliance with local labor laws and regulations.
There are several reasons why a company may need a Global Employer of Record. For example:
- Expansion into new markets: When a company expands into a new country, it may not have the legal, financial, or administrative resources to manage employees there. An EOR can help by providing local expertise and support to ensure compliance with local regulations.
- Cost and time savings: Setting up a legal entity in a new country can be time-consuming and expensive. By using an EOR, companies can avoid the costs and complexities of establishing a local presence.
- Reduced risk and liability: When a company hires employees in a foreign country, it can be difficult to ensure compliance with local labor laws and regulations. An EOR can help mitigate this risk by taking on legal responsibility for employment compliance.
Overall, Global Employer of Record is valuable for companies looking to expand their global footprint while minimizing the risks and complexities of managing employees in foreign countries.