With an end to the COVID pandemic now on the radar, many companies are beginning to focus on a return to growth and international expansion. In times past this presented a number of challenges, especially when you were confronted with all the complexities associated with setting up in a new country: different laws, unfamiliar tax regimes, employment regulations, employee benefits and entitlements, currency exchange, payroll issues etc. That’s the reason why so many smart companies embarking on international expansion today are utilizing an ‘Employer of Record’ (EOR) structure in each country of employment.

Countries continually change regulations on immigration, employment and tax in order to boost and protect the economy. For this reason, it is very difficult for companies to hire employers from other parts of the world. Still, it is possible and easy.
The need for EOR is here to stay.

International business expansion was once a long-term, multi-year foreign assignment.

Nowadays, however, global mobility is a hot topic. In fact, more companies can now enjoy the idea of shorter, more flexible overseas postings in shorter time frames.

Companies began to explore options such as outsourcing payroll, hiring immigration attorneys and seeking
local business partners to alleviate some of the regulatory burdens.

But a more complete solution was needed, allowing for the development of a single-source service that could manage the full range of local employment criteria.

The EOR model meets a modern business need, allowing companies to quickly enter a new market and deploy workers legally and efficiently.

A key option available when expanding your business is an Employer of Record (EOR).

Why consider an EOR?

Businesses who need to hire staff overseas face a series of processes and obstacles.

Researching and complying with the numerous local laws can present a huge challenge.

Every country (and even each state or region) will likely have different employment, payroll, and work permit requirements for foreign companies doing business.

Partnering with a legal Employer of Record saves you from having to set up a formal entity in the host country. They become the in-country employer of your staff, saving you an enormous amount of time and effort.

How does EOR work?

Specifically, the EOR is the legal entity that:

• Acts as a stand-in entity in order to run a local compliant payroll for your staff.
• Meets all host country labor laws pertaining to local contracts and worker protections.
• Advises you of required notice periods, termination rules and severance pay.
• Is the host country interface between the employee and government authorities.
• Is responsible for making sure you remain compliant with all local laws.

As businesses continue to navigate the global marketplace and its intricate legislations, EOR is becoming a core strategy for employing staff – whoever and wherever they may be. Want to know more about us? Contact us!