When and why to choose an Employer of Record?

Navigating international expansion, compliance, and efficiency with Employer of Record Services.

Employer of Record

It would be best to consider using an Employer of Record (EOR) when you have specific needs related to hiring and managing employees in a foreign country or when you want to offload specific HR and payroll responsibilities. Here are some situations in which using an EOR can be beneficial:

International expansion

If your company expands into a new country, an Employer of record can help you quickly establish a legal and compliant presence without setting up a separate entity.

Compliance and legal requirements

Different countries have complex labor laws, tax regulations, and employment requirements. An Employer of record can help you comply with these regulations and reduce legal risks.

Speed and efficiency

EORs have established infrastructure and local expertise, allowing you to hire employees more quickly and efficiently than setting up your operations.

Temporary or project-based employment

When hiring employees for short-term or temporary projects, an Employer of record can handle the hiring and termination process without long-term commitments.

Cost savings

Setting up and maintaining a legal entity in a foreign country can be expensive and time-consuming. An Employer of record can be a cost-effective solution, as you won’t need to invest in establishing and managing a foreign subsidiary.

Focus on core business

By outsourcing HR, payroll, and compliance responsibilities to an Employer of record, you can focus more on your core business activities.

Mitigating risks

An EOR can help reduce risks associated with employment-related issues, such as labor disputes or employee lawsuits.

Employee benefits and compensation

EORs can help manage employee benefits and compensation in compliance with local laws and customs.


Using an EOR allows you to scale your workforce up or down as needed without the administrative burdens of hiring and firing employees.

We are RootsEOR: employer of record services

After reading this article, do you think you should hire an EOR? Contact us

Related content