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What Are Employer of Record Services?

Introduction

Expanding an international presence is not only a natural but also a savvy move for any developing business. Recruiting global talent is a good approach to tapping into foreign markets, and a reliable worldwide employer of record can significantly help you along that challenging path. As a result, you need to discover employer of record services HR platforms that blend smoothly with your business’s needs and requirements.

If it’s your first time coming across this term, this guide has everything you need to know, from what the employer of record is to how your business can benefit from these services. And if you’ve used these services before, this guide will help you know how to pick a reliable employer of record, enabling you to avoid inexperienced service providers. Read on to find out more.

Employer of Record Services Meaning

An EoR company offers the employer of record services. EoR is a short form for the employer of record, a third-party company that acts as a lawful employer of your foreign workforce. An employer of record is responsible for all foreign worker-related tasks and responsibilities on behalf of your business.

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It takes major responsibilities of your company’s HR division and onboards, completes payments and manages your overseas employees while you control and maintain day-to-day tasks.

What Are Global Employer of Record Services?

If you want to expand your business or hire great talent from certain countries, you need global employer of record services. These services allow your company to lawfully engage with employees across borders without violating foreign country employment laws or setting up an entity.

Think of global employer of record services as your international human resources team that understands all labour and payroll laws and regulations of foreign markets that your company operates in.

How Do Employer of Record Services Help Your Organisation?

An employer of record is the lawful employer of your global employees, meaning the service provider will handle several compliance tasks that you don’t need to worry about. These tasks include:

  • Hiring global workers
  • Producing employment agreements
  • Processing payrolls and filing employee as well as employer taxes
  • Managing employees’ compensation and insurance
  • Offering health benefits, pension schemes and retirement vehicles
  • Helping in regulatory acquiescence
  • Providing information on local employment practices and regulations
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Once employees are working and helping your company to achieve its goals, the employer of record is the records’ official keeper and is the main foreign point of contact for all human resources compliance questions and labour regulations.

That means your company isn’t exposed to any acquiescence risks, and you’re sure that all of your foreign employees are taken care of.

What is the Perfect Time to Look for Employer of Record Services?

Reliable employer of record services offer organisations numerous benefits. Most businesses don’t have enough resources or knowledge to lawfully hire foreign workers from any country and manage them based on their local labour law needs and requirements.

Employer of record services allow your company to onboard talent quickly, receive ongoing human resources support, maintain compliance, retain existing talent and save costs.

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