RecruitGo

EOR (Employer of Record)

An Employer of Record (EOR) is a service provided by a third-party organisation that legally employs people on behalf of another company. This arrangement is for companies that want to hire employees in a country without an established legal entity. Key points about what an EOR does:

April 30, 2024
Updated March 5, 2026
1 min read
Glossary

An Employer of Record (EOR) is a service provided by a third-party organisation that legally employs people on behalf of another company. This arrangement is for companies that want to hire employees in a country without an established legal entity.

Key points about what an EOR does:

  1. Legal Employment Responsibilities: The EOR takes on the legal responsibilities associated with employment, including payroll, taxes, benefits administration, and compliance with local labor laws.
  2. Simplifying International Hiring: EOR services are often used by companies looking to expand internationally without setting up a local office or subsidiary. It allows companies to quickly and legally start operations in a new country.
  3. Risk Management: By managing employment-related compliance and regulations, an EOR helps minimize the legal and financial risks for the client company.
  4. Employee Management: Beyond hiring, the EOR handles various aspects of human resource management, such as onboarding, maintaining employee records, and managing termination processes.
  5. Cost-Effectiveness: Using an EOR can be more cost-effective than establishing a local entity, especially for smaller companies or those testing a new market.

Share this term

Back to Glossary
Employer of Record

From $49/mo

per employee, all-inclusive

  • Hire in 40+ countries
  • Full compliance & payroll
  • No entity setup needed
Get a Quote

Related Terms

Paid Holidays

Paid holidays are specific, designated days off from work for which employees receive their regular pay, even though they are not required to perform work duties on those days. The paid holiday meaning emphasizes that these are typically public, national, or company-recognized holidays that grant em

3 minRead

Outside Services Expenses

“Outside services expenses,” often simply referred to as outsourcing expenses or professional fees, are the costs a business incurs when it pays external vendors, freelancers, or service providers to perform tasks or functions that are not carried out by its own internal employees. These

3 minRead

Labor Laws

Labor laws (or labour laws) are a comprehensive body of rules and regulations that govern the relationship between employers, employees, and often, trade unions. These laws are designed to mediate the inherent power imbalance between workers and employers by establishing minimum standards for workin

2 minRead

Interpersonal Skills

Interpersonal skills, often called “people skills” or “soft skills,” are the abilities you use to communicate and interact with others. They go beyond technical knowledge and are essential for building relationships, working in teams, and navigating social situations in both

2 minRead

In-kind Benefits

In-kind benefits, also commonly known as fringe benefits or benefits-in-kind (BIKs), are non-monetary forms of compensation provided by an employer to an employee. Instead of direct cash payments, these benefits come in the form of goods, services, or privileges. They are part of an employee’s

4 minRead

Conditions of Employment

refers to the specific terms and requirements that an employee must meet and adhere to as part of their job.

3 minRead
View all terms
Simplify global employment

Ready to hire globally without setting up a local entity?

RecruitGo makes it easy to hire, pay, and manage employees in 40+ countries. Let us handle compliance so you can focus on building your team.

Book a DemoExplore EOR Solutions
EOR (Employer of Record) - RecruitGo | RecruitGo