EOR (Employer of Record)

An Employer of Record is an entity that legally employs a client's workforce in a jurisdiction where the client has no local legal entity. The EOR handles payroll, statutory contributions, and benefits under local labour law; the client directs the worker's daily activity. Unlike a PEO, an EOR typically operates cross-border and does not require the client to hold a local entity.\n\nEOR is the standard route for hiring a single employee abroad without incorporating a subsidiary. Fees are usually quoted per employee per month plus employer taxes and benefits at cost. See the per-employee fee basis for the pricing analogue, ABC test for the classification questions that arise, and master health plan for benefits-vehicle contrasts. The reference material and EOR hub publish country-level detail.\n\n## What this doesn't cover\n\nEOR arrangements do not remove permanent-establishment risk for corporate tax; long-tenure engagements may still trigger a tax presence in the host country and warrant independent tax counsel.