Employer of Record

Employer of Record (EOR) is a third-party organization that formally acts as the employer of a workforce on behalf of another company. The EOR assumes responsibility for legal and administrative employment tasks, such as payroll, taxes, benefits, and compliance with local labor laws. While the EOR handles these formalities, the client company oversees the daily activities and work of the employees. This arrangement is often used by companies wishing to employ workers in regions where they do not have a registered legal entity.