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How to Choose the Right Employer of Record for Your Company

A good Employer of Record will be able to handle compliance with local laws, allowing businesses to expand in foreign territories without the burden of establishing a business entity. This saves time and money for both the company and its employees. When choosing an EOR, it’s important to consider several factors. Read on to learn more about choosing the right one for your business.


Streamline your HR processes, access global talent and scale your remote team easily with an EOR. But not all EORs are created equal. Choosing an effective employer of record partner is crucial to avoid costly errors and ensure compliance with local laws. A good EOR should provide a full range of employment services, including legal employer status in the US, payroll, tax filings, and more. You also want to find out if they have teams of experts worldwide who can help with any local issues that might arise.

For example, termination is a complex process that differs from country to country. An EOR should understand local termination laws to avoid expensive international legal disputes. They should also be able to coordinate strategy for performance reviews, compensation, structure to work days and retreats in different countries so that your employees feel supported.

Additionally, when considering different employers of record, look for one that provides clear pricing and doesn’t hide any fees or markups from the initial quote. Some companies have set up taxes and termination fees that aren’t spelled out clearly in the initial quote, which can significantly change your final bill. In addition, you should also consider how easy it is to end the relationship with your EOR. No company should make it overly difficult to leave them and move to employ people through your entities.


A good Employer of Record can provide the data you need to make decisions. They should offer an interface that allows you to see payroll and HR information changes easily, including costs and tax deductions. This will help you avoid surprises down the road. They should also be able to explain employment rules and tax legislation in an easily digestible way. Ask how they will keep you updated about legal changes that might impact your business and how their process is for handling disciplinary or performance-related issues. They should also have an established procedure for compliantly ending employment agreements.

It is important to consider whether they have local teams of experts in the countries where your workers are located. You will need their advice and support to ensure compliance with native laws and protect your people. It’s also essential to find out if they can help you when an employment agreement needs to be terminated lawfully, regardless of the worker’s location or the reason for termination.

Another issue to consider is how easy it will be to break off the relationship with your Employer of Record if it’s not working out. This is an important question because it can be risky if the EOR has binding commercial terms that prevent you from moving on to another provider or even back into your entities.


An employer of record is a service provider that acts as your legal employer for employees in countries where you don’t have a presence. This allows you to hire talent in those jurisdictions without worrying about compliance challenges, taxation issues, or other employment-related legal complexities. Some locations have unique employment requirements as your business expands into new markets. The right EOR will be flexible enough to adapt its services to accommodate these special needs.

For example, some countries require specific protocols around employee termination. An EOR that can handle this from the beginning of your new employee’s contract will help you avoid costly international legal disputes.

You also want an EOR that can adapt to the unique cultural nuances of each country. This requires a deep understanding of the local values, customs, and business etiquette. The best EORs will have in-country partners who can personally onboard employees and ensure they understand the company’s culture and values from the outset.

In addition, you need to trust your EOR to uphold your reputation as an employer abroad. Some EORs boast quick setup times but fail to provide the high-quality employee experience you need. They may need to pay more attention to critical HR tasks or include crucial information during onboarding. This can erode trust and deter future talent.


If your business expands into the US, an experienced employer of record (EOR) will provide your company with a compliant global infrastructure that covers all HR and payroll obligations. They will be able to identify the right candidate, issue them a local employment contract and put them on a compliant US payroll within hours.

However, not all EORs are created equal. When choosing an EOR, ensure they have a team of local experts in every country where they work. This ensures that they have a deep understanding of the country’s specific rules and regulations, how to onboard and offboard employees, how to maintain compliance and a host of other important issues.

For example, termination of employees differs in each country and not knowing the protocols can lead to expensive international legal disputes. An experienced EOR can advise you on this, helping you avoid the common errors that can result in costly penalties and fines.

An EOR can help your company grow into new markets scalably and tap into a global talent pool, saving you time and money. Download our free guide on How to Choose the Right Employer of Record for Your Business to find out how. In it, you’ll discover how to streamline HR processes, tap into a diverse global talent pool and ensure compliance when hiring remote employees.

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I am self-educated and a God-made man. I started my journey as a freelance writer and blogger. My love for literature made me delve deeper into the world of SEO and online marketing. This eventually led me to start my own company, 7star-seo-expert. I am a great believer in hard work and dedication. I believe that these are the two key ingredients to success. I am constantly striving to provide my clients with the best possible service and achieve the highest level of customer satisfaction. I am always looking for new opportunities to learn and grow.

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