What Is an Employer of Record?

An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company. In this arrangement, the employee of record is officially hired by the EOR, while the client company retains full control over the employee’s day-to-day responsibilities, performance, and business outcomes.

In simple terms, the employer of record meaning refers to a legal structure where employment responsibilities are outsourced, allowing companies to hire talent without setting up a local entity.

Employer of Record by Country

Employer of Record regulations vary by jurisdiction.

Frequently Asked Questions About Employer of Record

What is an Employer of Record (EOR)?

An Employer of Record is a third-party organization that legally employs workers on behalf of another company.

What is an employee of record?

An employee of record is a worker legally employed by the EOR, not directly by the client company.

What are employer of record services?

Employer of record services include payroll, compliance, contracts, and HR administration handled by the EOR.