What is an employer of record (EOR)
An Employer of Record (EOR) is an outside party that becomes the legal employer of an employee while the work is actually performed for another company. This means the EOR is responsible for administrative matters such as salary payments, taxes and employment contracts.
1. Legal employer:
An Employer of Record (EOR) assumes legal responsibility for an employee, including drafting the employment contract and complying with labor laws.
2. Administration and benefits:
The EOR manages administrative tasks such as salary payments, tax deductions, social security contributions and provides benefits such as insurance and pensions.
3. Employee works for other company:
Although the ERA is the legal employer, the employee works for the company that hired them, and performs the work according to the agreements with that company.
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