Employer of Record Services in Europe
Employer of Record service (EOR), also known as Professional Employment Organisation (PEO) or Global Workforce Solution (GWS), is a way of helping international companies to reach skilled and cost-efficient talent in countries where they do not have a legal entity.
In short, Employer of Record is a third party who comes into the middle of the company and remote workers employment relationship and acts as the legal employer of the employees in the country where the remote team performs the work.
The EOR service is the most cost-effective and compliant solution for hiring internationally rather than setting up a branch or a company, even a representative office overseas. It allows companies to access high-skilled and top talent in foreign countries at relatively lower rates.
EOR goes better for temporary assignments, short or long-term projects, for exploring new markets, or facilitating acquisitions.
EOR works best for hiring IT and digital professionals, remote sales agents, client support specialists, drivers, consultants, online teachers, back-office experts, and many other individuals working in industries whose work can be done from a computer with internet access.
What are EOR benefits?
There are plenty of benefits for a company to use EOR for hiring internationally. Almost all come to the term efficiency, in time, money, and people. With EOR you get efficiency in all of them while neutralizing the risk of non-compliance in any way.
No need for a company setup, no fixed admin costs attached, cancel anytime
EOR is the best option for exploring new markets, for finding the right people for temporary assignments, and it does work great especially when you want to cut fixed costs with high salaries in your country by hiring overseas the needed expert more accessible, and most of the time, more skilled.
No immigration, tax, or payroll compliance risk
When working with an EOR provider you forget about work permit and visa requirements from the immigration authorities, tax regulations, fiscal controls, labor law updates to follow, not to mention the special treatment of different employee allowances and compensations in different countries for tax at source.
Full focus on the core activities and results, for you and your employees
With EOR you gain the possibility of fully focusing on the core business activities while not concentrating on repetitive and consuming administration tasks.
Even though many companies hire international workers as subcontractors, this method puts on employees’ shoulders a huge responsibility of handling their own accounting, taxes, and bank.
The vast majority of them lack competency in doing this and pay for outsourcing services, a cost that remains on them. Moreover, as in many jurisdictions, there is not yet a legal form for subcontractors or freelancers to do their activity, the most common option for them to activate is to open a limited liability company.
High costs with company incorporation and monthly maintenance are often the reason they would rather work for a local company at the same net amount, as besides money and time this costs them stress and health.
How does EOR work?
As an EOR provider, we put at your disposal our legal entity so you can use it to hire people. This will save you from the most time and money-consuming work of incorporating the company (bank account, tax, legal documentation, accounting set-up, juridical address, and office space), and it has everything in place to employ and pay local workers you found.
When offering EOR support, we not only hire people on your behalf, but you can be confident in our expertise and commitment to complying with all payroll and labor laws in the country.
Our main responsibilities as an Employer of Record are:
Becoming the legal employer of your employees
Engaging directly with the worker, handling the employment agreement and all needed employment documentation
Running all administrative activities and payroll (calculations, monthly declarations, payments of salaries, and taxes
Ensuring full compliance with local labor law and tax regulations
Supporting local employees’ HR and labor needs
Purchasing and providing employees with all equipment needed for work
In addition to the above, we will act as your employer brand ambassador in building strong relationships and interaction between people we employ for you.
We know how important is this for remote workers, this is why we also can:
Offer to employees possibility to work from office
Organize team meetings, team buildings, and offsites
Provide mentoring and enroll in personal and professional development courses
Organize for them access to different kinds of benefits, such as gym, food, sport and other recreational and socialization activities