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Employer of Record (EoR) solutions let you hire the best people, wherever they are — without the overhead. Read our guide to find out how a trusted EoR service provider can help.
You need processes in place to compliantly engage, efficiently onboard and effectively manage your workers — all of which take time and money to put together. Plus, if you want to hire across borders, you usually need to set up a legal entity in the country you want to hire in, which is a whole other hassle to deal with.
Thankfully, there’s another solution. One which allows you to both skip the hassle and expense of setting up entities and avoid the risks associated with the contingent workforce. Read on for our full guide to our employer of record (EoR) — and why choosing the right EoR service provider is essential.
An employer of record (EoR) is a company that takes on the legal responsibility of employing workers on behalf of other organisations. A reputable EoR service provider manages payroll, taxes, benefits and HR administration — while you retain control over day-to-day operations.
That means the only difference between a worker engaged through an EoR and your direct hires is who their legal employer is.
This model is particularly beneficial not only for companies expanding into new countries without a legal entity, but also for those managing local contingent or non-permanent workers who require compliant engagement.
You need processes in place to compliantly engage, efficiently onboard and effectively manage your workers — all of which take time and money to put together. Plus, if you want to hire across borders, you usually need to set up a legal entity in the country you want to hire in, which is a whole other hassle to deal with.
Thankfully, there’s another solution. One which allows you to both skip the hassle and expense of setting up entities and avoid the risks associated with the contingent workforce. Read on for our full guide to our employer of record (EoR) — and why choosing the right EoR service provider is essential.
An employer of record (EoR) is a company that takes on the legal responsibility of employing workers on behalf of other organisations. A reputable EoR service provider manages payroll, taxes, benefits and HR administration — while you retain control over day-to-day operations.
That means the only difference between a worker engaged through an EoR and your direct hires is who their legal employer is.
This model is particularly beneficial not only for companies expanding into new countries without a legal entity, but also for those managing local contingent or non-permanent workers who require compliant engagement.
You need processes in place to compliantly engage, efficiently onboard and effectively manage your workers — all of which take time and money to put together. Plus, if you want to hire across borders, you usually need to set up a legal entity in the country you want to hire in, which is a whole other hassle to deal with.
Thankfully, there’s another solution. One which allows you to both skip the hassle and expense of setting up entities and avoid the risks associated with the contingent workforce. Read on for our full guide to our employer of record (EoR) — and why choosing the right EoR service provider is essential.
An employer of record (EoR) is a company that takes on the legal responsibility of employing workers on behalf of other organisations. A reputable EoR service provider manages payroll, taxes, benefits and HR administration — while you retain control over day-to-day operations.
That means the only difference between a worker engaged through an EoR and your direct hires is who their legal employer is.
This model is particularly beneficial not only for companies expanding into new countries without a legal entity, but also for those managing local contingent or non-permanent workers who require compliant engagement.
An EoR is the legal employer for your workforce — but operationally, they report to you and deliver services for your company.
This makes it easy to hire globally through an EoR service provider without compromising oversight or control.
EoRs take care of essential HR functions, including drafting compliant contracts, onboarding, managing benefits, and securing work visas if needed.
With an EoR service provider, you streamline operations while ensuring legal compliance.
EoRs guarantee timely, accurate, and localised payroll services.
This includes currency conversion, statutory deductions, and payslip issuance — all managed by your EoR service provider.
An EoR is ideal when you want to hire talent in new geographies without establishing a legal entity.
Use cases include:
Staffing agencies help you source talent, while EoR and AoR providers focus on legal engagement and compliance.
EoRs are for employees — assuming full legal responsibility.
AoRs are for independent contractors — ensuring they’re properly classified.
A trusted EoR service provider ensures you’re fully compliant, regardless of how you engage your workforce.
The right people for your business aren’t always on your payroll. That’s why CXC’s EoR services help you hire, manage, and pay employees — wherever they are — without legal or HR headaches. Whether you’re growing across town or across borders, we handle the compliance, so you can focus on growth. Ready to build your workforce the right way?
Deep expertise in local laws ✅
Yes, dedicated contact per client ✅
Compliance is built-in, not optional ✅
Tailored to your needs ✅
Humans, not bots ✅
Solutions are tailored ❌
Risk-first approach ✅
Proactive and preventative ✅
Extensive in-region footprint ✅
In-house/local compliance teams ✅
Consultative, long-term workforce planning ✅
Transition, expansion & restructure support ✅
Cohesive compliance & employee experience ✅
Proven model with multinationals ✅
Real-time insights aligned to client metrics ✅
Local entities and people on the ground ✅
Audit-ready, with full documentation trail ✅
❌ Limited local expertise
❌ No dedicated manager – use ticket system
⚠️ Varies by country – not always guaranteed
❌ Standardised packages
❌ Mostly chatbots or email support
✔️ Yes, but not adaptable
❌ Often prioritises cost over risk
❌ Often reactive after issues arise
⚠️ Limited or outsourced presence
⚠️ Risk managed reactively or outsourced
❌ Transactional focus – onboarding & payroll
❌ DIY – no structured change planning support
❌ Compliance-first, talent-second
⚠️ Not built for complexity
❌ Basic dashboards, often irrelevant or generic
❌ Heavy reliance on partners
⚠️ May lack enterprise audit readiness
Deep expertise in local laws ✅
❌ Limited local expertise
Yes, dedicated contact per client ✅
❌ No dedicated manager – use ticket system
Compliance is built-in, not optional ✅
⚠️ Varies by country – not always guaranteed
Tailored to your needs ✅
❌ Standardised packages
Humans, not bots ✅
❌ Mostly chatbots or email support
Solutions are tailored ❌
✔️ Yes, but not adaptable
Risk-first approach ✅
❌ Often prioritises cost over risk
Proactive and preventative ✅
❌ Often reactive after issues arise
Extensive in-region footprint ✅
⚠️ Limited or outsourced presence
In-house/local compliance teams ✅
⚠️ Risk managed reactively or outsourced
Consultative, long-term workforce planning ✅
❌ Transactional focus –onboarding & payroll
Transition, expansion & restructure support ✅
❌ DIY – no structured change planning support
Cohesive compliance & employee experience ✅
❌ Compliance-first, talent-second
Proven model with multinationals ✅
⚠️ Not built for complexity
Real-time insights aligned to client metrics ✅
❌ Basic dashboards, often irrelevant or generic
Local entities and people on the ground ✅
❌ Heavy reliance on partners
Audit-ready, with full documentation trail ✅
⚠️ May lack enterprise audit readiness
An Employer of Record (EoR) is a third-party organisation that legally employs talent on behalf of another company. Acting as the official employer in the eyes of local authorities, the EoR assumes all statutory responsibilities, including payroll, tax filings, social security contributions, employment contracts, and compliance with labour laws. Meanwhile, your business retains full control over the individual’s daily workload, performance, and outcomes.
This model is particularly beneficial not only for companies expanding into new countries without a legal entity, but also for those managing local contingent or non-permanent workers who require compliant engagement. Rather than navigating complex and time-consuming processes, an EOR service provider enables you to quickly onboard talent across regions or within your existing markets.
Whether you’re hiring international employees, supporting remote teams, or engaging freelancers locally, an EOR offers a flexible, compliant, and scalable solution that removes administrative friction and helps you stay focused on your business goals.
Using EoR solutions can dramatically simplify your approach to international hiring, allowing you to grow your workforce across borders without the usual logistical or legal complications. Partnering with a trusted EoR service provider offers several distinct advantages. First, it enables rapid market entry. You can begin operating in a new country within days, rather than the months it can take to establish a legal entity.
Secondly, it reduces legal risk by ensuring your employment practices comply with local labour laws, tax codes, and social security requirements. An EoR also takes the administrative burden off your internal HR and legal teams, handling contracts, onboarding, and payroll with precision and in line with regional standards.
In addition, it provides cost efficiency, removing the overhead associated with maintaining local entities and staff. For businesses managing seasonal projects, testing new markets, or building remote-first teams, EoR solutions provide the agility and compliance needed to scale globally, fast.
Managing international payroll and compliance is one of the most challenging aspects of global expansion. Every country has its own tax structures, reporting obligations, employee rights, and benefit regulations. A reliable EoR service provider ensures all of these variables are taken care of by acting as the legal employer in each jurisdiction.
The EoR handles the complete payroll process, ensuring accurate salary payments, tax withholdings, and local compliance with social contributions and pension schemes. Employees receive payslips in their local language and currency, while you receive centralised reporting and assurance that all statutory obligations are fulfilled.
On the compliance side, a reputable EoR will also draft legally compliant contracts tailored to each region, manage visa and work permit applications, and track regulatory changes that could affect employment. This reduces your exposure to penalties, audits, or worker misclassification risks. With an EoR, you gain peace of mind knowing that your international workforce is managed compliantly, wherever they are based.
EoR services are suitable for companies of all sizes and across various industries. While they are particularly valuable for businesses looking to expand internationally without the need to invest in legal infrastructure, they are equally beneficial for organisations managing contingent or non-permanent workers within their own country.
Startups and scale-ups often use EoRs to test new markets quickly and cost-effectively, avoiding the burden of setting up local entities. Small and medium-sized enterprises (SMEs) gain access to top talent while keeping their HR and compliance operations streamlined. Large enterprises use EoR solutions to simplify complex hiring scenarios, both globally and domestically, especially when speed and compliance are crucial.
Businesses with project-based or seasonal needs, such as those in tech, healthcare, engineering, or consultancy, can use EoR services to manage their local contingent workforce compliantly. Whether hiring globally or managing freelancers at home, a reliable EoR service provider ensures you stay agile, compliant, and in control.
Selecting the right EoR service provider is crucial for ensuring smooth global operations. First and foremost, look for a provider with extensive geographic coverage and in-depth knowledge of local employment laws. Experience across a wide range of countries will give you the flexibility to grow without limitations.
Next, assess their compliance track record. Do they conduct regular audits? How do they handle changes in local legislation? A reputable provider should be proactive in managing legal risk and transparent about their processes. Technology is another key factor. Look for EoRs that offer platforms compatible with your existing HR systems, allowing for smooth integration and real-time visibility into your global workforce.
Pricing should be clear and predictable, with no hidden fees or vague commitments. Finally, evaluate their client support. Prompt, expert guidance can make all the difference when managing employees across time zones and jurisdictions. At CXC, we check all these boxes, offering global EoR solutions built on trust, expertise, and flexibility.
Check out our Employer of Record Checklist.
In a traditional employment model, your company is fully responsible for the legal, tax and administrative requirements involved in hiring and managing staff. This includes setting up a legal entity in the relevant country, registering for payroll taxes, staying up to date with local labour laws and handling compliance and reporting obligations directly. All of these elements require significant investment in time, money and expertise.
By contrast, an Employer of Record (EoR) takes on those legal responsibilities for you. The EoR becomes the legal employer of your workers, handling all statutory duties such as payroll, benefits, taxes and contracts. You remain responsible for managing your employees’ daily tasks, performance and development.
The key benefit of working with an EoR service provider is that you can engage talent quickly and compliantly, whether you’re hiring across borders or managing a contingent workforce locally. By removing the need to set up and maintain a legal entity, EoR solutions offer a smart, low-risk option for businesses seeking speed and flexibility. Whether you’re expanding into new markets or streamlining local contractor engagement, an EoR gives you the agility to scale without the administrative or legal complexity.
Yes, EoR solutions are fully compliant with local employment laws, provided you are working with a reputable and experienced EoR service provider. The purpose of an EoR is to act as the legal employer in the host country, which means they must adhere strictly to that country’s employment legislation. This includes everything from working hours and statutory leave entitlements to payroll tax, social security contributions and termination procedures.
At CXC, we maintain compliance across more than 100 countries by working with in-country legal experts, staying on top of regulatory changes and conducting regular audits of our employment practices. We also tailor employment contracts to the legal and cultural norms of each region to ensure alignment with local standards.
For businesses operating across multiple jurisdictions, the complexity of managing compliance can be overwhelming. By partnering with an experienced EoR provider, you can minimise legal risks and focus on running your business, knowing that your workforce is engaged safely and compliantly.
While both EoR (Employer of Record) and AoR (Agent of Record) solutions help companies engage talent compliantly, they serve different purposes. An EoR is used when you are hiring contractors or employees. In this scenario, the EoR becomes the legal employer and is responsible for handling payroll, taxes, benefits, compliance and contracts on your behalf.
An AoR, on the other hand, is used when engaging independent contractors or freelancers. The AoR does not employ the worker but acts as an intermediary, ensuring that all engagements comply with relevant tax and classification laws. The AoR verifies that the contractor meets the criteria for self-employment and helps prevent misclassification risks.
Choosing between an EoR and an AoR depends on the nature of the working relationship. Use an EoR when you need structured employment with benefits and protections. Use an AoR when working with autonomous contractors who do not require employee entitlements. A trusted provider like CXC can support both models based on your needs.
An AoR (Agent of Record) is most appropriate when you are engaging independent contractors, freelancers or gig workers who operate on a self-employed basis. These individuals typically control their own schedules, use their own tools and methods and are not subject to the same level of oversight as employees. They are also not entitled to traditional employment benefits such as paid leave, pensions or health insurance.
Choosing an AoR service makes sense when you want to ensure that these workers are properly classified and that your company complies with local tax and labour laws. The AoR will help assess worker status, manage onboarding, process payments and ensure that contractors are not inadvertently misclassified as employees, which could expose your business to legal risk.
If your engagement involves greater control over the worker’s hours, output or tools, or if you wish to offer employment benefits, an EoR may be a more suitable and compliant solution.
EoR services are designed with scalability in mind, making them ideal for companies that are expanding quickly into new markets. Whether you are adding a few international employees or launching full operations in several countries at once, an EoR service provider gives you the flexibility to grow your team without needing to create legal entities or build local HR functions from scratch.
With an EoR, you can hire in multiple countries in parallel, manage onboarding remotely, and adjust headcount up or down as needed without legal complications. This is particularly useful for project-based businesses, seasonal demand, or rapid market entry. It also helps mitigate the risks of over-investing in infrastructure before a market has proven its viability.
At CXC, we offer global EoR solutions that are built to scale. Our local experts, global infrastructure and streamlined technology ensure you can expand quickly and compliantly, all while maintaining control over your workforce strategy and delivery.
The right people for your business aren’t always on your payroll. That’s why CXC’s EoR services help you hire, manage, and pay employees — wherever they are — without legal or HR headaches. Whether you’re growing across town or across borders, we handle the compliance, so you can focus on growth. Ready to build your workforce the right way? Let’s talk
If you’re looking to grow your team globally without the legal or HR complexity, we’re here to help. Contact us to see how our EoR solutions make it easy to hire, manage, and pay talent
— wherever your business takes you.