Employer of Record (EOR)
An employer of record becomes the legal employer for a worker in a country where your company may not have its own employing entity. The provider typically handles employment contracts, payroll, taxes, statutory benefits and local employment administration while the worker performs day-to-day work for your company.
What to evaluate
- Countries and worker types in scope
- Legal employer and entity structure
- Payroll, tax, benefits and payment workflows
- Compliance ownership and escalation
- Integrations, reporting and approvals
- Pricing, implementation and contract terms
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EOR decision checklist
Use an EOR when you need an employee in a country where your company lacks an employing entity. Before choosing a provider, document the country, role, compensation, benefits, expected tenure, intellectual-property requirements, data access and likely future headcount. That makes country-specific due diligence possible instead of relying on a generic coverage claim.
Entity test
Do we already have an entity legally able to employ this person?
Worker-status test
Does the relationship require employment rather than genuine independent contracting?
Duration test
Is this a temporary market entry or a durable country presence?
Exit test
What happens if we later move the worker to our own entity?