1. What is an EOR?
An Employer of Record (EOR) is a third-party entity that hires employees on behalf of another company.
The EOR takes on the other company’s employer-related responsibilities, and ensures all contract, payroll, insurance, banking, and tax requirements are met.
EORs allow companies to compliantly employ and pay hires abroad without having to set up new offices in those other countries.
2. Why is my employment contract with a different company than the one I’m working for?
Your contract refers to three parties:
- The Employee (you)
- The Client (your company)
- The Employer (your EOR)
Your contract establishes that your EOR is hiring you on behalf of its client (your company). On paper, the EOR is your employer. However, in every meaningful sense, you work for your company.
3. I have questions about my employment contract – who do I go to?
Before your contract was sent to you, it was first reviewed and approved by the EOR’s legal teams to ensure it is fully compliant with your local laws. It was then reviewed and approved by your company to ensure it follows your company’s policies and operations.
Your company still maintains full responsibility and control over company policies, including time off, working from home, travel, expenses, performance expectations, etc. Your company also retains full power over the day-to-day operations. Any questions on these items should be discussed with your company.
For any questions on payroll, taxes, insurance, benefits, legal forms and compliance, timesheet processing, background checks, termination legalities, and other administrative items, please contact firstname.lastname@example.org.
4. Who is my employer? Who manages me from a day-to-day basis?
Although the Employer of Record is your legal employer in your country of residence, you still report to your company as you would normally.
Your manager will assign all work and tasks, and your company will make any decisions regarding your employment as it relates to salary, time-off requests, termination, etc.
Your EOR does not have any involvement in your day to day work.
5. Who supplies my benefits?
Any benefits are provided directly through your EOR. While benefit providers differ region to region, your EOR will accommodate your company’s benefit preferences.