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Pradeep Chavan
Is Employer Of Record Legal?
Before expanding their operations in a country, companies often wonder whether it is legal to use the services of an employer of record (EOR) in that country. It is legal to go through an EOR to hire employees in many countries, like the US, the UK, India, etc. But, to be legal, an employer of record has to follow different rules in different countries.
If your business wants to hire employees in a foreign country without setting up a local entity, you can use the services of an Employer of Record (EOR).
An EOR hires employees on your behalf, while you manage the day-to-day work of those employees.
Meanwhile, an EOR handles everything related to payroll & taxes, employment contracts, compliance with local labour laws, etc.
In many countries, it is legal to use an employer of record’s services to hire a talented workforce. That said, to be legal, an employer of record must comply with several laws.
Such laws can vary from country to country.
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