Employer of Record Switch: 7 Strategies for a Successful Transition

Navigating the complex process of switching your Employer of Record (EOR) provider can feel like an overwhelming challenge, especially when managing a global workforce.

Many organizations initially engage multiple EOR providers to support international hiring, but over time this model often leads to vendor sprawl, fragmented processes, and increased operational complexity.

Through extensive experience supporting global workforces across 150+ countries, Deel has seen how a more consolidated EOR approach can strengthen governance, reduce compliance exposure, and deliver a more consistent employee experience across regions.

This blog will outline essential strategies for planning and executing a seamless EOR transition, whether it’s preparing teams, aligning processes, or ensuring legal compliance.

With thoughtful preparation and Deel’s expert guidance, your transition can result in a centralized, efficient global hiring system, improving total cost of ownership and ensuring operational continuity.

Define roles and responsibilities of key stakeholders

The EOR transfer process typically involves multiple stakeholders. This includes current providers, the new provider, and internal stakeholders across your company departments.

Identifying all the key stakeholders and assigning them clear roles and responsibilities enables streamlined coordination. The table below gives an overview of each department’s typical role in an EOR transfer:

Give each task a clear objective and measurable outcome so everyone knows when it is successfully completed. For instance, you might set a goal that all HR staff need to be trained on how to use the new system. You could aim to have 90% of personnel take a course by a certain date.

In case issues arise, designate a contact person for everyone involved in the transfer process. These people can either help find a resolution or bring the problem to your attention.

Finally, check that everyone has the tools and resources required to complete their tasks. Since they’re still handling their regular duties, time may be a particular concern. Make sure assignments aren’t competing with other business priorities in their schedule before you assign them.

Plan your system transfer timeline

The system transfer phase is a high-risk period that requires disciplined planning and execution. Delays can disrupt payroll cycles, increase compliance exposure, and undermine employee trust if wages are not delivered on time.

Working with an EOR provider such as Deel supports a structured transition approach. Deel provides implementation guidance and a defined transfer timeline, supported by a dedicated project manager who oversees scope, milestones, and dependencies—ensuring teams maintain clarity and control throughout the transition.

The project manager will help scope suitable transition dates, take into account current notice periods for your active workers, align with you on changes to benefits that all stakeholders must be aware of, and ensure that all contract modifications needed for your population of workers are successfully made to ensure a seamless transition.

Here’s an overview of all the stages in an EOR transfer and the projects your team needs to manage:

Develop a system to collect all required documentation

Although EOR providers can help gather information, the client carries most of this responsibility. You have direct access to the data, so you’re in the best position to collect and verify it.

In many cases, data privacy laws prevent EOR providers from going into the system and accessing and transferring employee records. You may also have a clause in your employment contract. Giving the provider direct access could cause compliance issues and lead to a fine.

Developing a system for collecting the information can streamline the process. You can have all the essential documents upfront and ensure nothing gets overlooked. That way, you avoid wasting time going between all the different teams to retrieve documents or confirm details.

Here are some pointers on how to get systematic:

• Ask the new EOR provider for a comprehensive checklist
• Establish deadlines for each document
• Provide clear details on how to submit information (with examples and images)
• Use a secure, centralized platform to collect all the data
• Send reminders when deadlines are approaching
• Arrange a review of all the files once they’ve been collected

Leading EOR providers offer guidance and support throughout this stage, even when they can’t directly assist. For example, Deel provides all new customers with a form for employee details. We use these to generate all the employment contracts on our platform.

Proactively inform your workforce about benefit changes

When switching EOR providers, you essentially transfer your entire team to a new legal employer. While your provider should help maintain operational continuity, employees will inevitably experience changes to their benefits plans.

It’s normal for employees to be concerned about these changes. A recent SHRM survey found most workers see benefits as an extremely important part of their jobs. They may worry about how the plans compare and whether they’ve lost any coverage. Some may be stressed about making sure they choose the right plans.

You may be unable to give employees the full picture until you’re ready to distribute the new EOR contracts. However, you can tell them what to expect and explain the advantages of the new provider. As you finalize more details, you can keep them updated.

Your new EOR provider should be able to help. Deel provides comprehensive resources about the mandatory benefits in each country and what plans they offer. Once you’ve onboarded employees, they can also explore their options via the self-service portal. There they can get details about all the available plans and self-enroll.

Bonus: Proactively informing your workforce about benefits changes positively influences employee satisfaction. Research shows that 76% of workers who understand their benefits are happy with their jobs (versus 47% who don’t).

See also: How to Communicate Benefits Changes When Switching Employers of Record (EOR)

Account for a PTO grace period

You can’t carry over PTO accruals from a previous EOR contract. Therefore, employees may need to use their remaining time off before the end of their current contracts. Careful planning is required to minimize the negative impact on both employees and the company.

If possible, offer employees a lengthy grace period in which to use their remaining PTO. Teams can stick to their original vacation plans and won’t feel rushed by the company. There’s also no risk of them losing this benefit.

Meanwhile, your business won’t suffer financial repercussions. You won’t need to consider paying unused PTO at the end of the contract or adding those days to the next contract.

Sometimes, a long notice period isn’t possible. Consider which of the following strategies ensures fairness without incurring heavy costs for your company:

• Give employees a choice between taking PTO early or accepting a payout
• Add the days to their balance at the start of the new contract
• Convert any remaining PTO into extra compensation
• Incentivize employees to take time off before the current contract ends
• Offer an accelerated PTO accrual rate with the new EOR provider

The ideal solution depends on your specific situation. For example, the dates may play an important role in your decision. If you’re primarily based in Europe and intend to switch EOR providers in May, employees are unlikely to have used much of their PTO with the coming summer holidays.

Maintain feedback channels to support change management

Providing timely updates and accessible support to your workforce will help workers embrace the new EOR provider and contribute to a seamless transition.

Begin with a coordinated, organization-wide announcement outlining the scope, timeline, and implications of the EOR transfer. Clearly identify official communication channels and support resources where employees can raise questions or concerns, such as designated Slack or Teams channels monitored by HR and project leads.

Maintain these channels throughout the transition to collect feedback, monitor employee sentiment, and surface operational issues early. Providing options for anonymous feedback further supports candid input and enables teams to address risks or gaps before they impact payroll, compliance, or employee experience.

The EOR can help communicate the changes and demonstrate the new platform. For example, Deel offers:

• Calls with regional HR and Payroll managers
• Calls with the regional legal counsel to clarify any concerns coming from the employees and how the transition will affect them
• Customized employee resources specific to their country and needs
• Live demos
• Training sessions
• Help guides
• Video tutorials
• Webinars
• Survey tools

Leading providers like Deel even handle direct inquiries from your team. If workers have a complex work arrangement, they may need niche local expertise and guidance you can’t provide. Deel has hundreds of legal, accounting, and immigration experts from over 150+ countries who can advise them. We also have a 24/7 live chat so workers in any time zone can contact us about their issues.

Employee onboarding is another critical juncture in the transfer process. You can minimize the uncertainty by showing employees how to use the new platform and navigate the features. Deel has integrated this into our EOR solution with our automated workflows. Every user receives an email welcoming them to our service and gets led through all the necessary steps to create an account, view their details, and re-enroll in benefits. Our experts are also on hand to provide assistance if necessary.

Evaluate the EOR’s transfer process and customer success

Knowing what to expect from the transfer process makes it easier to plan and prepare successfully. You can learn which resources are available and what assistance you can receive. Likewise, you can understand where you need to take responsibility and why.

Your EOR provider should explore their transfer process in detail during your initial call. As every business has different needs, there may be some requirements they haven’t anticipated. Ask whether the provider can customize the solution to your organization and provide support for any unique challenges.

A truly effective EOR provider welcomes requests and feedback at any point in the transfer. Deel actively encourages our new customers to share their insights so we can improve our processes.

Hearing this information from a neutral third party can help you build confidence in your new EOR provider. Your provider should be able to supply testimonials and case studies from their existing customers. For a totally unbiased look, you can usually find ratings and reviews by searching online. Look for concrete figures that demonstrate your EOR provider has successfully managed a transfer and instantly had a positive impact on businesses.

Execute a controlled Employer of Record transfer with Deel

An EOR provider should operate as a strategic execution partner, aligned to your objectives and accountable for delivery, especially during transition. Early decisions set the foundation for governance, continuity, and long-term scalability.

Deel brings deep experience supporting EOR transitions at scale, having guided hundreds of organizations through provider changes and employee migrations. That foundation enables customers to operate confidently from day one and sustain momentum as their global workforce evolves.

With Deel EOR, you can expect the following in over 150+ countries:

• A dedicated project manager throughout the transition
• A kick-off call to discuss the project timeline
• Weekly check-ins and HR consults
• Automated workflows to onboard employees
• White glove onboarding experience
• Country-specific document review and management
• A self-service portal so teams can check their benefits
• Localized support teams for global workers
• Built-in visa and immigration services
• 24/7 live chat app in 13 languages
• Expert IT assistance with data transfers and storage

Book a call with the Deel team to learn about our EOR service.

Disclaimer
This article is designed to provide a general overview of the process for the people involved in transitioning employees from a previous Employer of Record (EOR) vendor to our services. While the steps outlined here can serve as a helpful framework for many countries, it is essential to recognize that specific legal, regulatory, and procedural requirements vary significantly across jurisdictions.

Due to these variations, each employee must be reviewed on a country-specific basis to ensure full compliance with local laws and regulations. The information contained in this guide is for general informational purposes only and may not be applicable or accurate in all countries. It should not be interpreted as legal advice, nor should it replace consultation with qualified legal or compliance professionals.

Please note that we disclaim any liability or any direct, indirect, or consequential damages that may arise from the use of this guide or any actions taken based on the information provided herein.

We strongly advise consulting with our legal and HR experts who are knowledgeable about the specific requirements of each country involved in the transfer. This will help ensure a smooth and compliant transition in every jurisdiction.