Hire employees globally with the #1 EOR service

An employer of record (EOR) is a third-party organisation that employs and pays one or more people on behalf of your business. EOR services enable your company to hire and work with employees seamlessly, either domestically or internationally, without needing to set up your own entity or navigate complex compliance requirements in the employee’s country.

Imagine you are a UK-based company looking to employ a skilled professional who lives in Brazil. By partnering with an employer of record that has a Brazilian entity, the company can lawfully employ the Brazilian worker. The new hire works in Brazil while contributing to the UK company’s operations.

The employer of record is responsible for ensuring adherence to local labour laws and regulations, running payroll, and managing various HR and administrative tasks, thereby simplifying international employment processes.

When you use an employer of record, it becomes the legal employer for the people you hire. These employees enter into contracts with the Employer of Record rather than with your company.

You still control salaries, day-to-day duties and performance management, but the employer of record assumes the legal responsibilities for your workforce and handles all employment-related matters, such as drawing up employment contracts, administering salaries and benefits, and managing payroll tax obligations to ensure compliance with local employment law when hiring internationally.

Employer of Record services vary depending on the provider. The most comprehensive Employer of Record providers, such as Deel EOR, provide the following services:

• Legal employment of your domestic and international employees

• Creation of locally compliant employment contracts

• Background checks

• Global payroll processing and tax filing

• Employee benefits and perks administration

• Equity management

• Work visa and immigration support

• Intellectual property protection

• Equipment management

• Employee onboarding and offboarding

• Engagement tools to support remote work and distributed teams

• Contract termination

Companies don’t need an EOR partner to engage freelancers and contractors since they are categorised as independent workers and therefore don’t have employee status. As a result, a local entity is not required to process these workers’ payroll, taxes and social security contributions.

However, employers of record like Deel understand that contractors are essential to the contingent workforce, and engaging contractors incorrectly can expose the company to legal and compliance risks, such as misclassification if you fail to follow local contractor laws.

Deel provides agent of record (AOR) services for hiring and paying contractors so that you can confidently and compliantly engage contractors and manage them on the same global platform alongside your Employer of Record employees and direct employees.

An employer of record allows companies to hire part-time and full-time employees abroad without setting up their own legal entity in the new country, a process that usually takes months and requires significant financial investment. Hiring global talent through an employer of record is cost-effective and removes many regulatory obstacles to international employment.

Think of a full-service EOR as a global expansion starter kit. Instead of handling each new country on an ad-hoc basis, with Deel EOR you gain access to a fully assembled team of HR professionals, payroll and compliance experts with local expertise.

✨ Discover how Revolut outpaces its competitors in entering new markets with Deel.

Employers of record sometimes refer to themselves as global employers of record. This distinction usually arises because, while all EORs can employ individuals in a client company’s home country, not all have extensive international coverage.

By calling themselves global EORs, some service providers emphasise their ability to facilitate employment across multiple countries, highlighting a broader scope for supporting businesses with global hiring needs.

Deel has the most extensive country coverage, with EOR services in 150+ countries.

An employer of record caters to businesses aiming to build and manage a global workforce without bearing compliance liabilities. Meanwhile, a professional employer organisation (PEO) is tailored for companies seeking domestic HR services and workforce management support willing to accept a shared responsibility for any instances of non-compliance.

Unlike employers of record, who are the sole legal employers of your workers, PEOs provide co-employment services. A co-employment relationship means you and the PEO share legal liabilities and management responsibilities related to your employees. Another crucial difference is that PEOs operate locally, so you can’t hire international employees through a PEO.

See also: EOR vs. PEO: The Difference (And Why It Matters)

Companies can tap into a staffing agency’s existing talent pool to bolster their workforce, secure project support, or cover temporary positions.

Conversely, employer of record services facilitate the compliant engagement of top talent directly recruited by the client company. To leverage EOR services, your company must first identify the talent it wishes to hire and then engage them through the Employer of Record’s legal framework.

See also: How Staffing Agencies Can Guarantee a Good Employee Experience With an EOR

With Deel, we can get your new employee onboarded in as little as one day. Your new employee will be invited by email to create an account with Deel, where they will provide their personal and bank details, any required documentation and sign their new employment contract. You'll have a dedicated onboarding manager on hand to help with any questions along the way.

Each country has its own set of laws that set out the benefits that must be provided for employees. These range from health and unemployment to insurance and social security. Deel exists to ensure every employee receives all necessary localised benefits, along with any optional benefits the employer would like to provide.

Some people wonder if using an EOR means they can still grant employees equity. The short answer is 'yes', but it really depends on the country. For example, in the US, companies can issue non-qualified stock options, also known as NSOs. Since the company doesn't have a direct employment relationship (on paper) with the employee, NSOs are often the only viable option.

Handling severance and termination in line with a country’s local labour laws is crucial. These rules often vary depending on an employee’s location. Typically, however, you must always consider the proper notice period, severance payments, and the management of any accrued benefits such as unused holiday days. Deel manages the entire process to ensure everything goes smoothly.

We have the strongest intellectual property protection clauses built into our contracts. This means that any and all IP passes through to you.