Hire international employees without opening a local entity

International PEO (Professional Employer Organization) is a service that lets companies hire employees abroad without setting up a local legal entity. An international PEO provider becomes the legal employer in that country, handling employment contracts, payroll, taxes, and compliance on your behalf. International PEO services are also commonly referred to as Employer of Record (EOR) — the terms describe the same model.

In practice, very little. PEO employer of record, international HR PEO, and EOR all refer to a third-party provider that legally employs workers on your behalf in countries where you don't have a local entity. The terminology varies by region and vendor. PEO is more common in the US market, EOR is the dominant term internationally, but the underlying service is the same. At Deel, we use EOR and international PEO interchangeably.

When evaluating international PEO companies, look for owned legal entities (not third-party aggregators) in the countries you're hiring in, transparent pricing, speed to onboard, and the depth of local benefits they can offer. Deel operates owned entities across 150+ countries, with flat-rate EOR pricing and onboarding in days, not weeks.

With contractors, your company holds the contract directly and carries misclassification risk if the worker's role functions more like employment under local law. With international PEO / EOR, Deel employs the worker as a full-time employee under a locally compliant employment contract, eliminating misclassification exposure and giving the worker access to local benefits and protections.

No, that's the core value of international PEO services. Deel acts as the legal employer in each country, so you can hire full-time employees globally without incorporating locally or navigating foreign employment law on your own.

PEO umbrella is a term used primarily in the UK to describe umbrella companies, a distinct model where contractors are employed through an intermediary for tax purposes. This is different from international PEO / EOR. If you're looking to hire full-time employees abroad, international PEO or EOR is the right model. If you're specifically asking about UK umbrella company arrangements, speak to our team about the right solution for your situation.