EOR (Employer of Record)
An employer of record generally hires a worker through the EOR’s local entity and assigns that worker to provide services to the customer.
An EOR signs the local employment agreement and administers payroll and statutory employment functions under a services contract with the customer. The customer directs the work, while the agreements allocate employment decisions, intellectual property, confidentiality, termination, and indemnification.
An EOR does not automatically remove every registration, tax-nexus, permanent-establishment, licensing, privacy, or worker-classification duty for the customer. Compare the EOR with local entity formation using legal and tax advice for the jurisdiction.