Employer of Record (EOR) software enables businesses to hire employees in other countries without needing to establish a legal entity in those regions. These platforms facilitate the entire hiring process, from sourcing and screening to managing payroll, benefits, and compliance. Employees can use the software to request time off, complete onboarding, and perform other tasks. Although the original company directs assignments and manages performance, the EOR acts as the legal employer, assuming all associated risks and liabilities. The EOR handles crucial HR responsibilities, including benefits administration, tax management, compliance with local labor laws, and payroll processing. This solution is perfect for companies aiming to expand globally without the complexities of setting up a local entity, allowing them to hire quickly and in full compliance with international regulations.
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