Leave It to An EOR Company To Handle Your Legal Pressures

Advancing Your Education

Running an establishment is not an easy feat. To keep an establishment up and running, necessary and operational strategies should be implemented. Often, there are possibilities that an employer would get overwhelmed by performing administrative roles like; employment, payment of salary, insurance, etc.

However, the world is changing, and some companies have sprung up with the sole role to take up the seemingly clutching roles from employers. Companies like Employer of Records (EOR) and Professional Employment Organization (PEO) are typical examples. These companies are different in name, but their scope is almost the same.

Understanding The Difference Between EOR And PEO

EOR is global, and they take full charge by employing human capital across the globe on a company’s behalf. On the other hand, PEO enters into a collaborative relationship with the company by leasing employees to them.

Basically, this article will center on EOR, but we will have a quick run over global PEO. Your business has advantages using global PEO, and that includes;

•    They help in sourcing human capital from anywhere globally, especially if the employee is expected to work remotely.

•    They help take away the process of handling legal issues. PEO service can offer legal advice in situations that require the interference of a legal expert. They help mitigate legal risks.

What is EOR?

An EOR simply means Employer of Records. It is an organization established essentially to take up the legal responsibility of hiring and other legal pressures from the employer.

Questions to Ask Yourself Before Choosing an EOR Company

•    Do they work at the same frequency you require?

•    Do they have a history of similar performance with other establishments?

•    Is their service rate affordable?

•     Do they have a recorded antecedent of such practice required of them?

How EOR handles Your Company’s Pressures

Apart from the legal responsibility of hiring, an EOR company also handles the company’s activities bordered around; taxes, payment of employees, insurance, termination of appointment, etc.

EOR primarily focuses on handling matters that might be downright stressful for an organization.

EOR relieves the burden of recruiting new employees. However, they do not execute any role in the company’s day-to-day running.

When an EOR company takes up the responsibilities mentioned above, they automatically become the legal employer of its employees in question.

Similarly, EOR companies possess the skill required to tackle challenges that might arise in the process of expansion by a company. Outsourcing the services of an EOR company would be an effort aimed in the right direction.

For companies seeking global expansion, the idea of expansion might be met with different levels of constraints in the targeted host countries. In the process of expansion, the service of a professional will be required to navigate the foreign policies and regulations, local tax laws, etc.

In order not to fall short of these laws and policies, an EOR company can be outsourced for the role of combating the constraints that might arise. The EOR, as a body of experts, will establish the company’s business plan by finding leverage that synergizes with the market of the new host countries.

Advantages of Employer of Record (EOR)

•    They serve as an intermediary between the employee, host country, and government authorities. They find out more about the host country’s employment laws and make it their point of duty to curb any deviation that could attract sanctions from the host country’s government.

•    It helps the employer hasten upon other operational functions. When EOR has taken up the legal roles, the employer will have enough time to focus on other operational functions, saving time.

•    They help create a balance between the company and the host country’s business laws and policies. They make sure the company operates at par with the rules and regulations of the host country.


EOR is majorly established to cater to legal pressures like; employment, legal compliance, payroll, insurance, taxes, etc., on behalf of a company.

When the roles mentioned above are outsourced to an EOR service, such EOR company becomes the legal employer of the employees. They take care of every task of a company except the daily running of an establishment.

The EOR companies sort all the unraveling constraints as a professional, and there is no need to worry over them. Although the scope of PEO and EOR are similar, the distinguishing attribute between them is that; PEO is the professional employer of their client’s employees while EOR is the legal employer of their client’s employees.


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