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Insured for over 10 million euros
What is an Employer of Record (EOR)?
The EOR is an “umbrella company” that, by virtue of a business agreement with a client company, legally hires the client company’s employees or candidates and assumes responsibility for managing all aspects of the employment contract, such as managing the payroll and paying statutory contributions resulting from registration with tax and social security authorities to ensure fully compliant cross-border employment.
Using an EOR in the context of an immigration process
Using an EOR can be advantageous for companies that want to expand their presence in new foreign markets without, however, establishing their own branch or representative office in the target country.
The use of an EOR becomes essential where the client company wants to assign their own worker to a foreign country to perform work for extended periods but without having a corporate presence in that country.
In fact, from an immigration standpoint, the company is required to obtain the appropriate visas and work permits for its workers assigned abroad streamlining complex international mobility procedures.
How to optimize and use an Employer of Record
- Flexibility: it provides flexibility to companies by allowing them to send their staff to foreign countries without having to establish a corporate presence in that country
- Cost reduction: flexibility leads to reducing the operational costs of having to start a new company in a foreign country
- Less risks: minimizes risks as the legal responsibilities associated with the proper employment of personnel in the destination country remain with the EOR supporting secure and sustainable global expansion strategies.
