What is an EOR? In addition to a global HR role, what else can it provide?

An employer of record (EOR) is a third-party provider that assumes legal responsibility for employment-related matters on behalf of another organization. This can include managing payroll, regulatory compliance, and other administrative tasks1. The EOR can be located in the same country as the business it serves or in a different country with distinct employment laws.

Currently, there are 3 types of employer of record (EOR) service providers:

Direct EOR: Direct EOR service providers establish entities in the countries where the employees are hired, and they directly offer services to clients without involving any third-party vendors.

Indirect EOR: Indirect EOR service providers do not establish entities in the countries where the employees are located. While they can still offer EOR services, they rely on local human resources, tax, accounting, and legal service providers to manage their services and ensure compliance.

Hybrid EOR: Hybrid EOR service providers offer a mix of direct and indirect EOR services to clients.

What services do employer of record (EOR) companies provide?

In the country where you are expanding, an EOR company hires employees through a local entity and assumes legal risk on your behalf. As a lawful employer, an EOR company can be responsible for:

• Visa, immigration, and work permit
• Local compliant payroll and tax
• Suggestions on local customs and culture
• Benefits management
• Compliance with local labor law.

Why do we use an employer of record (EOR) service?

When a company starts to mature and wants to expand globally, many may still believe that the only way to achieve this goal is by establishing their own entity overseas. However, the process of setting up a physical company is time-consuming, especially in Europe, Latin America, and some parts of the Asia-Pacific region, where it can take between 6 to 12 months. During this time, clients are unable to directly hire local employees, making it difficult to expand their business and resulting in missed market opportunities.

Establishing a legal entity in the form of an overseas branch or foreign subsidiary involves compliance, which means registering the company with the local government, having sufficient capital to open a local bank account, and having a team of legal, human resources, and financial experts to ensure ongoing compliance with local laws and regulations. This process puts a strain on a company's overall resources.

Using an employer of record (EOR) service helps companies save time and costs. EOR services have the flexibility and agility to provide professional cross-border personnel representation. HR experts are familiar with the differences in business communication and multilingual workplace cultures in various countries. They can provide comprehensive advice and personnel representation services, helping companies quickly establish operations overseas and improve their market competitiveness.

What is the connection between Epay and EOR?

As one of the essential services provided by an employer of record (EOR), salary disbursement requires the use of a third-party payment platform to enable them to make global currency payments. Global payroll disbursement is one of Epay's main functions, primarily serving remittance companies, labor dispatch companies, and employers of record(EOR) platforms worldwide. Epay stands out by offering the fastest and most advantageous prices for transferring funds to local bank accounts in various recipient countries worldwide. Currently, it supports payments in over 80 currencies.

By establishing a salary disbursement partnership with Epay, an employer of record can compensate for the lack of payment capabilities in a specific global region or reduce payment costs on a global scale, thus improving the overall salary system.

In summary, an employer of record (EOR) is an indispensable and important partner for companies seeking to explore new markets and pursue new development opportunities overseas. With the services provided by an employer of record, companies can build their teams overseas in the shortest possible time.