Understanding the Role of Employer of Record (EOR) Services

Employer of Record (EOR) services enables businesses to legally employ full-time workers in different countries, states, or provinces by managing local legal requirements on behalf of the client company. Without an EOR services provider, businesses are limited to employing workers only within their headquarters’ region, with few exceptions. For instance, larger enterprises might establish local legal entities to hire workers in various locations, but this can be costly and time-consuming, especially across multiple countries. Traditionally, high costs have restricted global workforce hiring to well-funded businesses.

EOR services offer companies of all sizes access to global talent without the need to establish legal entities in each location. If you wish to hire in a location where you lack a legal entity (and want to avoid the significant effort of establishing one), an EOR is essential.

How will working with EOR services be beneficial for your business?

To address the challenge of an international hire effectively, utilising EOR services offers compelling advantages:

  • Simplified Global Hiring: Engaging an EOR eliminates the need to navigate complex legal processes and regulations in foreign jurisdictions. The EOR manages all local employment requirements, streamlining the hiring process.
  • Efficient and Cost-Effective Solution: Establishing a legal entity in another country requires significant time, resources, and expertise. By partnering with an EOR, you bypass these challenges and associated costs, allowing you to focus resources on core business activities.
  • Regulatory Compliance: International employment laws can be intricate, especially when dealing with multiple countries. An EOR specialises in understanding and ensuring compliance with local regulations related to employment, payroll, and benefits.
  • Access to Global Talent: EOR services expand your talent pool by enabling you to recruit and employ talent from anywhere in the world, regardless of your company’s geographic location.
  • Focus on Strategic Objectives: For companies focused on product development, customer service, or market expansion, leveraging an EOR allows you to concentrate on core business objectives without being burdened by administrative complexities associated with international hiring.
PEO/EOR Calculation

Try Out Links’ EOR Cost Calculator Now and Get an Estimate Cost on the Employee You Want to Hire!

Are your employees hired under you or under the EOR? Who do they work for?

Officially, your employees are employed by your Employer of Record (EOR) in their local region. However, in practice, they work directly for you.

Your EOR offers outsourced HR services for employees located outside your home region. Rather than hiring your own legal, accounting, payroll, and other professional services, you rely on your EOR to manage these aspects on your behalf. While international or out-of-state employees receive their paychecks from the EOR, they operate within your company just like your domestic employees.

When choosing an EOR, it’s crucial to consider more than just payroll and benefits management; the employee experience is equally important. A reputable EOR ensures that your distributed team members feel integrated and valued within your cohesive team, not like secondary staff.

Additionally, inquire about the protection of your intellectual property (IP) and invention rights. EORs with robust partner networks in their covered regions can safeguard the IP created by your employees. At Remote, we prioritize the protection of our clients’ IP and invention rights through exclusive relationships with providers in all our covered areas.

Still got questions on what an EOR does? Contact us today! With 25 years of HR experience in Asia, Links offers comprehensive in-country EOR services, ensuring a streamlined onboarding process for individuals anywhere in just 48 hours! Grow your international workforce with Links Asia’s specialised secondment and sourcing solutions.

For detailed information on everything you need to know about hiring in Singapore, including minimum wages, important considerations when hiring new employees, termination of employment, and more, check out our Guide to Hiring in Singapore.

Related articles:

  1. The Right Way to Use an Employer of Record in Singapore
  2. Singapore Employment Pass Update: Comprehensive Guide to COMPASS
  3. How HR teams in Singapore’s retail industry outsource payroll to have better jobs?
  4. What is Singapore Skills Development Levy (SDL)? Complete Calculation Guide of SDL