Employer of record structure

Introduction to employers of record

An employer of record (EOR) (sometimes also referred to as a professional employer organisation (PEO)) is a third-party service provider that enters into arrangements whereby it becomes the legal employer of the workers of an end user (End User) and therefore assumes many of the employment-related responsibilities on behalf of that End User (such as payroll, compliance and deducting and accounting for tax) in relation to those workers. The services of those workers are then provided to the End User, who typically supervises their performance of their work duties in the same way as it would for its own employees. This arrangement is usually achieved by means of an agreement between the EOR and the relevant End User, alongside an employment contract between the EOR and the relevant worker.

The benefit of this approach for an End User is that it can engage an overseas worker in a manner which ensures that all local legal, tax and regulatory requirements