Employer of Record (EOR)/ International PEO for International Expansion Explained
What is Employer of Record (EOR)/ International PEO?
Employer of Record also known as International PEO is a global employment solution, whereby a third-party provider hires your employees on your behalf.
Companies who want to expand their businesses internationally, but do not have an entity in that country use the Employer of Record solution to hire their workers legally.
Through the EOR solution, business can hire internationally without risk and be operational in a few days without having to set up an entity.
How does Employer of Record (EOR)/ International PEO work?
The EOR becomes the legal employer and takes responsibility for the entire employment relationship. The end client company manages the day to day responsibilities, and the EOR takes care of:
- Employment Contracts
- Visa Applications
The EOR employs your workers directly on a local payroll and reports all relevant details to you as well as providing a monthly invoice.
Reasons to use Employer of Record (EOR)/ International PEO Solutions?
- Faster expansion into international markets
If a business is looking to expand and hire remote workers in different countries at the same time, then EOR solutions will help achieve this goal. EOR solutions make it easier for businesses to expand into international markets immediately in the safest and most profitable manner.
- Testing out new markets
If a business is looking to test the markets before making a long-term commitment, then EOR solutions can help. By choosing an EOR solution you can have boots on the ground quickly and compliantly without the burden of establishing a corporate entity. In addition, setting up a corporate entity in most countries can be extremely complicated, time consuming and not to mention costly. In fact, even shutting down an entity can take up to two years in some countries. Using an International PEO provider takes this issue away.
- Hiring workers after M&As
If a business has completed a recent merger and acquisition they may have acquired workers based in a country where they don’t have an entity. By choosing to use international PEO/EOR solutions you can avoid having to set up a new entity and have the workers legally employed.
- Transferring a worker to another country
If a business has a worker that is moving to another country for personal reasons, then EOR solutions will help retain the worker. Valued workers may move to other countries for personal or other reasons and if a business doesn’t have an entity in that country they risk losing their services for good. International PEO solutions allow the business to keep their worker and operate and employ in a safe and compliant way.
- Focus on core business
If a business wants to focus on core business matters without the hassle of organising payroll and HR globally, then EOR solutions can be the answer. Outsourcing non-core business activities is becoming increasingly popular, and taking away employment risk in certain jurisdictions can be very attractive.
Talk to Capital GES about Employer of Record (EOR)/ International PEO
Capital GES is an outsourced employment specialist that has been operating globally for 25 years and has helped thousands of clients achieve their goal of establishing a business presence overseas. Our team consists of dedicated international in-country specialists who are on-hand to provide round-the-clock support whenever our clients need them.
If you are thinking of expanding your business and looking to hire internationally you can contact us at email@example.com or phone +41 32 732 9700 or +1 833 972 6346 and a member of our team will be in touch.