What is Employer of Record and how does it make international hiring easier
Hiring global talent sounds exciting. Until you hit the first barrier. Taxes. Payroll registrations. Work permits. Local contracts. Suddenly what should take three weeks turns into six months. That is where an Employer of Record comes in.
What is EOR
An Employer of Record (EOR) is a legal entity that hires talent on your behalf in a foreign country. They handle the full employment lifecycle.
Contracts. Payroll. Taxes. Statutory benefits. HR file. Compliance. All under one roof.
You remain in control of the work. They take care of the legal employer responsibilities.
Why companies choose EOR
Most fast growing teams do not hesitate on talent. They hesitate on risk.
Typical blockers:
- “We cannot hire until we register in that country.”
- “We do not understand employment rights there.”
- “Our finance team cannot manage payroll in multiple currencies.”
- “We do not know how long visa or work permit applications take.”
These thoughts slow down growth. EOR will help you to move quickly forward.
What EOR actually solves
Speed. Without EOR, you must set up a legal entity. This process can take 3 to 12 months, depending on the country. With EOR, your new hire can legally start within days.
Compliance. Every country has unique rules. Termination periods. Public holidays. Sick leave. Probation rights. Misaligning any of these can lead to fines. EOR will minimize this risk.
Payroll and benefits. Employees expect local experience. Right benefits. Paid on time. Right payslips. EOR provides a full compliant experience to talent.
Employee confidence. Top candidates want stability. If you pay talent as a “fake contractor” or send a generic English contract, this can result in a lack of confidence. EOR shows that you care about doing things right and being fully compliant.
When EOR is the right choice
Use EOR when:
- You want to test a new market before fully expanding
- You want to hire 1 to 15 people across multiple countries
- You are scaling fast and entity setup would slow you down
- You do not have internal HR or payroll capacity in new regions
When you might need an entity instead
If you plan to hire over 15 or more people in one country, or build physical infrastructure, setting up an entity can make sense later and being more cost effective. Many companies choose EOR as Phase 1 and entity setup as Phase 2.
How Parakar helps
We act as local HR partners. Instead of templates or chatbots, you get real specialists per country. We guide you through employment classification, salary benchmarks and onboarding so that every hire feels like a natural part of your team.
If you want to hire internationally without admin overload, explore what EOR could look like for your next hire. Our local experts can walk you through it in a short call.
