Whitepaper – Beyond Employer of Record
When it comes to employing workers abroad and expanding your services, one of the options that often comes to mind is the use of an Employer of Record (EOR) service. EOR services offer a convenient way to navigate the complexities of international employment by taking care of tasks like payroll, taxes, and legal compliance on your behalf. However, it’s important to note that EOR services are not the only solution available, and they do come with certain limitations and considerations.
- Some important limitations to be aware of are:
- Compliance issues in certain countries.
- Forced maximum duration of contracts.
- Limitations on regulated professions.
- Restricted benefits.
- Cost inefficiency with larger teams.
In addition to EOR services, another viable solution for employing abroad and expanding your service is Employment Process Outsourcing (EPO). With EPO, companies get comprehensive support in setting up their own legal entity. After which companies can select from a wide range of HR outsourcing services based on their personal needs. Therefore creating a more robust framework and reducing potential conflicts due to regulatory gaps in the Employer of Record model. With EPO, companies gain more control and ownership over their expansion. This approach gives companies more power to manage their global operations, reduce risks and make their expansion efforts more efficient.