← Remote Work Glossary

Employer of Record (EOR)

A third-party company that legally employs a worker in their country on behalf of another business.

An Employer of Record (EOR) lets a company hire someone in a country where it has no legal entity. The EOR becomes the official employer — running local payroll, taxes and benefits — while the worker does their job for the actual client company.

EORs are why so many companies can now hire globally: they remove the need to open a subsidiary in every country. This makes you a compliant local employee rather than a contractor.