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What is an Employer of Record?

What is an Employer of Record?

If you are looking for ways to upgrade your operating model by employing workers in a remote location, then it’s time to expand into the fields of Employer of Record (EOR). Not only it comes in handy when you are trying to go international, but it can also be used to advance your business.

The main task of the Employer of Record is to help you overcome regulatory and cost hurdles. As a non-resident company, you will face various obstacles trying to meet local rules and regulations.

EOR is an alternative method of employment. It’s a company or organization that fulfills the role of intermediary between you and your remote employee. Employer of Record is legally responsible for payrolls, taxes, insurance and any operations concerning human resources.

Comprehensive knowledge of local payroll regulations and employment laws is vital if you want to enter the market. Without it, you will be unable to create a sufficient global payroll strategy. International EOR is an excellent employment solution which undertakes this significant commitment.

Why partner with EOR?


One of the main reasons companies partner up with Employer of Record is a convincing cost reduction. Here is why:

  • You don’t spend time and money on HR. EOR has years of experience in recruiting, training and managing various staff. They will be able to provide you with the best options available on the market, especially if you are looking for candidates from another country.
  • You don’t need to worry about staff training and to provide a working space. Office expenses, soft and hardware can all cost a pretty penny.
  • Save money on salary difference. You will be able to make competitive job offers and get the best cost-benefit ratio, while still saving.
  • A contact with EOR gives you full access to the local job market and at the same time relieves you of HR and managing duties.

2.Easy international expansion

Expanding your business has never been easy. However, international expansion is a whole new level of “hard.” If a company decides to establish a branch in a new country, the first step is setting up a local entity via incorporation and registration.  It requires skilled and what is more critical – local legal support to ensure compliance with the law. Imagine spending time and money to realize that it doesn’t work for you. EOR is a safe way to test the waters. Enter the market on the dot without serious investment to see how it goes within your business model.

  • You don’t need to register officially to try it out. It is an entirely legal way of expansion that avoids endless paperwork.
  • You have local expertise to comply with all the employment and tax laws.
  • You get professional employees and everything required to conduct your business.

3. Be on top of your core business

Working with EOR makes business more manageable. You get a seasoned partner who administrates your staff for you. Depending on the model of your collaboration it’s liabilities may include:

  • Recruitment
  • Payroll and health benefits
  • Tax compliance
  • Health insurance
  • Unemployment liabilities
  • Office management

Leaving all these to EOR you will enable you to focus on your core task. Improve your business model, increase efficiency or work on the further business expansion. Additionally, redirect saved resources to marketing and customer support to increase revenue.

4.Tax compliance

Companies often struggle with foreign payroll regulations and employment laws. Together with payrolls Employer of Record manages all aspects of locally required taxes and benefits. As a local company, it has up-to-date information and daily follow-ups. That means you don’t need to spend time and money on studying local laws to comply with all the employment and tax legislation. Moreover, there is no need for you to worry about compliance at all since you don’t bear any responsibilities regarding these employees.

Certain contracts allow paying a single monthly invoice in USD for all assigned employees. In addition to other benefits, you get a global payroll solution.

What we offer

Direct EOR model is a pre-made solution for our international partners. Our team of professionals will take responsibility for the numerous processes required to employ workers abroad:

  • our in-house lawyers handle local regulations and ensure complete compliance with the law;
  • you get a personalized global payroll strategy, developed by our accounting experts aligned with local tax code;
  • our HR specialists provide you with the best employees to fit your global workforce. 

Zelh ensures that there are no issues with local authorities and provide the most cost-effective means for international deployment. EOR has become a win-win solution for doing business abroad.