What are the Responsibilities of an EOR?

The specific tasks undertaken by an Employer of Record (EOR) can vary depending on the service and location. Here are a few key responsibilities typically handled by an EOR:

1. Ensuring Compliance with Local Employment Laws:
An EOR assists and advises businesses in ensuring that their employees are hired in compliance with the local employment regulations in each country or jurisdiction. They also provide legally compliant employment contracts. Since the EOR serves as the official employer, the business can have confidence that all legal requirements are being met.

2. Facilitating New Employee Onboarding:
When a business recruits a new team member, the EOR takes charge of the onboarding process. This involves managing the employment agreement and establishing the necessary procedures for the new employee to seamlessly integrate into the company.

3. Managing International Payroll:
The EOR assumes responsibility for handling payroll and local tax matters for both employees and the employer, especially in cases involving international operations. Team members are paid by and receive their payslips from the EOR, streamlining the payroll process.

4. Administering Compensation and Benefits:
EORs frequently provide a range of benefits, although the specific offerings may differ among providers. These benefits encompass health insurance, vacation policies, parental leave, and more.

5. Handling Contract Terminations:
In cases where an employee's contract is terminated, the EOR manages all the essential aspects of the process.