Employer of record (EOR)

Advanced 👥 Human Resources

Definition

A third-party organization that legally employs staff on behalf of another company, handling payroll, benefits, and compliance. When you want employees but don't want the legal responsibility of actually employing them.

Example Usage

We're using an EOR to hire contractors in India, which simplifies payroll and ensures local compliance.

Origin

Became prevalent in the 2000s with globalization and remote work expansion

Fun Fact

The EOR industry grew 45% in 2023 as companies sought to expand internationally without setting up local entities.

Source: Global HR and employment compliance

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