Hiring across borders with an employer of record: Understanding the benefits and risks

12 October 2022
Using an employer of record is an increasingly popular solution for hiring workers internationally. It’s a quick, easy way to establish a presence in a target country, eliminating the need to set up a legal entity while meeting local payroll and benefits obligations.

The employer of record, or EOR, solution does have risks, however, and these may be underplayed by some EOR providers. It’s essential for any organisation considering an EOR to understand their benefits and limitations, and to put EOR in the context of other solutions such as establishing a legal entity. Organisations already using an EOR must understand that EORs are not designed to be permanent, don’t allow a business to engage in a full range of activities, and have other restrictions.

Our eBook summarises the challenges of hiring and paying workers across borders, including the various methods used, with an emphasis on the employer-of-record framework. Areas addressed include:

  • Options for hiring and paying workers, including using an EOR, establishing a legal entity, hiring contractors and registering as a non-resident employer
  • When, why and how to use an employer of record, including testing new markets, hiring remote workers and paying newly acquired employees after a merger or acquisition
  • How to comply with local laws and customs, including navigating permanent establishment risks and providing statutory and customary benefits
  • When to transition from an EOR to a legal entity
  • A comparison chart of options for hiring workers across borders, including relative costs, establishment timelines, risks and more

Download Vistra’s Hiring across borders with an employer of record eBook to ensure you understand the short- and long-term risks and benefits of using an EOR.


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