Employer of Record (EOR) Model Explained

WorkMotion is a service provider (Employer of Record - EOR) that manages the legal, HR, tax, and local compliance responsibilities of your talent in any country where you don’t have your own legal entity. An EOR hires, onboard, and pays your talent on your behalf.

The EOR is the legal employer while you, the client, will look after the day-to-day management of the employees.

In other words, you as the client decide on who to hire, how to compensate, what work to perform, and when to terminate. The EOR is your HR service that helps keep your business compliant with local laws in the country, where your talent lives and works.

Let’s assume you want to:

  • expand into 🇫🇷France
  • hire developers in 🇺🇦Ukraine and 🇵🇱Poland, and
  • have a sourcing manager in 🇨🇳China.

That's 4 different countries, with completely different labor laws, work contract regulations, HR processes, payroll difficulties, and compliance risks.

In that case, you simply provide the EOR with information about who you want to hire and other basic data (start date, compensation, etc.). The EOR then navigates the local laws and handles all the paperwork for onboarding the employee. This frees you of the cost, time, and distraction of bureaucracy and more importantly, allows you to focus on growing your business.

Process overview

img.png