When a company wants to hire someone in another country who needs a work visa, can an Employer of Record (EOR) help?
An EOR lets companies employ people even without a local legal entity. The EOR becomes the legal employer and handles payroll and local compliance, enabling companies to hire international talent without setting up a local presence.
The EOR becomes the legal employer and handles payroll and local compliance, enabling companies to hire international talent without setting up a local presence.
Employing someone via an EOR is relatively straightforward when the employee already has the right to work in the country. However, when an employee needs a work visa, the process becomes more complex because each country has its own rules about who can sponsor foreign workers.
Many EORs provide immigration support, but visa application assistance and legal sponsorship are two different services. Which services an EOR can provide depends on local immigration laws, the visa category, and the employment arrangement.
Can an Employer of Record Sponsor a Work Visa?
Yes, an Employer of Record can sponsor a work visa in some countries, provided it meets local immigration and sponsorship requirements. However, other countries restrict or prohibit these arrangements, particularly when the EOR is the legal employer, but the client company manages the employee's daily work.
Whether EOR visa sponsorship is feasible usually comes down to three factors:
- Local immigration rules: Some countries allow sponsorship through payroll companies or similar employment arrangements, while others prohibit third-party businesses from sponsoring an employee.
- Sponsor authorization: The EOR or its local entity may need a sponsor license or additional authorization from the government.
- Employee and visa eligibility: The employment arrangement must meet the requirements for the relevant visa category, which could include minimum salary thresholds or specific skills or educational qualifications.
Even when an EOR can't legally sponsor a work visa, it can still provide immigration assistance, such as preparing documents and coordinating with local immigration experts. However, if the visa requires employer sponsorship, another eligible entity must act as the legal sponsor.
How Does EOR Visa Sponsorship Work?
When an EOR sponsors a work visa, it shares certain employer responsibilities with the client company.
The EOR's local employing entity acts as both the legal employer and the visa sponsor. It signs the employment contract and submits the visa application to the immigration authority. As the legal sponsor, it is also responsible for communicating with immigration authorities about the employee's visa.
The client company oversees the employee's day-to-day work. It sets goals and manages performance, and the employee works as part of the client's team.
This split in responsibilities is why immigration authorities look closely at EOR arrangements. Many immigration laws expect the sponsor to control the worker's job, so not every country accepts an arrangement where the sponsor is not the company directing the employee’s work.
Once the visa is approved, the EOR is responsible for meeting ongoing sponsorship obligations, including maintaining records, ensuring the employee's salary continues to meet visa requirements, and reporting relevant changes to immigration authorities. The client company must keep the EOR informed of changes to the employee's role or salary, as well as the end of their employment. Failing to communicate these changes promptly could jeopardize the employee's visa or the EOR's sponsorship status.
How Do Sponsorship Rules Differ Between Countries?
Immigration and visa requirements vary significantly by country. For example, the Netherlands and the U.K. both require employers to be approved before sponsoring foreign workers, but they take very different approaches to EOR visa sponsorship.
Example: The Netherlands
In the Netherlands, only a recognized sponsor can apply for a highly skilled migrant residence permit. The Immigration and Naturalisation Service, or IND, registers companies as recognized sponsors once they meet its requirements. Businesses can verify a provider's status through the official IND Public Register of Recognized Sponsors.
Dutch rules allow employment agencies and payroll companies, including EOR providers, to act as recognized sponsors. Under this arrangement, the EOR is the legal employer and handles payroll and immigration compliance, while the hiring company manages the employee’s work.
The EOR must meet the IND’s requirements to become a recognized sponsor and comply with its ongoing obligations, including recordkeeping. Each sponsored employee’s salary must also meet the applicable highly skilled migrant threshold.
However, the Dutch government has been considering additional restrictions on third-party employment arrangements involving highly skilled migrants. Separately, the Provision of Personnel Accreditation Act (Wtta), scheduled to take effect in January 2027, will introduce authorization requirements for businesses that supply workers to other companies.
Dutch-recognized sponsors must also report relevant changes to the IND, generally within four weeks. When an EOR sponsors an employee, prompt communication about changes to their employment is essential.
Example: United Kingdom
The U.K. is much stricter about who can sponsor a worker on behalf of another business. Under the Home Office's guidance for sponsors, a sponsor can't assign a certificate of sponsorship to a worker who will fill an ongoing role at another company. This restriction affects traditional EOR arrangements where the client company directs the employee's day-to-day work.
The rules allow a narrow exception for contractual services. A sponsor can place a worker with a client to deliver a defined project with a set end date, as long as the sponsor keeps full responsibility for the work. That's different from traditional EOR employment, where the client company directs the work on an ongoing basis.
In practice, this means an EOR couldn't sponsor a software engineer to work indefinitely on a client's engineering team. The employee performs an ongoing role under the client company's direction, so the arrangement doesn't qualify for the contractual services exception.
Breaking these rules can lead the Home Office to revoke the sponsor's license. Any employees already sponsored could have their visas cut short.
What Are the Alternatives If an EOR Can't Sponsor a Work Visa?
When an EOR can't sponsor a work visa, the hiring company may still be able to employ the worker. The available options depend on local immigration laws and the worker's current immigration status.
Direct Employer Sponsorship
A company with its own legal entity in the country where the employee will work can sponsor the employee directly, provided it meets local immigration requirements.
However, establishing a legal entity can be expensive and time-consuming, and registration alone doesn't automatically qualify a company to sponsor foreign workers. For example, U.K. employers need a sponsor license, while Dutch employers must be recognized sponsors for certain visa categories.
Companies considering this option should confirm the sponsorship requirements before committing to establishing a local entity.
Alternative Visa and Work Authorization Routes
Some workers can obtain work authorization without sponsorship from the hiring company or an EOR. Depending on the country, options include independent or self-sponsored work permits or authorization based on family ties.
For example, in the Netherlands, recent graduates and researchers who qualify for the orientation year are legally able to work.
Intra-company transfers are another option for multinational companies relocating existing employees to an office in another country. Depending on local immigration laws, an intra-company transfer may allow an employee to obtain a work visa through a separate immigration route, with different eligibility and sponsorship requirements.
Hiring Someone With Existing Work Authorization
An EOR can employ someone who already has work authorization in the country without sponsoring a visa. The employment arrangement works the same way as it would for any other employee hired through an EOR.
This includes citizens, permanent residents, and people with residence permits that allow them to work, as well as employees relocating to a country where they already have work authorization.
Employers still need to verify that the employee's work authorization covers the role and duration of employment. Some permits are tied to a specific employer or job, meaning a change could require a new application or sponsor.
What Should Employers Check Before Using an EOR for Visa Sponsorship?
Before making a job offer or signing with an EOR, you need to confirm a few key details about visa sponsorship eligibility and requirements:
- Sponsorship or assistance: Can the EOR legally sponsor the worker in that country, or can they only help with the application?
- The legal sponsor: Who will act as the legal sponsor, your company or the EOR? Does the sponsor have the necessary licenses or government authorization?
- Eligibility: Do the employee and the role qualify for the visa under the proposed working arrangement?
- Worker classification: Will the candidate be employed by the EOR or engaged as a contractor? Does the proposed arrangement meet the requirements of the relevant visa category?
- Timelines and costs: How long will the application take? What fees and documents are required?
- Ongoing duties: Who handles reporting and visa renewals? What happens if the employee changes roles or leaves the company?
- Changing providers: What happens to an EOR work visa or EOR work permit if the company later moves to a different provider?
Confirm the requirements for the specific country and visa category, since an EOR's immigration services may not cover every combination.
Frequently Asked Questions
Can an EOR sponsor a work visa for someone already in the country?
Yes, depending on local immigration laws and the employee's current status. Living in a country doesn't automatically mean someone is authorized to work there. If the employee needs employer sponsorship, the EOR must be authorized to sponsor the relevant visa, regardless of whether the employee already lives in the country.
What happens to an employee's work visa if a company changes EOR providers?
If the employee's visa is tied to the original EOR, switching providers could require a new sponsorship application or a formal transfer to the new sponsor. The requirements differ by country and visa type. Companies should confirm the process before making a change to avoid disrupting the employee's legal right to work.
Can an EOR sponsor a work visa for a remote employee?
Yes, if local immigration laws permit EOR sponsorship and the employee meets the relevant visa requirements. Working remotely doesn't eliminate immigration obligations. If an employee needs authorization to work in the country where they're physically located, the EOR must be eligible to sponsor the appropriate visa or work permit.
Navigate Work Visas and Permits With RemoFirst
Hiring someone who needs a work visa doesn't have to mean navigating complex immigration requirements alone. Whether an EOR can sponsor a visa depends on the country and the employment arrangement, but sponsorship isn't the only way to move forward.
RemoFirst helps companies navigate immigration requirements and coordinate visa and work permit applications in 110+ countries. From explaining available visa options to assisting with the application process, our team simplifies international hiring.
Ready to explore your options? Schedule a demo to learn how RemoFirst can support your international employment and immigration needs.
