You just signed your offer letter. The role is exciting. The team seems great. The company’s mission? Even better. But then you notice something unexpected.
Your employment contract isn’t with the company that you interviewed with. Instead, it lists another name as your legal employer — RemoFirst.
If you’ve never worked for a company that uses an Employer of Record (EOR) before, this can feel confusing. Are you working for two companies? Who pays you? Who handles your benefits? Who do you talk to if there’s an HR issue?
Take a breath. You’re not alone in wondering how it all works when you’re employed by an EOR.
Let’s break down exactly how an EOR works, what it means for you, and why many global companies use RemoFirst to legally employ their teams around the world.
First Things First: What Is an Employer of Record (EOR)?
An EOR is a company that legally employs workers on behalf of another company.
That means:
- The company that hired you manages your day-to-day work.
- RemoFirst is your legal employer on paper.
RemoFirst handles the formal employment responsibilities in your country — things like payroll processing, tax withholding, employment contracts, and statutory compliance — so your company doesn’t have to set up a legal entity where you live.
This model allows companies to quickly and compliantly hire talented people in other countries where they don’t have an office.
But here’s the key point to remember: You work for your hiring company. RemoFirst simply gives your company the ability to legally employ you in your location.
Why Would a Company Use an EOR?
Let’s say a fast-growing tech company based in Canada wants to hire an incredible engineer in Brazil.
To legally employ someone in Brazil without an EOR, the company would need to:
- Register a local business entity
- Set up local payroll systems
- Learn (and comply with) Brazilian labor laws
- Handle tax registrations
- Manage statutory benefits requirements
The entire process can take months and cost tens of thousands of dollars.
Instead of spending the time and money to open an entity, the company partners with RemoFirst, which already has the necessary infrastructure in place to legally employ workers in Brazil and over 185 other countries.
The result? You get to work. The company stays compliant. And everyone avoids administrative and legal headaches.
So, Who’s Actually Your Employer?
This is the question most employees ask.
Here’s the simple version:
Think of it like this:
- Your hiring company is your operational employer.
- RemoFirst is your legal employer.
You report to your manager at your company. You attend their meetings. You follow their policies. They oversee your career growth, performance reviews, and promotions.
RemoFirst ensures everything behind the scenes functions smoothly and legally.
How Payroll Works
The first question employees typically have is, “Who’s paying me?” You don’t work out of the goodness of your heart. You work to perform a job and to get paid for it. Unless you’re independently wealthy and work for kicks, in which case, please tell us your secret to unlimited funds.
Here’s how the payment process works:
- Your hiring company funds your salary.
- RemoFirst runs payroll and pays you in your local currency in compliance with local laws, including proper tax deductions and social contributions.
This ensures:
- Taxes are correctly withheld.
- Contributions to government programs are properly submitted.
- You’re paid in accordance with local employment standards.
- You receive payslips that meet local requirements.
In short: you’re paid accurately and compliantly, without your hiring company needing to become an expert in your country’s payroll system.
What About Benefits?
Benefits can feel confusing when an EOR is involved. Here’s how to think about it:
1. Statutory Benefits
These are benefits required by law in your country, such as:
- Social security contributions
- Health insurance (if mandated)
- Paid leave requirements
- Parental leave
- Public pension contributions
As the employment expert in your home country, RemoFirst ensures that you receive all the benefits you are legally entitled to.
2. Additional and/or Private Benefits
Your hiring company may offer additional benefits on top of the statutory benefits you’re legally entitled to, such as:
- Private health insurance
- Wellness stipends
- Learning & development budgets
- Equity or stock options
- Bonuses
In many cases, RemoFirst can help administer private health benefits through programs like RemoHealth and RemoHealth Local, depending on your location.
But the decision about which supplemental, optional benefits you receive comes from your hiring company — not RemoFirst.
Who Do You Contact for HR Questions?
It depends on the topic.
Talk to Your Hiring Company if It’s About:
- Your performance
- Promotions
- Role changes
- Team issues
- Career development
- Day-to-day policies
- Work expectations
Talk to RemoFirst if It’s About:
- Payslips
- Tax documents
- Employment contracts
- Statutory leave compliance
- Local employment law requirements
- Administrative documentation
In many cases, your hiring company’s HR team will coordinate with RemoFirst behind the scenes, so you may not even notice the distinction.
Does Being Employed By an EOR Affect Your Job Security?
No, in fact, working through an EOR often provides more security than, say, informal contractor arrangements.
Because you’re formally employed:
- You receive statutory protections under your country’s laws.
- Termination processes must follow local regulations.
In other words, you’re not a workaround — you’re legally employed in your country.
What About Taxes?
RemoFirst handles all required tax withholdings and social contributions in accordance with local law.
This means:
- Income tax is deducted as required.
- Employer contributions are paid.
- Government filings are handled properly.
- You’ll receive the appropriate payslips and tax documentation for your country.
However, if you have personal tax questions, you should consult a local tax advisor.
Does This Change Your Relationship With Your Company?
Nope, not at all.
From a practical perspective, your work life is the same as if you were employed directly by your hiring company:
- You have the same manager.
- You attend the same team meetings.
- You’re part of the same Slack channels.
- You’re evaluated the same way as your colleagues.
- You contribute to the same goals.
The only difference is the legal structure that enables your employment. You get to work for an employer based in another country while remaining legally employed where you live.
What Actually Happens Behind the Scenes?
While you may not interact with the company on a daily basis, here’s what RemoFirst is doing on your behalf:
- Drafting locally compliant employment agreements
- Ensuring mandatory clauses are included
- Registering your employment with local authorities
- Processing payroll in your local currency
- Submitting tax filings
- Managing statutory leave requirements
- Handling required social contributions
- Supporting visa and work permit applications in 110+ countries (if needed)
- Providing 24/5 human support across time zones
It’s a lot of administrative work, but it’s designed to make your employment hassle-free.
Common Misconceptions About EOR Employment
It’s completely normal to have questions about how the structure works, especially if it’s a new process to you. Let’s clear up a few myths.
“I’m Just a Contractor.”
No, if you’re employed through RemoFirst, you are an employee under local labor law — not an independent contractor.
“I’m Not Really Part of the Company.”
You are. You were hired because of your skills, experience, and value. The EOR structure doesn’t change your importance or integration within the team. You can also still get promoted, receive a raise, change roles within the company, etc. RemoFirst simply updates the legal documentation to reflect those changes compliantly.
“This Is Risky.”
In reality, it’s the opposite. EOR structures exist to reduce legal risk for both companies and employees.
The Bottom Line
If your company uses RemoFirst as its Employer of Record, here’s what that means for you:
- You work for your hiring company.
- RemoFirst is your legal employer in your country.
- Payroll and compliance are handled compliantly.
- Your statutory benefits are properly administered.
- Your day-to-day job doesn’t change.
- You remain fully integrated into your company’s team.
Your company sets your goals and manages your work. RemoFirst just makes sure you’re properly employed in your country — paid correctly, covered under local labor laws, and fully compliant.
It’s the structure that makes your role possible, not something that changes who you work for or what you do.
