Employer of Record (EOR)

Questions to Ask When Choosing an Employer of Record (EOR)

November 8, 2022

Have you decided to hire a qualified candidate in a country where you don’t have a legal entity? If so, you might need an Employer of Record (EOR) to employ this individual.

There’s many EOR providers out there, and they all offer similar services. So, which one should you choose?  More importantly, which questions should you ask to find the best one?

Here we list the questions you should ask and why.

What is your expertise in this country?

The value of an EOR is that they understand the local nuances of employment law in your country of interest and, as a result, can help you with compliance, payroll, and taxes.

This question will help you identify whether or not your EOR has substantial in-country experience, and give you confidence that you are properly adhering to all mandatory guidelines.

Make sure your EOR partner has qualified/expert in-country advisors because they are ultimately responsible for mitigating your risk in this respective jurisdiction!

What is your experience assisting similar companies?

You will need to ensure that your EOR partner understands the intricacies of your business and industry so that they can help your company scale effectively.

Your EOR partner should understand your business objectives and why you are hiring in this new country. If they don't have experience assisting similar companies, then how will they know how to advise yours?

What is your level of customer support?

As you can imagine, there are many questions that arise when employing a candidate in a foreign country (typical time-off, holidays, statutory employer taxes and contributions, benefits, additional compensation, etc).

It is so important that your EOR partner is reliable and addresses your questions and needs promptly, especially because your employees are likely located across many different time zones.

If they don’t have 24/7 support it could damage the relationship you have with your employees and limit your organization’s culture and productivity.

More questions to ask:

- Can we customize employment agreements?

- Is our EOR agreement a fixed-term contract?

- How much does your EOR service cost?

- Are there any additional fees?

- What complementary services do you provide?

Final Thoughts…

Make sure to ask these questions next time you talk to an EOR provider as every country is different.  Do your due diligence and find the best EOR partner for your organization.  Remember, your EOR partner is an extension of your Finance and HR teams, and your employees deserve to be paid on time and treated well.

With Remofirst as your Employer of Record (EOR), you can successfully implement an efficient remote payroll management system for your global employees. Request a demo today to learn how Remofirst can help you easily manage your global remote payroll system in 150+ countries.