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Employer of Record (EOR)

A Guide to Switching EOR Service Providers

April 28, 2023

An Employer of Record (EOR) is an organization that helps companies expand internationally by hiring and paying employees on behalf of another company. An EOR supports businesses with global hiring, employment contracts, payroll management, and employee benefits and compensation. Partnering with an EOR ensures compliance with local labor laws when hiring global team members.

However, not all employer of record services are created equal. If your EOR is giving you more hassle than peace of mind, you may be considering switching to a different provider. Some possible reasons include:

  • Your business is undergoing a global expansion, and your current EOR provider isn’t equipped to support you in the countries where you want to hire. 
  • You aren't receiving the responsiveness and support you require to navigate the complexities of global hiring.
  • They may not be flexible enough for your organization or offer specific services that you require.
  • They might lack the necessary local expertise.
  • They realistically don’t understand your company’s needs or expansion strategy.
  • You may be looking for a more cost-effective EOR service provider.

Whatever your reasons, this guide will walk you through the questions you need to consider before choosing a new EOR solution.

A Step-by-Step Guide to Switching EORs

Ready to make the switch? Here’s what happens next.

Step 1: Side-by-Side Analysis

Your Remofirst sales rep will set up a meeting with you to run through a side-by-side analysis of your current provider vs. Remofirst so you can see exactly what the benefits of switching will be.

Together, you will analyze:

1. Employment contracts

2. Benefits (before switching you need to make sure the benefits match or go above and beyond your previous provider’s)

3. Immigration support - if current entity is sponsoring your employees visa or work permit, you will want to ensure this can be transitioned smoothly to your new provider. Note* In some cases you may need to apply for a new visa or work permit, transfers are not always feasible.

4. Day-to-day operations, including:

  • Invoicing Cycle & Format - you want to ensure that employees can still be paid on a similar schedule
  • Invoicing Currency & FX
  • Payment terms
  • Reporting needs
  • Platform usage

5. Commercial terms, including:

  • Fee structure 
  • Out-of-cycle elements
  • Last minute payments

Step 2: Develop a Transfer Strategy and Timeline

Once the side-by-side analysis is complete, and in parallel to the Master Service Agreement (MSA) review, the Remofirst Sales and Customer Success teams will meet with you to plan a transfer timeline and strategy.

Elements to factor into the strategy include:

1. Internal communication to your employees and all of your company stakeholders e.g. line manager, HR, finance, legal…

2. Closing employment contracts with the previous employer, including:

  • Evaluating all notice periods and transfer strategies per employee and country
  • Resigning and rehiring - This is our recommended approach where possible. As long as the employee is in the loop about the transition and they have confidence they won’t “lose out” on any accrued benefits (especially holiday allowances) then this provides a clean and easy path for transition.
  • Termination — Unlike the resign and rehire option, termination will have additional consequences which can vary in complexity and cost implications depending on the country the employee is located in.
  • Accruals - as mentioned above in many countries, employees “accrue” benefits as they advance in tenure. There are simple ways to transition these accrued benefits to a new contract, or where necessary, provide one time payouts to employees to allow them to “start fresh” on their new contract. You can deduct it from a new contract, so you are not double paying any accruals.

3. Identifying the people in your team who will be responsible for the timeline of approvals during the onboarding process. This includes:

  • HR
  • Finance
  • Line Managers

4. Determining start dates for all employees - this will ensure that you don’t miss a pay period for an employee

5. Determining validity of any insurance and/or identifying any ongoing claim processes.

6. Establishing processes for any immigration issues identified during the initial analysis.

7. Setting initial invoicing cycles to secure first payroll.

Step 3: Sign the MSA and Start Onboarding!

At this point, the strategy is ready and platform activations will take place to start drafting employment agreements with Remofirst.

First, the Customer Support team will provide a summary of all contract drafts and final employment costs for your review and approval. 

Next, we hold an introductory meeting with all affected employees to outline the process and explain what their new employment conditions will be. 

Once you confirm approval of the contracts and benefits, Remofirst will issue new agreements to your employees for their review and signature. 

Why Switch to Remofirst?

Remofirst is a global EOR solution that specializes in assisting businesses with international hiring. When you switch to Remofirst, we’ll guide you through the process so you can start enjoying the benefits of partnering with us as quickly as possible. Those benefits include: 

  • Global coverage: With coverage in over 150 countries, Remofirst makes it easy to hire global talent. 
  • Cost-effectiveness: With EOR services starting at $199 per employee per month, Remofirst is more cost-effective than most EOR providers. Plus, unlike other providers, with Remofirst, there are no minimum or fixed-term contracts.
  • Local expertise: Remofirst ensures full compliance with local tax and employment laws. Plus, you can consult our customer support team for on-demand expertise on local rules and regulations.
  • Fast onboarding: Remofirst makes the process of switching quick and easy.
  • Robust support: Remofirst provides you with a dedicated account manager in your time zone so you have support during your business hours. Outside office hours, you can leave a message on our helpline and we’ll get back to you the next working day.
  • Add-on services: Remofirst offers additional services, including free device delivery services and global employee support — whether it’s answering their questions, helping them obtain work visas (depending on their country of residence, as visa services are location dependent), or something else.
  • International contractor management: Remofirst also leverages various methods to help you manage and pay international contractors using locally compliant contracts and avoiding any misclassification risks.

Switching EORs Doesn’t Have to be Complicated

If your current EOR service provider isn’t fulfilling your company’s needs, Remofirst can help. Book a demo with the Remofirst team to find out more about making the switch and how we can help you hire top talent all over the world. 

For more information about what to look for in an EOR service provider, check out the top benefits your EOR services should provide.