What is the full form of EOR?
EOR stands for Employer of Record.
What is the Definition of EOR?
An employer of record is an organization that is authorized to and is engaged to employ individuals on behalf of another company. An EOR is usually engaged when companies require a reliable third party to manage employees in different geographical locations.
What is an Employer of Record (EOR)?
An employer of record is a certified third-party organization that takes responsibility for the legal and administrative responsibilities of an employer on behalf of the client company. EOR manages all legal responsibilities as the official employer. This includes having employment contracts in place, payroll management, and tax withholdings. While the EOR is the legal employer, the company on whose behalf they are hired has complete control over the operations, work, projects assigned to the employee, and other performance-related matters.
What Services Does an EOR (Employer of Record) Provide?
- They take care of drafting employment contracts and ensure that all the points, terms, and conditions mentioned are in accordance with local labour laws.
- Salaries, deductions, and multi-currency payment management of employees hired by the EOR are taken care of by the EOR.
- They are responsible for filing, remitting taxes, and submitting contributions to local authorities.
- Statutory benefits like health insurance, pension, leave entitlement, and other benefits are managed by the EOR.
- They provide end-to-end support through the immigration process and other legal requirements by engaging with legal authorities for international employees.
- They take responsibility for the complete employee management cycle, including background checks, documentation, final settlements, and exit procedures.
- As an expert third-party employer, EOR keeps itself updated about the changing labour laws and regulations, and makes sure they adhere to them while hiring an employee.
- If there are any disputes regarding employment or if employees hired through the EOR require any guidance regarding the same, the EOR helps, reducing legal risks.
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