(Employer of Recording)


What is an Employer of Record?

The term EOR is an acronym for Employer of Record. An EOR is a third-party company that takes over all the employment tasks on behalf of another company. This lets the EOR allow overseas companies to create offshore teams without setting up locally while minimizing the liabilities and risks of local employment laws


When to Use an Employer of Record (EOR)?

Hiring an EOR will be very helpful to organizations that plan to expand globally. The client company will then rely on the EOR for local expertise and expediting the process. Hiring an EOR is the most convenient way for a company to meet its global growth objectives. To elaborate, here are some situations wherein partnering with an EOR will be most helpful.

  • A company may hire an EOR to help them explore new markets.
    An EOR will hire employees in target countries and assess the readiness of an international market. They let the company test the waters by starting operations with the new employees. The company will not need to spend money and time establishing an entity since the EOR will take care of it
  • A company may hire an EOR to guard them against the non-compliance of independent contractors.
    Hiring independent international contractors will put you at risk of tax and employment violations. An EOR will do all processes following all the requirements of your host country. Doing so will prevent you from incurring penalties due to non-compliance
  • A company may hire an EOR to act as an entity stopgap.
    Hiring an EOR is best for a company that wants to begin its operations quickly but is yet to establish an entity. The EOR will take charge of the company’s services while the company sets up the entity simultaneously
  • A company may hire an EOR to facilitate an acquisition.
    The EOR will help a company compliantly pay its new employees. They will take charge of the payroll on behalf of a company that does not have a legal business entity. By doing so, facilitates the acquisition of the client company.


Scope of Service: 

The service scope of the Employer of Record is broad, therefore our client can customize it according to his needs. Generally,
OUTSOURCY will be responsible for the personnel functions assigned by our client. OUTSOURCY will also ensure that the client has ultimate control over the business operations.
OUTSOURCY will provide an end-to-end solution for the business needs of our client and is the legal entity tasked to carry out the following duties.

  • Process the payroll of workers
  • Arrange the work permits and visas for the client
  • Provide consolidated invoicing
  • Study the labor laws of the host country regarding worker protections and local contracts
  • Assess legal benefits for the client
  • Act as a channel between government authorities and the client
  • Onboarding of the workers
  • Creating timesheets and implementing incentive schemes
  • Terminate workers on behalf of the client


What are our functions and responsibilities?

OUTSOURCY acts as the intermediary in an existing relationship between an employee and an employer.
OUTSOURCY will carry out the regulatory and legal requirements of employment, payment, and payroll. However, it does not necessarily engage in day-to-day work.

OUTSOURCY will be the registered employer of the employees in the paper, hence the name Employer of Record.
Nonetheless, OUTSOURCY does not have management or supervisory roles. our client still makes all the decisions regarding projects, position duties, compensation, and termination.


How OUTSOURCY Employer of Record (EOR) Service Works?

OUTSOURCY provides human resource and payroll management for its client companies. Our team of experts can manage these crucial aspects of your business for you. We are familiar with the local tax systems and laws that you must follow. With that, you can focus your time on revenue-generating activities. Here are the specific services that we offer.


Human Resources Management

  • Recruitment, selection, and deployment of employees
  • The orientation of new hires and training
  • Termination and redundancy control for your business
  • Compensation programs and benefits for workers
  • Writing management and legal reports

The EOR is an effective and efficient solution to the outsourcing needs of your business. As our client, you can save time and resources that you can redirect to more significant functions. Proceed to the section below to know more about the numerous distinct benefits of hiring us as your EOR.

1. Reduced Employee Accountability
OUTSOURCY will be responsible for taking care of the welfare of the employees. OUTSOURCY carries out numerous tasks mandated by the government and health maintenance organizations. These tasks include processing the payroll and insurance coverage

2. Compliance Monitoring
One does not need to be knowledgeable on the labor and tax laws of the country a client is hiring from. This benefit comes in handy, especially if our client owns an overseas business. OUTSOURCY will ensure that your business is compliant with all the applicable laws. OUTSOURCY makes sure that your payroll processing complies with employment laws in the country

3. Time and indirect cost savings
Partnering with us will allow business owners to have more time on their hands. Since you would not have to deal with HR and payroll matters anymore, you can save hours. Furthermore, OUTSOURCY will help you save costs.

4. Unnecessary Local Incorporation
Local incorporation and registration are necessary if you choose to skip hiring a third party. These processes are costly and time-consuming since you would need skilled accounting and legal support. Hiring OUTSOURCY as your EOR will let you ensure compliance without the hassle of local incorporation.


OUTSOURCY can do all the work for you! We will help you meet your global growth objectives while minimizing legal complications.