What is Employer of Record (EOR)?
An employer of record (EOR) is a company that legally employs a worker in a country on another company's behalf. The EOR signs the contract, runs payroll, withholds taxes and provides statutory benefits. The client directs the day-to-day work, so a business can hire in a country without setting up its own entity.
What an EOR usually handles
- Employment contract under local law
- Payroll, tax withholding and statutory contributions
- Benefits and leave
- Onboarding and offboarding paperwork
What stays with the client
Daily tasks, performance management and the hiring decision. An EOR is different from a PEO, which co-employs staff and generally requires the client to have its own local entity.
Why a job seeker may care
If your offer comes from an EOR, your employer on paper is the EOR, not the company you work with daily. Check the contract, notice period, and how pay reaches you; see CTC vs in-hand salary for Indian pay structures.
Related terms and guides
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.