What is an Employer of Record (EOR)? How it works?
An Employer of Record (EOR) is a business entity or service that takes on the responsibilities of being the official employer for a group of workers, often on behalf of another company. EOR services are commonly used in the context of international or remote workers, freelancers, or contingent workers, where a company may need to engage workers in various locations without establishing a legal entity in each location. Here's how an International EOR Service works: Establishment of Legal Entity: When a company wants to expand its operations in a foreign country, it can partner with an International EOR Service like ADT Solution. The EOR service will establish a legal entity in the foreign country, taking into account local labor laws and regulations. Agreement: The client company enters into an agreement with an EOR service provider. This agreement outlines the terms and conditions of the engagement, including employment terms, compensation, benefits, and any other relevant deta...