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  • Writer's pictureLili

HR Tips: What is EOR? When is EOR needed? What benefits can it bring to a company?

Updated: Aug 25, 2023

EOR stands for Employer of Record, which means the legal liability of labor employment is taken up by the EOR service provider. EOR provides secondment services to business enterprises plan to expand their business networks into overseas markets before setting up their legal business registration, bank accounts, labor insurance arrangements, etc. EOR helps business enterprises to ease the administrative burden, save time and resources spending in local hirings, minimize its legal risks.

At the same time, EOR could ease the headcount constraint issue happening in this challenging global market. Some companies are facing headcount challenge during its business expansion by head quarter’s policies and strategics, EOR could act as the legal employer to direct employ and assign employees (i.e. secondees) to work for the companies, allowing the company to expand its business and team size by project expenses instead of its direct staffing costs.

EOR service providers manage from onboarding processes, salaries calculations, employee benefits, tax-related matters by taking up the legal liabilities. Want to learn more about EOR? Feel free to contact Lili, the ME Human Resources Outsourcing Specialist, at any time.


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