Employer Of Record (EOR)

1. Hiring & Onboarding

HR's Role:

Identify hiring needs
Source and interview candidates
Make the final hiring decision

EOR's Role:

Draft and issue the local employment contract
Handle legal onboarding paperwork (ID, tax, benefits forms, etc.)
Ensure the contract complies with local labor laws

2. Payroll & Benefits

HR's Role:

Provide salary info, promotions, or bonuses
Communicate changes in work status

EOR's Role:

Run payroll, calculate tax withholdings
Distribute pay in local currency
Administer statutory benefits and optional add-ons (health, retirement, etc.)

3. Compliance

HR's Role:

Ensure company policies align with EOR processes
Stay in touch with legal or compliance teams internally

EOR's Role:

Maintain compliance with local labor laws (e.g., termination laws, sick leave rules)
Advise HR on legal requirements in each country/region

4. Employee Relations & Support

HR's Role:

Manage performance reviews, promotions, internal communication
Handle culture, engagement, and career development

EOR's Role:

Help with local HR questions (public holidays, parental leave, etc.)
Facilitate issues that have legal implications (disciplinary actions, termination, etc.)

5. Termination

HR's Role:

Decide on terminations and manage internal offboarding
Handle final feedback or exit interviews

EOR's Role:

Execute termination per local law (severance, notice periods, etc.)
Handle all legal documentation and final pay