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What an Employer of Record Actually Does

2 min read · Updated 13 September 2026

Short answer

An employer of record legally employs you in your country on behalf of a company that has no entity there. You get a local contract, payroll and statutory benefits; they get compliance. Check who your contract is with and what happens if the client ends the arrangement.

EORs are how most cross-border remote employment happens now, and the structure surprises people.

The structure

Your legal employer is the EOR, not the company you work for daily. Your payslip, leave and statutory contributions come from them. The company you work for is their client.

What to check

  • Which entity is on the contract
  • Notice period, and whether it survives the client ending the deal
  • How leave and sick pay follow local law
  • Whether benefits match what local employees get

The upside

You get proper local employment — leave, contributions, protections — from a company that could not otherwise hire you at all.

Common questions

Is an EOR the same as a staffing agency?

No. An agency finds you work. An EOR employs you on behalf of a company that already chose you.

Do I lose anything with an EOR?

Usually a little of the budget goes to the EOR's fee, which can mean a slightly lower salary than a direct hire.

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