Organisations in the modern business world are increasingly looking for the services of an EOR to make hiring and employment easy across borders. The EORs step in between to ensure that all activities performed are governed by the labour laws of the region where their business is located, taking administrative responsibility and providing a hassle-free employment experience. Understanding how EOR employment contracts work and their associated benefits will thus be important for businesses and professionals in understanding this modern workforce solution.

What is an EOR employment contract?

The EOR employment contracts is a legal agreement facilitated by the Employer of Record between the organisation and an individual. Notwithstanding that the employer of record is the legal employer of the employee, the respective individual undertakes tasks that are required for the benefit of the client company in question. This triparty arrangement means that payroll and taxes, among other statuses, lie with EOR, thus enabling the freedom of the client company, which may then pursue its core activities.