What is an Employer of Record

Firstly, growing your business globally requires strategic moves and foresight. An effective strategy involves moving into international talent pools to explore new markets. This is where a global Employer of Record (EOR) comes into play to expand your journey. This guide helps you know the functions of an Employer of Record, outlines practical ways to use their services, and highlights the advantages of teaming up with a global EOR to realize your expansion aspirations.

What is an Employer of Record?

A global employer of record, sometimes known as a global employment organization, enables companies to hire workers in different countries without needing to establish a local presence or worry about breaking local employment laws. Picture a global EOR as your overseas HR partner. They specialize in understanding the various labour laws and payroll rules in the countries where your employees work. It makes it easier for your business to carry out international hiring processes smoothly and legally. With a global EOR, you can expand your workforce across borders with confidence and compliance.

What is the function of the Employer of Records?

An employer of record, or EOR, simplifies hiring talent worldwide while aligning on compliance with local laws and regulations and making it easy for companies to establish foreign entities.

  1. Legal and Regulatory Compliance: The EOR manages all legal and regulatory aspects, including immigration, employment contracts, payroll, and benefits, ensuring adherence to local requirements.
  2. Employer Responsibility: While the EOR is the legal employer, companies retain control over day-to-day management tasks such as compensation, job responsibilities, projects, and performance evaluations.
  3. Key Services Provided by a Global EOR like Avyenter:
    • Drafting and Maintaining Employment Contracts: Creating and managing employment agreements that comply with local laws and regulations.
    • Payroll and Tax Management: Handling payroll processing, tax withholdings, and making sure employees are paid accurately and on time.
    • Benefits Administration: Offering comprehensive benefits packages and statutory benefits required by local laws.
    • Termination and Offboarding Compliance: Ensuring compliance with local regulations regarding employee terminations and offboarding processes.
    • Ongoing Support: Providing continuous guidance and support on local labour laws and regulations to ensure ongoing compliance and mitigate risks.

How Long do Employers Keep Records of Past Employees?

The duration for which employers keep records of past employees can vary based on legal requirements and company policies. However, some general guidelines are commonly followed:

  1. Employee Personnel Files: Typically, employers retain personnel files for a certain period after an employee’s departure. However, this period can range from three to seven years after termination, depending on state and federal laws. Personnel files may include employment contracts, performance evaluations, disciplinary records, and other relevant documents.
  2. Payroll Records: Payroll records, including wage statements, tax withholdings, and payment records, are often kept for a minimum of three to seven years after an employee leaves, in compliance with tax laws and regulations.
  3. Benefits Records: Records related to employee benefits, such as health insurance enrollment forms, retirement plan contributions, and leave requests, may be retained for a similar period as personnel files.
  4. Legal Considerations: Employers may also need to retain certain records for longer periods due to legal considerations, such as litigation, audits, or government investigations.

Moreover, employers need to be aware of and comply with relevant laws and regulations regarding record retention in their jurisdiction. Additionally, some companies may choose to retain records for longer periods than legally required for administrative or historical purposes.

Employer of record (EOR) services offer valuable support for businesses to manage global teams and expand into new markets. Here are some key benefits:

  • Explore New Markets: With an Employer of Record, you can test out new countries without committing to setting up a legal entity. You can quickly hire teams, explore new revenue opportunities, and reach new customers.
  • Attract Top Talent: Offering remote work options helps attract highly skilled employees from anywhere in the world. Additionally, EOR services expand your talent pool and allow you to find candidates with specific skills.
  • Support During Entity Set-Up: While establishing a legal entity is time-consuming and costly, an Employer of Record services provides hiring support while you step into entity establishment requirements.
  • Avoid Misclassification: Engaging contractors is a common alternative, but as your company grows, misclassifying contractors as employees can lead to compliance issues. However, EOR services offer an easy solution to hire contractors as employees to mitigate risks.

By partnering with a global Employer of Record service like Avyenter, businesses can easily manage distributed teams, attract top talent, and explore new markets with confidence and compliance.

5 Ways to Select an Employer of Record Service Partner

When choosing an EOR partner, it’s crucial to consider the following:

  1. Transparent Pricing: Opt for an employer of record that offers straightforward pricing without hidden fees. Clear pricing helps you manage your distributed workforce budget effectively.
  2. Accurate Employer Burden Calculations: Ensure your provider accurately calculates employer burden costs, including social contributions like health insurance and social security. Your EOR should provide precise quotes for these requirements across different markets.
  3. Worldwide Coverage: Select a partner like Avyenter with extensive expertise in the markets where you’re hiring talent. Working with an experienced partner reduces risks of non-compliance with local labour regulations and saves time and money.
  4. Responsiveness and Support: Look for an attentive partner who can promptly address your team’s needs. Your EOR should assign a client account manager to handle queries, onboard new employees efficiently, and accommodate different time zones and languages.
  5. Independent Validation: Consider partnering with an EOR recognized as an industry leader by credible third-party sources. Validation reports from industry analysts offer unbiased insights based on thorough research and customer feedback. Moreover, It helps you identify top EOR solutions for your global workforce needs.

Thus, by partnering with a global Employer of Record Services like Avyenter, companies can easily manage their international hiring processes and also minimize legal and administrative difficulties associated with global expansion.


Finally, an Employer of Record (EOR) is a helpful partner for businesses expanding globally. It takes care of all the complicated parameters like payroll, benefits, and following local laws in different countries. This lets businesses focus on growing without worrying about legal or administrative hassles. However, with an EOR, companies can easily hire people in new places and adapt to changes in the global market. It’s a smart way to make expanding overseas simpler and less stressful for everyone involved. To get your business benefitted, talk to our expert now!

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