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EOR explained

What is an Employer of Record?

An EOR gives a company a local employment route in a country where it does not yet have its own entity. The EOR becomes the legal employer; your team still directs the work.

Business professionals in discussion
In simple terms
You manage work+EOR manages local employment

The responsibility split

Two roles. One employee experience.

An EOR model works best when the responsibilities are explicit from day one.

YOUR COMPANY

Owns the work.

Sets the responsibilities, directs the day-to-day work, manages performance, and brings the employee into the culture of the company.

+
EMPLOYER OF RECORD

Owns the agreed local administration.

Coordinates the local employment contract, payroll administration, statutory employment obligations, and agreed employee support.

EOR vs local entity

Different options for different stages of expansion.

An EOR is commonly used when a company is testing a market, making early hires, or wants local employment support before operating an entity directly.

EOR

Local employment route

Useful when you want to employ locally without initially establishing your own local employer entity.

LOCAL ENTITY

Direct employment route

Useful when your company has a long-term local operating plan and wants to employ people directly.

CONTRACTOR

Independent service route

Useful only where the role and working relationship are genuinely independent and appropriate for that country.

Professional working in a meeting room

Questions about the model?

Tell us where you want to hire and what the role looks like.

Plan a hire

Talk to an EOR specialist.

Start with the country and the hire. We’ll review the local employment route with you.

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