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Employer of Record Solution:
A Comprehensive Guide

Discover the Benefits of Choosing ALLSTARSIT's
Human-Oriented EOR Services

Hire your team

What is an employer of record (EOR)?

An Employer of Record (EOR) is a service that allows businesses to hire employees in a new country without having to establish a legal entity.

An EOR acts as the employer for the new hire, handling all HR, payroll, tax, and compliance requirements on behalf of the business. This enables businesses to hire globally and effectively within their budget, while avoiding the legal and administrative complexities of establishing a legal entity in a new country.

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How does hiring through an Employer of Record work?

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The EOR serves as an intermediary or third-party organization that helps facilitate the employment relationship between the company and the worker

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The EOR hires subcontractors or sets up their own local entities in countries around the world

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The EOR legally becomes the employer of record while the company retains control over the employee's daily work responsibilities

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The EOR provider handles payroll, taxes, and other compliance-related obligations

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The company manages the employee's day-to-day work responsibilities, schedule and performance

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The EOR partners with companies that provide benefits and perks for employees in different sectors: health insurance, pension, learning and development budgets, and more

When to use an EOR and why?

There are many scenarios where your business could benefit from utilizing EOR.

1

Onboarding employees in a new location

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If you're hiring employees in a new location without an established legal entity, EOR can ensure compliance with local regulations without the hassle of opening a new entity. This is an ideal solution for companies exploring a new market or testing the waters without a long-term commitment.

2

Onboarding short-term or seasonal employees

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EOR can serve as a short-term solution for onboarding seasonal or short-term employees with complete compliance or to bridge the gap while waiting for entity paperwork to be finalized.

3

Supporting employees waiting for immigration documents

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An EOR can establish a legal entity in the employee's location, allowing them to start working and receiving payment while waiting for their paperwork to be processed. This benefits both the employer and employee by ensuring work can continue during the waiting period.

4

 Supporting termination or contract changes in a foreign country

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An EOR can provide invaluable support by navigating local laws and customs, handling communication with the employee, and ensuring legal requirements are met, which helps ease the process of termination or contract changes and minimizes potential risks or complications.

What are the benefits of EOR?

By partnering with an Employer of Record (EOR) service like ALLSTARSIT, businesses can take advantage of a range of benefits. With ALLSTARSIT as your EOR partner, you can simplify your global hiring processes and stay compliant while you expand your business into new markets.

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Global expansion

EOR services can help you expand globally by providing the necessary infrastructure to hire and manage employees in foreign countries, such as local legal entities and compliant employment contracts.

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Global recruiting

EOR services enable you to hire the best talent from anywhere in the world, without being limited by regulatory and tax complexities.

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Cost savings

EOR services can help you reduce the costs associated with hiring and managing employees, as we provide economies of scale and handle tasks such as benefits administration and workers' compensation.

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Focus on core business

By taking over time-consuming administrative tasks such as HR and payroll, EOR services can free up your time and resources to focus on your core business activities.

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Compliance

With EOR services, you can ensure compliance with employment laws and regulations, as we handle payroll, taxes, and other administrative tasks.

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Risk mitigation

EOR services can help you mitigate the risk of employee-related lawsuits and other legal disputes by ensuring compliance with employment laws and regulations, and handling employment-related administrative tasks.

What is the difference between ALLSTARSIT’s EOR solution and those offered by SaaS platforms?

SaaS Platforms’ EOR Solutions

The costs of SaaS platforms are often high, as they need to invest significant resources in building and maintaining their complex software infrastructure. Additionally, any additional services, such as obtaining visas for employees, may come with substantial extra costs.

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ALLSTARSIT’s EOR Solution

ALLSTARSIT’s solution provides a cost-effective alternative that is 50% cheaper than the options offered by SaaS platforms. We do not impose additional fees for services such as visa fulfillment or other operational administrative tasks, making our solution even more affordable and accessible.

SaaS Platforms’ EOR Solutions

SaaS solutions are often designed to be self-service, but they lack direct support from providers, leaving users to navigate complex interfaces alone. This can lead to frustration and confusion, compounded by the faceless nature of the software platform.

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ALLSTARSIT’s EOR Solution

ALLSTARSIT's human-oriented solution prioritizes direct engagement and personalized support. You will have access to real people who can provide tailored assistance and guidance. We believe in technology as a tool to facilitate human interaction, emphasizing a human touch in all aspects of our solution.

SaaS Platforms’ EOR Solutions

SaaS platforms typically provide limited EOR services, such as payrolling and compliance support. They often do not offer recruitment or talent management services, welfare benefits, or employee retention programs, leaving you to handle these aspects of your workforce on your own.

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ALLSTARSIT’s EOR Solution

ALLSTARSIT offers a comprehensive suite of services beyond payment and compliance, including recruitment, talent management, employee retention programs, benefits administration, and more. Our customizable packages cater to your specific needs, providing the flexibility and control you need to succeed.

SaaS Platforms’ EOR Solutions

SaaS contracts can be rigid, limiting clients' ability to customize them with specific provisions such as intellectual property agreements, appendices, or non-disclosure agreements. This lack of flexibility can create challenges for clients who need to customize their contracts to align with their unique requirements.

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ALLSTARSIT’s EOR Solution

ALLSTARSIT's EOR solution is highly flexible and customizable. Our contracts can be tailored to your specific needs, allowing you to add provisions such as intellectual property agreements,  appendices or non-disclosure agreements. This level of flexibility ensures that you can create a contract that meets your specific needs and delivers the best possible outcomes for your organization.

SaaS Platforms’ EOR Solutions

SaaS EOR solutions may work well for small companies and startups hiring a few employees in multiple countries, but may not be sufficient for larger organizations or those requiring extensive support and resources as they scale their operations globally.

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ALLSTARSIT’s EOR Solution

ALLSTARSIT’s scalable EOR solution is designed for larger companies and unicorns seeking to create teams in different parts of the world. We provide the necessary resources and support to ensure your team can grow and thrive globally, while also offering the flexibility to work from a dedicated office space or from the same country for a shared culture and work mindset.

What is EOR?

What is a global employer of record (EOR)?

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For a business that has international expansion as part of its business plan, the process of hiring foreign workers can be much easier with the help of a global employer or record (EOR).EOR companies provide businesses with an efficient onboarding process for new employees in new global markets without setting up a separate organisation in another country.

Understanding the employer of record services

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In outsourcing, a global EOR is another way to simplify the complex hiring process for a business owner.

Setting up a new overseas company for your business can be difficult, so why not make recruitment easier with the help of local experts?

When outsourcing you need to consider banking, insurance, taxes, compliance with local labour laws, and more to ensure the local infrastructure is in place and sufficient for staffing workers. This can often discourage people from expanding overseas, but it can be a different way.

A global employer of record provides the infrastructure that eliminates the need to worry about most of these tasks. They provide businesses with the ability for staffing employees from international markets as needed, without the need for an onboarding process for the organisation or local employee.

The employer of record companies fulfils recruitment of the workers on behalf of the client company while simultaneously accepting legal responsibility for them. This includes following all payroll and employment procedures and the employment process, including:

  • Registration of employment contracts.
  • Adaptation of local employees.
  • No need for work visas.
  • Payment of wages, taxes, and benefits.
  • Background check.
  • Long-term presence on the ground.
  • All other HR functions.

The EOR HRs will take care of employees and payroll for new employees, and your management team will be responsible for managing their day-to-day work, just like you would with any other employee.

This means you get the benefit of outsourcing your workforce without the risk.

What can EOR do for your business?

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A reputable employer of record manages recruitment of company-selected candidates in other jurisdictions, takes care of salaries and offers benefit packages following local laws and regulations.

This means that a registered employer of record significantly reduces the risk of non-compliance by the company in outsourcing. Moreover, EOR takes full responsibility for compliance, which is critical given the hefty fines for non-compliance.

Employers of record are also able not only for staffing one employee but also staff a facility or office with hundreds of employees.

Finding the right EOR company is essential to helping your business outsourcing and reach its full potential and succeed globally. Here are some specific tasks that an employer of record company can perform on your behalf:

  • Compliance with local labour laws

The employer of record will guide and support the business to ensure that employees recruitment is under local laws in each country or jurisdiction and provide them with appropriate employment contracts. Since the EOR is the employer, the business can rest easy knowing that all legal issues have been resolved.

  • Attracting new team members

Once the company finds a new employee, the EOR will onboard them, managing the employment contract and setting up processes necessary for the new team member to start working for the company.

  • International Payroll

Salaries and local taxes for both employee and employer will be managed entirely by the employer of record. Business team members will be paid and receive payroll from the employer of record.

  • Compensation and Benefits Management

EOR offers a variety of benefits in outsourcing, but these vary from service to service. Benefits may include health insurance, vacation policies, parental leave, etc.

  • Termination of the contract

If an employee's contract is terminated, the EOR will handle all necessary details.

When your business needs Employer of Record services

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A business may require the services of an Employer of Record (EOR) in several situations, especially during international expansion or complex HR scenarios.

Here are some common scenarios where it makes sense to consider partnering with an EOR:

  • International expansion. An employer of record can help you maintain a compliant and efficient presence without having to set up a legal entity, navigate local labour laws, or navigate complex payroll and tax issues.
  • Global HR Management. Suppose you have remote or international employees, contractors, or freelancers. In that case, EOR can manage administrative tasks related to hiring, payroll, benefits, and compliance for these workers, even if they are located in different countries.
  • Temporary or short-term projects. Global employer of record can provide a flexible recruitment solution if you have short-term projects or need to quickly attract and manage temporary labour for a specific project in another location.
  • Compliance issues. EOR solutions can help if your business operates in regions with complex labour laws or frequently changing regulations.
  • Cost control. By delegating HR and administrative functions to an EOR, you can realise cost savings compared to establishing and maintaining your own HR and payroll departments in each international office.
  • Focus on your core business. Recruitment with an employer of record allows you to offload time-consuming HR and administrative tasks, freeing your team to focus on strategic priorities.
  • Risk Mitigation: EORs specialise in managing and mitigating the risks associated with international employment.
  • Access to the market. Employers of record can provide a flexible, low-risk solution when testing the waters in a new market or entering a market with uncertain demand.
  • Efficiency and Experience: EOR have expertise in handling complex international employment, payroll, and compliance issues.
  • Scalable: EOR services can flexibly adapt to your needs, whether your business is growing rapidly or needs to downsize due to changing market conditions.

Employers of record services can be helpful in various outsourcing scenarios where you need to manage a global workforce, ensure compliance, reduce administrative burden, and focus on your core business. Before partnering with an EOR, it is essential to evaluate your specific needs, budget, and goals to determine whether the solution aligns with your business goals.

What should you look for in an employer or recording service provider?

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When choosing the best employer of record supplier, their level of knowledge in the country you intend to expand into is vital. A good indicator of this is how long a provider has been operating in the country.

You want a company that doesn't rely on local partnerships or an external recruiting agency but instead has an in-country facility.

The reputable organisation will be able to provide local billing and HR services. This will also give you peace of mind that they will provide services in the country for a long time. Their local knowledge is also valuable when it comes to managing HR and payroll services for clients.

ALLSTARTSIT provides EOR recruitment services. To get started, submit an online application on the company’s site. Company managers will provide all necessary information and support for your business.

Schedule a call now and make your global team-scaling process hassle-free with ALLSTARSIT's all-in-one solution

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Why choose ALLSTARSIT as your Employer of Record?

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More personalized attention

With ALLSTARSIT, you get a human touch. We provide personalized support and assistance from our experienced team, instead of relying on a faceless software platform.

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More cost-effective

Our EOR solution is a more cost-effective option for businesses looking to expand globally, being 50% cheaper than SaaS platforms.

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More services included

Our EOR solution goes beyond just payroll and compliance. We offer a full suite of services, including recruitment, retention, benefits administration, and more to help businesses expand their global workforce seamlessly.

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More flexibility

Our EOR solution is customizable, which ensures that the terms, benefits, and perks included in the contract are tailored to meet the unique needs of both your company and the employee.

Get started with ALLSTARSIT’s human-oriented EOR

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