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Employer of Record

A service provider that legally employs workers for a client in a jurisdiction where the client may lack an entity.

industryPublished 2026/06/08Last verified 2026/06/08

FAQs

Is an employer of record a payroll tool?
No. EOR services may include payroll, but they also involve legal employment, local compliance, contracts, and worker administration.

Related Terms

  • Global Hiring

    The process of recruiting, employing, paying, and supporting workers across multiple countries or jurisdictions.

  • HR Compliance

    The controls and processes used to manage HR obligations, records, policies, and risk signals.

  • Payroll

    The process of calculating and delivering worker pay while handling deductions, taxes, schedules, and records.

Related Items

  • Deel

    Global HR and payroll platform for international hiring, contractor management, payroll, and compliance workflows.

  • Rippling

    Workforce management platform spanning HR, payroll, onboarding, identity, device, and employee operations.

  • Workday

    Enterprise HCM platform covering core HR, recruiting, workforce planning, payroll, and talent workflows.

  • Dayforce

    HCM platform for payroll, HR, workforce management, benefits, talent, and employee lifecycle workflows.

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What it means

Employer of Record is a hiring arrangement where a provider becomes the legal employer for workers while the client directs day-to-day work.

Buyer checks

  • Confirm countries, worker types, contract terms, and local obligations are supported.
  • Review payroll, benefits, documents, and worker communication are auditable.
  • Check legal, tax, and compliance stakeholders review the arrangement before use.

Related HRAIdir context

For a broader buying view, see HR Software Buyer Guide and AI for Global Hiring.

This glossary entry is buyer-oriented guidance, not legal, compliance, or financial advice.