Using EoR for Your First International Hire: Next Steps

So, you’ve made the decision to use EoR (Employer of Record) solutions for your first international hire – that’s great! But what happens next for you as an employer/business? 

Is this an exclusive hire? Are there other people hiring in that market? Is this country going to be an application center for you?  

These are all considerations for a business once they’ve made the initial hire with EoR.  


What’s covered as part of an EoR?  

One of the most attractive things about using EoR solutions is that pretty much everything is taken care of for you, mitigating risks, ensuring compliance, and guaranteeing a successful international hire.  

For example, you can expect the following to be included: 

  • Payroll management 

Payroll processing, including salary calculations, tax deductions, local compliance and ensuring your employees are paid on time, are all taken care of.  


  • Employment contracts and documentation 

Businesses will work with their EoR provider to create the employment agreement, outlining the job description and scope of work required. From here, the contract is submitted to the employee for review, and once they give sign-off, it’ll come back to the business for final sign off, and a start date will be decided. 

All other important documentation, including offer letters and legal documents, are also included.  


  • Legal compliance 

Hiring internationally poses risks and complications regarding compliance with local laws, which differ from country to country. 

EoR solutions can ensure a business stays up to date with local labor laws, taxes, security obligations and other legal requirements.  


  • Tax 

Speaking of tax, EoR takes care of tax withholding and reporting, ensuring tax reporting and filings are done correctly and on time. International taxation can be complex, but EoR turns this complexity into simplicity with a fully managed solution. 


  • Benefits administration 

Each country has its own mandatory requirements, such as social security contributions that must be provided to employees. EoR providers can ensure these various benefits, such as health insurance, are administered.  


  • Work permits/visas 

Should your international hire be required to work in another country, EoR providers can assist with the visa application process, ensuring compliance with immigration regulations.  


  • HR administration support 

Any initial HR administration support such as orientation and onboarding will be provided under the EoR solution, as well as ongoing HR requirements such as leave requests and general HR support and advice. 


  • Employee Termination 

In the case of employee termination, EoR providers can guide businesses through the termination procedure, such as managing exit interviews, taking care of legal requirements, and processing final payments. 


  • Risk mitigation/insurance 

To help mitigate any risks associated with international employment, EoR providers can provide insurance coverage, protecting businesses against any employment liabilities.  


  • Local representation  

If you want to establish a legal presence without the creation of an entirely separate entity, EoR providers can act as local representatives in the host country, helping to simplify international operations. 


So, what happens next?  

The decision to hire an international worker is usually the beginning of something more – and companies are usually planning their next steps around growth and expansion. 

There’s a presumption that EoR is used only because you donÕt have an entity in that country to hire from and just want to outsource the liabilities of being an employer; however, EoR opens a window of opportunity for continued expansion into international markets.  

One international hire may reveal previously unknown opportunities in different markets, reinforcing the decision to take your global expansion up a notch by setting up a legal entity. 

Remember, just because you started with an EoR does not mean you have to stay with an EoR – there’s so much more than meets the eye here.  


Are you ready to expand? 

At HSP, we provide a full-service EoR solution that ensures all the important elements are dealt with correctly and, most importantly, compliantly, meaning you can focus your efforts on other areas of the business to support its growth and development.  

With our EoR services, we can help businesses to manage the initial decision of making an international hire, through to the conclusion of the creation of your own entity infrastructure.  

A full-service EoR provider such as HSP can help you to manage and work through the timelines, not only assisting with the initial international hire, but also advising on the best next steps and exactly how and when to implement them. 

Get in touch with us today to enquire further about our EoR solutions.  

Missed last week’s blog post on hiring internationally? Check it out here.


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