What is Employer of Record (EOR)?
An employer of record is a third party that legally employs workers on your behalf in a jurisdiction where you have no entity, handling payroll, tax withholding, benefits and local employment compliance. You direct the work day to day; the EOR carries the legal employment relationship.
Last updated July 2026 · Reviewed by the TalentHive product team
Also known as: EOR
EORs exist to make international hiring viable without incorporating in each country. The trade-off is a per-employee monthly fee and less direct control over employment terms, which becomes uneconomic once headcount in a country grows past a handful of people.
An EOR is not a hiring system. You still need to source, screen, interview and select the candidate — the EOR only engages after you have chosen who to employ.
Related terms
HRIS (Human Resource Information System)
An HRIS is the system of record for employee data — profiles, compensation, time off, benefits, org structure and documents. It manages people after they are hired, whereas an applicant tracking system manages candidates before they are hired.
Employee Onboarding
Employee onboarding is the structured process of turning an accepted offer into a productive team member: paperwork and compliance, equipment and access provisioning, orientation, role training and early check-ins. It typically spans the first 30 to 90 days.
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