HR & recruiting glossary

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.

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