EOR and global hiring FAQ

An EOR is the legal employer of a worker under a service arrangement with the client company. The EOR signs the local employment agreement and performs the employer duties defined in that agreement and the client service contract. The client directs the employee's day-to-day business work.

Responsibility is shared, so review the service schedule instead of assuming that every employment, tax, immigration or workplace obligation transfers to the EOR.

With EOR, the provider's local entity is the legal employer. Payroll outsourcing generally assumes that your own entity employs the workers and appoints a provider to calculate payroll, produce reports or make filings under an agreed scope.

An EOR worker has an employment relationship with the EOR. An independent contractor supplies services through an independent business relationship. Classification depends on the actual facts, including control, integration, financial risk, equipment and the ability to serve other clients. A contractor agreement does not correct a working relationship that local law treats as employment.

No universal answer applies. Countries regulate labour supply, agency work, licensing and co-employment differently. Some roles, sectors, work locations or immigration cases may be restricted. Ask the provider to identify the employing entity and explain why the arrangement fits the specific role and jurisdiction; obtain independent advice where the risk warrants it.

Separate employee cost from provider charges. Employee cost can include salary, employer contributions, required benefits, insurance, statutory extra pay and other local items. Provider charges may include recurring administration, minimums, deposits, FX, benefits administration, onboarding, changes, off-cycle payroll and offboarding.

Request a complete fee schedule and a scenario invoice for the same country, salary and events before comparing providers.

The written scope should identify the employing entity, contract process, payroll and filings, benefits, leave, employee changes, workplace issues, termination support, data handling, records and service contacts. Coverage varies by provider and country. Treat anything absent from the contract or country schedule as an open question.

The regions directory shows Farlinko's published country guides. Service availability can depend on the role, work location, immigration status, start date and local employing route. Send the exact hiring scenario and ask us to confirm coverage and employing entity in writing.

The client supplies and approves employee changes by an agreed cutoff and funds the required amount. The EOR calculates payroll, delivers the agreed review reports, pays employees and performs contracted filings. Calendars, funding dates, currencies, reports and correction processes vary, so confirm them during implementation.

Potentially, after country and provider review. Cash incentives need documented rules, payroll treatment and approvals. Equity can require separate plan documents, securities and tax review, withholding arrangements and reporting. Confirm feasibility before promising the award in an offer.

The client raises the proposed action; the EOR and relevant advisers review the reason, evidence, contract and local process before any commitment is made. Notice, consultation, severance, protected leave, authority filings and final pay depend on the jurisdiction and facts. Ask for a written case assessment and cost estimate.

Ownership depends on local law and the signed chain of documents. Review the employment agreement, assignment language, client agreement, prior inventions, moral-rights treatment and any separate invention document. Do not assume a standard clause transfers every right in every country.

Map the data each party collects, its purpose, location, access, subprocessors, transfer mechanism, retention and deletion. Review the data-processing terms, security evidence, incident process and record export. The client must also protect the employee data in its own systems.

Review the decision when the business needs local contracting, licensing, banking, tax substance or direct employment control, or when a documented total-cost model supports the change. There is no universal headcount threshold. Plan registrations, employee transfer, benefits, payroll and records before setting a cutover date.