Global Employer of Record Services from the ConnectaVerse

Understanding the Employer of Record (EoR) model is crucial for businesses looking to expand globally without the complexities of establishing a legal entity in each new market. An Employer of Record is a third-party organisation that legally employs workers on behalf of your company. This means they handle payroll, benefits, taxes, and compliance with local labour laws, freeing you up to focus on your core business operations. This solution became very popular during the COVID-19 pandemic when people preferred to work remotely yet had to comply with the labour regulations in the country where they resided. EoR services allow businesses to quickly and efficiently enter new markets without the burden of setting up a local entity.

Advantages of an Employer of Record

• Quick Market Entry: Hire employees in new markets without setting up a local entity, speeding up your international expansion.


• Cost-Effective: Avoid the high costs and administrative burden of establishing a local entity.


• Compliance Assurance: EoRs are experts in local employment laws, ensuring your business stays compliant and reduces legal risks.


• Risk Mitigation: The Employer of Record assumes many of the legal responsibilities and risks associated with employment.

Challenges of Using an Employer of Record

• Limited Control: The Employer of Record is the legal employer, which may reduce your direct control over employee management and workplace practices.


• Higher Costs Over Time: While initially cost-effective, the recurring fees for EoR services can add up, potentially making it more expensive in the long run compared to setting up a local entity.


• Complexity in Integration: Integrating the EoR's systems with your company's internal processes can sometimes be challenging.


• Perceived Detachment: Employees might feel less connected to your company culture since they are officially employed by the EoR.


• Seniority: This solution is generally not suitable for C-suite employees.

Ideal Scenarios for Using an Employer of Record

• Businesses looking to expand quickly and efficiently into multiple countries.


• Companies wanting to test new markets without long-term commitments.


• Businesses with minimal staffing needs in a specific country.


• Businesses that need to adhere to local labour laws without the administrative burden.

At the ConnectaVerse, we connect you with trusted local service partners who provide comprehensive Employer of Record (EoR) services, ensuring your business can expand globally with ease and compliance. Our global EoR services include:

Some of the top Employer of Record service providers in the world are trusted partners of the ConnectaVerse. We carefully vet all our providers to ensure excellence in service delivery. Get in touch with the ConnectaVerse to determine which partner is right for your business expansion needs:

• Playroll: Headquartered in the United States, Playroll has been simplifying the complexities of international HR management since 2015. Known for its efficient and user-friendly platform, the company helps businesses access and manage talent across over 180 countries with ease.


• Atlas: Established in 2009, Atlas is based in the United Kingdom and is recognised as the first and largest direct Employer of Record provider. The company specialises in enabling global expansion by offering comprehensive EoR services, with operations spanning over 160 countries. Atlas’s enterprise-grade platform provides localised expertise and supports remote teams with self-service features.


• Deel: Founded in 2019 and headquartered in the United States, has rapidly become a leader in global HR services. Operating in more than 150 countries, Deel’s platform is celebrated for breaking down hiring barriers and facilitating the seamless management of international teams.


• Globalization Partners: Pioneering the Employer of Record industry since 2012, Globalization Partners is headquartered in the United States and operates in over 180 countries. The company is renowned for its scalable EoR solutions, helping businesses overcome global expansion challenges and providing a customisable suite of global employment products.


• Remote: Founded in 2019 and headquartered in the United States, Remote specialises in simplifying global hiring with Employer of Record services across numerous countries. The company’s platform offers seamless payroll, compliance, and benefits administration, helping businesses efficiently manage international teams while staying compliant with local regulations.


• Listo Global: Founded in 2016 and based in the United Kingdom, Listo Global offers comprehensive Employer of Record services designed to simplify international expansion. Operating in over 170 countries, Listo Global combines cutting-edge technology with deep local expertise, empowering businesses to hire and manage global talent effortlessly.

Beyond the Employer of Record model, there are two other primary types of international expansion: establishing a local entity and hiring employees without establishment (EWE). Each approach offers distinct advantages and challenges, catering to different business needs and goals. Understanding these options can help you make informed decisions that align with your company's strategic objectives.

Establishing a Local Entity

Establishing a legal entity in the target country allows you to hire employees directly under your company's name. This traditional method of global expansion involves setting up a branch or a local limited liability company in the country where you wish to hire employees. The company formation process can take anywhere between a few days (UK) and 6 months and requires opening a bank account, and setting up and maintaining accounting, tax, corporate secretarial, and HR & Payroll services to ensure compliance with local laws and regulations.

Benefits of Setting Up an Entity

• Full Control: Directly manage and oversee your employees, ensuring alignment with your business objectives.


• Brand Presence: Establishes a strong local brand presence and credibility in the country.


• Employee Loyalty: Better integration and loyalty from employees who are formally part of your company.

Challenges of Setting Up an Entity

• High Costs: Significant investment is required for setup and ongoing management.


• Complex Compliance: Navigating local legal and regulatory requirements can be complex and time-consuming.


• Time-Consuming: It takes time and significant effort to set up an entity abroad due to bureaucratic processes and approvals.

Ideal Situations for Establishing an Entity

• Companies planning long-term investments and significant operations in a new market.


• Businesses with the resources to support extensive local operations.


• Situations where employees insist on being hired by your company through a local entity of your company.

Hiring an Employee Without Establishment (EWE)

This method involves hiring employees in a country where your company does not have a legal entity. The employee would be hired in a country by your entity of another country. The employee would receive a local employment contract, but the contracting party is a foreign entity, so that entity will have to be registered for payroll, social security and tax purposes in the country where the employee resides.

Benefits of Employee Without Establishment

• Flexibility: Ideal for short-term projects or roles where setting up a local entity is not feasible.


• Lower Costs: Reduces the need for a physical presence, thus lowering overhead costs.


• Ease of Management: Suitable for companies that need limited local staffing without the complexity of full-scale operations.

Challenges of Employee Without Establishment

• Compliance Risks: Higher risks of non-compliance with local labour laws in certain countries.


• Risk of Permanent Establishment: If the employee generates direct revenue, signs contracts, or hires an office on behalf of the company, then you could potentially have a risk of being deemed to have a permanent establishment.


• Time: It generally takes longer to set up than an EoR.


• Benefit Gaps: In certain countries, the employees could not tap into certain benefits that they would normally have if they were hired by a local entity.


• Seniority: This solution is generally not suitable for C-suite employees.

Ideal Situations for Employee Without Establishment

• Short-term projects or temporary roles.


• If an employee does not want to work under an EoR.


• Businesses with minimal staffing needs in a specific country.