Global hiring has transformed the way companies build teams, but employing workers in foreign countries comes with legal and administrative challenges. Understanding the role of an Employer of Record (EOR) is essential for businesses planning international expansion.

An Employer of Record is a third-party organization that legally employs workers on behalf of another company. While the EOR becomes the official employer for compliance and payroll purposes, the business maintains control over job roles, responsibilities, and performance management. This model allows companies to hire internationally without establishing local entities.