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Glossary · EOR

Employer of record (EOR).

A company that employs a person on your behalf in their country: it signs the local contract and runs payroll, taxes and mandatory benefits, while you manage the work.

FreelanX EOR
All terms
Who employs whom
Your companyAnywhere
works with
FreelanX EOREmployer in the country
employs, local contract
The personIn their country
At a glance

Three parties, one clear split.

Your company
Chooses the person and manages the work.
The EOR
Is the legal employer in the country.
The person
Is employed locally, with local rights.
The term

What it means, in practice.

Definition, how it works, how it differs from close terms, and what it costs at FreelanX.

On this page
Related terms: deposit, employer contributions, payroll, PEO.

In one sentence

An employer of record is the legal employer of a person who works for you: it holds the local employment contract and the employer’s obligations, while you decide what the work is and how it is done.

How it works

You choose the person and agree on the role, salary and start date
The EOR signs a local employment contract with the person
The EOR runs payroll, withholds taxes and contributions and provides the benefits required by law
You manage the work and receive one invoice a month

What it is not

An EOR does not choose the person, open an entity for you or set local law aside. What an EOR does not do lists the limits plainly.

EOR, PEO, contractor of record

Employer of record (EOR)Employs the person for you. No entity needed
Professional employer organisation (PEO)Co-employs with you, through your own entity in the country. Not offered at FreelanX
Contractor of record (COR)Engages an independent contractor for you and carries the compliance

At FreelanX

WhoFreelanX EOR is the legal employer, in 50+ countries
Price$499 per employee per month billed yearly, or $549 billed monthly
DepositOne month of salary for each employee
OnboardingFrom 2 to 30 days, depending on the country
FAQ · EOR

Questions people ask first.

Do I need an entity to use an EOR?
No. That is the point of an employer of record.
Who is the employer?
The EOR, in the person’s country. At FreelanX: FreelanX EOR.
Is an EOR the same as a PEO?
No. A PEO co-employs through your own entity. FreelanX does not offer PEO.
Employ abroad without an entity.
FreelanX EOR, in 50+ countries.
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Glossary · EOR
Employer of record (EOR).
A company that employs a person on your behalf in their country: it signs the local contract and runs payroll, taxes and mandatory benefits, while you manage the work.
FreelanX EOR
All terms
Who employs whom
Your companyAnywhere
works with
FreelanX EOREmployer in the country
employs, local contract
The personIn their country
At a glance
Three parties, one clear split.
Your company
Chooses the person and manages the work.
The EOR
Is the legal employer in the country.
The person
Is employed locally, with local rights.
The term
What it means, in practice.
Definition, how it works, how it differs from close terms, and what it costs at FreelanX.
On this page
In one sentence

An employer of record is the legal employer of a person who works for you: it holds the local employment contract and the employer’s obligations, while you decide what the work is and how it is done.

How it works
You choose the person and agree on the role, salary and start date
The EOR signs a local employment contract with the person
The EOR runs payroll, withholds taxes and contributions and provides the benefits required by law
You manage the work and receive one invoice a month
What it is not

An EOR does not choose the person, open an entity for you or set local law aside. What an EOR does not do lists the limits plainly.

EOR, PEO, contractor of record
Employer of record (EOR)Employs the person for you. No entity needed
Professional employer organisation (PEO)Co-employs with you, through your own entity in the country. Not offered at FreelanX
Contractor of record (COR)Engages an independent contractor for you and carries the compliance
At FreelanX
WhoFreelanX EOR is the legal employer, in 50+ countries
Price$499 per employee per month billed yearly, or $549 billed monthly
DepositOne month of salary for each employee
OnboardingFrom 2 to 30 days, depending on the country
FAQ · EOR
Questions people ask first.
Do I need an entity to use an EOR?
No. That is the point of an employer of record.
Who is the employer?
Is an EOR the same as a PEO?
All questions
Keep exploring
Related pages.
ContractorAn independent professional under a service contract.MisclassificationA contractor the law sees as an employee.All termsEvery word of hiring, defined.
Employ abroad without an entity.
FreelanX EOR, in 50+ countries.
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