How do I benefit from Employer of Record services?

Have you come across the term an Employer of Record (EOR)? An Employer of Record is an organization or a company that is responsible for handling all the compliance related issues, HR and payroll related matters of employees.  Regardless of the type of your business, hiring an (EOR) brings several benefits with it. Hiring an (EOR) is especially beneficial when you wish to expand your business across countries or you already have a business with offices in several states of India. In either case, an (EOR) offers numerous benefits reducing all kinds of complications for your business.

Why to hire an Employer of Record?

The essential question which comes up is: Why should you hire an Employer of Record (EOR)? Companies generally hire an (EOR) to reduce all the complications and changes which happen across geographical boundaries with reference to hiring of employees, welcoming employees on-board, providing health benefits and insurance cover to employees, keeping updated about the labour laws of the country and the various states, deducting payroll taxes, salary processing and distribution to employees, and ensuring statutory compliance by employees.

So, when you hire an EOR, it becomes the employer of your employees. An (EOR) ensures that your business in various states of India remains in compliance of the various laws, rules and regulations. At the same time, an EOR is of immense help if you wish to expand your business across countries of the world. It is to be noted that in several countries of the world such as the USA, labour laws vary across states and are complex as well. In such a scenario, an EOR will help you to expand your reach across new markets, manage all employment related matters and even make arrangement for work permits of your employees for online news.

What are the benefits of using an Employer of Record?

  • Hiring an (EOR) primarily helps your business in saving time and using it effectively in other vital areas of your business. You get to witness significant changes in terms of overall handling of areas such as the human resource function, employee benefits, compliance of state and central laws and employee compensation.
  • The second major benefit of hiring an EOR is in terms of saving cost while hiring and handling legal and employee compliance related matters. This leads to marginal cost cutting and the money saved can be redirected and utilized in other arenas of your business. Moreover, this fund can be utilized in achieving the goals of your business in a quick manner.
  • The third major benefit is in terms of immediate hiring of skilled manpower. In addition, to recruitment, an EOR handles risk, insurance, compliance and employee compensation aspects as well. In simple words, an EOR is capable of handling all insurance related benefits especially, healthcare of the employees.
  • Another major benefit comes in the area of business expansion across geographical boundaries. Mostly, EORs are registered in the location or state in which they operate. So, when you decide to open your office in a new state of India or in another country, you need not register yourself in different locations. You just need to hire an EOR and it will take care of statutory compliance matters related to your employees.


Therefore, to conclude, hiring an EOR can be the best decision suited to your business expansion goals accompanied with saving time, money and energy. Hiring an EOR saves you from mental hassles as well in case you do not wish to get involved in dealing with risk, insurance, liabilities and other legal complications of your business.

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