An EOR becomes your staff's legal employer where you have no entity, but a PEO only shares employer duties with a local entity you already have. So an EOR suits entering new countries and a PEO suits outsourcing HR where you operate.
A professional employer organization (PEO) is a firm that shares employer duties with a client through co-employment. It runs payroll, benefits and HR administration, while the client keeps its own legal entity and stays an employer.
A staffing agency finds and supplies workers, while an employer of record legally employs people you have already chosen. One solves sourcing; the other solves employing people where you have no entity.
Co-employment is when two organisations share employer rights and duties for the same workers. It typically involves a client company and a staffing firm or PEO, and raises questions about liability and benefits.
An employer of record (EOR) is a company that legally employs workers on another business's behalf in a country where that business has no entity. The EOR holds the employment contract, runs payroll and meets local employment duties, while the client directs the daily work.
A clear proven process, that delivers
You've seen our ideas - now go deeper.
Discover more insights, guides, and engineering practice.