What is an Employer of Record (EOR)?

An employer of record (EOR), also known as the “single employer” or “central HR”,  is a business that serves as an intermediary between the client and the employer.  EOR has been appointed by the Worker to act as the business’ employer. It is often used in situations in which the client wants to outsource some functions, such as payroll and benefits administration. This may be necessary for a variety of reasons and is often done for tax or legal purposes.

It is normally used in conjunction with a professional employer organization (PEO), which performs most of the administrative functions on behalf of clients, allowing them to focus on their core business. With this kind of arrangement, both employee and employer are protected in cases where benefits or taxes arise. This can be important for businesses who want to work with the greatest flexibility and reliability, without sacrificing quality.

Benefit of Employer of Record

The advantage of using an employer of record is that there’s one person that is usually responsible for the company. All legal documents and tax forms are sent to this individual, providing easy access to all important information. It allows you to manage your employees in one place. When you are not able to post their time themselves, their hours will automatically be posted to their tasks.

Imagine having the flexibility to move employees to different teams and different locations without forcing them to change their payroll.

Also you have complete control over your company’s health benefits plan. You’ll decide what coverage is offered, how to offer it and who should enroll. Employer of Record also gives employees a clear understanding of what they are entitled to receive.

When does the business need an Employer of Record?

The Employer of Record (EOR) solution is the ideal solution for companies that want to expand internationally without having to worry about compliance. With EOR, your company can hire new employees in new locations without having to establish a physical presence, or deal with the logistical issues involved in expanding across borders and entering new markets.

All the benefits of EOR can make it easy to see why Employer of Record is such a valuable asset for your business. Think of it as stepping stones to building a team, even if you aren’t sure about their long-term tenure.

What other options are there for the Employer of Record?

As well as the Employer of Record model, there are other alternatives. One of these is a Global Employment Organization (GEO). This is sometimes used synonymously with EOR, but is often used to refer to a single company who owns EOR providers in various countries around the world. This is in contrast to an Employer of Record who aggregates local partnerships in the necessary regions.

However, working with an EOR service provider enables you to benefit from their experience and expertise in managing local relationships in different countries, as well as providing a greater level of flexibility and control when it comes to compliance.

How to choose the right Employer of Record for the business?

As your business grows, you may find yourself working with remote teams and using third-party contractors. This can bring a lot of complexity to your payroll process and make it difficult to stay compliant.

Employer of Record (EOR) solutions offer an all-in-one package that includes everything you need to get started—day one—as an employer. These solutions are not just about payroll, but also help with benefits and administration for more differentiation in your business. So before you choose EOR companies, Make sure to do research on their experiences, reviews, their tools and process, benefits that the business will get, communication, and data privacy.

Nebula advantage

Nebula360 is a leading player in the workforce outsourcing industry. We specialize in Employer of Record Services, Payroll  Services and Recruitment Services. We’ve created holistic workforce solutions for recruitment agencies, corporates, consultancies and independent contractors. Superior customer experience is a core pillar of our service delivery, and we strive to assist each customer with a fully bespoke solution, where compliance meets efficiency.

We have an international reach of over 150 countries worldwide and with this advantageous geographical footprint, we are able to extend our service offerings seamlessly to customers around the world.


Nebula360 has been helping businesses employ staff overseas without having to set up legal entities. Setting up an overseas entity requires time, resources, and can often times be painstaking. Let us do the work for you. We handle all payroll, tax and compliance requirements, so that you can focus on what you do best – managing your remote employees.