EOR
Employer of Record
EOR (Employer of Record) is an intermediary that formally hires employees in place of the client company, handling contracts, payroll and taxes without the client having a legal entity in the country.
What is EOR (Employer of Record)?
Core model: the EOR becomes the employer under the labor law of the employee's country. The client sets tasks, manages the work and agrees on terms, while the EOR is responsible for HR paperwork and payments.
## How it works
The client signs an agreement with the EOR and agrees on salary and terms. The EOR signs an employment contract with the person, calculates and pays salary, withholds and remits taxes and social contributions, and maintains HR documents, leave and terminations.
## Where it is used in high-risk verticals
In gambling and betting, EOR is used when a team needs specialists in a jurisdiction where the operator has no license or branch: support, analysts, affiliate managers. The EOR covers the employment side but does not cover licensing of the business and does not permit accepting bets or running gaming operations in the country.
In crypto and fintech, the model is popular for remote developers, compliance specialists and support staff. Roles connected with access to customer funds or AML processes require separate checks for compliance with regulator requirements.
In dating and nutra, EOR is used for moderators, content teams and marketers. The risk is that responsibility for advertising claims and regulated content does not transfer to the EOR along with the employee.
## Common mistakes
The main mistake is treating EOR as a way to bypass licensing and local regulation. The second is failing to specify in the contract who owns work results, data and business accounts. The third is confusing EOR with the client's own legal entity or with a recruitment agency.
FAQ
How is EOR different from outsourcing?
With outsourcing, the contractor performs the work as an external company, and the staff remain with that contractor. With EOR, the employee formally works for the EOR but performs the job for the client under the client's direction.
Can an EOR help obtain a gambling or crypto license?
No. An EOR handles only employment matters. Licenses, regulator approvals and compliance for the activity itself are obtained separately and depend on the jurisdiction.
Who is responsible for taxes and the employee's labor rights under an EOR?
Formally, the EOR is the employer and is responsible for payroll, taxes and HR procedures under local law. The details of how responsibility is divided are set out in the contract with the client.