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.
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.
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.