Questions to ask your Employer of Record (EoR)

Choosing an Employer of Record (EoR) can be a daunting task. The field of global employment solutions is rapidly expanding. So, prospective clients may feel spoiled for choice, as they research companies through which to compliantly hire global talent. But when selecting an EoR, it’s crucial that you know what to look out for and the right questions to ask, to ensure you select the best EoR for your business expansion needs.

What employment options are offered and who will actually be employing your workers?

When partnering with an Employer of Record, firstly you need to know that they have the capacity to compliantly employ workers abroad – not just handle payroll and HR. So, you must confirm that your Employer of Record offers a full suite of global employment services and is dedicated to upholding 100% compliance in all areas. If not, this could jeopardise your workers and your business.

Once you’ve established that the EoR does offer compliant employment, be sure to ask if the EoR is the direct employer, or if it partners with a local entity to do this. Partnering with a local entity is not necessarily an issue, and many EoRs do this in some regions.

However, it is important for any business partnering with an EoR to understand the various parties involved in their agreement and know that - in some cases - they may be put in touch with a tertiary party.

If  this is the case with the EoR you’re considering, you need to make sure you know who exactly will be responsible for your workers, and how they will fulfil this role. Make sure you know who will handling performance issues, the transfer of data, the latest updates to local law, and what due diligence has been carried out, before selecting an EoR that uses a third party.

What will be the Employer of Record’s responsibilities?

While the day-to-day running of operations should remain with you (the client) the Employer of Record is usually responsible for payroll, legal compliance, tax filing, and HR duties such as onboarding and offboarding.

Your business will need to ascertain the exact responsibilities undertaken by the EoR you are considering, and if they match your needs. The division of responsibility will also depend on the local legislation of the country in which you are employing staff.

Who is involved in the employment contract and what happens if you need to end it?

In every case, the contract will be between the Employer of Record and the worker. Your business may or may not be mentioned, depending on the country. Employment contracts vary greatly between regions.

When choosing an EoR, make sure to review the contract template once it has been provided etc. Ensure that you are happy with the information contained in the contract, especially regarding EoR responsibility and employee working conditions, so that these align with your company.

In the event that you need to end an employment contract, the EoR should be available to provide accurate advice and handle the situation with 100% compliance. When assessing a possible EoR, ask to see their procedure for terminating contracts in the region in which you’re hiring.

How is data managed?

Managing employee data is crucial to any company. So, when selecting an Employer of Record to work with, you have to be certain that they have an efficient data management system that will keep your company and employee data safe and managed correctly.

Ensure that you scrutinise an EoR’s security and privacy policies, so you can see how compliant they are. You should ask what their data recovery plan is in the event of a system failure, if they are ISO27001 certified, and where their servers are located.

Payroll data is a specific branch of data management that can cause major upset if handled incorrectly or if mistakes are made. When partnering with an EoR, you need to know that their methods are foolproof. Ask whether there is a platform on which you can review final payroll calculations, for example.

How long has the Employer of Record been in operation?

It’s not necessary for an Employer of Record to have been operating for a long time, to be a reputable and reliable service provider. However, as in any industry, experience helps. Choosing an EOR provider that has been in business for a number of years means that you are working with a team of experts.

Mauve Group was founded in 1996, and many members of the Mauve team have been with the company for 10, 15, and even over 20 years! Our experts learned everything they know from their experience of Mauve’s own global expansion, which makes us a leader in the field of EoR.

Mauve Group has over 27 years of experience, is ISO 27001-certified, and offers global HR solutions in over 150 countries. Contact our team of experts today, to find out how our Employer of Record (EoR) service can help your business compliantly navigate the challenges of going global.