Europe Employer of Record(EOR)

Hire, pay and manage your emplyees without establishing a local company.

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Outsource your Employment in Aisa

Build your Aisa team easily – No local entity needed. EOR handles everything: compliance, payroll, benefits, and recruitment.

EOR Aisa offers comprehensive HR solutions in Europe. We’re a certified agency and will act as your legal employer, managing all HR aspects for your staff.

Launch in Europe Today. Leverage EOR Europe to explore the market, manage local partners, and build your Aisa team – without an entity setup.

Cost-effective, adaptable, and secure. This approach minimizes risk and keeps costs low while offering the flexibility you need for success in Europe.

Employer of Record (EOR) Process​

  1. Sign Contract: The client signs a straightforward service agreement to begin working with EOR Europe.

  2. Get Account Manager: A dedicated account manager is provided to the client for one-on-one support.

  3. Collect Documents: EOR Europe requests essential documents from the client, like business licenses and employee personal data.

  4. Understand Policies: The client learns about EOR Europe operational policies and gets access to the user-friendly online portal.

  5. Prepare Onboarding Docs: EOR Europe creates and sets up important documents such as employment contracts, onboarding checklists, and compliance forms for the client’s review.

  6. Configure Payroll: The client’s payroll information, including salary structures and tax details, are set up in EOR Europe system.

  7. Onboard Employees: EOR Europe assists in welcoming and integrating the client’s first set of employees into the company.

  1. Sign Authorization: New hires sign a letter to allow EOR Europe to manage their personal info.

  2. Gather Info: EOR Europe collects the new employee’s basic details and work history.

  3. Pay Notice Sent: EOR Europe informs the client about the first payroll amount due.

  4. Client Pays: The client confirms and sends the payment for the new employee’s salary.

  5. Contract Signed: Both EOR Europe and the new employee sign the work contract.

  6. Info in System: The new hire’s data is entered into EOR Europe system.

  7. Set Up Benefits: EOR Europe handles social insurance, housing fund, and bank account setup for the new employee.

  8. Portal Access: New employees get access to the online portal to manage their HR tasks.

  1. Policy Updates: EOR Europe informs clients of any changes in government policies that may affect payroll or compliance.
  2. Compensation Adjustments: Clients notify EOR Europe of any changes in employee compensation, such as raises or bonuses.
  3. Payment Notice: EOR Europe sends a detailed payment notice to the client, outlining the payroll and benefit costs for the month.
  4. Client Payment: The client reviews and confirms the payment notice, then makes the payment to EOR Asia.
  5. Salary Distribution: EOR Europe ensures that employees receive their salaries on time.
  6. Benefits and Tax Payments: EOR Europe handles the payment of mandatory benefits and individual income tax on behalf of the employees.

  7. Maintenance of Payroll Services: EOR Europe regularly updates the latest payroll and HR information, ensuring it is readily available and easily reviewable by clients and employees.

     

  1. Work Calendar Confirmation: EOR Europe and the client mutually confirm the work calendar for the upcoming year.

  2. Annual Salary Report: EOR Europe compiles and sends an annual salary report to the client, which includes details of both current and offboarded employees.

  3. Report Verification: The client reviews and confirms the accuracy of the annual salary report provided by EOR Europe.

  4. Government Submission: EOR Europe submits the updated annual salary report to the relevant government authorities as required.

  5. New Policies Announcement: The government announces any new policies that may affect HR and payroll processing.

  6. Policy Update Briefing: EOR Europe briefs the client on the updates and changes in government policies that were announced.

  7. System Policy Update: EOR Europe updates its system to reflect and implement the new government policies.

  8. Data Removal: Upon request, EOR Europe removes the data of offboarded employees from the system, ensuring privacy and compliance.

  1. Reason Noted: Client explains why an employee is let go.

  2. Plan Made: EOR Europe creates a termination plan.

  3. Approve Plan: Client agrees to the exit strategy.

  4. Paperwork Ready: EOR Europe completes exit forms for the employee.

  5. Severance Set: EOR Europe calculates the severance amount.

  6. Pay Severance: Client sends the severance funds.

  7. Work Handed Over: The employee passes on their duties.

  8. Severance Paid: EOR Europe delivers the severance to the employee.

  9. Issue Cert: Employee receives a termination cert.

  10. Benefits Managed: EOR Europe moves and stores benefits info.

  11. Cases Closed: EOR Europe ensures all is settled.

  12. Refund Given: EOR Europe returns any leftover deposit to the client.

  1. Notice Sent: Client informs EOR Europe of their decision to end the service.

  2. Handover Check: Client and EOR Europe agree on the handover of accounts, materials, and information.

  3. Offboarding Plan: Both parties confirm a plan for offboarding employees, including resignations.

  4. Final Payment: EOR Europe issues the last payment notice, including any historical balance owed.

  5. Payment Made: Client confirms and pays the final invoice.

  6. Employee Offboard: EOR Europe facilitates the offboarding of employees.

  7. Transfer of Assets: EOR Europe hands over all accounts, materials, and information to the client.

  8. Case Closure: EOR Europe ensures all open cases are resolved.

  9. Deposit Refund: EOR Europe returns any remaining deposit balance to the client.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is basically a company that acts as your legal employer for remote staff you hire in another country.

EOR services  might also be called manpower outsourcing, employment outsourcing, staffing, or PEO (Professional Employer Organization).

EOR Europe‘s EOR lets businesses hire Europe staff legally – they handle the legal side of things.

EOR Europe EOR Service

EOR Europe EOR service simplifies hiring in Europe. Also known as employment outsourcing or employee leasing, it allows EOR Europe to act as the legal employer for staff you identify in Europe. While EOR Europe handles the legal and administrative burden, you retain full control over managing these employees. This service offers a flexible solution, sharing employer responsibilities to ensure compliance and streamline your operations.

Is an EOR the same as PEO?

Every EOR is a PEO, yet the converse is not always true; not every PEO qualifies as an EOR.

An Employer of Record assumes the legal employer status on behalf of a client, outsourcing compliance to the service provider, who then becomes fully responsible for the employee. On the other hand, a Professional Employer Organization does not usually assume complete responsibility for the client’s employees.

EOR Europe serves as an Employer of Record for clients who lack legal entities in Europe, thereby handling their employment responsibilities and compliance. Conversely, for clients that possess legal entities within Europe, EOR Europe functions as a Professional Employer Organization.

The best EOR service provider in Europe

Why EOR Europe?

EOR Europe, with a track record of decades in the industry, stands as a reliable provider of Employer of Record (EOR) services within Europe. We provide an all-encompassing solution designed to streamline the hiring and employee management process, ensuring adherence to local legal and regulatory frameworks. 

Eliminate Risk

Avoid allowing HR compliance challenges to threaten the prosperity of your business in Europe. Reach out to EOR Europe now to discover more about our Employer of Record service and receive guidance on how we can assist you in maneuvering through the intricate Europe, thus mitigating the risks of being placed on a blacklist.

Local Presence and Knowledge

A thorough comprehension of the local market trends, cultural subtleties, and customary business procedures.

Europe Payroll Service

All of our clients have access to our in-house payroll service for record keeping convenience.

Employer of record Cases

EOR as a Business Solution

Utilizing an Employer of Record is optimal in various situations. Here are the top reasons that clients choose EOR Europe Employer of Record service:
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Reimbursement for Outsourced Employees

Expense Claim Solutions at EOR Europe

Following a policy revision by the European government concerning expense claims for contracted workers, EOR Europe has assiduously crafted four tailored approaches. These are designed to ensure a smooth and efficient reimbursement experience for our Employer of Record (EOR) clients. Let’s explore these solutions in detail, examining their complexities and the possible effects they may have.

Solution #1: Global Reimbursement

Clients collaborate with our worldwide associate to handle the payment of reimbursements. Once a fresh service agreement is in place, EOR Europe manages the invoicing and collection process. The application for reimbursements is made efficient, focusing on transactions in US dollars and strictly applying a maximum limit of USD 5000 for each person on a monthly basis.

VAT Exemption

Customizable Reimbursement Arrangements

Solution #2: Integrated Reimbursement and Salary Structure

This approach merges expense reimbursements with routine payroll, offering clients the choice to handle the personal tax liabilities. Although this method reduces the service charges related to expense claims, it may result in employees facing increased Individual Income Tax (IIT) liabilities.

Fee-Free Option

Frequently Asked Questions

An EOR helps businesses hire employees in Europe without needing a local entity, while a PEO provides HR services like payroll and benefits management for businesses that already have a legal entity in Europe.

In Europe, the hiring process duration can vary significantly depending on the country and its specific regulations. Here are some examples:

  1. United Kingdom: In the UK, the hiring process can be quite efficient, often taking a few weeks to a couple of months from the job posting to the final hiring decision. Employers must provide a written employment contract and adhere to strict anti-discrimination laws during the hiring process. The process may be extended if background checks or security clearances are required.

  2. Germany: The hiring process in Germany can be more structured and may take several weeks to a few months. Employers are required to advertise job openings publicly for at least three days before offering the position to a specific candidate. Additionally, the process often includes multiple interviews and administrative tasks such as work permit applications for non-EU citizens.

  3. France: In France, the hiring process is regulated by a comprehensive labor code. Employers must provide a detailed employment contract and follow specific procedures for hiring, which can take several weeks. The process can be extended if the position requires specific certifications or qualifications, and there is a legal requirement for a work permit for non-EU nationals.

  4. Spain: In Spain, the hiring process can be relatively quick, with employers often able to fill positions within a few weeks to a month. However, the process must comply with strict labor laws, including a requirement for a written employment contract and a trial period that can last up to three months.

These examples illustrate the diversity of hiring practices across Europe, with each country having its own legal framework and cultural norms that influence the hiring timeline. It’s important for employers to be aware of these differences and to comply with local regulations when hiring employees in Europe.

es, a foreign company can hire employees in Europe without establishing a local entity, but the process and requirements vary by country. Here are a few examples:

  1. Germany: Foreign companies can hire employees in Germany through the use of an Employer of Record (EOR) service, which allows them to bypass the complexities of setting up a legal entity and complies with local employment laws. The EOR takes on the legal responsibilities of an employer, handling employment contracts, tax compliance, and other human resources tasks.

  2. France: In France, foreign companies can also use EOR services to hire employees without creating a local entity. This is particularly useful for companies looking to expand their operations in France without the immediate need to establish a subsidiary or branch office. The EOR ensures that the company is compliant with French labor laws and regulations.

  3. Spain: Spain offers a relatively straightforward process for foreign companies to hire employees without a local entity. The process can be facilitated through an EOR, which can help navigate the Spanish labor market and ensure compliance with local employment laws, including the management of social security contributions and tax obligations.

  4. United Kingdom: The UK allows foreign companies to hire employees through an EOR, which can simplify the hiring process and ensure that the company is compliant with UK employment law. This includes managing the payment of salaries in GBP, as well as handling any necessary tax and national insurance contributions.

It’s important to note that while using an EOR can facilitate the hiring process, foreign companies should still seek legal advice to understand the specific requirements and obligations in each country where they plan to hire employees. Additionally, the use of EOR services does not eliminate the need for a local presence entirely, as there may be other legal, financial, and operational considerations to take into account.

An EOR, or Employer of Record, plays a crucial role in managing the payment of social security and taxes for employees in Germany. Here’s how they assist:

  1. Compliance with Local Regulations: EORs are well-versed in the complex German tax laws and social security regulations. They ensure that all payments are made in accordance with these rules, reducing the risk of non-compliance for the employer.

  2. Calculation and Withholding: EORs calculate the necessary social security contributions and income taxes based on the employee’s salary and other relevant factors. They then withhold these amounts from the employee’s pay, as required by German law.

  3. Submission of Payments: EORs are responsible for submitting the withheld taxes and social security contributions to the appropriate German authorities on behalf of the employer and employees. This includes payments to the pension insurance, health insurance, and other social security funds.

  4. Handling Employee Enrollments: EORs manage the enrollment of employees in the German social security system, which includes obtaining the necessary social security numbers and ensuring that employees are registered with the correct insurance providers.

  5. Providing Tax and Social Security Advice: EORs can offer advice on tax planning and social security strategies to help employers optimize their costs while ensuring that employees receive their entitled benefits.

  6. Managing Changes in Legislation: German tax laws and social security regulations can change, and EORs stay updated with these changes. They adjust their processes accordingly to maintain compliance and inform employers about any necessary actions.

By leveraging the expertise of an EOR, employers can focus on their core business operations while ensuring that their employees’ social security and tax obligations are met effectively and efficiently in Germany.

In France, if an employee is injured at work, the situation is typically managed under the country’s social security system, specifically through the branch known as “Assurance Accident du Travail” (Workers’ Compensation). Here’s what happens step by step:

  1. Immediate Medical Attention: The injured employee is entitled to receive immediate medical attention. The costs of medical care related to the work injury are covered by the social security system, and the employee usually does not have to pay any fees upfront. The employer is required to provide first aid and ensure that the employee gets to a medical professional as quickly as possible.

  2. Notification of the Accident: The employer must be notified of the accident as soon as possible, and they are responsible for declaring the accident to the “Assurance Accident du Travail” within 48 hours. This declaration initiates the process of benefits and compensation for the employee.

  3. Temporary Disability Benefits: If the injury results in temporary disability, the employee is entitled to receive daily benefits, known as “indemnités journalières,” which compensate for the loss of earnings during the period of temporary incapacity. The amount of these benefits is calculated based on the employee’s salary and the duration of the incapacity.

  4. Permanent Disability: If the injury leads to a permanent disability, the employee may be entitled to a pension, depending on the severity of the disability and its impact on the ability to work. The pension is designed to provide financial support to the employee, recognizing the long-term consequences of the work-related injury.

  5. Rehabilitation and Return to Work: The social security system also provides for rehabilitation services to help the employee recover and reintegrate into the workforce, if possible. This can include physical therapy, vocational training, or other support services tailored to the individual’s needs and the nature of the injury.

  6. Compensation for Pain and Suffering: In some cases, the employee may also be entitled to compensation for pain and suffering, known as “prestation pour souffrances endurées.” This is a lump-sum payment made to acknowledge the physical and psychological suffering experienced by the employee as a result of the work injury.

It’s important to note that the specific benefits and the process for claiming them can vary, and employees are encouraged to seek advice from their union representative or a legal professional to understand their rights and the full extent of the support available to them in the event of a work-related injury.

The requirement for a local director or legal representative varies by country in Europe. In some jurisdictions, foreign companies may not be required to appoint a local director for certain types of businesses. However, in other countries like Germany, a company representative is often necessary for legal and administrative purposes. EOR Europe must understand the specific requirements of the country they are operating in and comply with local regulations when hiring employees.

In Europe, the annual paid leave entitlement for employees varies by country, reflecting different labor laws and cultural practices. Here are some examples:

  1. United Kingdom: Employees in the UK are entitled to a minimum of 28 days of paid leave per year, which includes public holidays. Full-time employees who work 5 days a week are typically eligible for this amount, and this can be adjusted for part-time workers based on their working pattern2.

  2. Germany: German employees are entitled to a minimum of 20 working days of paid leave per year for full-time work, with an additional 13 public holidays. However, it’s common for employers to offer more than the legal minimum, and many workers have contracts that provide for 30 or even 35 days of annual leave758.

  3. France: In France, workers are entitled to 25 days of paid leave per year, which can increase with the length of service. This does not include the 11 public holidays that are observed throughout the year1.

  4. Spain: Spanish employees are entitled to 22 days of paid leave per year, with an additional 14 public holidays. The leave entitlement can increase with seniority and certain collective agreements may provide for more days1.

  5. Italy: Italian workers are entitled to 20 days of paid leave per year, with an additional 12 public holidays. The leave can be taken throughout the year, and it is mandatory for employees to take at least 15 consecutive days of leave

  6. Netherlands: Dutch employees are entitled to a minimum of 20 days of paid leave per year, plus an additional 8% of their total working time, which can amount to several more days, depending on the number of hours worked per week. Public holidays are also included in this leave package.

  7. Sweden: Swedish workers enjoy a generous paid leave policy, with a minimum of 25 days of paid leave per year. This amount can increase with seniority, and part-time employees are entitled to leave on a pro-rated basis.

  8. Austria: In Austria, the minimum annual paid leave entitlement is 20 days for full-time employees, with an additional 13 public holidays. Certain collective agreements or company policies may offer more leave days.

  9. Belgium: Belgian employees are entitled to at least 20 days of paid leave per year, excluding public holidays. This can increase based on the employee’s age, years of service, and specific sectoral agreements.

  10. Greece: Greek workers are granted a minimum of 24 days of paid leave annually, not including public holidays. This can be higher for certain professions and under specific collective agreements.

  11. Portugal: Portuguese employees are entitled to 22 days of paid leave per year, with an additional 13 public holidays. The leave entitlement can increase with the length of service.

  12. Poland: In Poland, the minimum annual paid leave is 20 days for employees with less than 20 years of service, and 26 days for those with 20 or more years of service, excluding public holidays.

The requirement for a local director or legal representative varies by country in Europe. In some jurisdictions, foreign companies may not be required to appoint a local director for certain types of businesses. However, in other countries like Germany, a company representative is often necessary for legal and administrative purposes. EOR Europe must understand the specific requirements of the country they are operating in and comply with local regulations when hiring employees.

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United Kingdom

Senate House, Malet Street, London, WC1E 7HU, United Kingdom

Spain

25, Calle de Alcalá, Madrid, 28014, Spain

Germany

Franklinstrasse 61-63, 2nd floor, St Martin Tower, 60486 Frankfurt, Germany

France

1, Rue de la Concorde, 75008 Paris, France

Netherlands

Keizersgracht 241, 5th floor, Amsterdam, 1016 EJ, Netherlands

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