Insights

The current shortage of skilled labour is a far-reaching problem that affects all industries and companies of all sizes. Faced with this challenge, many companies are looking for alternative solutions to deal with it. One option is to recruit staff from abroad and employ them locally. There are numerous providers on the market that offer legally compliant employment of staff through the so-called Employer of Record (EoR). The EoR model is also considered when companies want to enter a foreign market without setting up their own local company. Although this form of employment appears attractive at first glance, it often harbours challenges for employers. This is mainly due to the fact that the EoR concept is not regulated by law in many countries or is even prohibited in some countries. In yet other countries, the EoR model is regarded as temporary employment and is therefore subject to strict legal restrictions. In addition, there are tax and other special features that need to be taken into account. More »​​