How Employers of Record Transform Global Hiring and Compliance Challenges

How Employers Of Record Transform Hiring And Handle Global Challenges

Expanding into global markets comes with its set of challenges, no matter the target market. The most challenging part is aligning with countries’ labor laws, regulations, labor codes, tax regulations, etc. Further, the requirement of funds is also undeniable. In this light, an Employer of Record (EOR) can help mitigate these hurdles and streamline the process.

In this blog, discover how an EOR simplifies compliance and helps in the growth of your business. 

Before exploring solutions, let us first understand the compliance challenges global employers face during expansion.

Top global compliance challenges

Compliance issues can damage a business’s reputation and harm its operations. Hiring operations, thus, must adhere to the latest government-mandated labor laws and tax regulations. In this context, misclassification, wrong tax calculations, and incomplete legal documentation attract hefty penalties and fines. 

Complicated labor laws

Labor laws vary from country to country and protect the rights of employees and employers. Before hiring internationally, global employers should familiarize themselves with the varying labor laws of each country.

Misclassification of workers

Workers’ misclassification is another big issue for global employers. Every country has separate labor laws for employees and independent contractors who work with cross-border employers under contracts. Even the tax regulations are also different for employees. Incorrectly misclassifying employees as contractors can result in receiving legal notices and incurring substantial fines. 

Changes in regulations

Global employers face potential fines from government officials if they remain unaware of changes to employment laws, labor laws, and work policies, which are regularly updated in each country. Employers need to stay up-to-date with the new regulations to avoid penalties and maintain their reputation. 

Complex tax and payroll

Tax and payroll are the key components of compliance. Every country has a separate tax bracket and tax regulations based on payroll. Staying compliant with the latest tax and payroll regulations, controlled by the government, is crucial to avoid legal repercussions.

These challenges are what employers face during global expansion.  While you are recruiting new employees from a specific country, you always should keep updated with ever-changing regulations, need yourself to be updated with current regulations. 

An Employer of Record (EOR) service provider can serve as your legal entity, helping to eliminate these hurdles during your expansion.

EOR compliance for better operationsEOR compliance for better operations

An Employer of Record simplifies compliance, offering crucial assistance to adhere to regulations and minimize liability. An EOR service provider will act as a legal employer for your international employees and will assume all the risks associated with compliance. You will get the benefit of having an employee but with no legal responsibilities as an employer since your EOR service provider will assume these responsibilities. A great EOR solution provider like Global Squirrels will typically offer the following functionalities in their platform:

Employment contracts

An employment contract is an essential document employers offer during the candidate’s onboarding. The contract paper contains all the regulations an employee needs to know and consent to the clauses. An EOR supports you in drafting the contract by providing all the local labor employment regulation guidelines. The employment contract functionality is automated in our Global Squirrels platform in such a way that depending on the country you are hiring from, a valid and legally approved contract letter gets automatically generated for your approval.

Onboarding candidate

An EOR provider streamlines the onboarding process for international candidates by handling legal formalities and providing essential documents. The legal formalities are different in various countries and Global Squirrels takes care and support you to avoid legal issues. 

International payroll 

Employers of Record provider simplifies compensation calculations across various currencies, adjusting for currency exchange rate fluctuations to ensure accurate payroll. Global Squirrels takes care of multi-country payroll seamlessly, with a simple subscription model. You’ll only pay a monthly fee covering payroll costs and a platform license.

Employee benefits

Every country has specific laws for employee benefits. An EOR understands and supports you to provide the employee benefits no matter which country the employee belongs to. It is mandatory to provide employee benefits on time which are taken care of by an EOR. Unless other EOR providers, our platform handles all the benefits for your workers with no additional fees.

Data protection

Data breaches threaten global market expansion. An Employer of Record navigates unique data privacy regulations in countries, securing company and employee data. Businesses need not worry about data protection since an EOR will preserve everything on behalf of the organization safely and securely. 

Employee offboarding 

EORs also manage offboarding regulations, ensuring all dues are settled and no obligations remain from the employer’s side. The EOR takes care of all these formalities to avoid legal complexities. The employee offboarding functionalities are automated in our Global Squirrels platform in a way that either employer or employee can request termination of their employment. 

Global Squirrels: Your partner in global employment compliance

Staying compliant can be a complex maze for global businesses. Global Squirrels, one of the leading EORs service providers, helps your business stay up-to-date with local employment laws and regulations in various countries. By acting as a legal entity on your behalf in any country, the platform ensures you are always ahead with zero risks to your business.

 It supports you in finding the right talent according to your requirements and manages payroll while ensuring risk-free compliance.

Global Squirrels not only works as your EOR provider but also offers recruitment services with country-specific recruitment teams that help you find the right talent for your specific job needs.

Unless other EOR providers charge over $499 per employee, Global Squirrels offers the best pricing at the cost of $199 per month with no additional hidden charges.  

If you need recruitment service + payroll, we charge $1499 (one-time payment) + $199 payroll cost. 

We offer recruitment services and charge 10% of the employee’s annual salary, a one-time payment. We do not have markups or agency fees. 

For more information, you can request a demo of our platform


Global market expansion comes with its own set of risks and financial commitments. Additionally, compliance and complex legal processes pose serious challenges for global employers. However, an Employer of Record (EOR) will eliminate these risks in every aspect. Utilizing an EOR platform, such as Global Squirrels, not only removes employer risks and reduces time but also offers a cost-effective solution for you to expand globally or hire international talent to support or grow your existing domestic business.