Definition

EOR (Employer of Record)

A third party that legally employs your international workers on your behalf, handling local compliance, taxes, and liability.

From the episode “Stop Doing Your Own HR”

How founders on the podcast use it

A third-party organization that legally employs workers on behalf of a client company, handling all employment obligations in the worker's local jurisdiction - payroll, taxes, benefits, legal compliance, and HR administration. The client directs the work; the EOR handles the employment infrastructure. This model allows companies to hire talent in foreign countries without establishing a legal entity there. Penbrothers operates as an EOR in the Philippines: the employee is on Penbrothers' payroll and benefits, exclusively assigned to the client's team. The distinction matters: the EOR takes on employer liability, which means both the legal protections and the obligations of employment fall on the EOR, not the client.

The Offshore Kingdom: How Penbrothers Builds Teams That Scale

Hear it on the podcast2 episodes

Stop Doing Your Own HR The Offshore Kingdom: How Penbrothers Builds Teams That Scale

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