In every business there are acronyms that we use to make our lives easier. But to clients who want to buy our services and understand how we can help them, overuse of “alphabet soup” can make them run away ASAP!
In my business, Global Employer of Record services (EOR of course!), we help companies expand into any of the 160 countries we serve quickly and compliantly by hiring and payrolling a worker on behalf of our client.
But there are a number of acronyms that cause confusion. To help, here are some of the most common ones we use. At the end of this, I’d ask you to share the ones you use in your daily business.
EOR. Employer of Record This is when a company becomes legally responsible for paying a workers wages, employment taxes, social insurance payments, and other expenses related to employment. Contractually, it places these employment burdens on the employing company’s shoulders. Clients still need to follow employment rules in country of course, but local experts help guide the way. This solution is particularly useful in circumstances where a client does not have a registered entity, has a short term contract or needs to manage resources separately from the rest of a population.
AOR. Agent of Record Similar to EOR, but intended for independent contractors or sole traders. Contractually, the company takes on the responsibility of ensuring your contractors are paid compliantly and on time anywhere in the world you may have them.
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Source: JP Gooch , Vice President, Channel Sales at iWorkGlobal