What is an Employer of Record (EOR)?

Using an Employer of Record has multiple benefits and selecting the right provider is crucial for your success
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An Employer of Record (EOR) is a third-party agency that hires and pays an employee on behalf of another company while taking full responsibility for all formal and administrative employment tasks. The EOR actually becomes the official employer of your employees in front of the all national institutions. For many small to mid-size businesses experiencing growth, outsourcing can help you focus on your core business during your business expansion, especially if you’re planning to establish representative office in a foreign country.


Companies choose to hire EORs to avoid all possible complications related to human resources operations, market understanding, market shares, search and selection process, managing payroll for employees in accordance with all the regulations and laws of the country concerned.


When you decide to use EOR, they become the official employer of your own employees. This valuable outsourcing service keeps a business in compliance with labor law and all related legal requirements and regulations which significantly assists the company during its business expansion abroad.


In international scenarios, regulations regarding benefits and taxes can vary and be very complex. EORs help companies access new markets, manage benefit systems more efficiently, and can even sponsor work visas!


Using an Employer of Record has the following main benefits:

  1. Time and budget optimization
  2. Increased regulatory compliance for national and international scenarios
  3. Risk sharing, as the risks of being an employer fall almost completely on the Employer of Record

The employer of record takes on all the responsibilities and liabilities for issues regarding employment relationships such as administrative operations, payroll, taxes, employee benefits, and record compliance.


Selecting the right provider is crucial for your success. What shall we consider when choosing an EOR provider?

  1. Reputation of the EOR provider – the feedback of the market and customer’s references are the most reliable source of information.
  2. Current clients base – clients and their scope of business speaks clearly about the supplier.
  3. Experience – years of experience in providing the service is a reliable indicator that the supplier has faced all kinds of cases and manages to find flexible solutions.


When weighing which company to partner with for comprehensive Human Resources services, take into consideration all available information and invest in the opportunity to focus on your business.


How can Toro Group S help you explore the Bulgarian market? Just get in touch with us to discuss our EOR services and other outsourcing opportunities!