What is an EOR? The Solution for International Recruitment

A Registered Employer, also known as an EOR (Employee of Record) is an organization in charge of hiring and paying a worker on behalf of another company. It is a service that can be very useful for those companies that want to have a number of workers in a country other than their own, but do not want to be incorporated in that country.

With the advent of teleworking opens the possibility of hiring workers anywhere in the world. For those companies that are interested in expanding globally, this is an option that has surely crossed their minds. However, the process of setting up in another country can be long and complicated. EORs are here to solve this problem. Thanks to these organizations, it is no longer necessary to go through the legal formalization process.

What does an EOR offer?

These entities have the power to hire and assume responsibility for the tasks involved in formal employment. For example, if a German company wants to have workers in Spain to expand its business, it can choose to do so through an EOR, which will manage the recruitment. EORs can offer a wide range of services, such as:

• Providing legal employment for remote workers
• Creating contracts that comply with local regulations
• International payroll processing
• Employee benefits
• Streamlining the onboarding of new workers
• Contract termination

Differences with a PEO and AOR

If you’ve been researching other third-party recruiting possibilities, you may be familiar with the terms PEO and AOR. Although they may sound like entities that offer the same thing as an EOR, the truth is that they are not exactly the same. Let’s go into detail on each of them to find out which type of organization is more suitable for each case.

PEO stands for “Professional Employment Organization”. PEOs provide payroll, benefits and human resources support to small businesses. PEOs allow us to establish co-employment relationships. This means that the people you hire are collaborators of your company. To establish this type of relationship it is necessary that the person lives where your company has a commercial registration. In this case, your company will be the one who hires the employee, being also legally responsible for them. The PEO offers to perform for you the tasks of an entire Human Resources department.

On the other hand, the “Agent of Record”, also known as AOR (Agent of Record in Spanish) are companies that obtain the legal authority to administer insurance policies on behalf of other companies. Agents of Record are hired by companies so that they do not have to deal with insurance paperwork.

As we can see, although these terms may seem similar at first glance, each one offers different services to companies. If what you are looking for is to be able to hire people in other countries, while you keep the business growing, what you are looking for is an EOR.

Mancoyser: the EOR of Vasalto

Mancoyser is one of Vasalto’s subsidiaries, which specializes in registered employer services. It is an EOR that transforms the payroll into an invoice. Thanks to the work of our experts, we enable companies from all over the world to hire workers in Spain in a matter of minutes.

Mancoyser helps growing companies unlock their full potential by enabling the development of highly specialized teams in a matter of days. We help hire, onboard, pay and manage team members quickly and compatibly to expand growth opportunities in Spain, without the hassle of setting up a legal entity.

As an EOR, our functions are as follows:

• Payroll management: Vasalto is a Back Office with a large department specialized in payroll. Thanks to this, Mancoyser can offer assistance in the administration of the payment of your employees in Spain. You will be able to hire in accordance with Spanish legislation, with the confidence of having a team specialized in these procedures behind you.
• Taxes: with Mancoyser you will not only be able to hire with total security of complying with the legislation, you will also be able to benefit from all the tax advantages. Our team of experts will work to apply all possible tax deductions and reductions, in order to get the maximum return on the salaries you pay in Spain.
• In accordance with legislation: thanks to the legal advice of Venza, Vasalto’s legal firm, we can draw up employment contracts in accordance with legislation. In addition, as Mancoyser is the one who will hire the workers, it also assumes all legal responsibilities related to the workers.

Do you need help with your company’s labor management?

At Vasalto, we are experts in payroll. We specialize in helping other companies with services such as managing the hiring and dismissal of workers, outsourcing payroll and all processes related to labor relations management. Our more than 30 years of experience have given us a great expertise in the sector. In addition, we are a company very involved with technology. Throughout these years we have developed a series of proprietary computer systems that allow us to manage more than 40,000 payrolls every month. In addition, we also have the best legal and accounting advice to offer our clients the best possible service.

At Vasalto, we believe that communication between people is fundamental. We make technology available to people, never the other way around. We work with technological automation solutions so that IT takes as much work off our hands as possible. This way, we have more time to dedicate to our customers.

If you are interested in learning more about flexible compensation or any issue related to payroll or accounting for your company, at Vasalto we will be happy to help you. Contact us to get to know us and see how we can help your company.