CTGGLOBAL

The distinction between regular employees and POB consultants (or independent contractors) is entirely determined by local labor laws. Companies must ensure that the nature of the service provider's work arrangement aligns with local regulations governing independent contractors. Factors such as contract terms, tax law definitions, and the intentions of the employer and worker are relevant but must adhere to the legal framework defining the employment relationship.

Employer of Record (EOR) Service is a model in which a human resources company (EOR) manages all employment-related administrative and statutory responsibilities on behalf of another company (the Actual Employer). EOR allows businesses to quickly enter new markets without establishing a local entity. Services provided include labor contract signing, employment procedures, payroll processing, local social security contributions, tax filings, and offboarding processes, while ensuring compliance with local employment laws. This is an attractive solution for companies looking to reduce risks, minimize administrative burdens, and expand internationally with ease.

Companies that need to hire employees abroad while simplifying processes, reducing risks, and improving compliance can benefit from EOR services. Examples include:

Multinational Companies: Operating across multiple countries requires ensuring compliance with local policies and regulations in each market.

Startups: Startups often lack the resources or expertise to navigate the complexities of international hiring. EOR services enable them to quickly and compliantly build teams and expand into new markets.

Rapidly Expanding Companies: Businesses entering new markets quickly may not have the time or capacity to establish legal entities, build HR departments, or hire staff locally.

Temporary Projects or Short-term Assignments: Companies conducting short-term projects or assignments abroad can rely on EOR for the necessary support without establishing long-term employment relationships.

Pilot Markets: Before committing to long-term investments in a foreign market, companies can use EOR to hire local employees for market research.

Companies Requiring Flexibility: EOR offers a flexible employment solution, enabling businesses to quickly assemble and adapt international teams as needed.

CTG's EOR Service helps businesses establish overseas teams in compliance with local laws and regulations, even without an overseas hiring entity. This service covers the full employee lifecycle, reducing the administrative burden on companies and facilitating smooth international hiring. CTG's extensive global network provides professional support across multiple countries and regions, ensuring local employment compliance and operational safety.