EOR essentials: Building global teams the right way

Webinar Speakers:

Matt Dangell, Founder, Rise Accounting
Dee Coakley, Co-founder and CEO, Boundless

This webinar focused on the essentials of using an Employer of Record when building global teams. Matt Dangell, our Director at Rise Accounting, was joined by Dee Coakley, Co-founder and CEO of Boundless, who shared practical insights from her experience supporting international hiring and leading a remote-first global team.

Dee explored how Employer of Record works in practice, how it compares to other employment models and the key compliance and cost considerations businesses need to be aware of. Here is how the session unfolded:

Why international employment is more complex than it looks

On the surface, international employment can look fairly simple. You might think you just need to register as an employer, send an employment contract, set up payroll and you are ready to go.

In reality, there is a lot more involved. You need to manage payroll in different jurisdictions, keep HR policies locally compliant, arrange local benefits and stay on top of changing legislation. Even then, that only scratches the surface.

When this is not handled correctly, companies can run into payroll errors, tax filing issues, worker misclassification and failures to meet local employment obligations. This can lead to frustrated employees, higher churn, fines from local authorities, legal costs, reputational damage and a significant distraction for senior leadership.

Employment options for hiring international workers

There are several ways companies can hire workers in other countries.

The first is direct legal entity employment. This means having a local entity in the country where the worker is based and employing them through that entity. Workers are always entitled to the employment protections of the country where they work from. A UK employment contract, for example, has no legal standing for a worker based in France.

Another option is independent contracting. Independent contractors are self-employed individuals working on a contract basis. Many companies assume that having a contract stating someone is an independent contractor is enough. In practice, most governments look at how the relationship operates. If the worker only works for you, is paid regularly, attends internal meetings, uses company equipment and is managed like an employee, they are likely to be treated as a de facto employee.

There is also a foreign employer model, where your existing entity registers locally as an employer in the worker’s country and manages payroll and compliance directly.

The final option is an employer of record. An employer of record is a third party company that becomes the legal employer locally in the country where the worker is based. They have local entities, registrations, licences and expertise and they handle compliance on your behalf.

What an employer of record does

The employer of record becomes the legal employer for your international workers. They manage payroll, benefits, tax filings, compliance and terminations. They are recognised as the employer by local tax and labour authorities and provide access to local expertise.

Your responsibilities remain the same in terms of sourcing and recruiting talent, allocating work, managing performance, supporting professional development and making decisions about employment, including termination. The employer of record supports the process but does not dictate your business decisions.

Why companies use an employer of record

1. Reduced administrative burden and local complexity

Using an employer of record reduces administrative overhead. You do not need to set up local entities, tax registration or maintain in-house employment expertise for every country you operate in.

2. Access to local expertise and location flexibility

Your HR function doesn’t need to understand employment regulations in Germany, Australia, Canada or elsewhere — the employer of record provides that expertise. It also supports location flexibility. Many companies use this to allow employees to relocate internationally or to hire talent wherever it is based.

3. Faster international hiring with lower compliance risk

An employer of record reduces risk by avoiding worker misclassification and ensuring compliance with local labour and tax laws. It also allows companies to hire internationally very quickly. In many countries, workers can be onboarded within days. By contrast, setting up as an employer directly can take up to 18 months in some jurisdictions.

When an employer of record makes sense

Whether an employer of record makes sense depends on your stage, size and appetite for complexity. Early-stage companies often start with independent contractors and move to an employer of record as they grow. Investors may also push companies to become compliant as part of a funding round.

Regulated businesses, such as fintech companies, often prioritise compliance from an early stage and may avoid full-time independent contractors entirely.

At the highest level of complexity is setting up your own legal entities. We operate entities in 32 countries at Boundless and it is extremely complex. From day one, you may need consolidated group accounts, transfer pricing arrangements and specialist legal, finance and HR expertise. This model is best suited to larger, more mature organisations.

How do you choose the right employer of record?

Choosing the right employer of record is critical. You should consider the level of support offered, cost structure and commitment to compliance.

You should ask whether the provider is a direct employer of record or an aggregator relying on third-party partners. Providers relying heavily on partners often see a degradation in service quality.

You should understand pricing clearly, including any hidden or future fees, deposit requirements, refund policies and scalability.

Compliance is essential. Ask whether the provider owns their local entities, holds the correct licences, adheres to local restrictions and provides expert HR support rather than generic customer service.

You should also consider country coverage, response times, access to expertise, internal knowledge resources and how well the provider aligns with your internal team’s needs.

Key takeaways

An employer of record acts as a bridge to compliant global growth. It allows companies to scale internationally without the cost and commitment of setting up local entities.

Global employment is complex and risky without the right structure. Employer of record solutions work best for growing teams, new country expansions and multi-country operations.

Not all employer of record providers are the same. Compliance, transparency, support and scalability are critical. Companies should assess their own needs carefully and choose a partner they trust.

Questions and Answers

1. Often, international hiring isn’t about market expansion but about employee relocation or accessing the right talent without setting up entities. Is that what you see in practice?

Dee Coakley: We see that far more commonly. Companies often relocate existing employees or hire internationally because they can’t find the right talent locally. Drawing from a global talent pool dramatically improves hiring outcomes.

2. Can you talk us through the onboarding process and how long it typically takes?

Dee Coakley: Usually, companies come to us with a worker already identified. Onboarding begins once that worker is identified. We guide the customer through setup on our platform, turning countries on as needed and presenting employer obligations for review.

Employment agreements are generated through guided questions tailored to each country. The worker receives an invitation, completes identity verification, signs the agreement and is onboarded quickly — often within minutes once documentation is complete.

3. What are the risks of using independent contractors instead of an employer of record?

Dee Coakley: Independent contractors may appear cheaper, but most governments will assess the reality of the relationship. If the worker attends internal meetings, has company equipment, reports to a manager and works full-time for one company, they are likely an employee regardless of the contract wording.

Contract language does not override employment law. In most countries, misclassification is illegal and exposes companies to tax liabilities and penalties. While there are exceptions, such as Ukraine, in most jurisdictions full-time contractors working exclusively for one company are non-compliant.