Today, the International Employer of Record (EOR) model is attracting more and more freelancers and companies seeking to collaborate across borders without getting lost in legal complexity. But how does it really work? Is it safe, cost-effective, and compliant?
The principle is simple: a professional works for a foreign client company while being employed by an EOR provider. This company handles payroll, social contributions, and local legal obligations on behalf of both parties. The result: the professional keeps their autonomy while enjoying the protection and stability of an employee.
According to the 2024 Staffing Industry Analysts Report, the global EOR market is growing by more than 21% annually, driven by remote work and the shortage of qualified talent in developed countries. Let’s take a closer look at how this model works, its advantages, and why platforms like Talenteum are making it a secure and responsible way to recruit international talent.
What Is an International Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs a worker on behalf of a foreign company. It manages the administrative, legal, and payroll responsibilities while the client company oversees the day-to-day work.
In an international setup, this creates a tripartite relationship between:
- The employee (often a freelancer or consultant).
- The client company (based abroad).
- The EOR provider (such as Talenteum), which acts as the legal employer in the worker’s country.
➡️ In short: the EOR hires the worker locally, invoices the client company, and pays the employee a net salary after taxes and management fees.
Practical Example
A French company wants to work with a developer based in Madagascar.
Instead of creating a local subsidiary, it partners with Talenteum, which legally employs the developer, manages payroll, taxes, and compliance. The French company simply works with the developer as if they were part of its remote team without administrative or legal hassle.
The Three Pillars of the EOR Model
- Legal compliance: respect for local labor laws and tax obligations.
- Security for the worker: access to healthcare, social protection, and retirement plans.
- Simplicity for the company: no need to create a local legal entity.
Why Do Companies Choose the EOR Model?
Because it’s the fastest and safest way to hire internationally without facing complex legal or tax risks.
According to Deloitte (2024), over 62% of global companies now rely on EOR or similar employment solutions to navigate international regulations efficiently.
Key Benefits:
- Rapid access to global talent no subsidiary required.
- Up to 30% savings on HR administration costs.
- Full compliance with local and international employment laws.
- Contract flexibility for testing new markets or project durations.
💬 In short: EOR combines the agility of freelancing with the security of formal employment.
How Does the International EOR Model Work?
The process typically follows four clear steps:
- Service contract signed between the client company and the EOR provider.
- Local employment contract between the worker and the EOR.
- EOR invoices the client for the total cost of employment.
- Salary is paid to the professional after deductions.
Example Calculation
For a mission billed at €3,000 per month:
- 8% management fee
- 25% local social contributions
➡️ Net salary: approximately €1,950, including health and social benefits.
EOR vs. Traditional Freelancing
A frequent question: what’s the difference between working through an EOR and being a classic freelancer?
➡️ The answer lies in two words: security and compliance.
| Criteria | Freelancing | Employer of Record (EOR) |
|---|---|---|
| Legal status | Independent | Employee (via EOR) |
| Social protection | Limited | Full |
| Administrative management | Self-managed | Fully handled by EOR |
| Risk of requalification | High | None |
| Taxation | Often complex | Managed locally |
👉 The EOR model is best suited for long-term or recurring projects, where legal compliance and social protection are crucial.
The Role of Talenteum as an International EOR
Talenteum is one of the leading Employer of Record platforms in Africa and emerging markets.
Its mission: to help companies hire remote talent ethically, safely, and compliantly across borders.
What Talenteum Offers:
- Presence in 20+ African countries (including Morocco, Madagascar, Tunisia, Côte d’Ivoire, and more).
- Complete HR and legal management: payroll, contracts, compliance, taxation.
- Ongoing administrative and legal support.
- A socially responsible approach, promoting qualified local employment.
💡 With Talenteum, a European SME can build a fully compliant international team in just a few days without creating a local entity or handling paperwork.
What Are the Costs of Using an EOR?
The cost depends on the country, legal complexity, and worker’s profile level.
On average:
- 5% to 12% in management fees.
- 20% to 35% in local social charges.
However, these costs are balanced by:
- No legal or accounting fees.
- Elimination of compliance-related fines.
- Simplified contract termination processes.
📈 According to PwC, companies save around 25% compared to direct foreign hiring.
Who Uses the EOR Model?
The EOR model is no longer reserved for large corporations.
It is increasingly used by:
- Startups and SMEs hiring global talent quickly.
- Large enterprises outsourcing specific functions (IT, marketing, customer support).
- NGOs and organizations working with local specialists.
Common Roles Managed via EOR:
- Web developers and data analysts.
- Digital marketing managers.
- IT project managers.
- Customer service and back-office professionals.
💬 In 2025, more than 45% of remote professionals in Africa are employed under an EOR or similar model.
What Are the Benefits for Professionals?
For professionals, the EOR model offers the perfect balance between freedom and stability.
Key Benefits:
- Freedom to choose assignments and clients.
- Employee status with full social protection.
- No administrative or tax headaches.
- Increased credibility with international clients.
📊 According to a 2025 Talenteum study, 72% of professionals employed via an EOR say they are more productive thanks to the peace of mind provided by legal and administrative support.
The Future of Global Employment
The International Employer of Record (EOR) model is shaping the future of work, combining freedom, compliance, and social impact.
For companies, it’s the key to global recruitment without legal complexity.
For professionals, it’s a structured, secure way to collaborate internationally.
👉 With responsible players like Talenteum, the EOR model becomes a strategic tool for building agile, compliant, and engaged global teams.
It’s more than a service it’s a new way of working together worldwide.
FAQ – International Employer of Record (EOR)
Portage salarial is a French-specific employment system for autonomous professionals. The EOR is its international equivalent, used for cross-border hiring under local compliance.
Yes as long as the EOR has a local presence or partners there, like Talenteum does in over 20 countries.
Between 5% and 12% of the invoiced amount, depending on local taxes and complexity.
Yes they receive the same benefits as any local employee, including health coverage, retirement contributions, and paid leave.
Absolutely it’s the most suitable framework for distributed global teams.
Yes they remain free to choose their assignments while staying within a legal employment framework.
Talenteum acts as the legal employer of record, ensuring full compliance between the client company and the professional.
👉 Contact us to discuss your project and avoid the pitfalls of international outsourcing, or explore our tech platform at: www.breedj.com
