Glossary
What is an employer of record (EOR)?
Also known as: EOR.
An employer of record, or EOR, is a company that becomes the legal employer of your workers in a country where you hold no legal entity of your own, taking on the local contract, payroll and statutory obligations so that you can hire there.
An EOR lets a company put someone to work in a country where it is not set up to employ. The EOR's own local entity signs the contract and carries the in-country compliance, while the worker does their job for you day to day.
An EOR is a different kind of vendor from an HR system of record. Capstan is not an employer of record and never becomes the legal employer of anyone on your roster; it holds the record for people you employ in your own entity, alongside an EOR rather than in place of one.
Related on Capstan
Capstan is the complete HR platform, free for teams up to twenty people.