4 ms·
You're referring to what's called an "employer of record" (EOR) and this isn't as straightforward or risk-free as you think it is. First, there are some countr
by LurkingPenguin 5y ago
You're referring to what's called an "employer of record" (EOR) and this isn't as straightforward or risk-free as you think it is.
First, there are some countries in which the law would consider your business to be the employer of a worker even if the worker was hired by an EOR. And others place limits on EOR relationships, such as the length of time a worker can be continuously employed by an EOR.
Second, an individual you employ through an EOR can still take actions that potentially expose your business to risk. Think data breaches, intellectual property theft, etc. In many legal matters, since you are not the employer, you would not even have the ability to take direct action against the worker and would instead have to have the EOR act on your behalf, which is of course another source of counterparty risk.
Finally, your relationship with the EOR is not a one-way street as you seem to think ("the local firm will have to face the consequences"). Under any EOR contract, your business has obligations to the EOR as well and a reputable EOR is actually probably far more likely than an average employee to go after you in your home country if you breach the contract.
As an expat who has done business in numerous countries, I offer the following blanket advice: never do business (in any shape or form) in a country where you're not capable of and prepared to get your hands dirty locally (with the legal system, etc.).