Understanding EOR Platforms

An Employer of Record (EOR) is a service that becomes the legal employer of workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity or local presence.

Skuad operates as a comprehensive EOR platform, handling employment contracts, payroll, benefits, taxes, and compliance across 160+ countries. When a company uses Skuad to hire someone internationally, Skuad becomes the official employer while the worker performs their duties for the client company. This structure ensures full legal compliance while enabling seamless global hiring.

Traditional HR platforms typically manage existing employees within a single jurisdiction, focusing on internal processes like performance management, benefits administration, and payroll for domestic workers.

Skuad, as an EOR platform, goes significantly further by:

• Becoming the legal employer in foreign jurisdictions
• Handling complex international compliance requirements
• Managing multi-currency payroll and local benefits
• Providing legal protection for international hiring
• Enabling hiring without establishing foreign legal entities

While traditional HR platforms manage relationships between a company and its existing employees, Skuad creates the legal framework that allows international hiring to happen in the first place.

Yes, Skuad is designed to be accessible to small and medium businesses. The platform's transparent flat-rate pricing model makes costs predictable, which is particularly important for smaller companies with limited budgets.

Key advantages for small businesses include:

• No minimum employee requirements or setup fees
• Simple, intuitive interface that doesn't require HR expertise
• Transparent pricing without hidden costs
• Access to the same compliance infrastructure used by larger companies
• Quick setup process that doesn't require extensive legal consultation

Many small businesses use Skuad to hire their first international employees, finding it more cost-effective than establishing foreign subsidiaries or engaging traditional legal services for international expansion.

Skuad supports hiring across 160+ countries and territories worldwide, making it one of the most comprehensive EOR platforms in terms of geographic coverage. This extensive reach includes:

• All major economies in North America, Europe, and Asia
• Growing markets in Latin America, Africa, and Southeast Asia
• Both developed and emerging markets across all continents
• Countries with complex regulatory environments and simpler jurisdictions

The platform maintains local expertise and partnerships in each supported country to ensure compliance with local employment laws, tax regulations, and benefits requirements. This broad coverage allows companies to hire talent virtually anywhere in the world through a single platform.

The timeline for hiring through EOR platforms varies by provider and jurisdiction, but generally ranges from 1-5 business days once all documentation is complete.

Typical timelines include:

• Skuad: 2-3 business days for most countries
• Remote: 1-2 business days for standard jurisdictions
• Deel: 2-4 business days depending on country complexity

Factors affecting timeline include the complexity of local regulations, required documentation, background check requirements, and the completeness of submitted information. Most delays occur due to incomplete documentation rather than platform processing times.

EOR pricing varies significantly across providers and typically includes monthly service fees plus local employment costs:

Service Fees:

• Skuad: Flat-rate model starting at $599/month per employee
• Deel: Tiered pricing from $599-$1,200/month depending on features
• Remote: Competitive rates starting around $599/month
• Enterprise platforms: Custom pricing often $800-$1,500/month

Additional Costs:

• Employee salary and benefits (paid directly to employee)
• Statutory benefits and social security contributions
• Local taxes and mandatory insurance
• One-time setup fees (varies by provider)

Despite the EOR being the legal employer, intellectual property and work product typically belong to the client company that directs the employee's work. This arrangement is established through:

• Service agreements between the EOR and client company
• Employment contracts that assign IP rights to the client
• Clear documentation of work-for-hire relationships
• Non-disclosure and confidentiality agreements

However, IP ownership can be complex and varies by jurisdiction. Companies should review IP assignment clauses carefully and may need additional legal documentation for highly sensitive intellectual property work.

Yes, most EOR arrangements are designed to be flexible, allowing companies to transition employees to direct employment when they establish local entities. This process typically involves:

• Terminating the EOR employment relationship
• Establishing a new employment contract with the local company entity
• Transferring benefits and maintaining employment continuity
• Ensuring compliance with local transfer regulations

Skuad and other major EOR providers facilitate these transitions, though the process must comply with local employment laws. Some jurisdictions have specific requirements for employment transfers that must be carefully managed.

Employment disputes in EOR arrangements are handled according to local employment laws where the employee is based. The process typically involves:

• The EOR managing the formal employment relationship and legal obligations
• The client company handling performance and work-related issues
• Coordination between the EOR and client on resolution strategies
• Local legal counsel involvement when necessary

Most EOR platforms, including Skuad, provide support and guidance during dispute resolution while ensuring compliance with local employment protection laws. The EOR's local expertise is particularly valuable in navigating unfamiliar legal systems.

EOR platforms implement comprehensive security and compliance measures including:

Data Security:

• SOC 2 Type II certifications and regular security audits
• End-to-end encryption for data transmission and storage
• Multi-factor authentication and access controls
• Regular security training and incident response procedures

Regulatory Compliance:

• GDPR compliance for European data protection
• Local data residency requirements where applicable
• Employment law compliance monitoring and updates
• Regular compliance audits and certifications

Skuad and other major providers invest significantly in security infrastructure to protect sensitive employee and company data across multiple jurisdictions.