For HR professionals, company owners, and employers navigating today’s global and remote workforce, the path from “I’ve got a candidate” to “they’re on the payroll” can feel like a maze of labour laws, taxes, and administrative hurdles. Enter the Employer of Record (EOR): a strategic partner that lets you manage your team while someone else handles compliance and payroll logistics.
1. Define Your Need and Scope
First, determine where the hire is based. Are you expanding into a new country or hiring remotely where you don’t have a legal entity? That’s where an EOR steps in. An EOR allows you to hire talent without setting up a local company. You control the employee’s work while the EOR takes legal responsibility for employment, taxes, and compliance.
2. Choose and Contract the EOR Partner
Selecting the right EOR is crucial. Look for one with a local legal presence and a strong compliance record. Ensure they provide contract drafting, benefits administration, payroll processing, and labour law adherence. The contract should clarify that the EOR is the legal employer, while you handle management and performance oversight. Transparency, data security, and clear pricing are key.
3. Onboard the Employee
Once the EOR is chosen, the employee signs a compliant contract prepared by them. The EOR registers the employee for tax and benefits, processes payroll details, and ensures all legal boxes are ticked. You handle the onboarding experience, tools, and integration into your team. Think of it this way: you own the mission, they own the paperwork.
4. Pay and Manage the Employee
The EOR runs payroll, remits taxes, and manages statutory benefits in the correct currency and jurisdiction. You focus on performance, company culture, and day-to-day supervision. Both you and the EOR must keep an eye on compliance to ensure contracts and standards remain up to date.
5. Offboard or Transition Seamlessly
If you decide to end the contract or move the employee under your own entity, the EOR manages the legal offboarding—final pay, benefits, and compliance. You handle operational closure and transition planning, ensuring no gaps or legal risks.
Why It Matters
Using an Employer of Record saves time, reduces legal risk, and speeds up expansion. Instead of spending months setting up a legal entity, you can hire talent within days. For growing companies, it’s a bridge between ambition and compliance.
Call to Action
If you’re looking to expand your workforce efficiently and stay compliant, FaidiHR can help you navigate every step—from EOR setup to payroll and employee management.
Call or WhatsApp: +254 702 339 699
Email: sales@faidihr.com