Handling Employer of Record (EoR) employees involves specific steps to ensure compliance and mitigate risks. This guide outlines the essential considerations.
Set up your platform correctly:
⚠️ It is super important that you add an entity named "Employer of Record" in your WorkFlex account. If this step is not made, our engine will not recognize your EoR employees as such and residency and employer country mismatches can cause cross-border worker issues.
How can I set up the "Employer of Record" entity?
Login as HR admin and go to Company Settings and click on Custom profile fields
Activate Employment entity and select predefined options
Click on + Employment entity and write the exact name "Employer of Record" into the field and hit Save at the bottom right.
How are the EoR employees covered by WorkFlex?
Generally the EoR employees are covered by WorkFlex with a couple of limitations. The main limitation is that we cannot apply for A1/CoC and PwD notifications, as we do not have the Power of Attorney from the EoR provider, being the employer. We assess personal risks for the employee. We cannot assess EoR-specific risks or handle tasks for the EoR.
Please find below a more detailed summary of what is covered:
VISA/Immigration
We assess VISA and immigration requirements.
Results are covered by the no-risk liability.
Permanent Establishment (PE)
We evaluate risks for both the client and the EoR.
Only the client's risk is covered by the no-risk liability.
Wage Tax
We assess the personal tax implications and resulting wage tax risks.
Covered by the no-risk liability.
Social Security
We evaluate social security status and produce necessary documents (WorkFlex Social Security Statement or Provisional A1/CoC).
We cannot apply for A1/CoC for the EoR.
Covered by the no-risk liability.
Posted Workers Directive (PWD)
We identify required actions under PWD.
We cannot apply for PWD for the EoR, which may need special attention.
Covered by the no-risk liability only if followed.
Labour Law
We assess and make assumptions about local labour law application.
Covered by the no-risk liability.
Data Security
We assess data security risks and prepare mitigation strategies for all cross-border personnel.
Covered by the no-risk liability.
Should you have any questions to this, please feel free to reach out to our support team via the chat function.