Hiring international contractors can be an excellent way for an organisation to expand their team across different countries and find talented and knowledgeable candidates worldwide. Throughout this piece, we look at two solutions often explored by organisations looking to hire contractors: Agent of Record (AOR) and Employer of Record solutions.
What is an AOR?
In contractor services, the concept of Agent of Record (AOR) solutions plays a pivotal role. Independent contractors (ICs) work on contract assignments rather than as regular employees. Managing international contract workers can be complex, especially across different jurisdictions with varying regulations. AORs can act as an extension of your organisation/agency, bringing local expertise to ensure compliance with and proper management of ICs. Ensuring compliance and correct classification when working with international contractors is imperative. Failure to correctly classify contract workers can result in fines and more severe penalties. To learn more about the importance of correct contractor classification, check out our article here.
What does an AOR do?
An Agent of Record fulfils many tasks on behalf of their hiring party. At 3C Global, our team offers and fulfil a range of essential AOR services, including:
- Conducting background checks and verifications
- Accurate classification of independent contractors
- Streamlining onboarding processes
- Continuous compliance monitoring
- Managing contract administration
- Efficient invoicing and payment handling
- Administering benefits and mitigating risks
- Providing indemnification support and insurance coverage
Benefits of partnering with an AOR:
Partnering with an AOR provider like 3C Global Group offers many advantages, from mitigating risks to ensuring comprehensive compliance. To learn more about the many benefits of partnering with an AOR, check out our article here.
What is an Employer of Record (EOR)?
An EOR (Employer of Record) is an external entity that serves as an employer for a worker while working for a different company. EORs can simplify companies' global recruitment processes and negate the need to set up entities in multiple foreign countries.
What does an EOR do?
An EOR performs various administrative functions and compliance responsibilities such as onboarding, payroll processing, visa and work permit processing, tax and social security contribution payments, and maintaining employment contracts and compliance with labour laws. By taking on the legal responsibilities of employment, EORs ensure that companies' hiring practices are fully compliant and that their employees receive the necessary benefits.
An organisation that provides EOR services (like 3C Global Group) will be versed in the region's relevant employment and taxation laws and will take responsibility for the necessary paperwork. Hiring an EOR can make international hiring and contracting more seamless for the agency, employer and the candidate.
Benefits of hiring an EOR:
Utilising the services of an EOR provider has numerous benefits, from streamlining your payroll and onboarding processes to ensuring compliance. To learn more about the benefits of hiring an EOR, check out our article here.
Key distinctions between an Agent of Record (AOR) and an Employer of Record (EOR):
Many distinctions exist between an AOR and an EOR based on their function, services provided, and employment relationship. An AOR would typically undertake responsibility for contractor classification, onboarding, compliance monitoring, contract administration, invoicing, benefits administration, and insurance coverage. Wheras an EOR services provider would be responsible for onboarding, payroll processing, visa and work permit processing, tax payments, maintaining employment contracts, and compliance with labour laws.
Looking for an AOR or EOR Provider?
3C Global is a seasoned AOR and EOR service provider with extensive experience working with clients internationally. We support our partners through audits and IC evaluations with zero fines and no classification issues. Our comprehensive services simplify IC engagement, ensuring compliance and operational efficiency. We strive to ensure our services meet the needs of clients comprehensively. Contact 3C Global today to learn how our partnership can benefit your business. Our knowledgeable team are on hand to assist you with whatever your query is.
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