Agent of Record (AOR) vs Employer of Record (EOR)

This article explores two solutions for organisations looking to hire international contractors: Agent of Record (AOR) and Employer of Record (EOR).

AOR: An AOR functions as an extension of your organisation to oversee independent contractors (ICs), ensuring compliance with local regulations and managing tasks such as background checks, onboarding, and contract administration.

EOR: An EOR serves as the legal employer for a worker while they work for another company, handling responsibilities such as payroll, visa processing, and tax payments.

Key Differences:

Function: AOR focuses on managing ICs, while EOR focuses on managing employees.

Services: AOR handles tasks related to compliance and administration of ICs. EOR handles tasks related to employment and compliance with labour laws.

Employment Relationship: AOR works with ICs who are not employees, while EOR acts as the worker’s legal employer.

It’s important to partner with an experienced operator skilled in both AOR and EOR. Access Financial is a highly recommended choice.