- 1. Do you employ through your own entity in my country, or a partner? Get the answer in writing, with the entity's name. Providers' models differ: some say they use owned entities, others local partners. Each country guide lists what each provider says.
- 2. Do you hold the licence my country requires? In Germany, where you direct the work, an EOR is employee leasing and needs an AÜG licence; in Poland, temporary work agencies must be registered (KRAZ); four Australian states and territories license labour hire. See EOR labour hire rules by country.
- 3. How long can the arrangement last? Germany limits a placement to 18 months, and other countries set their own limits. Ask what happens at the limit.
- 4. Which collective agreement will apply to my employee, if any? In some countries it sets minimum pay, extra payments and notice.
- 5. What exactly does the monthly fee include, and what's extra? Benefits, onboarding, offboarding and add-ons can be priced separately. See EOR pricing explained.
- 6. What deposit do you take, and when is it returned? Terms differ: Playroll takes a refundable deposit of one month's salary; Remote says it has no standard deposit but may require a refundable reserve.
- 7. What exchange rate and margin do you apply when converting my payment into the employee's currency?
- 8. Does the price vary by country or headcount? Some providers price by country or within a range; get the rate for your country. See EOR pricing by country.
- 9. What will severance and notice cost if the employment ends, and how is it billed? See severance pay by country.
- 10. Is there a minimum term, and what notice do I give to end the service?
- 11. How do you handle a termination, and who decides? The EOR, as employer, gives notice under local law; agree the process upfront. See notice periods by country.
- 12. How does the contract assign IP to my company? Ask for the exact wording for your country.
- 13. Can you sponsor a work permit in my country, and for this role? See EOR visa sponsorship by country.
- 14. What insurance do you hold where it's mandatory, such as workers' compensation, and what indemnities do you give me?
- 15. Could this arrangement create a permanent establishment for my company? Ask what your staff may and may not do, such as signing contracts. See US company hiring abroad.
- 16. What happens to my deposit and my employees if you become insolvent? See What is an Employer of Record?.
- 17. Who is my day-to-day contact, and who supports the employee locally? Some providers include a dedicated account manager.
- 18. How do you handle benefits, leave and public holidays in my country? See annual leave by country.
- 19. Where is employee data stored and processed, and under what agreement?
- 20. If I move to my own entity or another provider, what do you charge and how do you transfer records? See switching EOR providers.
What questions should I ask an Employer of Record before signing?
Whether it uses its own entity or a partner in your country, whether it holds any required licence, what the fee includes and what's extra, its deposit and exchange-rate terms, how termination and severance are handled and billed, how IP is assigned, whether it can sponsor a work permit, and what you pay to leave.
How do I uncover an EOR's true total cost of ownership?
Ask for an itemised quote for your country and salary: the monthly fee, deposit, exchange-rate margin, benefits, onboarding and offboarding fees, and the cost of severance and notice if the employment ends. Then add the country's mandatory employer costs from our Employer Cost Index.
How transparent are EOR providers about the employer entity?
It varies, so ask: get the name of the entity that will employ your hire, and whether it's the provider's own or a partner's. Some providers publish their model; each country guide lists what each provider says.
- 1
- 2
Related research
- Switching EOR providersContracts, seniority, permits and deposits.
- EOR labour hire rules by countryLicences, time limits and bans.
- EOR pricing explainedFees, deposits and hidden costs.
- What is an Employer of Record?How an EOR works, what it costs and the risks, in 30 answers.
- EOR pricing trackerEvery provider's published starting price, checked on its own pricing page.
- Compare EOR providersHead-to-head comparisons of published prices, products and fit.