When onboarding through an EOR (Employer of Record), responsibilities are divided among three parties: the EOR, the client company, and the employee themselves. The EOR acts as the legal employer and handles everything related to employment contracts, payroll administration, and compliance with local laws and regulations. The client company remains responsible for the day-to-day management and work-related guidance of the new employee.
This article answers the most frequently asked questions about how the onboarding process through an EOR works in practice, who does what, and where the greatest risks lie.
What are the EOR’s responsibilities during onboarding?
The EOR is responsible for all legal and administrative steps required to formally employ a worker in the country where that worker lives or works. This includes drafting an employment contract that complies with local legislation, registering the employee with tax authorities and social security institutions, and setting up payroll processing.
Specifically, the EOR handles the following matters during the onboarding of an international employee:
- Drafting and signing a legally valid employment contract in accordance with local regulations
- Registration with local tax and social insurance authorities
- Setting up payroll administration, including deductions and contributions
- Informing the employee about local employment conditions, leave entitlements, and pension rights
- Providing mandatory documentation such as employment condition summaries and employee handbooks
- Ensuring compliance with local rules regarding probationary periods, notice periods, and contract types
The EOR acts as the legal employer but has no involvement in the actual content of the work the employee performs. That distinction is essential: the EOR bears the formal employer risks and ensures everything is legally compliant, while the day-to-day relationship between the employee and the client company remains unchanged.
Which tasks remain with the company hiring the employee?
The client company remains responsible for everything related to the content of the work and the day-to-day guidance of the new employee. The EOR takes over the legal employer role, but the actual management, work instructions, and team integration rest entirely with the client company.
Tasks that remain with the client company during EOR onboarding include:
- Welcoming the employee and introducing them to the team
- Granting access to systems, tools, and internal communication channels
- Explaining work processes, objectives, and expectations
- Scheduling onboarding meetings, training sessions, and introductions
- Managing and evaluating the employee in day-to-day practice
- Communicating relevant employment conditions to the EOR so that the correct contractual agreements can be recorded
This last point deserves special attention. The client company is required to inform the EOR in advance about the applicable employment conditions. Without that information, the EOR cannot draft a correct contract. Good cooperation and clear communication between the client company and the EOR are therefore a basic requirement for a smooth employee onboarding through an EOR.
What does the employee need to arrange themselves when onboarding through an EOR?
During an EOR onboarding, the employee has relatively little to arrange themselves, but there are a number of steps where their active cooperation is indispensable. Without the correct documents and information from the employee, the EOR cannot formalize the contract or start the payroll administration.
What the employee must provide or arrange themselves:
- Identity documents such as a valid passport or identity card
- Tax identification number in the country of employment (such as a BSN in the Netherlands)
- Bank details for salary payment
- Any work permit or residence permit if applicable
- Signing the employment contract and any annexes
- Completing forms for tax and social security registration
In addition, the employee is advised to carefully read the employment conditions received and to ask questions if anything is unclear. International onboarding is subject to local rules that may differ from what the employee is used to in their home country. Think of different notice periods, holiday entitlements, or pension schemes.
How long does the onboarding process through an EOR take?
The onboarding process through an EOR typically takes between five and fifteen working days, depending on the country, the completeness of the documents provided, and the complexity of local regulations. In countries with straightforward registration procedures, an employee can sometimes be formally employed within a week.
The lead time is determined by a number of factors:
- Country of employment: Some countries have longer registration procedures with tax or social security authorities
- Completeness of documents: Missing or incorrect documents significantly delay the process
- Work permits: If the employee requires a work permit, this can take additional weeks to months
- Internal approval processes: Slow contract signing or late submission of employment conditions by the client company delays the start
It is advisable to initiate the EOR onboarding well in advance, especially for international employees who still need to apply for a residence or work permit. Realistic planning prevents a situation where an employee cannot officially start on the intended start date.
What can go wrong during onboarding through an EOR?
The most common problems during EOR onboarding arise from unclear communication, missing documents, or a lack of coordination between the client company and the EOR. Although an EOR removes much of the complexity, the process is not entirely risk-free.
Missing or incorrect information
If the client company fails to provide the applicable employment conditions to the EOR, or provides them incompletely, the contract may be drafted incorrectly. This leads to corrections after the fact and possible delays to the start date. The same applies to employees who do not submit all required documents on time.
Incorrect expectations about roles and responsibilities
A common stumbling block is when the client company assumes that the EOR also handles the work-related onboarding, or conversely, that the EOR expects the client company to take certain administrative steps. Without a clear division of tasks agreed in advance, gaps emerge in the process that the employee notices directly on their first working day.
Other risks include delays due to work permit procedures, errors in payroll administration at the first salary payment, and lack of clarity about local employment law obligations. A well-chosen EOR partner with knowledge of the specific country of employment significantly reduces these risks.
How Eastwing helps with the onboarding of international employees through an EOR
Eastwing helps companies working with international employees to ensure the onboarding process through an EOR runs smoothly and compliantly. We know the pitfalls, understand local regulations, and ensure a clear division of tasks between all parties involved.
What Eastwing specifically does for you:
- Advising on the right EOR structure for your specific situation and country of employment
- Assisting with the collection and verification of the required documents
- Aligning employment conditions between your organization and the EOR
- Monitoring the planning so the employee can start on the agreed start date
- Supporting the employee with questions about the contract, employment conditions, and local regulations
- Identifying risks around work permits and compliance requirements before they become a problem
Would you like to know how we can support your organization in onboarding international employees? Get in touch and we will be happy to think along with you.
Frequently Asked Questions
Can an EOR be used for both permanent and temporary contracts?
Yes, an EOR can be used for various contract types, including both permanent and temporary employment. The EOR drafts the contract in accordance with the local regulations of the country of employment, with the contract type determined by the agreements between the client company and the employee. It is important to communicate clearly in advance which type of contract is desired, so that the EOR can apply the correct legal structure, including the associated notice periods and probationary period provisions.
What is the difference between an EOR and setting up a local entity yourself?
Setting up a local entity means your company registers its own legal presence abroad, which involves high costs, long lead times, and ongoing administrative obligations. An EOR offers a faster and more cost-effective solution: the EOR acts as the legal employer without you needing to set up an entity yourself. This makes an EOR particularly attractive when you want to employ one or a few employees in a country and still want to test whether a market has potential, before making a larger investment.
How do I, as a client company, ensure the employee feels welcome despite the three-way relationship with the EOR?
The key is transparent communication: explain clearly to the employee from the outset who the EOR is, what role it plays, and who they should contact for which questions. Make sure the employee understands that the EOR is the legal-administrative employer, but that day-to-day contact and work-related guidance rest entirely with your organization. A personal welcome, a structured onboarding program, and a dedicated point of contact within your team contribute strongly to a positive first experience.
What happens if an employee decides not to start during the onboarding?
If an employee decides not to start before the official start date, the situation depends on whether the contract has already been signed and the local legislation of the country of employment. In many countries, a probationary period applies during which both employer and employee can terminate the employment with a short notice period. The EOR handles the formal settlement, but the client company is advised to discuss this scenario in advance with the EOR so that you know what costs and procedures are involved.
Can the EOR also support the relocation of an employee to another country?
Yes, an EOR structure is particularly well suited to situations where an employee moves to another country or temporarily carries out work in another country. In that case, the existing EOR structure in the original country of employment ends and a new onboarding is started in the new country of employment, in accordance with the laws and regulations applicable there. Bear in mind that such a relocation may also involve work permit and tax issues that require early coordination.
How are confidential company information and intellectual property protected in an EOR structure?
Although the EOR is the legal employer, the protection of confidential information and intellectual property remains primarily the responsibility of the client company. This is arranged through additional agreements such as a non-disclosure agreement (NDA) and an IP assignment clause, which the client company concludes directly with the employee or has included in the employment contract via the EOR. Discuss this explicitly with your EOR partner before the contract is drafted, so that these provisions are correct and enforceable under local law.
What are the costs of onboarding through an EOR and how are they structured?
The costs of an EOR typically consist of two components: a monthly service fee per employee (often between €200 and €600, depending on the country and the provider) and the full payroll costs including local employer contributions, social security premiums, and any mandatory insurance. One-time onboarding costs may also apply. It is important to request a full cost overview from your EOR partner so that you can compare the actual costs per employee with alternatives such as setting up a local entity yourself.
