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Employer of record, explained for candidates

The mechanism behind most genuine cross border remote jobs, and what it means for you.

If a company in Germany wants to hire you in Nigeria, it faces a problem: it has no legal entity in Nigeria and cannot put you on a payroll that does not exist. An employer of record solves that.

How it works

An EOR is a company that already has a legal entity in your country. It employs you formally, handles your payroll, tax and statutory contributions, and invoices the company you actually work for. Day to day you work for them. On paper you are employed by the EOR.

The best known are Deel, Remote.com, Oyster, Velocity Global and Papaya Global. Seeing any of those names in a posting is a strong signal that international candidates are genuinely in scope.

What it means for you

Contractor is the other route

The alternative is being engaged as an independent contractor: you invoice, you handle your own tax, and you usually earn a higher headline rate with fewer protections. For some visa routes, including Spain's digital nomad visa, a contractor arrangement with a named foreign client is exactly what the paperwork requires.

The question to ask

How do you engage people in my country? A company with an answer has done this before. A company without one is about to discover how hard it is, at your expense.

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