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Employer of Record (EOR): Key Terms Explained

What Is an Employer of Record?

Hiring employees in other countries can be complex due to local employment laws, payroll requirements, benefits, and compliance obligations. Establishing a local entity often takes significant time and resources.

An Employer of Record (EOR) enables you to hire employees in countries where you do not have a local entity. Pebl acts as the legal employer for employment and compliance purposes, while you maintain control over the employee’s day-to-day work.

How Pebl Supports Your Team

Pebl serves as the legal employer of the Supported Worker and currently supports hiring in 185+ countries.

Pebl is responsible for:

  • Locally compliant employment agreements
  • Payroll processing, taxes, and statutory benefits
  • Required employment filings and administration

You continue to:

  • Manage daily responsibilities and scope of work
  • Integrate the Supported Worker into your team and culture
  • Direct performance, priorities, and business outcomes

Supported Workers are encouraged to operate as full members of your organization.

Why Use an EOR Instead of Contractors?

Using contractors for long-term or employee-like roles can create significant misclassification risk, including fines, penalties, and retroactive taxes.

An EOR provides:

  • Proper employee classification under local law
  • Access to statutory benefits and protections for workers
  • Reduced compliance and regulatory risk with adherence to country-specific employment, tax, and data privacy and protection laws
  • The ability to attract and retain top global talent

For most HR teams, a compliant EOR model presents lower long-term risk than contractor arrangements.

Co-Employment & Shared Responsibilities

Co-employment is a common consideration in global employment models. Pebl works as an extension of your HR team. When clients collaborate with Pebl on role changes, performance management, and offboarding decisions, co-employment risks are significantly reduced.

Our agreements allocate responsibilities based on what each party controls, following standard EOR practices.

Intellectual Property (IP) Ownership

Each party retains ownership of its existing intellectual property:

  • Pebl retains Pebl IP
  • You retain your company’s IP

Any intellectual property created by the Supported Worker in the course of their role is treated as Client IP.

Because IP assignment laws vary by country, Pebl’s employment agreements ensure IP ownership is transferred to you in a compliant and enforceable manner.

Seniority: Prior Service vs. Net new Hire

If a Supported Worker has previously worked for your company, you may choose to recognize prior service and seniority in their employment agreement.

Recognized seniority can affect benefits or entitlements depending on the country. Workers without prior service are treated as net new hires, starting at zero seniority—just like a standard new employee.

Payment Terms

Pebl pays Supported Workers according to local payroll schedules.

To ensure timely and compliant payroll, client payments are required in advance of payroll disbursement. This structure supports uninterrupted employee payments and statutory compliance.

Offboarding & Termination

Offboarding may occur if:

  • A Supported Worker resigns
  • The Supported Worker is terminated upon your request or theirs
  • The Master Terms of Service (MTOS) ends

Termination requirements vary by country and may include notice periods, severance, or government notifications. Pebl guides you through each step to ensure compliant offboarding and final settlement.

Confidentiality & Data Access

Pebl does not access your confidential business systems or data during day-to-day operations.

You provide Supported Workers with work equipment and system access directly. Any information shared with Pebl during contracting or support activities is protected under confidentiality provisions in our agreements.