Published on January 18th, 2024
The immigration process is different when an Employer of Record is involved – find out what you need to know if your immigration case involves an EOR.
Why do I need an Employer of Record (EOR)?
What should my company do if we want to send an employee to work in a country where we do not have a legal entity? Whether for a temporary project or when starting out in a new country, this situation can arise for a number of reasons. It does not always make sense to scale up and establish an office in a new country. In this situation, the solution is often to make use of Employer of Record services.
What is an EOR?
Many international providers offer EOR services. An EOR is a third-party company that acts as a local employer for another company. The EOR takes on the burden of local legal and compliance obligations to ensure that the client company can employ workers in the area. Their duties include payroll, social security, taxes and benefits.
Why is immigration relevant for EORs?
Due to their international setup, immigration is often a requirement and it is not uncommon for new recruits to be non-EU nationals. But how does EOR immigration differ from standard immigration and what do you have to watch out for?
What characterizes EOR immigration?
According to German law, an Employer of Record requires a license. The employee does not work under the direct supervision of the employer but instead of the client. In most cases, the EOR needs to have an Arbeitnehmerüberlassung (employee leasing) license. This means that immigration involves an additional step to allow the employee to work for the third party under the employer’s leasing license.
What else do I need to know about EORs?
EOR contracts also differ from standard contracts as the employee is legally obliged to work for another company. Due to the nature of this employment, the employee falls under local country regulations regarding unemployment benefits, pensions, etc.
Typical EOR immigration
EOR immigration usually involves local employment, typically of highly-educated individuals. In these cases, the candidate generally qualifies for an EU Blue Card. Here it is worth remembering that the minimum salary threshold for an EU Blue Card was reduced to €43,800 in November 2023.
If you would like to find out more about EOR immigration, do not hesitate to get in touch with us at Expats Guide, we will be happy to help!