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Employer of Record (EOR) Overview

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What Is an Employer of Record (EOR)?

An Employer of Record (EOR) allows you to hire employees in countries where you don’t have a legal entity. When you use Bolto as your EOR:

• Bolto becomes the legal employer of the worker
• You retain full control over day-to-day work, responsibilities, and performance

This structure enables companies to hire globally without setting up local entities, navigating foreign employment laws, or managing international payroll and tax compliance on their own.

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What Does an EOR Actually Do?

As an Employer of Record, Bolto handles the legal and administrative responsibilities of employment so you can focus on running your business.

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Bolto is responsible for:

• Employing workers on your behalf
• Drafting and maintaining locally compliant employment contracts
• Running payroll in local currency
• Withholding and remitting employee taxes
• Paying employer taxes and social contributions
• Administering statutory benefits
• Ensuring ongoing compliance with local labor laws

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Bolto does not:

• Manage employee performance
• Assign work or responsibilities
• Supervise day-to-day activities
• Make hiring or termination decisions

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Responsibility Breakdown

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When Do You Need an EOR?

An EOR is typically used when hiring internationally without a local legal presence.

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Common use cases:

• Hiring employees in a country where you don’t have an entity
• Expanding into new markets quickly
• Hiring a small number of international employees (e.g. 1–10)
• Avoiding the time, cost, and risk of setting up foreign subsidiaries

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EOR vs. setting up a local entity

Setting up an entity can take months and requires ongoing legal, accounting, and tax maintenance. An EOR allows you to hire in days or weeks without long-term infrastructure commitments.

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EOR vs. contractors

Using contractors where employees are legally required can expose your company to misclassification risk, fines, and back taxes. An EOR provides a compliant alternative when a role should be classified as full-time employment.

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How Bolto’s EOR Works

Bolto’s EOR process is designed to be fast, transparent, and compliant.

1. You select a candidate
   You source and choose the employee you want to hire.
2. Bolto creates a locally compliant contract
   The contract reflects local labor laws, compensation norms, and statutory benefits.
3. Employee onboarding
   The employee is onboarded as a Bolto employee in their country.
4. Ongoing payroll and compliance
   Bolto runs payroll, handles taxes, and manages statutory benefits each pay cycle.
5. Continuous support
   We monitor regulatory changes and ensure ongoing compliance throughout the employment lifecycle.

Onboarding timelines vary by country but are typically much faster than entity setup.

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Global Coverage

Bolto supports Employer of Record employment in 180+ countries worldwide. This allows companies to:

• Hire globally from day one
• Expand into new regions without legal overhead
• Maintain consistent employment standards across countries

Employment requirements — including payroll cycles, benefits, and termination rules — vary by country. Bolto manages these local differences on your behalf.

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Payroll, Taxes, and Compliance

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Payroll

• Employees are paid in local currency
• Pay frequency follows local labor regulations
• Payslips are generated in accordance with local requirements

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Taxes

• Bolto withholds employee taxes as required by local law
• Employer taxes and social contributions are calculated and remitted
• Your company does not need to register for payroll taxes in the employee’s country

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Compliance

• Adherence to local labor laws and employment standards
• Administration of mandatory benefits (e.g. social security, insurance, paid leave)
• Ongoing monitoring of regulatory changes

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Employment Contracts, IP, and Data Protection

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Employment contracts

Bolto provides locally compliant employment agreements that align with both local regulations and your company’s requirements.

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Intellectual property

Contracts include provisions that ensure IP created by the employee is assigned to your company, protecting your ownership rights globally.

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Data protection

Employee data is handled in accordance with applicable data protection laws, including GDPR where relevant.

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Terminations and Offboarding

Employment termination must follow local labor laws, which can vary significantly by country. Bolto supports compliant offboarding by:

• Managing notice periods and severance requirements
• Ensuring termination processes align with local regulations
• Reducing legal and financial risk for your company

Your company retains full authority over termination decisions, while Bolto ensures execution is compliant.

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Frequently Asked Questions

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Who is the legal employer?

Bolto is the legal employer. Your company directs the employee’s work and responsibilities.

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Can I convert an EOR employee to my own entity later?

Yes. Employees can be transitioned to your local entity if and when you establish one.

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Can employees receive equity?

In many cases, yes. Equity treatment depends on local laws and plan structure.

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How fast can we hire internationally?

Timelines vary by country, but EOR hiring is significantly faster than setting up a local entity.

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Can we hire non-technical roles?

Yes. Bolto supports both technical and non-technical hires.

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How is EOR different from a PEO?

A PEO typically requires a local entity. An EOR does not.

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What happens if local employment laws change?

Bolto monitors regulatory changes and updates employment practices as needed.