Skip to main contentEmployer of Record (EOR) Overview
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.
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.
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
Bolto does not:
- Manage employee performance
- Assign work or responsibilities
- Supervise day-to-day activities
- Make hiring or termination decisions
Responsibility Breakdown
| Responsibility | Bolto (EOR) | Your Company |
|---|
| Legal employment | ✅ | ❌ |
| Payroll & tax compliance | ✅ | ❌ |
| Employment contracts | ✅ | ❌ |
| Day-to-day management | ❌ | ✅ |
| Performance reviews | ❌ | ✅ |
| Compensation decisions | ❌ | ✅ |
When Do You Need an EOR?
An EOR is typically used when hiring internationally without a local legal presence.
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
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.
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.
How Bolto’s EOR Works
Bolto’s EOR process is designed to be fast, transparent, and compliant.
-
You select a candidate
You source and choose the employee you want to hire.
-
Bolto creates a locally compliant contract
The contract reflects local labor laws, compensation norms, and statutory benefits.
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Employee onboarding
The employee is onboarded as a Bolto employee in their country.
-
Ongoing payroll and compliance
Bolto runs payroll, handles taxes, and manages statutory benefits each pay cycle.
-
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.
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.
Payroll, Taxes, and Compliance
Payroll
- Employees are paid in local currency
- Pay frequency follows local labor regulations
- Payslips are generated in accordance with local requirements
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
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
Employment Contracts, IP, and Data Protection
Employment contracts
Bolto provides locally compliant employment agreements that align with both local regulations and your company’s requirements.
Intellectual property
Contracts include provisions that ensure IP created by the employee is assigned to your company, protecting your ownership rights globally.
Data protection
Employee data is handled in accordance with applicable data protection laws, including GDPR where relevant.
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.
Frequently Asked Questions
Who is the legal employer?
Bolto is the legal employer. Your company directs the employee’s work and responsibilities.
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.
Can employees receive equity?
In many cases, yes. Equity treatment depends on local laws and plan structure.
How fast can we hire internationally?
Timelines vary by country, but EOR hiring is significantly faster than setting up a local entity.
Can we hire non-technical roles?
Yes. Bolto supports both technical and non-technical hires.
How is EOR different from a PEO?
A PEO typically requires a local entity. An EOR does not.
What happens if local employment laws change?
Bolto monitors regulatory changes and updates employment practices as needed. 
