Employer of Record Jargon Buster

In an industry full of jargon and acronyms, here are our top 10 terms you need to know when employing internationally…

What is an Employer of Record (EOR)?

An organization which assumes sole legal responsibilities of an employer on behalf of its client. Typically including payroll, statutory benefits and insurances.

What is a Professional Employment Organization (PEO)?

An organization which shares the legal responsibilities of an employer with its client, in a co-employment relationship. The PEO typically assists with payroll, HR advice and benefits administration.

What is Remote Working?

Used to describe a situation where an individual is carrying our work away from the premises of their employer. This extends to global remote working where the individual is working in a different country to their employer.

What is a Digital Nomad?

Describes a person who makes their living working online and can be based anywhere when doing so.

What is an Independent Contractor?

A person who supplies goods or services to a company. The independent contractor may work full time for the benefit of one client which can lead to confusion between this status and that of an employee.

What is a Freelancer?

A type of independent contractor who provides their service to multiple clients, often for short periods of time.

What is an Employee?

Describes a person who is on the payroll of someone else’s business. An employee has protections under employment laws.

What is the Gig Economy?

A way of working in which people carry out multiple, very short term, pieces of work and are paid on the basis of the completion of each. Gig work is often organized via a digital labor platform.

What is a Digital Labor Platform?

These are used to organize the provision of labor by utilizing technology. A common use is to co-ordinate food delivery or taxi services.

What is Permanent Establishment?

Describes a situation where a business has sufficient activity in another territory to create a taxable presence.