Employer of Record (EOR) : Hire Employees Without Setting Up a Company
In today’s borderless world of work where businesses demand high flexibility, many organizations are exploring ways to expand their workforce internationally without facing legal complexities, tax management, or the need to establish new legal entities. One increasingly popular solution is the Employer of Record (EOR) – a service provider that legally employs staff on behalf of a company.
In this article, we’ll guide you through what EOR means, how it works, the benefits for organizations, and how YLink, a recruitment and HR service expert, provides comprehensive EOR services to meet the needs of modern businesses.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a service provider that acts as the legal employer for a company’s workforce. The EOR manages employment contracts, payroll, taxes, benefits, and ensures compliance with local labor laws in a country where the company does not have a legal entity. Using an EOR allows companies to hire internationally quickly and lawfully without the time and costs of setting up their own branch office. The EOR signs employment contracts as the legal employer and takes full responsibility for:
• Compliance with labor laws
• Administration of employee benefits and entitlements
• Payroll management and related tax submissions
EOR vs. PEO : What’s the Difference?
- EOR (Employer of Record) → Acts as the legal employer, covering employment contracts, payroll, and compliance in full.
- PEO (Professional Employer Organization) → Typically shares responsibilities with the client company, such as providing payroll or HR support. However, the client company must already have a legal entity in the host country.
Therefore, for companies without a local legal entity abroad, EOR is the most suitable choice.
Core Functions of an EOR
1.Legal Employer – Employs workers on behalf of the client company and assumes all related legal responsibilities.
2.Payroll & Tax Management – Handles salary calculations, payroll processing, tax, and social security contributions.
3.Employee Benefits Administration – Provides statutory benefits and ensures compliance with local requirements.
4.Regulatory Compliance – Keeps employment fully aligned with local labor laws and regulations.
5.Market Entry Facilitation – Enables companies to quickly expand into new markets, such as Thailand, without legal and administrative hurdles.
Benefits of Using an EOR
1.Convenience & Simplicity – Avoids the complexity of establishing a foreign entity.
2.Reduced Costs & Time Savings – Accelerates hiring without heavy investments in setting up a subsidiary.
3.Lower Legal Risks – Ensures compliance with local labor laws, minimizing regulatory risks.
4.Business Focus – Allows companies to focus on core operations while the EOR manages HR and compliance.
5.Flexible Expansion – Test new markets and scale workforce up or down with ease.
When to Use an EOR
→ Startups expanding into a new country without the readiness to set up a subsidiary.
→ Foreign companies needing to hire Thai employees quickly for a project.
→ Organizations seeking workforce flexibility without legal and HR constraints.
YLink’s Employer of Record (EOR) Services
With deep expertise in the Thai labor market and long-standing experience with Japanese and international companies, YLink Co., Ltd. understands the need for flexible, compliant employment solutions. YLink offers comprehensive Employer of Record (EOR) services, covering both recruitment and employment management under Thai labor law, ensuring your organization can expand confidently in Thailand.
1.Recruitment + EOR Employment
• YLink recruits, screens, and recommends candidates based on client requirements.
• Once the client selects a candidate but cannot hire directly (e.g., no Thai entity), YLink acts as the legal employer, managing employment contracts, payroll, and social security.
2.Existing Employee Management
If clients already have selected candidates or existing employees, YLink can manage them as the legal employer, covering:
• Employment contracts
• Social Security registration (Section 33)
• Payroll (salary, bonus, OT, tax)
• Employee benefits and labor compliance
Service Conditions
1.Eligibility: Available for Thai nationals only (Visa & Work Permit for foreign staff not included).
2.Employment Term: No minimum required; contracts may be project-based (3–6 months) or long-term.
3.Flexibility: Supports both short-term and long-term staffing needs.
Why Choose YLink as Your EOR Partner?
1.Expertise in Thai & Japanese Companies – Multilingual support (Thai–Japanese–English) with knowledge of Thai labor law and Japanese corporate culture.
2.End-to-End Solutions – From recruitment to employment management, whether for new hires or existing staff.
3.Reduced HR Burden & Legal Risk – Clients focus on business, while YLink handles HR and compliance.
4.Flexibility – Customized EOR packages to match each company’s size and requirements.
**“As an Employer of Record (EOR), Y LINK will be the official employer who signs the employment contract with the employee and takes full responsibility for labor law compliance, while the client manages the actual operations (assigning tasks and overseeing day-to-day work).”
An Employer of Record (EOR) allows businesses to expand quickly and hire talent without legal or administrative complexity. It is an ideal solution for organizations that need flexibility and want to grow across borders. In Thailand, YLink Co., Ltd. provides full-cycle EOR services, covering recruitment, employment contracts, payroll, benefits, and compliance with Thai labor laws. With YLink as your partner, your organization can focus on growth while we manage the HR and legal responsibilities.
Personnel Consultant , we’re Japanese recruitment agency company in Bangkok. We has been in the business of recruiting Thai and Japanese talent for 30 years. Companies looking for talent & staffing , please contact us through this form Click
Tel.02-2608454
Email : jobs@personnelconsultant.co.th
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