{"status":200,"body":[{"id":1991,"attributes":{"title":"What is an Employer of Record (EOR)? A Simple Explanation for International Hiring","slug":"what-is-an-employer-of-record","Category":"Global Expansion","Service":null,"Excerpt":"Hiring globally doesn’t need to be complicated. This guide explains what an Employer of Record (EOR) is, how it works, and why businesses use it to expand quickly and compliantly in 111+ countries.","dateofPublishing":"2025-08-25","createdAt":"2024-08-21T15:15:18.373Z","updatedAt":"2025-08-28T09:52:50.882Z","publishedAt":"2025-08-28T07:54:37.368Z","body":"

Expanding your business internationally opens up incredible opportunities – access to new markets, fresh talent pools, and increased brand presence. But global hiring can quickly become complex, especially when it comes to complying with foreign labour laws, managing payroll, and handling cross-border risks. That’s where an Employer of Record (EOR) can make all the difference.

If you're wondering what an EOR actually does, who uses it, and how it supports international growth, this article is your simple, jargon-free guide. Briars supports businesses in 111 countries, and if you’d like to dive deeper, you can download our full EOR Guide below.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party organisation that officially employs workers on your behalf in another country. While you manage the day-to-day work and responsibilities of the employee, the EOR takes care of the legal and administrative side of employment everything from employment contracts and payroll to taxes and compliance with local labour laws.

In short:

You find and manage the talent
The EOR legally employs them
You avoid the cost and hassle of setting up a local entity

Why Would a Business Use an EOR?

When hiring internationally, most countries require that employees are legally hired by a registered local entity. For many companies especially those expanding into new markets or hiring remote global talent, setting up a local subsidiary can be time-consuming, expensive, and high-risk.

An EOR solves this problem by already having the local legal infrastructure in place. This allows you to:

Hire employees quickly and compliantly
Test new markets without long-term investment
Avoid permanent establishment risks
Manage global payroll and tax obligations accurately
Focus on growth, not red tape

Whether you're a startup scaling into Europe, a university hiring a researcher overseas, or a private equity-backed firm going global, an EOR offers a streamlined way to access talent without the complications.

What Does an EOR Actually Do?

Here’s a breakdown of what a full-service EOR typically handles:

1. Employment Contracts & Onboarding

The EOR drafts and signs employment contracts that are fully compliant with local laws, including statutory benefits, working hours, notice periods, and more.

2. Payroll & Tax Compliance

They process payroll in the employee’s local currency, withhold and remit taxes, and handle social security, pensions, and other country-specific obligations.

3. HR Administration & Benefits

The EOR manages the administrative side of employment, including holiday tracking, sick leave, maternity/paternity benefits, and local HR support.

4. Immigration & Work Permits

If visas or work permits are required, the EOR supports the process or advises on legal pathways.

5. IP Protection

Employment contracts through an EOR can include clauses to ensure that any intellectual property (IP) created belongs to your business—an essential for R&D-heavy or tech-based roles.

6. Ongoing Compliance Monitoring

Labour laws change. A good EOR keeps you updated and compliant without you needing an in-house legal team in every country.

How Does EOR Compare to Other Expansion Options?

The most common alternative to using an EOR is to set up your own legal entity in the country where you want to hire. This gives you full control, but comes with significant overhead:

You’ll need legal, tax, and HR representation in-country
Setup can take months, delaying market entry
You’re liable for compliance, penalties, and audits
Exiting or scaling down is legally and financially complex

By comparison, an EOR lets you hire in weeks, operate compliantly from day one, and scale up or down with minimal administrative burden. For many businesses, it’s the ideal model for early expansion, pilot hires, or markets where entity setup isn’t viable.

How Briars Helps with EOR

At Briars, we understand that the future of work is flexible, borderless, and constantly evolving. As organisations expand internationally, they’re not just hiring full-time employees, they're building teams that blend employed, self-employed, and fractional talent across multiple jurisdictions.

We are uniquely positioned to support this shift.

Unlike rigid providers that focus solely on Employer of Record (EOR) services, Briars offers a full suite of global engagement models. Whether you need to onboard an employee in a new region, engage a consultant overseas, or structure a compliant workforce across multiple countries, we work with you to design a solution that fits your goals—and your people.

We take the time to understand:

Your business objectives
Your clients' workforce strategy
Your workers’ preferences

This allows us to deliver customised solutions that ensure compliance, efficiency, and long-term scalability.

Ready to Expand Internationally?

If you're considering hiring overseas but don’t want to take on the cost or complexity of setting up an entity, an EOR could be the right fit and we’re here to help.

Contact us: Contact Us | Briars - Global Expansion Experts
Learn more: Employer of Record (EOR) | Global Hiring & Compliance Solutions | Briars

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Andrew has a strong track record in leading private equity-backed businesses, raising significant funding, and handling public markets pilot fishing. His experience spans acquisitions, international mergers, and leadership roles across EMEA, APAC, and North America. With a background in accountancy, law, and financial services, Andrew drives value creation and growth for companies.

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We are proud to announce that Briars has been appointed as an approved supplier to the North Western Universities Purchasing Consortium (NWUPC) Global Mobility Services Framework (PFB3160 NW), Lot 3: Employer of Record (EOR) Services.

This achievement marks a significant milestone for Briars. Following a rigorous and highly competitive public sector procurement process, our selection reflects the depth of our expertise in global workforce solutions and our ability to meet the strict governance, compliance, and value-for-money standards expected by UK universities. It is a recognition we are deeply proud of and one that underlines our commitment to supporting the higher education sector as it continues to expand its global reach.

About the Framework

To address sector-wide challenges around international hiring, the NWUPC, together with other UK university consortia, established the Global Mobility Services Framework (PFB3160 NW).

The framework provides universities with direct access to pre-approved suppliers who understand the compliance, governance, and value-for-money requirements of managing public funds. By working through the framework, institutions can avoid lengthy tender processes and engage trusted partners for critical services.

Under Lot 3: Employer of Record Services, Briars can act as the legal employer for universities’ overseas staff, managing payroll, administering benefits, and ensuring compliance with local employment laws.

Why This Matters for Universities

Global hiring is critical for modern universities. Whether it’s recruiting specialist academics, building strategic international partnerships, or scaling research projects, institutions need solutions that keep them agile, compliant, and cost-effective.

Through this framework, Briars helps universities:

Access talent faster – Onboard world-class academics and researchers in weeks, not months.
Streamline operations – Work with one partner across multiple countries for HR, payroll, benefits, and compliance.
Save costs – Remove the expense of setting up overseas entities while still attracting top global talent.
Stay protected – Ensure ironclad compliance with local employment laws and tax regulations.

A Significant Step for Briars

Our CEO, Andrew Fahey, commented:

\"Being appointed to this framework is an important step for Briars and one we are extremely proud of. Universities have a unique and vital role in driving research, innovation, and global partnerships, and we’re honoured to play a part in supporting that mission.
This recognition reflects our long-standing experience in compliance, governance, and workforce solutions, and we look forward to working alongside institutions across the UK as they continue to grow their global impact.\"

Looking Ahead

With over 30 years’ experience delivering compliant workforce solutions worldwide, Briars has supported more than 3,000 organisations across 110+ countries. Our proven public sector track record includes managing over £50 million in flexible workforce spend for NHS Trusts, and we are highly experienced in operating within the strict governance, audit, and procurement frameworks that universities depend on.

This appointment to the NWUPC Global Mobility Services Framework strengthens our role as a trusted partner for higher education institutions giving universities the confidence to expand internationally while ensuring compliance, value for money, and the highest standards of governance.

👉 Find out more about how Briars supports universities here.

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John Darcy, Head of Marketing at Briars, brings extensive experience in global flexible workforce businesses and accounting and payroll organizations. With a strong entrepreneurial drive, he’s dedicated to growth and brand enhancement. His innovative strategies and market insights have expanded business impact. At Briars, John uses his expertise to boost the company’s global presence and support its mission of top-tier service.

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For recruitment firms looking to expand, our UAE Expansion Webinar covers everything you need to know about setting up and thriving in the Middle East’s top business hub.

The United Arab Emirates (UAE) has long been a magnet for international business. With its strong economy, global connectivity, and reputation as a hub for talent, it’s no surprise that recruitment firms are increasingly setting up shop in Dubai, Abu Dhabi, and beyond. For firms already serving international clients or have a desire to, having a physical presence in the UAE can be the difference between keeping pace with client demand and missing out on lucrative opportunities.

The Market at a Glance

The UAE offers one of the most dynamic business environments in the world:

A population of around 10 million, with almost 90% expatriates.
GDP growth projected at 4% in 2025 (World Bank).
Over 200 nationalities represented in the workforce.
A recruitment market worth more than $1.2 billion, covering sectors from technology and healthcare to finance, energy, and construction.
Dozens of new businesses are set up every single day in Dubai alone, reflecting the country’s rapid pace of growth and opportunity.

For recruitment firms, this means a constant need for skilled professionals and a steady demand for staffing solutions.

Why the UAE Appeals to Recruitment Firms

The appeal goes beyond the numbers. The UAE’s strategic location between Europe, Asia, and Africa makes it an ideal base for firms placing international talent. Its diverse economy is less reliant on oil than it once was, with rapid growth in technology, renewable energy, and financial services.

Another driver is the transient nature of the workforce. With so many expatriates moving in and out of the country, the talent pool is continually shifting — creating opportunities for recruiters to fill roles quickly. The government also encourages innovation and foreign investment, with more than 40 Free Zones that allow 100% foreign ownership.

Why Firms Make the Move

For many agencies, client demand is the trigger. When existing clients expand into the Middle East, they want trusted recruitment partners alongside them. Being local not only helps recruiters respond faster but also builds credibility with UAE-based businesses and candidates.

Tax is another incentive. While the UAE introduced a 9% corporate tax in 2023 on profits over AED 375,000 (around £80,000), the country still offers significant advantages compared to many Western markets. Combined with a high-growth economy and proximity to other Gulf states like Saudi Arabia and Qatar, the UAE becomes a natural next step.

Key Considerations for Recruitment Firms

Expanding into the UAE isn’t without its challenges:

Licensing and regulation: Recruitment is tightly controlled, and you’ll need the correct licence depending on whether you’re offering executive search, temporary staffing, or outsourcing.
Local partner requirements: While Free Zones allow full ownership, some onshore structures still require a local Emirati sponsor.
Labour law compliance: End-of-service gratuity, working hours, and visa rules all differ from the UK.
Cultural nuances: Building trust takes time. Business in the UAE is relationship-driven, and networking is crucial.

Getting this wrong can be costly — fines for non-compliance can reach into the tens of thousands of dirhams, and choosing the wrong structure can lead to wasted licence fees, office costs, and months of lost time.

Thriving Sectors for Recruitment Firms

Rather than focusing on transactional costs, it’s more useful for recruitment firms to understand where the opportunities lie. Certain sectors are growing strongly, creating consistent demand for talent:

Property & Construction: Sector projected to grow 6% annually, driven by mega-projects and residential/commercial developments.
Energy & Oil: UAE oil and gas market expected to reach $12.6B by 2030, growing at 5% CAGR.
Technology & FinTech: Market set to more than double to $6.4B by 2030, fueled by digital innovation.
Healthcare: Forecasted to grow from $8.7B to nearly $15B by 2033.
Finance & Banking: Total banking assets reached AED 4.7T, reflecting strong sector growth.

By focusing on these sectors, recruitment firms can target areas with high demand while working with experienced partners to avoid costly mistakes.

How to Set Up in the UAE

The process varies depending on whether you choose a Free Zone or Mainland entity.

Select your structure: Free Zone companies offer 100% ownership but may limit your ability to trade directly with UAE firms. Mainland companies provide wider access but may involve local partners.
Apply for your licence: Recruitment licences are issued by the relevant Free Zone authority or the Ministry of Human Resources and Emiratisation for mainland operations.
Register for tax: If profits exceed AED 375,000, you must register for corporate tax.
Secure visas and a bank account: Both are required to employ staff and operate effectively.

Most firms complete the process in 4–8 weeks, though it can take longer if sponsorship or specific approvals are required.

If you need help with any of these steps, Briars can guide you through the process, contact us today.

Case Study: UK Recruiter Expanding to Dubai

One UK-based recruitment agency specialising in tech talent recently partnered with Briars to establish their first overseas office in Dubai. The agency’s clients, many of whom were already expanding into the Middle East, needed a partner who could source talent locally.

The firm faced challenges around licensing and compliance, particularly in understanding whether a Free Zone or Mainland setup was the right fit. Briars provided end-to-end support — from entity structuring advice and licence applications to payroll and visa processing.

Within six weeks, the agency was operational in Dubai. Today, they have doubled their headcount, secured new UAE-based clients, and positioned themselves as the go-to partner for UK companies entering the Middle East tech market.

How Briars Can Help

The UAE presents exciting growth opportunities, but the path to setting up isn’t always straightforward. Briars simplifies the journey by:

Advising on the right setup (Free Zone vs Mainland).
Managing licence applications, renewals, and compliance.
Handling HR, payroll, and tax requirements to keep you onside with UAE law.
Offering fractional finance and HR directors to help scale without full-time costs.

With over 30 years’ experience supporting international expansion, Briars ensures your move into the UAE is smooth, compliant, and geared for growth.

👉 Ready to expand into the UAE?

$\"Briars$

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Emma is a global solutions expert with experience in building client service and sales solutions for businesses in over 150 countries. She manages a network of global providers, creating accounting, payroll, and HR solutions for top-tier client experiences. Since 2011, Emma has led Briars’ Client Solutions Teams, ensuring seamless service and excellence for companies at every touchpoint.

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