Employer of Record (EOR) vs Contractor of Record (CoR)
EOR vs contractor of record, which engagement model fits the work
Use an EOR when the work is ongoing, directed, and the person should be an employee. Use a Contractor of Record when the relationship is genuinely independent project work and you want the admin and misclassification liability managed without converting it to employment. The working relationship decides which model fits, not the cost you would prefer.
Trusted by 1,000+ growing teams
- Substance
- The working relationship decides which model you can use. Control, permanence, and independence set the answer, not the label on the contract.
- $599
- Teamed EOR fee, flat, per employee per month, with FX absorbed at zero markup and shown against the mid-market reference on every invoice.
- 180+
- Countries where Teamed can employ workers compliantly via EOR, or manage genuine contractor engagements with Guard or Protect cover.
EOR vs contractor of record, when do you use an Employer of Record and when do you use a Contractor of Record?
Use an EOR when the work is ongoing, directed, and the person should be an employee. Use a Contractor of Record when the relationship is genuinely independent project work and you want the admin and misclassification liability managed without converting it to employment. The working relationship decides which model fits, not the cost you would prefer.
At a glance
Employer of Record (EOR)
Best for: ongoing work you direct and rely on, in any country, where the relationship is or should be employment. The EOR becomes the legal employer in-country so you can hire compliantly without setting up your own entity there.
Contractor of Record (CoR)
Best for: genuine project work where the contractor controls how and when it is done, uses their own tools, and serves other clients. A CoR manages the commercial engagement and, with the right provider, takes on the misclassification liability.
Shared by both: both engage a worker on your behalf · both are decided by the substance of the working relationship · misclassification risk sits under every contractor arrangement
| Where it matters | Who leads | Why |
|---|---|---|
| Ongoing, directed work integrated into your team | Employer of Record (EOR) | When you set the hours, the methods and the sequence, and rely on the person being there, the relationship is employment in substance. An EOR employs them compliantly. |
| Short, defined project work with a deliverable and an end | Contractor of Record (CoR) | Genuinely independent project work fits a contractor. A CoR handles the commercial engagement and, with Protect, takes the misclassification liability too. |
| Worker protections and statutory benefits | Employer of Record (EOR) | Employees get minimum wage, paid leave, dismissal protection, and all statutory contributions. A contractor carries their own. A CoR does not change that. |
| Employer cost on the invoice | Contractor of Record (CoR) | No employer payroll taxes or statutory on-costs on a genuine contractor invoice. The saving is real for genuinely independent work, a deferred liability if the substance says employment. |
| Misclassification risk off the table | Employer of Record (EOR) | A properly employed worker has no contractor label to challenge. With a CoR, the risk is present if the substance is really employment, even with liability cover in place. |
| Speed and flexibility to start and stop | Contractor of Record (CoR) | A contractor engagement can start fast and wind down cleanly at the end of a project. Employment is the right model when you want the person to stay. |
| Markets where contractor arrangements are restricted | Employer of Record (EOR) | Some countries presume employment for ongoing working relationships or restrict contractor use significantly. An EOR is the compliant route there regardless of work substance. |
| IP ownership clarity | Employer of Record (EOR) | Work created in the course of employment generally vests with the employer. With a contractor, IP stays with the worker unless a written assignment transfers it, and the rules vary by country. |
Employer of Record (EOR) on G2
Who Employer of Record (EOR) is for
This guide is for any company deciding whether a piece of work should be engaged through an EOR (employment) or a Contractor of Record (contractor management). The right answer is set by the substance of the working relationship. Use the picker below to route the decision honestly, including the cases where a CoR is genuinely the right call.
Not the right fit if
- Already clear it is employment?. If the work is ongoing, directed and integrated into your team, an EOR is the answer. See how Teamed's EOR works at $599 flat with FX absorbed at zero markup.
Find your pick in 20 seconds
| If you are… | Start with | Why |
|---|---|---|
| Ongoing work you direct day to day, integrated into your team | EOR | The relationship is employment in substance. An EOR employs the person compliantly in-country so you do not need your own entity. |
| Short, defined project with a deliverable and an end date | CoR | A genuine contractor is the right model. A CoR handles the commercial engagement, invoicing and payments, so you don't carry the admin. |
| A long-running contractor whose role has drifted into employment | EOR | Convert to compliant employment before a tax authority or court reclassifies the relationship. An EOR carries the transition end to end. |
| A genuine contractor, but you want the misclassification liability off your desk | CoR with Protect | Teamed engages the contractor directly under Protect and takes on the misclassification liability, while the worker keeps their contractor status. |
| A market where contractor arrangements are legally restricted | EOR | Some countries presume employment for ongoing relationships. An EOR is the compliant route there regardless of how the work looks on paper. |
What is the EOR vs contractor of record choice?
An Employer of Record (EOR) is a third-party company that legally employs a worker on your behalf in another country. The EOR issues the local employment contract, runs payroll, withholds income tax, remits statutory contributions, and carries the obligations of the employer in that jurisdiction. The worker is an employee. They receive minimum wage protection, paid leave, dismissal protection and all the statutory rights that employment brings in that country. You direct their day-to-day work without setting up your own entity.
A Contractor of Record (CoR) does something different. It manages a contractor engagement on your behalf, the commercial contract, invoicing, and payments, but the worker stays an independent contractor. They keep their contractor status and do not get employment protections. A CoR with a liability product can take on some or all of the misclassification exposure, but it cannot change the substance of the working relationship. If the relationship is really employment in substance, a CoR does not make it a contractor engagement. The substance test decides which model you can honestly use, and getting it wrong carries back taxes, penalties and benefit claims that accumulate over time.
The core legal distinction, employment versus contractor engagement
EOR and CoR sit on different sides of a fundamental legal line. An EOR creates an employment relationship. The EOR is the legal employer, the worker is the employee, and all the rights, obligations and protections that come with employment apply. A CoR manages a contractor relationship. The worker is not an employee, the CoR does not issue a local employment contract, and the worker's independent status remains unchanged. That difference is not a preference you choose for cost reasons. It is set by the substance of the working relationship, and the wrong choice carries real legal consequences.
| Detail | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| Legal relationship | EOR is the legal employer. The worker has a local employment contract and full employee status in the jurisdiction. | CoR manages the commercial engagement. The worker is an independent contractor with a commercial contract, not an employment agreement. |
| Who sets the worker status | Employment is set by the EOR arrangement. The worker is an employee from day one. | The working relationship decides it, not the CoR. If the substance is employment, a CoR label does not protect against reclassification. |
| What changes if you switch models | Moving to EOR from a contractor arrangement converts the worker to employment, with all the protections and on-costs that brings. | A CoR is not a downgrade from EOR. It is the correct model only where the working relationship is genuinely independent from the start. |
The one question that decides it
If you direct how and when the work is done, rely on the person being there, and the work is central to your operation, the relationship is employment. A CoR cannot change that. An EOR is the compliant route.
Cost, employer obligations and what sits on the invoice
EOR costs more than CoR per person, and that is the honest reason some teams reach for a CoR first. An EOR engagement carries employer payroll taxes, statutory benefits, and on-costs on top of the service fee, and a flat EOR fee like Teamed's $599 covers only the service, not those employment costs. A CoR avoids all of that because the worker is not an employee. But the cost gap is only real when the contractor arrangement is genuine. If it is not, the saving is a deferred liability that lands as back taxes, penalties and benefit claims if the relationship is reclassified.
| Detail | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| Employer payroll taxes | Employer payroll taxes and statutory contributions apply on top of the service fee. These vary by jurisdiction and can add 20 to 35% of gross salary in some countries. | No employer payroll taxes on a genuine contractor invoice. The contractor pays their own tax and social contributions. |
| Benefits and statutory on-costs | Statutory benefits, paid leave, and employer contributions are funded by the employing entity, the EOR, passed through at cost. | The contractor funds their own benefits, leave and insurance. Nothing sits on your invoice. |
| The real cost comparison | Higher total cost per person, but fully known up front with no reclassification risk and no deferred liability. | Lower cost on genuine contractor work. A deferred bill rather than a saving if the substance of the relationship is really employment. |
The honest cost read
The cost gap is the whole reason the line is policed. A CoR is genuinely cheaper for genuinely independent work. When the substance is employment, the apparent saving is a bill you are deferring, not a discount you have earned.
Worker protections and what the model gives the worker
Employment is not just a cost to you. It is a set of protections for the worker. An EOR gives the worker minimum wage, paid leave, statutory benefits, and protection against unfair dismissal and discrimination in the jurisdiction. A CoR gives them none of that. The worker carries their own costs, funds their own pension and insurance, and is largely outside the statutory protections that employment law provides. That can suit an independent professional who values the freedom and the higher day rate. It leaves a misclassified worker stripped of protections they were legally entitled to. The worker side of the decision matters.
| Detail | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| Minimum wage and overtime | The employee is covered by minimum wage and overtime protections in the jurisdiction. The EOR carries the obligation. | A genuine independent contractor sits outside minimum wage and overtime statutes in most jurisdictions. |
| Paid leave and statutory benefits | Statutory paid leave, sick leave, and parental leave are provided and funded by the employing entity. | None provided. The contractor arranges their own leave and benefits. |
| Dismissal protection | The employee is protected against unfair dismissal under local employment law. The EOR carries the termination obligations. | Limited statutory protection. A contractor engagement ends when the contract ends or is terminated on the agreed terms. |
Why it cuts both ways
The protections that make employment more expensive for you are the same ones a misclassified contractor loses. The economic-reality test exists precisely to stop those protections being avoided by a label.
Misclassification, the risk underneath every contractor arrangement
Misclassification is calling someone a contractor when the substance of their working relationship makes them an employee. A CoR, even one with a liability product, does not eliminate that risk if the substance is wrong. Liability cover means the financial exposure shifts to the CoR provider, but it does not make the arrangement legal. The reliable way to remove the risk entirely is to employ compliantly, via an EOR, where the honest answer is employment. Where the honest answer is a genuine contractor, a CoR with Protect takes the exposure off your desk without converting the relationship.
| Detail | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| If the substance is employment | No misclassification risk. The worker is properly employed, with a compliant contract and all statutory obligations met. | Misclassification risk is present. A CoR label and liability cover do not change the legal relationship if a court or tax authority looks at the substance. |
| If the substance is genuinely contractor | Not the right model. Imposing employment on a genuinely independent contractor creates cost and obligations the relationship does not need. | No misclassification risk. The relationship is correctly classified, and a CoR with Protect takes on any residual liability challenge. |
| Cost of getting it wrong | Not applicable where the EOR employment is genuine. Termination obligations apply if the worker needs to be offboarded. | Back taxes, employer contributions, penalties, interest, and benefit claims if reclassified, with the exposure growing over time. |
The liability question to ask your CoR
If your CoR provides misclassification cover, confirm exactly what it covers. Does it cover the full reclassification liability, the back taxes and benefit claims, or just a portion? And does the cover apply if a regulator determines the relationship was employment all along?
Cross-border considerations and markets that restrict contractor use
In some countries the choice between EOR and CoR is not a preference. It is decided by local law. Several jurisdictions, Spain, France, South Korea and others, presume employment for ongoing working relationships, restrict contractor arrangements significantly, or make misclassification a criminal offence for directors. In those markets, a CoR does not give you a compliant contractor option. It gives you a contractor label on what a local regulator will read as employment. An EOR is the compliant route in those markets, and 'getting legal advice per country' is not a caveat, it is a requirement before you engage anyone internationally as a contractor.
| Detail | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| Employment-first markets | EOR is fully compliant. The EOR employs the worker under local law regardless of the country. | CoR may not be a legally available option in markets that presume employment for ongoing working relationships. |
| Countries with contractor restrictions | EOR removes the exposure in restrictive markets by converting the engagement to compliant employment. | Using a CoR in a restrictive market does not resolve the legal exposure. The substance of the relationship is still tested locally. |
| IP and cross-border assignment | Work created in the course of employment generally vests with the employer. The EOR contract can confirm the IP assignment per jurisdiction. | A contractor owns their own output unless a written IP assignment transfers it. The rules vary significantly by country. |
The per-country question
Before engaging anyone as a contractor in a new country, ask: does this country allow ongoing contractor arrangements, and if a regulator looked at this relationship tomorrow, would it survive the local employment test? A real HR or legal expert with country-specific knowledge tells you the honest answer.
Running both models on one system
Most growing companies need both at once. Genuine project work suits a contractor. Ongoing, directed roles suit employment. Teamed runs both on one system. For employment, Teamed is the EOR in 180+ countries through owned entities and vetted local partners, at a flat $599 per employee per month with FX absorbed at zero markup. For genuine contractors, Guard gives up to $10,000 per case of misclassification cover while you stay the engager. Protect has Teamed engage the contractor directly and take on the misclassification liability fully. Both are run by real HR and legal experts with country-specific employment-law depth, not a chatbot queue.
| Detail | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| Employment via EOR | Teamed employs the worker compliantly in 180+ countries. Flat $599 per employee per month, FX absorbed at zero markup, one-month refundable deposit, real HR and legal experts on every plan. | Not applicable in this column. CoR is the contractor route. |
| Genuine contractors via Guard | Not applicable in this column. EOR is the employment route. | Guard: up to $10,000 per case of misclassification cover while you remain the engager. The contractor keeps their status. |
| Genuine contractors via Protect | Not applicable in this column. EOR is the employment route. | Protect: Teamed engages the contractor directly and takes on the full misclassification liability. You get the work, Teamed carries the exposure. |
One honest system
The goal is not to push everyone into employment or keep everyone as a contractor. It is to match the substance of the work to the right model. Teamed runs both, with a real HR or legal expert on every plan to help you classify each role correctly before you engage.
Why the comparison matters
Behind every line item is a real person, in a real place.
The fee, the FX and the support model are not abstractions. They decide whether the person you hired in Barcelona or Rome is paid right, on time, by someone who knows their employment law. That is the comparison worth running.
What each stakeholder evaluates
| Criterion | Legal | Finance | People Ops | Security |
|---|---|---|---|---|
| Choosing the right model from day one | Classify the relationship on the substance of the working arrangement, not the contract label or the cost preference. Ask whether local law permits ongoing contractor use before selecting a CoR. | An EOR costs more per person (employer taxes, statutory on-costs, service fee) than a CoR. But if the substance is employment, the CoR saving is deferred liability, not a discount. Model the reclassification cost against the compliant employment cost before you decide. | An employee gets protections and benefits a contractor does not. If you want to retain and develop the person, or the role is central to what you do, employment is the right model and the honest one. | A properly employed worker sits inside your access controls, data policies and offboarding flows. A contractor arrangement on an employment-like relationship often does not, which creates its own compliance exposure. |
| Misclassification liability and who carries it | If a contractor is reclassified as an employee, the engaging company can owe back taxes, the employer share of contributions, penalties, interest, and benefit claims going back to the start of the relationship. Confirm in writing whether your CoR provider carries that liability or passes it back to you. | Reclassification costs can exceed the cost of compliant EOR employment from day one, once back taxes, penalties and interest are added. Price the risk before you choose the model. Guard gives up to $10,000 per case; Protect transfers the full liability to Teamed. | A misclassified worker loses the protections they should have had. Converting a drifting contractor to compliant employment via EOR protects both the company and the person, and Teamed carries the transition end to end. | A regulatory audit triggered by misclassification carries reputational and operational risk beyond the direct financial exposure. The compliant route removes it. |
| Country-by-country contractor restrictions | Some countries presume employment for ongoing working relationships or restrict contractor arrangements. An EOR is the only compliant option in those markets. Get legal advice per country before engaging anyone as a contractor internationally. | Country-level restrictions can make the cost comparison between EOR and CoR irrelevant. In restrictive markets, CoR is not a cheaper option. It is a liability with a commercial structure on top. | Workers in employment-first markets have strong statutory rights. Using a CoR where employment is required does not avoid those rights. It defers the moment when they are enforced. | A regulatory action in a market where contractor use is restricted carries director-level liability in some jurisdictions. Real HR and legal experts with country-specific depth tell you the answer per market before you engage. |
How to decide between EOR and CoR, then engage the right way
The decision is a short, honest sequence: test the substance, check the market, and engage via the model the facts support. Teamed runs both EOR and contractor management on one system, so the answer maps straight to a compliant route with no gap in coverage.
Step 1
Test the substance of the relationship
Work through control, permanence, independence and integration. If you direct the hours and methods, rely on the person being there, or the work is core to your operation, the relationship is employment. EOR is the compliant route.
Step 2
Check the market
Some countries presume employment for ongoing working relationships or restrict contractor arrangements significantly. Confirm per country whether a CoR is legally available before you choose it. In employment-first markets, an EOR is the only compliant option.
Step 3
Engage via the model the facts support
For employment: an EOR employs the person compliantly in-country, issues the contract, runs payroll and carries the statutory obligations. For a genuine contractor: a CoR handles the commercial engagement, and Protect transfers the misclassification liability to Teamed.
Step 4
Review as the work changes
A genuine contractor engagement can drift into employment over time through repeated renewals and increasing integration. Review long-running engagements regularly, and convert to compliant EOR employment before a reclassification forces it.
Dyke Yaxley · UK chartered accountancy
The EOR call. Ongoing, directed audit work with no entity in South Africa.
- Audit capacity added in 2024
- +100%
- Compliance issues across the engagement
- 0
- South Africa hires, correctly employed
- 2
- Entity setup required
- None
Challenge
Dyke Yaxley needed to fill qualified audit roles in South Africa in 2024. The work was ongoing, directed, and central to the firm, meeting every test of employment in substance. Contractor status was not a legal option. The firm had no South African entity, which ruled out employing directly without significant setup.
Approach
Because the substance was clearly employment, Dyke Yaxley used Teamed as their EOR rather than trying to structure a contractor arrangement that would not survive the local test. Teamed issued compliant South African employment contracts, ran local payroll, handled tax and statutory contributions, and managed onboarding end to end. No South African entity, no local legal counsel on retainer, no permanent-establishment exposure.
Result
Audit capacity doubled in 2024 with no compliance issues. The substance test pointed clearly to employment, and the EOR model delivered it compliantly from day one. Neither a CoR nor a contractor arrangement would have been appropriate for roles this ongoing and this integrated.
Interactive tool
Model EOR against CoR on your real headcount
The cost gap between EOR and CoR comes down to employer taxes and statutory on-costs in the countries you hire in. Before you default to a contractor on cost, talk to a real HR or legal expert who will model both options honestly and tell you which is available in your market.
Decision checklist
- Choose EOR when the work is ongoing, directed, and the person is integrated into your team. Employ compliantly through an EOR in the country where the worker is based, rather than risk a contractor arrangement that does not survive the substance test.
- Choose a CoR when the work is a genuinely independent, defined project: the contractor controls how and when it is done, uses their own tools, and is free to serve other clients. Use Protect if you want the misclassification liability off your desk entirely.
- Use an EOR rather than a CoR in markets where contractor arrangements are legally restricted or presumptively employment. A CoR does not resolve a market where local law requires employment.
- Convert a long-running contractor whose role has drifted into employment to compliant EOR employment before a tax authority or court reclassifies the relationship and bills you for back taxes and penalties.
- Run both models on one system where your workforce includes a mix. Teamed handles EOR employment at $599 flat and genuine contractor management via Guard or Protect, with real HR and legal experts on every plan.
- Whichever model the work needs, classify on the substance of the working relationship, not the cost you would prefer. The substance test is what every regulator looks at, and it is the honest place to start.
Honest take
When a Contractor of Record is the right model
- Choose a CoR when the work is a short, clearly defined project with a deliverable and an end, the contractor controls how and when it is done, supplies their own tools, and is free to take on other clients. Employment is not the right model for genuinely independent project work.
- Choose a CoR when the contractor genuinely prefers their independent status and the flexibility it brings. Some workers value the higher day rate, the variety of clients, and the control over their own schedule. Respect that, structure the engagement correctly, and use Guard or Protect to manage the misclassification exposure.
- Choose a CoR when the economics of the work do not support employment costs. Employer taxes, statutory on-costs and benefits add real cost to every hire. For short, specialist project work those costs are disproportionate, and a correctly structured contractor engagement through a CoR is the right and compliant choice.
EOR employment is our core product and we will say so plainly. We also run Protect and Guard for genuine contractors, and we tell you honestly when a CoR is the right model rather than EOR. The goal is to match the substance of the working relationship to the correct model. We would rather give you the honest answer than keep you on a model that no longer fits.
Questions to ask any EOR before you sign
- 1Is the work ongoing and directed, or a defined project with a deliverable and an end date?
- 2Who controls how and when the work is done, you or the worker?
- 3Does the worker use their own tools, carry their own costs, and serve other clients?
- 4What does employment law say about this type of relationship in the country where the worker is based?
- 5Is contractor use genuinely available in that market, or does local law restrict or presume employment?
- 6If you use a CoR, who actually carries the misclassification liability: you, or the CoR provider?
- 7When the project ends, do you want the person to stay? That question points towards employment.
- 8If this relationship were reclassified as employment today, what would the back taxes, penalties and benefit claims cost?
- 9Does the worker value their independent status? Some contractors prefer it for the day rate, the variety of clients, and the control over their own work.
- 10Do you need to own the IP the work creates, and is that ownership clear in the contract?
Frequently asked questions
What is the difference between an EOR and a Contractor of Record?
An Employer of Record (EOR) legally employs a worker on your behalf. It issues the employment contract, runs payroll, remits statutory contributions, and carries all the obligations of the employer in-country. The worker is an employee and gets full employment protections. A Contractor of Record (CoR) manages a contractor engagement on your behalf, handling the commercial contract, invoicing and payments, but the worker stays an independent contractor and does not get employment protections. The key difference is not how the provider handles the admin: it is the worker's legal status and which model the substance of the working relationship actually supports.When should I use an EOR instead of a Contractor of Record?
Use an EOR when the work is ongoing, when you direct how and when it is done, when you rely on the person being there, or when the role is central to your operation. Those are the markers of employment in substance, and the substance test is what tax authorities and courts apply. You should also use an EOR in markets where local law restricts or presumes against contractor arrangements, regardless of what the work looks like. An EOR is the compliant route in both cases. A CoR is only the right choice when the relationship is genuinely a contractor engagement in substance.Does a Contractor of Record remove misclassification risk?
It depends on what you mean by remove. A CoR with a liability product, such as Teamed's Protect, transfers the financial exposure to the CoR provider if the relationship is challenged and reclassified. That removes the financial risk from your books. But a CoR cannot change the substance of the working relationship. If the relationship is really employment, a CoR arrangement is not a legal structure that a court or tax authority will uphold. The only way to remove misclassification risk entirely is to employ the person compliantly, via an EOR, where employment is the honest answer.Which is cheaper, an EOR or a Contractor of Record?
A CoR engagement costs less per person than an EOR engagement because you avoid employer payroll taxes, statutory benefits and on-costs. That saving is real for genuinely independent contractor work. But it is a deferred liability rather than a discount if the working relationship is really employment. Reclassification back taxes, employer contributions, penalties, interest and benefit claims can easily exceed what compliant EOR employment would have cost from the start. Model the reclassification risk on your real headcount before choosing on cost alone.Can I use a Contractor of Record in any country?
No. In some countries, ongoing working relationships are presumed to be employment under local law, or contractor arrangements are significantly restricted. Spain, France, South Korea and several others have rules that treat an ongoing, integrated working relationship as employment regardless of what the contract says. In those markets, a CoR does not give you a compliant contractor option. An EOR is the only compliant route for ongoing work. Get per-country legal advice before engaging anyone internationally as a contractor.How does Teamed handle EOR and Contractor of Record on one system?
Teamed runs both models. For employment, Teamed is the EOR in 180+ countries through owned entities and vetted local partners, at a flat $599 per employee per month with FX absorbed at zero markup and shown against the mid-market reference on every invoice. A refundable one-month deposit applies. For genuine contractors, Guard provides up to $10,000 per case of misclassification cover while the engaging company stays the engager, and Protect has Teamed engage the contractor directly and take on the full misclassification liability. Real HR and legal experts with country-specific employment-law depth are on every plan, so you can classify each role correctly before you engage.What happens when a contractor relationship drifts into employment over time?
It is the most common misclassification path. A genuine short-term project contract gets renewed once, then again, until a contractor is doing an ongoing, directed, integrated role on a contractor rate. At that point the substance of the relationship is employment, and the CoR arrangement stops being a compliant structure. The right move is to review long-running contractor engagements before a tax authority does it for you, and convert to compliant EOR employment when the substance has changed. Teamed carries the conversion end to end with no gap in coverage.
Common questions
EOR vs contractor of record, what is the difference and which should I use for a cross-border hire?
An EOR legally employs the worker in-country: employment contract, local payroll, statutory contributions, and all employment protections. A CoR manages a contractor engagement: commercial contract, invoicing and payments, but the worker keeps their contractor status. Use an EOR when the work is ongoing, directed, and the person is integrated into your team, or when local law restricts contractor use. Use a CoR when the work is genuinely independent project work and the contractor controls how and when it is done. The working relationship decides which model you can honestly use. Teamed runs both: EOR at $599 flat per month with FX absorbed at zero markup, and Guard or Protect for genuine contractors.What does a contractor of record do, and how is it different from an employer of record?
A Contractor of Record manages an independent contractor engagement on your behalf: it issues the commercial contract, handles invoicing and payments, and may take on some or all of the misclassification liability. The worker keeps their contractor status. An Employer of Record does something fundamentally different: it legally employs the worker, so the worker is an employee with a local employment contract, statutory protections and benefits. The difference is not just administrative. An EOR creates employment; a CoR manages a contractor relationship. The substance of the working relationship, not the cost or the preference, decides which one is appropriate.
For the buying committee
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The honest path
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