HR · Concept
EOR — Employer of Record
A service provider that legally employs a worker on behalf of a client company that wants to hire in a jurisdiction where it does not have its own entity.
In practice
EORs are useful for testing a market before incorporating, or for hiring a handful of UAE staff without setting up a UAE company. Costs typically 10-15% of monthly payroll. Less cost-effective than incorporating once headcount exceeds 3-5 employees. ArxSetup advises on the trade-off and refers EORs where appropriate.