How an Employer of Record works, when your company needs one, and how it compares with hiring freelancers or setting up a local entity.
An Employer of Record (EoR) is a company that legally employs a person on your behalf in another country. It handles the contract, payroll and compliance, while you manage the employee’s daily work like any member of your team. It is the fastest way to hire full-time talent where you don’t have a legal entity.
How does an Employer of Record work?
Scope: you agree on the role, tasks and employment terms.
Legal employment: the EoR becomes the employee’s legal employer.
Contracts and compliance: a clear contract that protects both sides.
Onboarding: the employee is ready to work from day one.
Payroll and benefits: salaries are paid regularly and on time.
Ongoing support: HR follow-up for the length of the contract.
When does your company need an EoR?
When you want a full-time employee, not a project-based freelancer.
When you don’t have a legal entity in the employee’s country.
When you want to start quickly without months of setup.
When you want to test a new market or team before expanding.
How does EoR compare with the alternatives?
Option | Speed | Legal responsibility | Best for |
|---|
Freelancer | Fast | Yours alone | Short tasks |
Local entity | Slow and costly | Fully yours | Large long-term teams |
Employer of Record | Fast | Carried by the EoR | Full-time hires without an entity |
How does Mosnad work as your Employer of Record?
Mosnad provides EoR services for hiring Yemeni talent. You choose the person, or we shortlist candidates for you, and we handle the contract, monthly payroll and compliance. You pay nothing before day 30 of the trial period, and annual contracts come with a 90-day guarantee.
You don’t need a company in every country to build a team of great people. If you want a full-time hire across borders, an Employer of Record is the shortest and safest route.
Frequently asked questions about Employer of Record
Do I lose control over the employee with an EoR?
No. You set the tasks and goals and manage performance, while the EoR handles the legal and administrative side.
Is EoR suitable for small companies?
Yes, especially when hiring one or two people abroad without the cost of setting up an entity.
Who owns the work the employee produces?
Your company. Intellectual property is assigned to you in the contract.
Want to hire in Yemen without setting up a company? Talk to Mosnad at mosnad.net/request-talent