WSG Employment & Labor Group Releases European Employer of Record Report Covering 26 Jurisdictions
Employers of Record (EoRs) have become an increasingly prominent feature of international workforce strategies, enabling organizations to engage talent in new markets without establishing a local legal entity.
In response to this growing trend, the
World Services Group Employment & Labor Group Europe has released Employers
of Record: Input and Analysis from 26 Industry Firms, a report bringing
together insights from WSG employment law specialists across Europe. The
publication provides a comparative analysis of how EoR arrangements are treated
under local law and examines the legal and practical considerations facing organizations
as they incorporate EoRs into their international workforce strategies.
“Employers of
Record are reshaping how businesses access talent across borders, but the law
has not always kept pace with the speed at which the model has developed. This
report brings together perspectives from across the WSG network to shed light
on that evolving legal landscape and the different approaches taken across
jurisdictions. Collaborating with WSG members worldwide has enabled us to bring
those perspectives together and offer businesses and practitioners a practical
comparative view of the opportunities, challenges and legal considerations
surrounding this rapidly developing model,” said Kleonike Achilleos, Senior
Associate, and Erato Alexandrou, Junior Associate, at Dr. K. Chrysostomides
& Co LLC, Report Coordinating Firm.
Despite their increasing use, EoRs
continue to operate within a legal environment that remains complex and highly jurisdiction
specific. In many European countries, the model is not expressly recognized
under local law and is instead assessed through existing employment, labor, tax
and social security frameworks, creating different compliance obligations and
potential liabilities for organizations operating across borders.
“As Convenor
of the WSG European Employment and Labour Practice Group, I am proud of the
work our group has done, under the leadership of our colleagues at
Chrysostomides, in bringing together this collaboration, which considers the
important legal and practical considerations that arise when using an Employer
of Record in Europe. Employment law specialists from 26 European jurisdictions
working together on such an important and relevant topic shows the strength of
our group and the benefits of a collaborative WSG membership. I very much
hope that the information collated within this Insight Report is informative
and helpful to legal professionals and those conducting business within Europe,” said Neil Maclean, Partner at Shepherd and Wedderburn LLP.
A key finding of the report is that
engaging an EoR does not necessarily insulate organizations from employment,
regulatory or tax risk. Across many jurisdictions, the rights, responsibilities
and potential liabilities associated with the employment relationship may
extend beyond the EoR and involve the client company. By examining 26
jurisdictions, the publication highlights the importance of carefully assessing
local legal requirements before implementing cross-border workforce
arrangements.
Access the Report:
Employers of Record: Input and Analysis from 26 Industry Firms - (Digital
and printable versions available.)
World Services Group is the most prominent global network of independent firms that provides an exclusive setting and platform to connect its members to the most elite legal firms and their multinational clients worldwide. The network comprises over 120 member firms operating in more than 150 jurisdictions, representing 23,000 professionals globally — delivering world-class expertise and collaborative client service through trusted, long-standing relationships.
