Global EOR Services Acts as the Legal Employer

When you hire through an EOR, the EOR is the legal employer of record in the employee’s country. That means:

The employment contract is signed between the EOR and the employee, not directly with your company.
Your company instead signs a services agreement with the EOR, outlining the scope (who the employee is, their role, compensation, reporting lines, etc.).

Global EOR Services manages Local Labor Law Compliance

Employment laws differ drastically from country to country (notice periods, probation rules, social security contributions, benefits, severance, etc.).
The EOR ensures:

The contract meets all mandatory legal requirements of that jurisdiction.
Terms such as overtime, leave entitlements, bonuses, and termination clauses comply with local regulations.
Statutory benefits (health insurance, pensions, maternity/paternity leave, etc.) are included as required.

Global EOR Services make Customization to your Needs

While the EOR provides the compliant framework, the client (you) still has input:

Job title, description, salary, performance expectations.
Non-standard perks (if legally possible), such as stock options, additional leave, or allowances.
Confidentiality and IP assignment clauses — often tailored to protect your business interests.

The EOR blends your business needs with legal compliance, creating a contract that works for both parties.

EOR have Multi-Country Expertise

If you’re hiring across multiple countries, the EOR:

Drafts country-specific contracts for each employee, rather than trying to apply a “one size fits all” template.
Updates terms automatically when local employment laws change.
Maintains localized HR support (e.g., in France, contracts must be in French, while in Germany, collective bargaining agreements might apply).

Global EOR Services Simplifies and does Onboarding & Documentation

The EOR manages the full onboarding process, including:

Issuing the employment contract in the employee’s language.
Collecting and verifying required documents (IDs, tax forms, social security registrations).
Handling work permits/visa sponsorship if applicable.
Ensuring signatures are compliant (some countries require wet signatures, others accept digital).

Ongoing Contract Management done by Global EOR Services

Once the contract is live, the EOR continues to manage:

Amendments (promotions, salary changes, new benefits).
Annual renewals if fixed-term contracts are used.
Termination or exit processes, ensuring compliance with notice, severance, and local labor law.
Dispute resolution, where the EOR often mediates between the client company and employee under local legal frameworks.

✅ In short: An EOR drafts and executes legally compliant contracts in each employee’s home country, acts as the official employer, and manages the entire lifecycle (onboarding → changes → termination), while you maintain day-to-day control of the employee’s work.

📄 Sample Breakdown: International EOR Employment Contract

1. Parties to the Agreement

Employer: The EOR entity in the employee’s country (e.g., “Deel France SAS” or “Papaya Global UK Ltd”).
Employee: The individual being hired.
Client Company Reference: Usually mentioned in an annex, clarifying that the employee will perform services for your company, but is legally employed by the EOR.

2. Job Title & Description

Standardized role description provided by your company.
May need local translation (e.g., in France, contracts must be in French).
In Germany, contracts may need to align with industry-specific collective bargaining agreements (CBAs).

3. Employment Type

Full-time / Part-time / Fixed-term / Indefinite.
Some countries restrict fixed-term contracts (e.g., Spain requires a justification; Brazil limits renewals).

4. Work Location & Hours

Specifies if remote, hybrid, or office-based.
France: Working hours are capped at 35 hours per week unless overtime is specified.
China: Working hours often tied to local labor bureau approvals.

5. Compensation & Benefits

Salary: Stated in local currency (mandatory).
Mandatory benefits:
- UK: Pension contributions.
- Mexico: Christmas bonus (Aguinaldo) and profit-sharing.
- India: Provident Fund contributions.
Discretionary benefits: Health insurance, allowances, stock options — if legally feasible in that country.

6. Probationary Period

Allowed in most countries but with strict limits:
- France: 2–4 months maximum depending on role.
- India: Typically 3–6 months.
- Brazil: Maximum 90 days.

7. Leave Entitlements

Annual Leave: Defined by local law (e.g., 20 days minimum in EU, 10–12 in US states, 12 in India).
Sick Leave: Payment obligations differ:
- UK: Statutory Sick Pay (SSP).
- Germany: Employer pays 6 weeks of sick leave, then insurance kicks in.
Maternity/Paternity Leave: Strictly regulated in most countries.

8. Taxes & Social Security

The EOR is responsible for payroll, tax withholding, and social contributions.
Example:
- France: High employer social contributions (~45%).
- Singapore: Lower social contributions (CPF system).

9. Intellectual Property (IP) & Confidentiality

Ensures that work products belong to your company, not the EOR.
Some countries (e.g., Italy, Japan) require explicit assignment clauses to enforce IP ownership.

10. Termination & Severance

Varies heavily by jurisdiction:
- US (at-will states): Employment can be terminated anytime unless otherwise stated.
- Germany: Notice periods depend on tenure (4 weeks → up to 7 months).
- Brazil: Severance includes FGTS penalties.
The EOR handles compliance, payouts, and documentation.

11. Dispute Resolution & Governing Law

The contract is governed by the local labor law of the employee’s country.
Employee disputes are handled in local labor courts, with the EOR as the legal employer.
Your company is usually indemnified via a separate service agreement with the EOR.

12. Annexes / Addenda

Often include:
- Job-specific performance expectations.
- Details on stock options (if offered).
- Country-specific legal notices.

Key Takeaway

An Global EOR Services contract looks like a standard local employment contract, but:

It’s issued and signed by the Global EOR Services, not your company.
It complies with local law automatically (language, benefits, taxes, probation, leave, termination rules).
You retain operational control through a parallel service agreement with the Global EOR Services.

📄 Sample Employment Contract Clauses (via Global EOR Services)

1. United States (At-Will State, e.g., California)

Probationary Period
Your employment with [Global EOR Services Legal Entity] is on an at-will basis. This means either you or the Employer may terminate the employment relationship at any time, with or without cause, and with or without notice, subject to applicable federal or state law. The first 90 days of employment shall be considered an introductory period during which your performance will be reviewed.

✅ Note: In the US, probation is largely symbolic because employment is at-will.

2. France

Période d’Essai (Probationary Period)
The Employee shall be subject to a probationary period (période d’essai) of two (2) months, renewable once for the same duration, in accordance with Article L1221-19 of the French Labor Code. During this period, either party may terminate the contract with 48 hours’ notice if less than 8 days of service have been completed, or with 2 weeks’ notice thereafter.

✅ Note: Strictly capped and highly regulated. Must be in French.

3. India

Probationary Period
You will be on probation for an initial period of six (6) months commencing from your date of joining. During the probationary period, either party may terminate this agreement by providing seven (7) days’ written notice. Upon successful completion, your employment will be deemed confirmed, unless otherwise extended for a further period not exceeding six (6) months in aggregate, in accordance with Indian labor law.

✅ Note: Commonly 3–6 months, with flexibility for extension.

4. Brazil

Período de Experiência (Probationary Period)
This employment agreement is subject to an initial probationary contract (contrato de experiência) of ninety (90) days, as allowed by Article 445 of the Brazilian Consolidation of Labor Laws (CLT). During this period, either party may terminate the agreement with prior notice of 8 days, without the severance obligations applicable to indefinite contracts.

✅ Note: Maximum 90 days, non-renewable.

What This Shows

US → At-will dominates; probation is just orientation.
France → Probation tightly regulated by labor code, limited renewals.
India → Flexible probation, with extensions common.
Brazil → Capped at 90 days, with reduced severance obligations.