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Direct Employee or EOR Employee: Which Should I Choose?

Direct Employee if your company has an entity in the employee's country and employs them itself (Borderless HR). EOR Employee if not: Outstaffer becomes the legal employer.

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Written by Steve Waters

When you add an employee, the first step asks Are you employing them through Outstaffer's entity or your own? The answer depends on whether your company has a legal entity in the country where the employee lives.

Direct Employee

Choose this if your company has an entity in the employee's country and will handle the employment and legal obligations. The employee is on the Borderless HR plan, which is free.

  • Your company is the legal employer.

  • You run payroll and taxes, and use your own employment contract outside the platform. Outstaffer sends the employee the offer with the details you enter.

  • Outstaffer gives you the HR platform: workforce dashboard and directory, paperless onboarding and offboarding, identity verification, leave, timesheets, an employee self-serve portal, cost calculators and document management.

EOR Employee

Choose this if your company doesn't have an entity in the employee's country. Outstaffer becomes the Employer of Record and hires the employee on your behalf.

  • Outstaffer is the legal employer in the employee's country.

  • Outstaffer handles the localised employment contract, payroll in local currency, statutory taxes and entitlements, right-to-work checks and ongoing labour law compliance.

  • You get everything in Borderless HR, plus a dedicated Onboarding Manager and HR Manager.

Good to know

  • You can have both kinds of employee in the same account.

  • Not sure which applies? Book a meeting from your dashboard and we'll help you choose.

  • To add a direct employee, see How to Add a Direct Employee.

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