EMPLOYER OF RECORD
EMPLOYEES RELATED INFORMATION


When working with an Employer of Record (EOR), there are several key aspects that employees should be aware of, as the EOR structure differs from traditional employment models. Here is detailed information for employees working under an EOR arrangement:

Who is the Legal Employer?

Under an EOR arrangement, the Employer of Record (the EOR provider) is the legal employer of the employee. This means that the EOR handles all formal employment responsibilities, including payroll, taxes, and compliance with local labor laws.

Although the EOR is the legal employer, the employee’s daily work, tasks, and responsibilities are managed by the client company (the business that the employee is actually working for). This arrangement allows the client company to focus on business operations while the EOR ensures compliance with local employment regulations.

Employment Contract and Documentation

Employees will sign an employment contract with the EOR provider, not the client company. The contract outlines all terms of employment, including job title, salary, benefits, and other essential conditions.

The EOR will handle the creation, management, and updating of employment documents, ensuring that they comply with local labor laws and regulations.

Payroll and Salary Payment

Payroll processing is one of the key responsibilities of the EOR. Employees can expect timely and accurate salary payments directly from the EOR provider.

The EOR also handles all mandatory deductions, including taxes, social security contributions, and other statutory payments, ensuring compliance with local regulations. Employees will receive regular payslips and can address any payroll-related queries directly to the EOR.

Employee Benefits and Entitlements

Employees working under an EOR are entitled to the same benefits as those directly employed by the client company, depending on the specifics of their contract and the benefits package agreed upon. This may include:

❗Health Insurance: The EOR arranges and manages health insurance plans, ensuring compliance with local legal requirements.

❗Paid Leave and Holidays: The EOR ensures that employees receive the correct amount of paid leave, sick leave, and public holidays, according to local laws.

❗Retirement Plans: If applicable, the EOR manages contributions to retirement plans or pension schemes.

❗Additional Perks: Depending on the arrangement, employees may also receive benefits such as meal vouchers, travel allowances, or bonuses.

Onboarding and Orientation

The onboarding process for EOR employees is streamlined to make the transition as smooth as possible. The EOR handles all legal paperwork, contract signing, and initial orientation regarding the terms of employment.

Once the onboarding is completed, the employee will receive guidance from the client company about their specific job responsibilities, tasks, and reporting structure.

Support and Communication

Employees have access to a dedicated support team from the EOR provider. This team can assist with various queries related to payroll, benefits, contract terms, and other employment issues.

Clear and transparent communication between the EOR, the employee, and the client company ensures that any issues are resolved promptly. Employees are encouraged to contact their EOR support representative for assistance at any time.

Compliance with Local Labor Laws

One of the key benefits of working under an EOR is that the EOR provider ensures full compliance with local labor laws. Employees can be confident that their rights are being respected, including correct handling of working hours, overtime, leave entitlements, and terminations.

The EOR also ensures compliance with any changes in employment laws, keeping employees informed and updated about their rights and obligations.

Work Location and Flexibility

Employees under an EOR arrangement may work in a variety of locations, depending on the nature of their role and the client’s requirements. This can include:

    • Remote Work: Employees may have the flexibility to work from home, especially if the client company supports remote working models.
    • Onsite Work: In some cases, employees may be required to work at the client’s office or a designated location.
    • Hybrid Work Models: Some arrangements may combine remote and onsite work, offering employees the best of both worlds.

Performance Management and Career Development

While the client company is responsible for managing the employee’s daily tasks, projects, and performance evaluations, the EOR may assist by providing HR tools and frameworks to support career development.

Employees can still have access to training opportunities, performance reviews, and feedback from the client company, as agreed upon in the employment contract.

Termination and Offboarding

In the event of termination, whether voluntary or involuntary, the EOR provider manages the offboarding process. This includes:

      • Notice Periods: Ensuring that both the employee and client company comply with local labor laws regarding notice periods.
      • Severance Pay and Benefits: Processing any severance packages, final payments, and benefits as required.
      • Exit Interviews: Conducting exit interviews if necessary and managing the return of company property.

The EOR ensures that the termination process is handled legally, fairly, and professionally, respecting the rights of both the employee and the client company.

Why Choose to Work Under an EOR Arrangement?

✔ Job Security and Legal Protection: Employees can rest assured that their employment is managed according to local legal standards, providing them with job security and fair treatment.

✔ Benefits and Flexibility: Access to benefits and potential flexibility in work arrangements, depending on the client company’s policies.

✔ Support and Assistance: Direct access to the EOR support team for resolving any issues related to contracts, payroll, or benefits, ensuring smooth and transparent employment experiences.

Working under an Employer of Record with Horizons Bulgaria© arrangement can be a beneficial option for employees who want to explore opportunities with international companies without the need to navigate complex legal and administrative requirements. The EOR ensures compliance, handles the logistics, and provides reliable support, while the employee can focus on their professional growth and job responsibilities.

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