- The biggest difference between both is the keyword "entity". With an EOR, you can employ workers in other countries WITHOUT owning and opening your own entity in the country. You DON'T need to own a separate legal entity yourself with an EOR service provider. Get a FREE customized plan.
- If you already HAVE or have decided to own a legal entity in a country where you plan to start your business, PEO will be a better choice as your co-employer. Further, PEO is a more affordable option if you already own a legal entity in the country.
- EOR acts as the legal employer of your employees and they sign contracts with the EOR instead of your company. As such, you can leave all the legally associated employment risks to your EOR provider.
- PEO handles fewer HR functions and responsibilities than an EOR. Your company has more control and is solely responsible for local labor law compliance issues.
What are the biggest differences between PEO and EOR?
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