Glossary · Hiring and outsourcing models

Employer of record (EOR)

An employer of record (EOR) is a company that legally employs a worker on another business's behalf. It runs payroll, withholds taxes, pays mandatory benefits, and holds the employment contract in the worker's country, while the client business directs the day-to-day work and decides what the person does.

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What it means in practice

Companies use an EOR when they want to employ someone in a country where they have no legal entity. Setting up a local entity takes months, legal advice, and ongoing filings, so the EOR lends its entity instead. The EOR charges a monthly fee on top of the worker's salary and statutory costs.

An EOR handles compliance, but it does not find the person for you. You still source candidates, screen them, and manage the hire. That is the main difference from a recruiting-led model like Rekruuto, where we find, vet, and place a full-time professional in the Philippines, and our flat monthly price covers recruiting, vetting, and pay.

If you already have a candidate and need only payroll and compliance, an EOR fits. If you need someone found, vetted, and ready to start in 14 days, a placement model is faster.

  • Professional employer organization (PEO)

    A professional employer organization (PEO) co-employs your staff in your own country.

  • Staff augmentation

    Staff augmentation is adding outside professionals to your existing team to fill a skills gap or add capacity.

  • Independent contractor

    An independent contractor is a self-employed person who sells services to your business under a contract rather than as an employee.

  • Direct hire

    A direct hire is a person your company employs itself, on its own payroll, from the first day.

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Hire a full-time professional from the Philippines

Every Rekruuto hire is a full-time professional based in the Philippines who works your hours. Most roles are $1,800 a month, software developers start at $2,500 a month, and an AI Implementation Specialist is $2,500 a month. Candidates pass top 2% vetting, hiring takes 14 days, and every hire starts with a 1-week trial with a replacement or refund.

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