Employer of record (EOR) solutions in Poland and Baltics

While both models involve outsourcing HR and employment functions, the key distinction lies in the employment structure. A PEO operates under a co-employment model, meaning both the PEO and the client business share employer responsibilities — and the client must have a registered legal entity in the jurisdiction where employees work. An EOR, by contrast, serves as the sole employer of record, making it possible for businesses to hire workers in new regions or countries without establishing a local legal entity.

When a business engages an EOR, the EOR formally employs the workers in the target location, handling all associated administrative and legal obligations. The client business defines the scope of work, sets performance expectations, and manages daily tasks. The EOR processes payroll in local currency, withholds the appropriate taxes, administers statutory benefits, and ensures full compliance with the employment laws of the relevant jurisdiction.

An EOR enables businesses to hire talent in foreign countries without the need to incorporate a local subsidiary or branch. Since the EOR already holds legal employer status in the target country, it can onboard international employees quickly and compliantly. This makes EOR services particularly valuable for companies exploring new markets, building distributed teams, or hiring specialized talent in regions where they do not yet have a formal presence.

EOR services are particularly well-suited for businesses that wish to hire internationally without establishing a local legal entity, companies entering new markets on a trial or project basis, organizations with remote or distributed workforces spanning multiple countries, and startups or growing firms seeking to access global talent quickly and compliantly. In essence, any business looking to expand its workforce across borders — without the administrative and legal complexity of entity setup — stands to benefit from an EOR arrangement.