EOR
Most countries can’t meet the rising demand for qualified AI professionals. Hiring globally can fill the talent gap, but it also brings legal, tax, and compliance challenges that most companies aren’t ready to handle.
When you’re competing for top AI talent, you can’t afford delays. At the same time, you can’t risk getting compliance wrong. AI roles often deal with sensitive areas like IP protection, data security, and long-term R&D. Hiring contractors can seem fast, but can create complex grey areas, both legally and financially.
This is why more companies are turning to a solution that combines speed and security: the Employer of Record model.
If you’re considering using an EOR to support your AI recruitment, here’s what you need to know.
What Is an Employer of Record (EOR)?
EOR, or Employer of Record, is a third-party company that legally hires employees on your behalf in another country.
You still choose who to hire and manage their day-to-day work. But the EOR handles everything else: employment contracts, payroll, tax filings, benefits, and legal compliance in line with local labor laws.
Division of Responsibilities Between You and the EOR
| Your Role | EOR’s Role |
| Choose who to hire | Sign local employment contracts |
| Manage work and KPIs | Handle payroll, taxes, benefits |
| Own IP and deliverables | File with local authorities |
| Control day-to-day | Ensure legal compliance |
You don’t need to open a local entity or deal with government registrations. You pay one invoice. The employee is legally hired in their country, but they work for you.
Benefits of EORs for AI Recruitment
For AI teams, especially remote-first or globally distributed ones, time-to-hire and compliance are critical. EOR services solve this by acting as the legal employer in the country where your AI specialist lives. Here’s why it works:
- You save time
Hiring through an EOR cuts out the need to register a local entity, navigate local bureaucracy, or wait for lawyers to draft contracts from scratch. Most hires can be onboarded in one to two weeks, not months.
This is particularly important for AI roles, as the competition for skilled candidates is extremely high, and candidates disappear from the market fast.
- You cut costs (and risks)
Setting up a local subsidiary can cost tens of thousands in legal, tax, and administrative expenses. EORs are often cheaper and far less risky, especially for early-stage teams or project-based roles common in IT.
Since AI roles can be quite costly to fill, not adding more cost on top is a huge benefit. You also avoid misclassification fines, which can be significant if you incorrectly treat someone as a freelancer.
- You stay compliant
Employment laws vary widely across countries and change often. EORs stay current, so you don’t have to. They ensure your contracts, benefits, and taxes are all handled properly, reducing the risk of penalties or disputes.
AI specialists often work with sensitive data and may need specific security or compliance clearances. Verifying and maintaining those clearances is the EOR’s responsibility, not yours. They ensure everything is up to date and in line with local legal requirements.
- You avoid admin
Cross-border payroll is complicated. EORs handle everything from local tax rates to mandatory contributions and currency conversions. Payments are made on time and in compliance with local laws.
- You get help
Some EOR providers offer support with visas and work permits, which is useful when relocating high-value specialists. They help with documentation, sponsorship, and legal filings, which is a major time-saver if you’re recruiting globally.
Example Scenario
You are growing your AI team and need to hire a computer vision engineer, a data scientist, and an NLP specialist. The issue? There are no qualified candidates in your area. There are, however, the right specialists available in Romania.
Rather than wait for someone to appear in your market or spend months setting up legal entities abroad, you decide to partner with a Romanian EOR. They handle the local hiring, contracts, and compliance. This way, you fill the roles before another company hires them and avoid the legal and administrative hassle of the process.
Costs Involved in Hiring AI Specialists Through an EOR
Employer of Record services usually charge a flat monthly fee per employee or a percentage-based fee on the employee’s gross salary.
The standard range is between 10% to 20% of the employee’s monthly compensation, depending on the country, complexity of services, and the volume of hires.
Some EORs offer tiered pricing based on:
- Number of employees hired
- Countries of operation
- Additional services like recruitment, benefits administration, or equipment provisioning
It’s important to note that although these fees may seem high, they often offset the costs and liabilities associated with setting up a legal entity, hiring legal counsel, or managing cross-border payroll independently.
Example: Cost of Hiring via EOR in Poland
- Gross salary for a mid-level AI engineer: ~15,000 PLN/month
- EOR service fee: ~€200–€500/month per employee
- Taxes & contributions: ~20–25% on top of gross salary
Many providers offer all-inclusive monthly invoices, simplifying accounting processes.
When Should You Use an EOR?
EORs aren’t for every company. But for growing AI teams, they often make more sense than hiring directly or working with contractors.
Use an EOR when:
- You’re entering a new country and don’t have a local entity
- You want to hire fast without legal risks
- You need to stay compliant, but lack in-house legal support
- You want full-time commitment from AI specialists without classifying them as freelancers
- You’re scaling your team across borders but want centralized payroll and HR
Don’t use an EOR if:
- You already have an entity and HR/payroll in place
- You only need short-term, part-time help
- You’re hiring in just one country and don’t plan to expand
For most AI companies building core teams, EOR is safer and more stable. Contractor models work best for small tasks or short-term projects, not for growing engineering teams where IP, retention, and security matter.
Our Final Thoughts
Hiring internationally opens access to top AI talent. But it also opens the door to legal and compliance risks.
It’s not the right fit for every case. But if you’re scaling your AI team across borders and need speed, safety, and compliance, it’s worth considering.
Want to talk through whether Employer Of Record makes sense for your AI team? Let’s chat! We specialize in EOR services in Poland, making IT hiring simple and compliant.
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FAQs on EOR for AI Specialists
1. Is an EOR legal in every country?
Most countries allow EOR arrangements, but the rules differ. A good EOR provider will guide you through compliance in each target country.
2. Do EORs affect my IP rights?
No. The EOR contract transfers all work-related IP directly to your company. It’s more secure than using freelancers in many cases.
3. Can I offer equity to EOR-hired AI specialists?
Yes, but the process is more complex. It usually requires a parallel contract or option plan agreement. Your EOR provider can help you structure it.
4. How long does it take to hire through an EOR?
Typically 1–2 weeks, depending on the country. Much faster than setting up a legal entity, which can take 2–6 months.
5. What does an EOR service cost?
Most charge a monthly fee per employee, usually between 10% and 15% of gross salary. Some offer flat rates.
6. Can I switch from contractor to EOR model later?
Yes. In fact, many AI startups start with freelancers and later convert them to EOR employment for better retention and compliance.
