International organizations employing people in Poland face a unique challenge. Due to regulations and the costs involved, Polish employees often find it more beneficial to set up their own small businesses and change their formal relationship with their employers. Becoming contractors in this way gives them more control over their income.

It is not a form of employer-employee cooperation that is practiced in countries like the USA. Thus, if an international organization wants to meet the needs of its talent, it can benefit from turning to a formal employer.

The benefits of working with a formal employer

Formal employers (also known as employers of record) are hired administrative entities that place clients' team members on their own payrolls. As a result, the client benefits from the infrastructure and resources associated with the formal employer's payroll management.

The formal employer, on the other hand, deals with payroll, employee benefits and regulatory issues that relate to filling positions. It may also perform additional staffing duties that the primary organization does not want to deal with due to a lack of resources, bandwidth, or technical expertise.

Establishing a partnership with the right formal employer can unlock a company's full potential.

What is an employee of record?

An employee of record enters into a formal agreement with an employer of record. Usually, this is handled as a contract between legal entities - a company and a small business. The employer of record is responsible for payroll, taxes, and team member benefits. The employee of record operates formally as a contractor, but enjoys the benefits that come with the employee status.

Who needs an employer of record?

There are a few reasons why a business might need an employer of record. 

• Small businesses that cannot afford to set up their own HR department can benefit from access to top tier talent. 
• Startups that need to hire employees quickly can usually build their teams within weeks if they cooperate with EOR.  
• Companies that want to hire employees in a foreign country do not need to worry about the legal and administrative aspects of such an endeavor. 

Employer of record benefits

• Transfer of the responsibility for documentation errors.
• Optimised CapEx vs. OpEx.
• Ease of attracting senior developers to the team.
• Money and time savings for business owners thanks to not having to deal with payroll management, benefits administration, tax laws, etc.
• Full freedom in establishing the company’s values, shaping corporate culture, and overseeing processes.

EOR services are an excellent option for companies that could benefit from a legal employer taking over the hassle of ensuring payroll compliance, certain HR functions, and providing employees with a broad range of services. All in a cost effective manner. It is also a great way to expand into new markets in other countries, which makes EOR services particularly useful to any company that wishes to become a global employer.

Why hire employees through DEVTALENTS as a formal employer

Security and compliance

To ensure the safety of our client's projects, our company is pending ISO 27001 and 9001 certification.

IP security

Intellectual rights to any work produced by our experts as part of a client's project are immediately transferred to the client, as specified in all our contracts.

Risk mitigation

Our legal department will advise on what type of contract is appropriate for your employee. The contracts team can explore the possibility of including your company's specific terms and conditions if it is compliant.

Time and money saving

The EOR model provides a template for adoption and initiation, reduces transaction turnaround time, shortens the implementation period for new developments, and reduces maintenance costs in many areas.

How does the EOR model work?

If an organization chooses DEVTALENTS as its employer of record, we take over the following responsibilities:

• Administrative and back-office duties,
• Providing DEVTALENTS benefits to team members,
• Facilitating onboarding,
• Ensuring that employment complies with local employment laws,
• Payroll processing,
• Payments distribution,
• More flexibility to the client's employees,
• Insurance coverage.

The client only has to:

• Attract and recruiting their own staff,
• Manage the employee's daily workload,
• Contribute to the personal/professional development of the employee through their work,
• Ensure that bills relating to remuneration for the team are paid to DEVTALENTS before the deadline in each pay cycle.

The EOR FAQ

Q: How is a partnership with a formal employer different from outsourcing?

A: Employing people through a formal employer is not the same as outsourcing. While a formal employer is a legally recognised employer, your company makes all decisions relating to recruitment and termination and has day-to-day control over the performance of staff.

Q: What is the difference between EOR and an employment agency or temporary work agency?

A: An employment agency provides companies with candidates to cover mostly temporary positions. A formal employer enables companies to employ people on a full-time basis.

Q: What are the disadvantages of employing staff through an Employer of Record?

There is no real downside. DEVTALENTS assumes the risk of employing your team members. You will not be the only party named in your employee's contract - DEVTALENTS will be a party to that contract.

Q: Who actually pays the employee?

A: The employee is paid directly by DEVTALENTS. As a client, you will receive a predictable payroll bill each cycle, which will include the total gross cost of payroll, plus any employer-related taxes and allowances, and also our fee.

Q: What should we do when we have a problem with an employee?

A: You contact us. When you explain the problem to us in detail, we will be able to support you, and when situations emerge that require a sensitive approach, we will consult our legal team on your behalf so that you will receive the best possible advice.

Q: What are the company's legal obligations when using a service such as EOR?

A: Client remains responsible for the day-to-day management of the people and teams that are employed by DEVTALENTS, including any disciplinary and performance issues. DEVTALENTS ensures compliance with defined procedures, practices and laws when employing people and teams on behalf of the company.

Q: How does DEVTALENTS deal with contract termination risk?

A: DEVTALENTS has an established contract termination procedure. We require clients to notify us of a contract that may require termination at the earliest possible opportunity so that we can ensure that the procedure is followed and is in line with best practices.

Q: We already have a corporate entity established, can we still use DEVTALENTS?

A: Yes, even if you have set up your own entities, you still need to process payroll, provide administration and back-office support. Many companies outsource these processes/duties to third parties. DEVTALENTS offers the opportunity to bring these disparate systems, relationships and workflows together in one place.

Ready to try us out as an employer of record?

If you are looking for an employer of record, we can help. We offer a complete EOR solution, from employer onboarding to employee management. Make a difference for your employees today.