How long can you use an EOR? Country-by-country limits explained

One of the most common questions we hear from companies exploring international expansion is:

“How long can you use an Employer of Record (EOR) for?”

It’s a perfectly reasonable question, especially when you’re planning long-term growth and need to understand whether an EOR is a temporary stepping stone or a viable long-term solution for managing your global workforce.

But unfortunately, there is no universal answer. The duration of compliant EOR arrangements varies significantly from country to country. And it has nothing to do with which provider you choose. Everything depends on local labour laws in the country where you plan to hire.

In this blog post, we cut through the confusion and provide a clear, country-by-country look at how long you can use an EOR and what that means for your global hiring plans.

While some countries like Germany limit EOR arrangements to 18 months, others allow longer or indefinite use. However, the duration depends entirely on local regulations, not your EOR provider’s policies. Understanding these rules upfront is crucial to building a compliant and sustainable global expansion strategy.

The fundamental truth is this: EOR time limits are set by legislation in the country of employment, not by any commercial terms or service agreements offered by your EOR provider.

Even the most flexible or well-integrated EOR solution cannot override legal restrictions on staff leasing or temporary agency work in regulated countries.

Some jurisdictions view EOR as a valid long-term employment model. Others classify it as a temporary arrangement, often designed to protect local labour rights or incentivise foreign companies to establish a legal local presence.

If you’re hiring internationally, your expansion timeline and workforce planning need to account for these legal realities from the start. Failing to do so can result in non-compliance, forced transitions, or even financial penalties down the line.

To help demonstrate how diverse laws can be around EOR, let’s take a look at some examples of specific restrictions in key markets:

Germany operates under the Arbeitnehmerüberlassungsgesetz (AÜG), which requires EOR providers to hold an AUG licence. Under this system, you can only assign an employee to the same company for a maximum of 18 consecutive months.

After this period, the employment arrangement must end or pause for at least 3 months before being reassigned to the same client.

If Germany is strategic to your long-term growth, start planning your transition strategy from month one. Many successful companies use the 18-month window to validate their German market while simultaneously exploring entity setup options.

France operates EOR-like arrangements through a system called Portage Salarial, which provides a longer runway with engagements of up to 36 months.

Beyond that timeframe, you must transition to direct employment through a local entity or end the arrangement.

The three-year window gives you substantial time to understand France’s notoriously complex employment landscape before committing to a permanent presence.

Norway takes a unique approach, permitting EOR use only for time-bound project work with a general three-year maximum.

The key requirement is that projects must be clearly defined in both scope and duration to qualify for this arrangement.

In Poland, employees can only be assigned to the same client for a maximum of 18 months within any 36-month period.

Once again, switching EOR providers does not reset this timeline. The restriction follows the employee-client relationship, not the provider relationship.

Under Croatia’s temporary agency licensing system, employees can only be assigned to the same client for up to 36 months.

A repeat assignment is only possible after a 2-month break or if the employee’s role changes significantly.

While it’s clear to see there are quite a few countries that impose limits on the EOR model, there are several key markets that permit EOR arrangements without formal maximum durations

No statutory time limits exist on EOR arrangements in the United Kingdom. As long as employees receive full statutory protections, EOR engagements can continue indefinitely. The UK’s flexibility makes it an ideal testing ground for European expansion without the pressure of time constraints.

Ireland imposes no time restrictions on EOR models, making it an excellent environment for businesses testing EU market entry without immediate entity setup requirements.

EOR engagements can be maintained indefinitely across all provinces in Canada, provided employment standards and taxation rules are consistently met.

In Finland there are no fixed duration limits on staffing arrangements, though employers must comply with collective bargaining agreements and provide full statutory rights.

You might be wondering: why do governments bother with these restrictions in the first place? While it depends from country to country, it generally comes down to protecting both workers and local economies.

Worker protection: Some countries don’t want companies using an Employer of Record as a permanent employment method to avoid giving employees their full rights. In Germany, for example, direct employees get stronger job security and benefits than those hired through staffing arrangements. The 18-month limit forces a decision: either commit properly to employing someone, or accept that it’s a temporary arrangement.

Economic policy: Governments may want companies that are serious about their market to establish deeper roots beyond just employment. While EOR arrangements do involve paying local taxes and social security contributions, governments may prefer it when companies with significant local operations set up proper entities, register locally, and create more substantial economic ties to the community.

Labour market integrity: Without time limits, companies could rely indefinitely on EOR arrangements to operate without fully engaging with local employment structures. These restrictions help ensure fair competition for local employers and promote access to full employment protections for workers.

When you’re talking to EOR providers, make sure you get straight answers to these questions:

Reputable providers will be able to answer all of those questions for you in detail. If you hear any promises of “unlimited” EOR services in countries where you know there are restrictions, that’s a blatant red flag that should give you cause for concern.

On a similar note, if they get cagey or vague when you ask about time limitations or downplay compliance concerns and act like they’re no big deal, you need to proceed with caution. This attitude towards very real and serious compliance considerations could cause complications later down the road.

As much as we would love to offer our customers unlimited time spans using our service in every country, we draw a hard line when it comes to compliance. We’re not going to sugarcoat what’s legally possible in different markets. If there’s an 18-month limit in Germany, we’ll tell you that upfront, not surprise you with it later when you’re already invested.

What we promise:

• Honest, upfront guidance about what’s actually legal in each country
• Proactive planning so you’re never scrambling when deadlines approach
• Real support for entity setup when that becomes the right move
• No surprises buried in the fine print

We’d genuinely rather lose a potential customer by being honest about limitations than create problems for you later. That’s not good business for anyone.

• EOR duration rules are legal requirements, not commercial policies
• Countries like Germany (18 months), France (36 months), Croatia (36 months), Norway (3 years), Poland (18 months) have strict limits
• Countries like the UK, Ireland, Canada, Australia, Finland offer ongoing flexibility
• Time limits are manageable with proper planning and the right partner
• Early transition planning is essential for restricted countries
• Provider switching doesn’t reset legal timelines in most jurisdictions