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), the legal framework governing temporary staffing and EOR arrangements in the country. Under this system, providers offering EOR services in Germany must hold an AUG licence to operate compliantly.

Under these regulations, employees can only be assigned to the same company for a maximum of 18 consecutive months when using an EOR in Germany.

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.

Employment standards in France include statutory paid leave of around 25 days per year and a standard 35-hour working week under France’s working time regulations, reflecting a strong focus on employee protections.

Beyond the 36-month timeframe, companies must transition to direct employment through a local entity or end the arrangement in line with local employment requirements, including statutory leave obligations.

The three-year window gives you time to understand France’s employment landscape and plan a compliant long-term hiring approach.

Norway takes a project-based approach, permitting EOR use only for time-bound work with a general three-year maximum. In practice, companies using an EOR in Norway must ensure that engagements are tied to clearly defined projects with a specific scope and duration.

Roles should be structured around defined deliverables rather than ongoing operational responsibilities to remain compliant with Norway EOR requirements.

Once the three-year limit is reached, companies typically transition the employee to direct employment through a local entity or end the engagement.

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

Switching providers does not reset this timeline, as the restriction applies to the employee-client relationship rather than the provider itself.

Once the limit is reached, companies typically need to transition the employee to direct employment through a local entity or end the engagement to remain compliant.

Under Croatia’s temporary agency licensing system, employees can only be assigned to the same client for up to 36 months. Companies looking to hire employees in Croatia through an EOR model must work with licensed providers operating under these regulations.

A repeat assignment is only possible after a 2-month break or if the employee’s role changes significantly, in line with local compliance requirements.

The UAE allows EOR arrangements, but the employment framework is highly structured and tied to local labour and immigration requirements.

Employment contracts are issued as fixed-term agreements (typically up to three years), registered with the relevant authorities, and linked to a valid employment visa and Emirates ID sponsored by the employer. There is no personal income tax, so employees receive their gross salary without deductions.

Employer obligations include mandatory health insurance, end-of-service gratuity, and salary payments through the Wage Protection System (WPS), alongside compliance with local employment regulations. Fixed-term contracts can be renewed, allowing ongoing employment while remaining compliant.

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, engagements can continue indefinitely.

In practice, these arrangements operate through the PAYE (Pay As You Earn) system, with employers responsible for income tax withholding, National Insurance contributions, and compliance with local employment regulations.

For companies engaging freelancers, an Agent of Record model may also be used to manage independent contractor relationships in a compliant way.

Ireland imposes no defined time limits on EOR arrangements, allowing companies to maintain ongoing employment without fixed duration constraints.

As part of the EU, Ireland offers a stable and business-friendly environment, making it a strong entry point for companies expanding into European markets while remaining aligned with EU employment regulations.

EOR engagements can be maintained indefinitely across all provinces in Canada, provided employment standards and taxation rules are consistently met. Employment laws vary at the provincial level, so requirements around contracts, termination, and benefits may differ depending on where the employee is based.

Canada does not follow at-will employment, and employers must meet statutory obligations, including defined notice periods and leave entitlements such as paid time off and protected leave.

In Finland, there are no fixed duration limits on staffing arrangements, making it a viable long-term option for global employment. Companies using an employer of record in Finland can maintain ongoing employment relationships, provided they meet local compliance requirements.

Compliance includes adherence to collective bargaining agreements, accurate payroll processing, and fulfilling standard employer obligations such as tax contributions, statutory benefits, and reporting requirements.

Belgium does not impose a fixed statutory time limit on EOR arrangements, allowing companies to maintain ongoing employment under this model.

Employment in Belgium is governed by detailed labour laws, sector-level collective labour agreements (CCTs/CAOs), and employer social security contributions, which can be significant. Engagements must be structured around locally compliant employment contracts that reflect both statutory requirements and applicable sector rules.

Statutory entitlements include paid annual leave, public holidays, sick leave, and commonly applied benefits such as a 13th month bonus, alongside a standard 38-hour working week.

New Zealand allows ongoing use of EOR arrangements with no fixed duration limits. Employment is governed by a structured statutory framework, with mandatory written agreements and clearly defined terms of engagement.

Statutory entitlements include annual leave, sick leave, and paid parental leave, alongside employer obligations such as KiwiSaver contributions (a national retirement savings scheme) and ACC levies (a mandatory accident insurance scheme).

New Zealand does not follow at-will employment, and termination must follow a fair and documented process.

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