Your guide to a smooth Employer of Record transition

Switching your EOR provider can be smooth and stress-free. Learn how to streamline the process, minimise disruption, and ensure your team feels supported in every step.
WHY SWITCH

Why switch your EOR provider?

If managing your global workforce has become more problematic than productive, it may be time to consider switching to a provider that understands and supports your needs better.

Expertise that protects you

No more risky compliance gaps from lack of local expertise. Get fast, accurate advice from true local HR, legal, and payroll specialists.
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Accurate payroll, every time

No more payroll mistakes and delays. Ensure your team is always paid correctly and on time, so they can stay focused and confident.
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Hands-on support when you need it

No more unresponsive support. Get proactive, expert support that’s there when you and your team need it most.

Onboarding Timeline Template

Download the EOR onboarding timeline outlining everything from compatibility checks to running your first month's payroll.
HOW SWITCHING EOR WORKS

Steps for a successful Employer of Record transition

Switching your EOR helps you resolve provider issues while saving time and resources. These steps guide you through a smooth transition.
1

Understand the offboarding process

Begin by reviewing the termination policies of your current EOR agreement. This will help you determine the timeline for ending the relationship, any potential early termination fees, and how employee contracts will be handled.
2

Review agreements and set clear timelines

Work with your new EOR to establish a clear transition timeline and designate a key contact within your team. Once you understand the onboarding process, sign the new agreement and clarify all commitments. Request service level agreements (SLAs) and ask any questions you need to feel confident about the transition.
3

Communicate clearly with employees

Proactively speak with your employees about why the switch is happening. Ensure they understand the process of resigning from one contract and moving to another. Collaborate with your new EOR to provide FAQs and set up communication channels to address any concerns your team may have.
4

Begin onboarding with the new Employer of Record

Onboarding with your new EOR starts while you are offboarding the old provider. This includes your employees reviewing and signing their new contracts before they resign from their current roles. Allow plenty of time for your employees to review their new contracts and be very clear about deadlines so that you set the right expectations.
5

Finalise the transition

Once employees have signed their new agreements, coordinate the termination of their previous contracts to align with the new start dates. It’s advisable to closely review payroll details during the first few months with the new provider, as small discrepancies in taxation may occur and can be easily resolved.

What changes when you switch your EOR provider:

You’ll sign a new commercial agreement with your new Employer of Record
Employees will receive new employment contracts
Employees will need to resubmit personal details and bank account information
Payroll dates and the delivery method for payslips may change

What stays the same:

Your internal policies
Your internal processes and operations
Your employees’ day-to-day work and relationship management
Full VS Partial Switch

The different approaches in switching your Employer of Record

Switching your EOR can be done for your entire workforce at once or partially for specific employees, depending on your needs. Each approach has its own benefits and considerations, allowing you to tailor the transition to fit your organisation.

Full workforce switch

Switching your entire team to a new EOR provides consistency in employee experience, simplifies oversight, and streamlines communication with a single provider. However, larger teams may experience more initial disruption and a longer onboarding period.

Partial workforce switch

A partial switch allows you to test the new provider or accommodate specific employees, such as those on leave, who need special handling. While the onboarding process remains the same, managing employees through multiple EORs can create confusion, making it less ideal as a long-term strategy.
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“Our previous EOR wasn't working for us. They operated in a purely transactional manner and were not prepared to invest time to learn about our business needs. We switched to Boundless because their team truly feel like HR advisors; they listen to our requirements and make suggestions for the best ways to proceed. We're a lot more confident about hiring in new jurisdictions with their support.”
Phil Cuming, CEO

Discover frequently asked questions

Will my employees lose their continuous service and associated entitlements that go with that?

Recognition of continuous service varies by country. In some regions, we are able to reflect continuous service in the employment contracts, but in many cases, this isn't legally possible. Since we become the new legal employer, this may affect certain entitlements like sick leave, parental leave, or state-tied benefit payments, particularly for employees on or about to go on leave. Handle these cases carefully to avoid benefit disruptions.

In countries where continuous service cannot be recognised, certain entitlements, such as severance pay or pension contributions, may be reset. We recommend carefully reviewing the employment laws of each country and planning accordingly to mitigate any potential impact on your employees.

How do I end the relationship with my current EOR provider?

Ending your relationship with your current EOR varies by provider. The first step is to clarify the process and gather all necessary information to ensure a smooth exit.

The key factor is the notice period outlined in your commercial agreement and employee contracts. For most employees, it is typically 30 days, which provides ample time for a smooth transition. However, for management or senior-level roles, notice periods may extend to three months. In some cases, you may need to negotiate a shorter notice period, though your current provider may resist this to maintain revenue.

Ensure you understand how employee contract termination will occur, as this varies by country and provider. For example, at Boundless, we ask for employee resignations, which is often the simplest approach.

What happens after commercial agreements are signed with my new EOR?

After signing the agreements, you’ll need to review and approve employment contract templates for each country. Contracts are typically issued in the local language, but review them in your preferred language as well.

When reviewing these contracts:

  • Ensure the employee's original start date is recognised to retain their statutory rights. This is crucial for your employees, so request this where possible.
  • Confirm that employment conditions from previous contracts are maintained or improved.
  • Align on employee benefits and how they’ll be reflected in the contracts.

You’ll also need to provide employee data to your EOR for contract creation and payroll. Different providers have varying methods for secure data transfer—preferably through a secure platform. Avoid sending sensitive data, such as social security numbers or bank details, via email, as it’s not secure.

How do I ensure my employees feel secure during the transition?

  1. Share the agreed timeline with your employees, so they know what to expect, including key dates for signing new contracts and transitioning to the new system.
  2. Work with your new EOR to prepare comprehensive HR and payroll FAQ documentation that covers changes in contracts, payroll schedules, and benefit transfers.
    Tailor communication to suit your employees' needs and address any specific concerns, such as visas, long-term leave, or potential temporary impacts on tax allowances or benefits.
  3. Prepare employees for potential slight differences in salary during the first couple of months as payroll aligns with local tax authorities.
  4. Establish clear, open communication channels where employees can ask questions and get updates, helping them feel supported throughout the transition.

How long does a typical transition between Employers of Record take?

Transition timelines vary based on team size and operational complexity. Smaller teams may transition more quickly, while larger, multi-country teams may take longer to ensure a smooth and compliant handover. Your new EOR will work closely with you to create a transition plan that fits your specific needs and timeline.

Will my employees need new health and safety training or medical checks?

In most cases, switching to a new EOR doesn’t require additional health and safety training or medical checks, as these are tied to the nature of the work rather than the EOR provider. However, some countries may have specific regulations that require updated safety protocols or medical checks when there's a change in legal employer. Your new EOR will help ensure compliance with local requirements.

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