Your guide to a smooth Employer of Record transition
Why switch your EOR provider?
Expertise that protects you
Accurate payroll, every time
Hands-on support when you need it
Onboarding Timeline Template
Steps for a successful Employer of Record transition
Understand the offboarding process
Review agreements and set clear timelines
Communicate clearly with employees
Begin onboarding with the new Employer of Record
Finalise the transition
What changes when you switch your EOR provider:
What stays the same:
The different approaches in switching your Employer of Record
Full workforce switch
Partial workforce switch
Check out additional resources
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?
- 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.
- 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. - Prepare employees for potential slight differences in salary during the first couple of months as payroll aligns with local tax authorities.
- 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.