The 25-point EOR due diligence checklist

Entities and liability

Which legal entity employs our people in each country, and do you own it. How long has that entity operated. Who carries employment liability. What indemnities do you give, and what are the caps. Who defends a claim, and who pays a settlement.

Pricing and money

What is the fee, in writing, per country. Is it flat or a percentage. What is your FX margin. What deposit do you hold and when is it returned. What do you charge for off-cycle payments, terminations and amendments. What is the minimum term and the notice to exit.

Get all of this in the contract, not in an email.

Compliance and process

How are contracts localised and in which language. Who signs. How do you handle probation, notice and severance. What happens if a partner entity refuses a termination. How do you manage collective agreements where they apply.

Data and security

Do you hold SOC 2 or ISO 27001. Where is payroll data hosted. Who are your sub-processors, including partner entities. What are your breach notification terms.

Support and delivery

Who is our named contact. What is your first response target. What is typical onboarding time in our countries. Who answers an in-country payroll question, and in what time zone.

Exit

Can employees transfer to our own entity, and at what cost. What notice do you need. What happens to records after exit.

A provider who answers all twenty five in writing within a week is telling you something useful about how they operate.