Pillar 1: Entity Infrastructure & Ownership

• Question 1: Do you own your legal entity in our target country, or do you use a third-party partner agency? (Owned entities ensure faster resolution, single-point accountability, and lower pricing).
• Question 2: How long has your local entity been incorporated and actively processing payroll in this country? (Avoid newly incorporated entities that have not completed an annual tax cycle).
• Question 3: Do you maintain in-house employment legal counsel licensed to practice in this jurisdiction? (Subcontracted law firms add substantial billing delays during disputes).

Pillar 2: Price Transparency & Commercial Terms

• Question 4: What exact foreign exchange (FX) spread do you apply when converting our base currency to local salary? (Demand a contractual cap of 0.50% above mid-market rates).
• Question 5: What are your mandatory security deposit requirements, and what is the return timeline upon offboarding?
• Question 6: What line-item fees are assessed for offboarding, out-of-cycle payroll runs, and bespoke contract revisions?

Pillar 3: Compliance & Intellectual Property Safeguards

• Question 7: How does your contract guarantee complete, unbroken chain-of-title transfer for all intellectual property and patents?
• Question 8: How do you handle local statutory benefits (mandatory pensions, 13th-month bonuses, holiday supplements)?
• Question 9: What is your process and legal protocol if an employee files an unfair dismissal or discrimination claim?

Pillar 4: Employee Experience & Support SLAs

• Question 10: What is your contractually guaranteed support response SLA for employees submitting payroll or benefits tickets? (Look for <2 hour initial response for high-severity issues).
• Question 11: Does each employee have access to a dedicated in-timezone HR specialist fluent in the local language?
• Question 12: What group healthcare, dental, and life insurance policies do you offer in this specific country?

Pillar 5: Flexibility, Portability & Exit Terms

• Question 13: What notice period is required to terminate the platform agreement, and are there early exit penalties?
• Question 14: If we incorporate our own local entity in the future, what is your novation and contract transfer protocol?
• Question 15: Do you charge any transfer, migration, or recruitment fees if we move employees to our own entity or another provider?

How many EOR vendors should we evaluate in an RFP?

We recommend issuing an RFP to 3 providers: one broad market leader (e.g., Deel or Remote), one specialist regional provider in your target country, and one boutique high-touch compliance advisor.

Can we negotiate custom terms into standard EOR contracts?

Yes. While standard terms of service are accepted electronically on self-serve platforms, commitments of 3+ employees justify custom Master Services Agreement addenda governing IP assignment, FX caps, and support SLAs.

What is the biggest red flag when selecting an EOR?

The single biggest red flag is an unbundled, opaque foreign exchange policy that allows the provider to set currency conversion rates at their sole discretion without tying to an official interbank rate benchmark.

Are enterprise EOR platforms better than regional boutique providers?

Enterprise platforms excel at slick software interfaces and broad global reach (100+ countries). Regional boutiques frequently provide superior legal depth, faster response times, and higher-touch employee support in complex local jurisdictions.

What happens if our EOR goes out of business?

Because the EOR is the direct legal employer, insolvency requires transitioning employees to another provider or local entity immediately. Ensure your MSA mandates that client escrow funds and security deposits are held in bankruptcy-remote, segregated accounts.

How quickly can we switch from one EOR to another?

Migrating an international employee between EORs typically takes 30 to 45 days, requiring a contract novation or a mutual termination and re-hire agreement that protects continuous service tenure.