An Employer of Record (EOR) is a third-party organization that takes on the legal responsibilities of being an employer for a company's workforce. This includes handling payroll, taxes, benefits, and compliance with labor laws. Companies often use EOR services to simplify hiring processes, especially when employing remote workers in different regions or countries. By partnering with an EOR, businesses can focus on their core operations while ensuring that their employees receive proper support and legal protections. This arrangement is particularly beneficial for startups and small businesses that may not have the resources to manage HR functions effectively.