Decide with confidence
Employing through an EOR or engaging contractors?
Contracting looks cheaper and simpler on the first invoice. Whether it holds up depends on the substance of the working relationship, not on what the agreement is called.
Employer of Record
The person is genuinely employed, with employment protections, benefits and administration handled by the employer of record.
Suits
- Full-time roles inside your team and your working hours
- Anyone you direct, supervise and schedule
- Long-term relationships you intend to retain
- Roles where the person needs employment status for their own reasons
What it costs you
- Applicable employer costs and agreed benefits are visible in the price
- More administration at the start of the engagement
- Ending the engagement follows employment process, not a cancellation clause
Independent contractors
A genuinely independent provider delivers a defined service, controls how the work is done, and carries their own obligations.
Suits
- Defined deliverables with a real scope and end point
- Specialists who serve several clients and control their own method
- Short, occasional or advisory engagements
- Work where you are buying an outcome, not directing a person
What it costs you
- Governance burden: contracts, verification, payment discipline
- Reclassification exposure where the relationship is really employment
- Weaker retention and no employment continuity
Side by side
| Criterion | Employer of Record | Independent contractors |
|---|---|---|
| Who controls how the work is done | You direct the person | The provider controls their method |
| Working hours | Set by you | Set by the provider |
| Exclusivity | Normal — the person works for you | Usually serves multiple clients |
| Employment protections | Apply through the employer of record | Do not apply if the arrangement is genuine |
| Main risk | Cost is higher and fully visible | Reclassification if the substance is employment |
| Best fit | Ongoing roles inside your team | Defined, independent deliverables |
Our recommendation
If you direct the person's hours, methods and priorities, you are describing employment, whatever the paperwork says. We assess the substance of each engagement and tell you plainly which route it supports — including when the arrangement you asked for is the wrong one.
Questions buyers ask
- We already engage people as contractors. Can you review that?
- Yes. We review each engagement against the substance of the working relationship and report what we find in writing, including where a change is advisable.
- Can you manage contractors we have already selected?
- Yes — contractor management covers onboarding, verification, agreements, payment discipline and offboarding for people you have chosen yourself.
- Is this legal advice?
- No. It is workforce guidance. Legal conclusions on classification belong with your own advisers, and we will say so whenever a question crosses that line.
Want this answered for your specific case?
Send the roles, the headcount and the timeframe. You will get a written recommendation on the structure, not a sales pitch for the most expensive one.