Employ
Recruit
Key Takeaways
- Businesses find it challenging to expand in countries where they want to hire foreign workers because of international restrictions on work permits.
- An EOR will employ international workers on behalf of client companies and assist with sponsoring work visas based on the country’s regulations.
- EORs will partner with immigration authorities to address delays or the denial of visa approval efficiently and cost-effectively.
- In regions where an EOR is not legally permitted to issue a visa, the client company will need to sponsor the applicant.
Expanding your business internationally often involves hiring talent from different countries, which can lead to questions about visa sponsorship and compliance with local laws.
If you’re considering using an Employer of Record (EOR) to streamline your global hiring process, you might wonder if an EOR can sponsor visas.
In this guide, we’ll explore the role of an EOR in visa sponsorship, how they assist with international hiring, and what businesses need to know to stay compliant while attracting global talent.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is an organization that can legally hire employees for companies without a legal entity overseas and wants to establish a diverse workforce.
An EOR provides payroll management, files tax reports, and pays worker benefits. They also ensure businesses comply with international labor laws, from minimum wage requirements to paid leave.
EORs platforms are not to be confused with a staffing or recruitment agency. Their services focus on compliance, onboarding, and offboarding processes.
In addition to assisting with adherence to business regulations, an Employer of Record can help client companies with visas for their workforce, depending on the country. This guide takes a closer look at EORs and visa sponsorship.
Which EORs Offer Visas & Immigration Services?
Horizons
Horizons is a global Employer of Record (EOR) provider specializing in assisting businesses with international expansion. They offer comprehensive immigration services, including handling visa applications, securing work permits, and ensuring compliance with local immigration laws.
Horizons’ team of experts guides companies through the complexities of international hiring, streamlining the process of onboarding foreign talent and mitigating legal risks associated with cross-border employment.
Deel
Deel is a leading global payroll and compliance platform that enables companies to hire employees and contractors in over 150 countries. Its immigration services encompass assistance with visa sponsorships, work permit applications, and navigating local employment regulations.
By offering localized support and automated compliance features, Deel simplifies international hiring, allowing businesses to seamlessly onboard global talent while adhering to each country’s legal requirements.
Can an EOR Sponsor Visas?
An EOR can sponsor visas to help companies looking to expand their workforce internationally. Businesses, including startups, often struggle with the visa process for their employees.
Hiring an Employer of Record (EOR) can simplify obtaining international work permits as they sponsor visas in select countries.
To better understand EOR visa sponsorship, the following factors must be considered:
Country-Specific Rules
EORs are equipped to sponsor visas for foreign employees in certain countries. Their ability to assist businesses with permits for an international workforce depends on local immigration laws. Because many small to medium companies do not qualify as suitable sponsors, they turn to an EOR to help them employ and sponsor worker visas abroad.
Every country has different regulations concerning work visas, from the types of documentation to the overall application process.
The employer must have a legal entity in the target country to sponsor an employee’s visa. If the employer does not have an established business overseas, an EOR provides visa sponsorship.
What is Visa Sponsorship?
Visa sponsorship is defined as an organization’s ability to support a foreign national’s visa by providing documentation to the immigration authorities. The sponsor is responsible for ensuring that the employee satisfies the immigration laws in a specific country.
Regarding EOR sponsorship, the Employer of Record will sponsor the work visa on the foreign employee’s behalf. The EOR will handle the legal responsibilities associated with international employees, which include adhering to tax regulations and labor laws in the destination country.
Every country has its own procedures and rules for getting approved for a foreign visa. The duration of the visa and requirements for work permits will differ between countries.
How Does EOR Visa Sponsorship Work?
An Employer of Record can help employees working overseas obtain the necessary visas as they are already registered with the relevant authorities and know how to remain compliant with the local laws. An Employer of Record sponsors a visa on the employee’s behalf, and they handle the legal responsibilities that come with hiring a foreign worker. This includes adherence to the labor and tax laws in the country.
1
EOR Capabilities
- EORs support the visa process by helping you choose the right type of visa for your workers.
- Offer expert guidance concerning tax and employment laws.
- Perform background checks to determine whether appointed individuals meet eligibility criteria.
2
Engaging with immigration authorities
While an Employer of Record oversees compliance and employment, they partner with immigration authorities to implement best practices and address visa challenges.
Many EORs have established networks with immigration experts in different countries and will work closely with these officials to create efficiency in visa application and approval.
If a visa application is denied, the EOR can provide feedback relatively quickly and will recommend steps to overcome obstacles.
3
Checking visa eligibility
An EOR can streamline the visa application process by checking individual employees for specific visa eligibility. They can assess individual citizenship, as well as the costs and timeframe for the permit’s issuing. The tools and programs available through the EOR will help businesses monitor the progress of visa approval.
How Does Visa Sponsorship Work with an EOR?
An EOR helps businesses with visa sponsorship when they do not have a legal entity in the country they wish to operate in. Professional EORs have the tools and experience to navigate common pitfalls and provide client companies with guidance on managing the visa process in the following ways:
In countries where the Employer of Record can sponsor the visa, they will manage the responsibilities of the legal employer to guarantee compliance with the visa requirements. They manage the application and submission of documents, communicate with immigration authorities, and oversee visa approval. An EOR work visa includes the following:
1
How EORs Streamline Visa Applications
An EOR will advise on the preparation of documents such as proof of the candidate’s qualifications and a sponsorship letter.
They will collect the requested paperwork and complete the visa application on your behalf. In addition to arranging the requested documents, an EOR assists with background checks to determine the applicant’s eligibility for a specific visa.
2
How EORs Manage Ongoing visa processes
An important part of the visa process is streamlining, which can support the efficient integration of the workforce. This means that you can have employees establish themselves in their new job roles faster.
An example of this automated process is the development of a centralized dashboard allowing employees to track the application. Specialized programs will automatically update the employer on changes in the status of the visa.
3
Updated Visa Regulations
An Employer of Record will keep up-to-date on changes in visa regulations and maintain compliance. They can provide support in the target language and explain cultural differences to their clients, making for a smoother application.
By keeping businesses compliant, EORs will protect client companies from penalties, including harsh fines.
4
Visa Approval
Once the visa is approved, the EOR will manage the paperwork to be signed by the employee and administer payroll based on labor law and visa requirements.
A work visa is dependent on the sponsor meeting basic employment conditions such as paying employees above the minimum wage, enrolling them for mandatory benefits, and providing paid leave.
Ultimately, an EOR manages the administration associated with visas and work permits for employees. They can expedite the visa process and reduce the time for approval by working with immigration experts in the destination countries.
An EOR can prevent common challenges with visa processing through consistent communication with their clients and compliance with the law.
5
Ongoing Support
Partnering with an Employer of Record provides access to professional support from legal compliance to effectively managing the logistics of the new workforce.
What Are the Limitations on EOR Visa Sponsorship?
In certain countries, an Employer of Record is not legally permitted to sponsor a visa. This means that direct sponsorship is required from an employer or through a different entity.
For example, in Singapore, as of 2024 Employers of Record are not permitted to sponsor Work Visas. Read more in our Guide to the Singapore EOR Ban.
In New Zealand, while a New Zealand EOR is able to sponsor work visas for migrant workers, it must apply for a special accreditation to do so (read more in our Guide to New Zealand EOR Services).
Unfortunately, employer-sponsored visas are difficult to navigate as they restrict legal employers from hiring qualified workers in different industries. Countries such as the United States will only allow an employer to sponsor a visa if they can provide proof of the candidate’s qualifications and skills. These types of sponsorships are limited to certain industries or sectors.
Furthermore, employers are tasked with providing proof they have tried to hire workers locally but could not find the specific competencies and skills they were looking for. These measures simply delay finding the appropriate workforce along with applying for work visas.
The Impact of Labor Laws
In addition to limitations on the EOR, the client company must be aware of the labor laws concerning working conditions, wages, and employee benefits in the countries of interest. These steps will prevent being issued fines and lawsuits that could damage the business’s reputation and lead to the deportation of employees or revocation of a business’s ability to sponsor work visas.
Political Challenges
Employers must be aware that visa sponsorship is connected to the political events and stability of a country. Political instability or election periods will delay visa processing.
Engage an EOR to Support Visa Processes
Businesses that try to build a legal entity overseas find it difficult to support employees with visas. The process is not only challenging but costly and time-consuming.
An inability to offer visa sponsorship means the company cannot expand internationally, limiting its ability to source and place talented employees. Fortunately, EOR-sponsored visas make cross-border expansion easier and more efficient. Entrusting this process to an EOR will keep you compliant with local labor and immigration laws.
Ready to expand your global workforce? A global Employer of Record can assist with visa sponsorship and international hiring. Contact us today to discuss your needs, and we’ll help you navigate the complexities of global employment and compliance to meet your business goals.
Author: Marcel Deer
Marcel is an experienced journalist and Public Relations expert with an honours degree in Journalism and bylines with a range of major brands.