Employer of Record, explained by someone who is not selling you one
We are not an EOR. We work with one, which means we have no reason to oversell what it does.
What it actually is
An Employer of Record is a company that legally employs someone in a country where you have no legal presence. They hold the employment contract, run payroll, pay the statutory contributions and carry the labour-law obligations. You direct the work day to day.
The problem it solves is narrow and real: you found the right person in Colombia, you have no Colombian entity, and employing them yourself is not legally possible. An EOR is the bridge.
The three options, honestly compared
| Route | Time to start | What it really costs you |
|---|---|---|
| Direct contractor | Days | Cheapest on paper. Carries misclassification exposure that is back-dated if challenged. |
| Your own entity | Months | Full control, real money to establish, ongoing local accounting forever. |
| Employer of Record | Weeks | A margin on top of employment cost. Buys speed and removes the legal exposure. |
The contractor route deserves its own warning. In most of Latin America the test for employment is how the relationship actually operates, not what the contract is titled. Someone who works your fixed hours, under your direction, with your tools, exclusively for you, is functionally an employee. If a labour court agrees, the liability is retroactive — back benefits, back contributions, severance.
EOR and PEO are not the same thing
Vendors use these interchangeably and they should not. A PEO is typically co-employment: you and the provider share employer responsibilities, and you usually need your own entity. An EOR is sole employment: they are the employer of record, full stop, and you do not need an entity.
If a provider offers either, ask one question and insist on a written answer: who appears as the employer on the contract? That answer decides who carries the misclassification and severance exposure, and it is not always the party you assume.
What it costs in Colombia, structurally
The EOR charges the employment cost plus a margin. The employment cost is not the salary — it includes mandatory health and pension contributions, a payroll tax component, statutory severance (cesantías) accrued monthly plus interest on it, a service bonus (prima) paid twice yearly, paid vacation and, in lower bands, a transport allowance.
Any quote that does not say which of those it covers is not comparable to one that does. Ask for the breakdown before comparing two providers. The Colombian detail is on the hiring in Colombia page; Mexico works differently and has its own rules after the 2021 outsourcing reform, covered on the Mexico page.
Where we sit, plainly
Kurios is not an EOR. We find and vet the person, and the employment sits with an in-country employer. We say this because the distinction matters to you: an EOR that also recruits has an incentive to fill the seat; a recruiter that does not employ has an incentive to place someone who lasts.
If what you need is purely the employment layer for a person you already found, you want an EOR directly and we will say so. If you need the person found, vetted and shown to you on a recorded interview before you commit, that is what we do.
The five questions before you sign anything
Ask who legally employs the person and to see the contract. Ask what is included in the monthly figure, item by item. Ask what notice applies, both directions. Ask what happens to severance accrual if the engagement ends. Ask whether you can convert the person to your own entity later, and on what terms.
A provider who answers those five directly is probably fine. One who deflects on the first is asking you to carry a risk they have not priced.
Common questions
Do I need an EOR to hire in Latin America?
You need an EOR, your own entity, or a contractor arrangement that genuinely is contracting. The third is cheapest and carries the misclassification risk if the person works your fixed hours under your direction.
Is an EOR the same as staff augmentation?
No. An EOR is the employment layer. Staff augmentation is finding and integrating the person. They often come bundled, which is why the terms blur. See staff augmentation.
Can I move someone from EOR to my own entity later?
Usually yes, and it is worth agreeing the terms up front rather than discovering a conversion fee in month eight.
Who handles a dispute with the employee?
The EOR, since they are the legal employer — but you should know their process before you need it. A vague answer here is a red flag.
Does the person know they work through an EOR?
Yes. They sign the contract. Anyone suggesting otherwise is describing something you do not want to be part of.
See who is available
Vetted profiles with recorded interviews and tested English.