An Employer of Record (EOR) is the company named as the legal employer on the employment contract. In Africa, it lets you employ someone in a country where you have no subsidiary: the client directs the day-to-day work, while the EOR carries the employer’s obligations, from the contract to payroll, social security contributions and work permits.
Key points
“Of record” means the name entered on the official document: the party answerable to the law, the authorities and the employee.
The EOR signs the employment contract, runs payroll, declares and pays contributions, and obtains work permits.
The client chooses the person, sets the assignments and supervises the work on site.
Limit: the EOR settles the employment question, not the taxation of your business in the country.
What does “of record” mean?
“Of record” means “entered in the register”. It is the name on the official document, and therefore the party answerable to the law, the authorities or the counterparty. Someone else may do the work; the responsibility stays with whoever is “of record”.
A whole business grew out of this principle: a specialist company lends its name, and the responsibility that comes with it, to a client who will not or cannot carry it in a given country. The Employer of Record applies it to employment: the client keeps the project, the team and the relationship; the EOR carries local employment compliance.
What the EOR carries, what the client keeps
The split is set in the service agreement between the client and the EOR. In practice, it looks like this:
| Topic | Employer of Record | Client |
|---|---|---|
| Employment contract | Signed by the EOR, compliant with the country’s labour law | Approves the role, pay and duration |
| Payroll and payslips | Calculated and paid monthly by the EOR | Sends variable items: hours, bonuses, absences |
| Social contributions and payroll taxes | Declared and paid by the EOR | — |
| Work permits and visas | Applied for and tracked by the EOR | Provides the project-related documents |
| Occupational health and safety | Medical check-up, work-injury cover, health insurance | Safety of the workstation and the site where the person works |
| Direction of work | — | Sets assignments, working hours and objectives |
| End of contract | Handled by the EOR under the country’s law | Decides when the assignment ends |
EOR, French portage, secondment or subsidiary?
Four ways to have someone work in an African country. The legal employer differs, and so does the responsibility.
| Option | Legal employer | For whom | Watch point |
|---|---|---|---|
| Employer of Record | The EOR, through its local entity | A company or a consultant with no structure in the country | The taxation of your business still needs to be analysed |
| Portage salarial (French law) | A portage company in France | An independent consultant who finds their own assignments | French scheme: employment and contributions in the host country need checking |
| Secondment | The home company | An employee sent temporarily by their employer | Limited duration; social security under the applicable agreements |
| Local subsidiary | Your own company | A long-term business with several employees | Incorporation, capital, accounting and filings to maintain |
A typical case: a consultant, often an expatriate, wins an assignment with a client in Africa. The client asks for a local structure; the consultant does not want to set up a company. The EOR employs them in the host country and invoices the client.
What an EOR does not settle on its own
The EOR carries the employment. It does not carry the taxation of your business: depending on what your company does in the country, and for how long, a permanent establishment question may arise. Check with your tax adviser.
VAT also follows local rules. In Namibia, for example, the 15% VAT applies to the full EOR service amount, salaries and charges included, not just the fee.
The other “of record” roles
The same principle applies in other trades, always with the same question: whose name is on the document?
| Role | Who it is | What it carries |
|---|---|---|
| Merchant of Record | The legal seller facing the customer | Payment collection, each country’s VAT, refunds, fraud |
| Importer of Record | The customs declarant | Duties, taxes and accuracy of the declaration |
| Agency of Record | A brand’s lead agency | Media buying and campaign consistency |
| Broker of Record | The appointed broker on an insurance policy | Manages the policy; changed by a letter of appointment |
| Attorney of record | The lawyer formally on the case | Represents the client before the court |
| System of record | The software that is authoritative for a piece of data | The source of truth; other tools hold copies |
How DI-Africa fills this role
DI-Africa acts as legal employer for its clients through its own entities in Congo, Gabon, Namibia, Madagascar, Morocco and Côte d’Ivoire, and operates in 14 African countries (2026 figures).
Scoping: the role, country, duration, pay and the cover you want.
Costing: the full employer cost, line by line, before any commitment.
Onboarding: local employment contract, work permit and visa if needed, medical check-up, insurance.
Every month: payroll, payslips, social and tax filings, invoice to the client.
End of assignment: final settlement and end-of-contract documents under the country’s law.
EOR is one of our six services, combined to fit each project:
Frequently asked questions
Who signs the employment contract with an EOR?
The EOR. The employee is employed by the EOR’s local entity; the client signs a service agreement with the EOR setting out the assignment, the cost and the split of responsibilities.
Can an independent consultant use an EOR for an assignment in Africa?
Yes. The end client pays the EOR, which employs the consultant in the host country: local contract, payroll, contributions and work permit. The consultant keeps their relationship with the client.
Who is responsible if there is a workplace accident?
The EOR, as employer, reports the accident and provides the employee’s social cover. The client, who organises the work on site, is answerable for the safety of the workstation and the site. The service agreement sets out this split under the country’s law.
How long does it take to start?
For someone hired locally, employment can start once the contract is signed. For a foreign employee, the timeline depends on the country’s work permit: see our country immigration guides.
Should we set up a subsidiary instead?
A subsidiary makes sense for a long-term business with several employees. An EOR is for starting fast, testing a market or running a time-bound project. You can start with an EOR and set up your subsidiary once the volume justifies it.
Is the EOR model legal in Africa?
It relies on a local entity that employs people under the country’s labour law. Rules on the provision of staff vary from country to country, which is why DI-Africa employs through its own entities where it is established.
Further reading
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Thomas Breugnot, DI-Africa · November 2026