Question 1

What's the security deposit?

Accepted Answer

Most EORs hold 1 month of total employment cost (salary + employer burden + their fee) interest-free for the life of the contract. Brazil, Argentina, and Nigeria often require 1.5–2 months.

Question 2

What FX spread do you charge, and is it published?

Accepted Answer

Rates range from ~0.5% (Rippling) to 3%+ (Deel, Velocity Global). Spread is often negotiable at >10 hires. Always ask for the wholesale benchmark.

Question 3

Is there an offboarding fee?

Accepted Answer

Velocity Global and some enterprise providers charge $500–$1,000 per termination. Most flat-fee providers do not.

Question 4

What's the statutory severance exposure?

Accepted Answer

Brazil, France, Mexico can require 1 month per year of service plus mandated notice — independent of the EOR. Get the per-country worst-case from your provider before signing.

Question 5

What are the statutory notice periods?

Accepted Answer

Germany scales to 7 months at 20 years' tenure; France minimum 2 months; UK statutory 1 week per year capped at 12. Confirm the EOR's SLA covers this exposure rather than passing it to you mid-contract.

Question 6

Is the contract month-to-month or fixed term?

Accepted Answer

RemoFirst, Multiplier, Deel, Remote, Oyster, Rippling are month-to-month. G-P, Velocity Global, Atlas, Papaya often push 12–24 month terms with early-exit penalties.

Question 7

Do you own the local entity, or partner with one?

Accepted Answer

Owned entities (Remote, Atlas, G-P, parts of Deel) give faster audit response and direct liability. Partner-network EORs (RemoFirst, Rippling) can be slower and add an audit-pass-through layer.

Question 8

Does prolonged EOR use trigger permanent establishment (PE)?

Accepted Answer

In Germany, France, Spain and a handful of others, EOR usage beyond ~12–24 months — especially if the employee signs contracts or holds decision authority — can still create taxable nexus. Confirm the provider's PE-risk SOP and indemnification language.

Question 9

Who owns the IP the employee creates?

Accepted Answer

Employment contracts are signed with the EOR (or its local partner), not your HQ entity. India and China in particular require explicit triangular IP-assignment clauses; missing them blocks IP transfer back to HQ on termination.

Question 10

Is there a setup or implementation fee?

Accepted Answer

Most month-to-month providers waive it. Enterprise tiers (G-P, Velocity Global) sometimes bill $1,500–$5,000 per country.

Global EOR & Hiring Cost Calculator

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Global EOR & Hiring Cost Calculator

Hiring inputs

Compare EOR platforms

Also worth evaluating

Hidden costs to ask before signing

1What's the security deposit?

2What FX spread do you charge, and is it published?

3Is there an offboarding fee?

4What's the statutory severance exposure?

5What are the statutory notice periods?

6Is the contract month-to-month or fixed term?

7Do you own the local entity, or partner with one?

8Does prolonged EOR use trigger permanent establishment (PE)?

9Who owns the IP the employee creates?

10Is there a setup or implementation fee?

11What are payroll cutoff dates?

12What's the benefits markup?

13What currency will you invoice in?

Browse hiring costs by country

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