1
Pricing & Fee Transparency
Is the full pricing itemized before you sign — every line?
Ask for a complete breakdown: management fee, employer cost markup, FX margin, benefits administration, setup fees, and any per-transaction charges. If they can't provide this before you sign, that's a signal.
Are there termination fees or early exit penalties?
Many EOR contracts include minimum commitment periods, wind-down fees, or data transition costs. Understand exactly what it costs to leave before you're in.
How is foreign exchange handled, and at what margin?
FX markup is one of the most common hidden cost areas in global payroll. Ask specifically what rate they apply and whether it appears as a line item on your invoice.
2
Service Model & Human Access
Will you have a named, dedicated contact — not just a support queue?
Ask exactly who your point of contact is, what their response time commitment is, and whether that person knows your account or rotates between clients.
What happens when something goes wrong outside business hours?
Payroll issues and employment emergencies don't follow a 9–5 schedule. Understand what escalation actually looks like in practice — not just what the contract says.
Is there meaningful human oversight, or is it entirely platform-driven?
Automation is efficient until something breaks. Ask what human review exists for payroll runs, onboarding, and compliance decisions — and who is accountable when errors occur.
3
Compliance & Classification
Do they assess worker classification before the engagement begins — not after?
Employee vs. contractor misclassification is one of the most financially damaging errors in global hiring. Retroactive tax liability, back pay, and penalties fall on you. This should be reviewed upfront, every time.
Where does contractual liability sit if a compliance error occurs?
Read the indemnification language carefully. Many EOR agreements transfer more risk back to the client than expected — particularly around termination, misclassification, and statutory benefits disputes.
How do they track and respond to changes in local labor law?
Employment law changes constantly across jurisdictions. Ask who is responsible for keeping your engagements current, how quickly updates are implemented, and how you're notified.
4
Regional Partners & In-Country Coverage
Are they using third-party regional partners — and will they tell you who?
Most EORs rely on local partners in countries where they don't have owned entities. This is industry standard. What matters is whether they disclose it, who those partners are, and how they're held accountable.
Do they have genuine depth in your specific markets — not just listed coverage?
A country on a coverage map is not the same as real local expertise. Ask about the specific countries you're hiring in — who manages them, what their experience is, and how in-country issues are resolved.
5
Flexibility & Long-Term Fit
What happens to your employee data and records if you need to switch?
Data portability, employment record continuity, and transition support should be clearly defined before you sign. A good EOR makes it straightforward to leave if the relationship isn't working.
Can they scale with you as your workforce evolves — new markets, changing headcount?
Your global footprint won't stay static. Understand the process and cost to add new countries, adjust engagement structures, or expand headcount — before you've already committed.
Is this provider capable of being a long-term strategic partner — or just a vendor?
The best EOR relationships go beyond administration. Ask whether they'll flag issues proactively, advise on structure, and stay engaged as your business grows — or whether support ends once you're onboarded.