What are the key differences in labour laws that an EOR manages between regions?

Labour laws vary significantly across countries, and understanding these differences is crucial when hiring internationally. For example, Brazil has strict labour protections under the CLT, including mandatory severance pay and a 13th-month salary. In Mexico, companies must carefully classify contractors and provide full-time employees with social security and profit-sharing.
 

EORs help simplify this process by ensuring compliance with foundational labour requirements across countries. Here's how they support businesses:

• Employment contracts: Drafting locally compliant contracts covering job scope, compensation, working hours, and termination terms.
• Tax compliance: Managing tax withholdings and filings according to each country’s tax laws.
• Benefits administration: Providing and managing statutory benefits like health insurance, pensions, and paid time off.
• Working hours & overtime: Ensuring adherence to local limits on work hours and rules around overtime pay.
• Termination procedures: Handling notice periods, severance, and other exit requirements legally.
• Employee classification: Navigating local definitions of employees vs. contractors to avoid misclassification risks
   

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