Choosing an employer of record: infrastructure models, liability chains, and a provider selection framework for cross-border hiring

A previous paper (Schuchmann, 2026, doi:10.5281/zenodo.18861073) proposed a taxonomy distinguishing four global employment intermediary models: EOR, PEO, Global Payroll, and Contractor of Record. That taxonomy answers the between-category question of which model applies to a given hiring scenario. This paper addresses the within-category question that follows: once EOR is the appropriate model, how should a company choose between providers whose legal structures, and therefore risk profiles, differ in ways their marketing does not reveal? The paper formalises three EOR infrastructure models (owned-entity, partner-network, and hybrid), introduces the liability chain as the analytical device that reveals what the infrastructure question actually determines, and argues that the owned-versus-partner debate is a proxy: the operative question is who the legal employer is in each specific country and how many contractual steps separate that entity from the client. A six-dimension selection framework and a sequenced practitioner decision protocol are offered. This is a conceptual paper; it evaluates structures, not vendors, and makes no empirical claims about the comparative performance of either infrastructure model.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-07-02
DOI
https://doi.org/10.5281/zenodo.21120024
Primary Topic
Outsourcing and Supply Chain Management
Type
preprint
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preprint

Choosing an employer of record: infrastructure models, liability chains, and a provider selection framework for cross-border hiring

Robbin Schuchmann
Zenodo (CERN European Organization for Nuclear Research)
Outsourcing and Supply Chain Management
preprint

Choosing an employer of record: infrastructure models, liability chains, and a provider selection framework for cross-border hiring

Robbin Schuchmann
preprint en

Abstract

A previous paper (Schuchmann, 2026, doi:10.5281/zenodo.18861073) proposed a taxonomy distinguishing four global employment intermediary models: EOR, PEO, Global Payroll, and Contractor of Record. That taxonomy answers the between-category question of which model applies to a given hiring scenario. This paper addresses the within-category question that follows: once EOR is the appropriate model, how should a company choose between providers whose legal structures, and therefore risk profiles, differ in ways their marketing does not reveal? The paper formalises three EOR infrastructure models (owned-entity, partner-network, and hybrid), introduces the liability chain as the analytical device that reveals what the infrastructure question actually determines, and argues that the owned-versus-partner debate is a proxy: the operative question is who the legal employer is in each specific country and how many contractual steps separate that entity from the client. A six-dimension selection framework and a sequenced practitioner decision protocol are offered. This is a conceptual paper; it evaluates structures, not vendors, and makes no empirical claims about the comparative performance of either infrastructure model.

Zenodo (CERN European Organization for Nuclear Research)
Northern Border University (SA)
Industry, innovation and infrastructure
Outsourcing and Supply Chain Management
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