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Employer of Record (EOR) in Jordan

Key Points 

  • A Jordan Employer of Record (EOR) helps international companies to hire employees in Jordan.
  • A Jordan EOR takes over employment compliance, payroll and HR, leaving client companies to focus on what matters. 
  • When choosing a Jordan EOR, make sure to choose a provider with expertise in the local marketplace and knowledgeable about Jordan labor law. 

What is a Jordan Employer of Record?

An Employer of Record (EOR) is a third-party organization that handles the administrative, HR, and compliance complexities of hiring employees in a foreign country. In the context of Jordan, an EOR is especially relevant for companies wanting to tap into the local market without establishing a full-fledged business entity or navigating the intricacies of Jordanian labor law and payroll on their own.

How Does a Jordan Employer of Record work?

When a company partners with an EOR in Jordan, the EOR essentially hires the local staff on the company’s behalf. Here’s a breakdown of the process:

  1. Hiring. While the company selects the candidate they want to onboard, the EOR legally hires the employee. This means that, on paper, the individual is an employee of the EOR, even though they work directly under the guidance and supervision of the foreign company.
  2. Payroll and Tax Compliance. The EOR handles the entire payroll process, ensuring that all payments are compliant with local tax laws and labor regulations.
  3. Risk Management. As the legal employer, the EOR assumes many of the liabilities related to employment, helping the company mitigate risks.

How to Engage a Jordan Employer of Record

Engaging an EOR in Jordan involves a few key steps:

  1. Research. It’s crucial to select an EOR with a solid reputation and a track record in Jordan. Due diligence is paramount.
  2. Agreement. Once a suitable EOR is chosen, the company will enter into a service agreement detailing roles, responsibilities, and fees.
  3. Employee Onboarding. After the agreement, the company can proceed to hire or transfer local employees under the EOR.

What are the Benefits of a Jordan Employer of Record?

Using an EOR in Jordan offers multiple advantages:

  1. Speedy Market Entry. Companies can start their operations swiftly without the delays associated with setting up a local entity.
  2. Cost-Efficiency. No need to establish a local office or deal with setup costs.
  3. Local Compliance. The EOR ensures all local employment norms are met, reducing the risk of non-compliance penalties.
  4. Flexibility. Ideal for companies planning short-term projects or market testing.

What Are the Disadvantages of a Jordan Employer of Record?

There are also some potential downsides to engaging a Jordan EOR which may include:

  1. Limited Control. As employees are technically under the EOR, companies might feel they have slightly reduced direct control.
  2. Dependence. There’s a reliance on the EOR for crucial functions, which can be a concern if the EOR’s service standards dip.
  3. Long-Term Viability. For companies planning a prolonged presence in Jordan, setting up their own entity might be more cost-effective in the long run.

Top 5 Jordan Employers of Record

  1. Connect ResourcesConnect Resources is a well-established EOR and HR outsourcing agency in the Middle East and North Africa, offering multiple HR solutions, including payroll outsourcing, executive search and visa support. Connect Resources are experts in handling the legal and bureaucratic elements of hiring in Jordan. Find out why Connect is the No. 1 Jordan EOR in our in-depth 2023 Connect Resources review
  2. HorizonsHorizons (formerly New Horizons Global Partners) is a leading Jordan Employer of Record which has been ranked the best EOR in the world for 2023. Read more in our detailed 2023 Horizons review.
  3. MercansMercans is a global PEO and employer of record that provides end-to-end HR and payroll solutions. When hiring in Jordan, Mercans offers extensive services such as visa processing, legal compliance, payroll, and human resources advisory. 
  4. Kinza HRKinza HR are experts in HR and EOR support, both in Jordan and across the Middle East.  Kinza HR is an excellent choice for companies in need of additional recruitment and HR support. 
  5. HLB HamtHLB Hamt is one of the leading auditing, accounting and consultancy firms in the Middle East. It also provides payroll and EOR solutions.  HLB Hamt is a good option for providers that want support in company incorporation alongside EOR. 

Jordan Employer of Record — Choose the Best

Using an Employer of Record in Jordan provides foreign companies with a streamlined approach to harness the potential of the Jordanian market. While the benefits are considerable, it’s crucial to weigh them against the potential drawbacks and long-term business goals. Whether choosing to go with an EOR or setting up a traditional business structure, the Jordanian market, with its strategic position and growing sectors, holds significant promise for global businesses.

FAQs

An Employer of Record (EOR) in Jordan serves as a third-party entity that hires local staff on behalf of foreign businesses, handling administrative, payroll, and compliance tasks. The EOR becomes the official employer in legal terms, but the employees work for the foreign company's operations. In contrast, a staffing agency primarily recruits and provides staff to businesses, without necessarily managing other employment-related tasks or serving as the official legal employer.

Yes, you can convert from an EOR arrangement to establishing your own legal entity in Jordan. The transition would involve setting up the appropriate business entity under Jordanian laws and transferring the employees from the EOR to your newly established entity. This process would need to adhere to local regulations, and it might be beneficial to engage with legal and business professionals in Jordan for a seamless transition.

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