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In 2024, the Employer of Record (EOR) industry, following insights from the World Employment Conference, is actively addressing EOR regulatory challenges through global collaboration and advocacy for more accommodating legislation.
- The industry is experiencing rapid growth but faces EOR regulatory challenges due to lagging and inconsistent regulations across different countries.
- The World Employment Conference in 2023 was a critical platform for EOR companies to discuss these challenges and the need for more fitting global legislation.
- Moving forward, EOR companies are focusing on collaboration and advocacy for better legal frameworks to ensure compliance and sustainable industry growth.
In 2024, Employer of Record (EOR) companies are preparing to face significant regulatory challenges. This follows a trend set in motion in recent years, as the EOR industry has experienced rapid growth due to increasing globalization and labor mobility demands. Despite this growth, regulation has struggled to keep pace, presenting several challenges for EOR companies.
2023 World Employment Conference
A pivotal moment in this trajectory occurred in 2023 when the World Employment Confederation (WEC) organized a vital conference addressing these issues. The World Employment Conference 2023, held on 29 March in Brussels, Belgium, had as its theme “Working in a Digital Age: Orchestrating Digitalisation for Better Labour Markets.” This event, marking the 55th edition of the annual gathering, focused on the profound changes the Digital Revolution has brought to the nature of work and HR services and the numerous EOR regulatory challenges it has led to.
The conference brought together over 200 opinion leaders from various sectors, including policymakers, business owners, industry representatives, researchers, and thought leaders across the Americas, Europe, Asia, Australia, and Africa. These experts discussed the latest trends and developed new solutions to improve labour markets. The event was notable for emphasizing how digitalization has transformed the employee-employer relationship and the need for adaptive legal frameworks to combat current EOR regulatory challenges.
Key figures such as Marc Nissen from LinkedIn, Michael Benninga from Coffreo, Sangheon Lee from the International Labour Organization (ILO), Peter Hinssen, an entrepreneur and author, and Marie Puybaraud from JLL Work Dynamics contributed to the discussions, underscoring the diverse and global nature of the conference.
Developments in EOR Regulatory Challenges Since the Conference
Since the World Employment Conference in March 2023, significant developments have occurred in the Employer of Record (EOR) industry, particularly regarding regulatory challenges.
The conference catalyzed identifying and addressing these issues. EOR companies have taken proactive steps, having recognized the disparity in legal frameworks across different countries, especially concerning the division of responsibilities and liabilities between employers and service providers. They have embarked on a journey of self-organization, seeking to create a unified voice to advocate for legislation that better fits the unique requirements of the EOR sector and adequately responds to the most pressing EOR regulatory challenges.
This collective effort is fueled by the realization that current national laws often do not explicitly support EOR services, leading to a landscape marked by uncertainty and complexity in compliance.
In response to EOR regulatory challenges, EOR leaders have engaged in ongoing dialogue and collaboration, sharing best practices and exploring potential solutions to harmonize operations across varying legal jurisdictions. This initiative reflects a broader movement within the industry to foster a more stable and predictable regulatory environment, which is essential for sustainable growth and the ability to provide reliable, compliant services globally.
How EOR Companies are Facing These Challenges
In 2024, companies are poised to confront these EOR regulatory challenges with renewed vigor. The insights and collaborations from the World Employment Conference serve as a foundation for these efforts. The best EOR companies stay abreast of these developments and continually seek ways to ensure compliance with local, national, regional, and international laws. They understand the importance of adapting to the evolving legal landscape and are committed to providing compliant and quality services in every market they operate in.
As the EOR industry navigates through 2024, the lessons and strategies developed in response to the regulatory challenges discussed at the World Employment Conference will be crucial. The commitment to innovation, collaboration, and compliance will be critical factors in the success of EOR companies in the coming year and beyond.
The industry is grappling with numerous EOR regulatory challenges due to the lack of consistent and accommodating legislation in different countries.
The conference aimed to address the regulatory challenges in the EOR industry and explore solutions for better global legislation and industry practices.
EOR companies are engaging in global collaboration, sharing best practices, and advocating for legislation that better suits the EOR sector's needs.
These efforts are anticipated to lead to a more stable and predictable regulatory environment, fostering sustainable growth and reliable, compliant services in the EOR industry.