How to move EOR employees to your own entity
Move EOR employees to your own entity when that entity is ready to employ them, not merely incorporated. Confirm employer registrations, payroll, insurance, benefits, work authorisation and the local transition route; then reconcile employee rights and the EOR’s closing account.
Define employer readiness
Build a local checklist for registrations, payroll reporting, pension or social insurance, mandatory coverage, employment documents and responsible signatories. Ask who will perform each function after the EOR exits. A payroll processor supplies a service; confirm separately which entity becomes the legal employer.
Decide what transfers and what must be replaced
Review recognised service, accrued leave, bonus accruals, benefit coverage, work permits and any IP assignments. A new contract or policy should identify the legal employer consistently. For Australia, investigate the transfer-of-business conditions and entitlement-specific exceptions rather than assuming either full continuity or a universal reset.
Compare the whole operating model
Price annual payroll administration, compliance support, registrations, insurance, HR work, accounting, banking and any continuing EOR charges during the overlap. Compare equivalent benefits and employee numbers. Avoid declaring an entity cheaper solely because the monthly EOR fee disappears.
Run a controlled handover
Nominate one owner for the employee roster, one for legal documents and one for payroll reconciliation. Obtain the departing provider’s records and the receiving payroll team’s acceptance. Check the first payslip and remittance evidence before closing the transition project.
Worked decision
For five employees, compare the five EOR service fees with the entity’s incremental operating costs over the same twelve months. Keep gross salaries and like-for-like statutory costs visible in both options. Add migration costs and cash tied up in overlapping deposits separately. The resulting break-even depends on actual quotes and local obligations; headcount alone does not determine it.
Questions before you act
Can our new entity inherit the existing visa?
Do not assume that work authorisation moves with the employee. Ask the immigration authority or adviser whether a new sponsor, application or notification is required.
Can the EOR continue to run payroll?
A provider may offer a separate payroll service. Obtain a scope specifying employer identity, filing responsibilities, employment support and fees.
What happens to the deposit?
Reconcile it against the EOR contract and final ledger. Treat it as recoverable cash only to the extent supported by the agreed refund conditions.
Country-specific decisions
- Does switching EOR reset Germany’s 18-month assignment clock?
- Can our German entity take over the worker before the EOR assignment limit?
- Can we move an overseas-company worker onto a Singapore EOR work pass?
- Will an Australian employee’s service carry over when leaving an EOR?
Sources
Planning guidance with scoped country examples. Provider documentation describes its own processes.
- Fair Work: when businesses change owners — What is a transfer of business?
- Fair Work: employee entitlements on transfer — Recognition of service and exceptions
- MOM: EOR work-pass restriction — EOR FAQ