The Lease You Didn’t Read: Why Labor Leasing Licenses Could Sink (or Save) Your Global EOR Strategy
It begins innocently. A company lands a massive new client in Germany, Japan, or Brazil. They need local boots on the ground—yesterday. Payroll? Leave it to the Employer of Record (EOR). After all, the EOR is the legal employer, and everything’s covered, right?
Wrong. Behind the scenes lurks a legal minefield few executives or HR leaders fully grasp: labor leasing licenses. Miss this compliance cornerstone, and you could find your company facing regulatory backlash, court-imposed employment relationships, or worse—total market expulsion.
This article pulls back the curtain on labor leasing laws, exposes how EORs tiptoe the legal line, and gives you a global cheat sheet to stay compliant and competitive.
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IEC Rebel’s Digest— The IEC Group can help you audit your global employment setup by identifying labor leasing risks, verifying licensing requirements, and ensuring your EOR partners meet every compliance standard—before regulators come knocking.
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