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AOR Clients: Understanding the Contractor vs. EOR Distinction

George Trakas
  • Updated

Clients often confuse the standard contractor flow with the Agent of Record (AOR) process. When working with Remofirst, it's important to understand the difference between direct Contractor engagement and the compliant EOR (Employer of Record) route, which addresses classification risk.

Feature Standard Contractor (Direct Engagement) EOR (Employer of Record)
Legal Structure You engage the worker directly as an independent contractor. Remofirst legally employs the worker in the country.
Misclassification Risk High. Risk remains with your company, leading to potential back taxes and re-classification. Eliminated. Remofirst assumes employment risk and manages full labor compliance.
Compliance Covers payment, invoicing support, and compliance paperwork. Covers Payroll, taxes, statutory benefits, social security, and local labor law compliance.
Cost Lower monthly cost (no employer taxes). Higher cost (includes statutory employer contributions).

AOR Clients | How to Set up a Contractor Agreement at Remofirst

This guide will walk you through the steps to set up a contractor agreement for AOR Clients seamlessly.

Whether you want to create a compliant contract from scratch or upload your own custom agreement, Remofirst provides the tools to streamline the process and ensure legal compliance.

Alternatively, you can access the Contract Creation Tool while adding a new contractor to the platform. 

See the full guide here: AOR Clients | How to add contractors to your team on the Remofirst platform

Step 1: Accessing the Contract Creation Tool

  • Log in to your Remofirst account and navigate to the "Agreements" tab.
  • Click on the Create new contract button.

Step 2: Fill in the Details for the Contract

Once inside the Contract Creation Tool, you'll be prompted to fill in the details for the contract agreement.

  1. Contractor Details: Select the contractor from the list and ensure the prefilled country is correct. If not, you can easily select the correct option. You can also specify the Region/State/Province if applicable.
  2. Contractor Job Details: Review or specify the new Job title. The scope of work will be prefilled below and can be edited as needed. The Department field is optional.
  3. Compensation: Define the compensation structure, including Contract terms, dates, rates, and payment frequency. If the Contract term is Fixed term, you must provide the End date of the contract.
  4. Review Agreement and Send: Review the entire agreement details. If any changes are needed, click the Edit button and update the information. Once satisfied, click on Confirm to send the contract for signature.

Note: Once confirmed, contractor information will be put into the contractor agreement.

Confirmation

Once agreed, the contract is legally binding and will be shared with the contractor for e-signing.

  • An email will be sent to the contractor, inviting them to sign the agreement. You will be notified by email once they sign it.
  • You can monitor the progress via the Agreements section. To navigate to the Agreements tab, click the Continue button.
  • Once it is signed by the contractor, the status of the agreement will be changed to Signed and will be moved to the Signed agreements tab.

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