Global Employment Organization (GEO)

What is a Global Employment Organization (GEO) ?


A Global Employment Organization (GEO) is a service that allows companies to hire talent globally without the need to establish a local entity in each new country. It acts as a legal Employer of Record (EOR), handling various employer responsibilities.

As an EOR, a GEO takes care of administration, global payroll, taxes, and ensures compliance with local labor laws, while the client company retains control over the core business activities and day-to-day management of the workers.

What Does a GEO do?

  • Compliance with Local Laws: Ensures adherence to local employment laws, including labor laws and regulations.
  • Tax and Insurance Management: Manages tax administration and insurance requirements.
  • Payroll and Employment Contracts: Handles payroll obligations in the host country and creates employment contracts in line with local laws.
  • Employee Benefits: Provides and manages employee benefits.
  • Hiring and Onboarding: Assists in the hiring and onboarding process of new employees.
  • International Money Transfer: Facilitates money transfers between the home state and foreign countries.
  • Work Permits and Visas: Processes work permits and visa requests for international employees, if necessary.

Benefits of Using GEO Services

  • Scalability: Allows companies to quickly scale and form a global workforce, adapting to industry shifts and business requirements.
  • Compliance and Security: Ensures compliance with local labor laws, avoiding penalties and tax or payroll processing errors.
  • Speed in Market Entry: Offers a faster and safer solution for international expansion compared to establishing a new legal entity.
  • Cost-Effectiveness: More economical than setting up local branches, especially for small teams.
  • Time Management and Productivity: Frees up time for companies to focus on core business activities.
  • Access to Global Talent: Facilitates hiring from a wider talent pool for various business needs.
  • Attractive Employee Benefits: Provides access to comprehensive benefits packages, aiding in talent attraction and retention.

Global Employment Organization (GEO) vs. Employer Of Record (EOR)

  • Employment Responsibility: Unlike PEOs, GEOs assume full responsibility for employment, whereas PEOs share this responsibility with the client company.
  • Liability and Insurance: GEOs fully cover employee insurance and liability, while PEOs share these responsibilities with the client.
  • Employee Contracts: In GEO arrangements, employment contracts are between the GEO and the employee, mitigating the client's risk in contract disputes.
  • Business Registration Requirements: Partnering with a GEO eliminates the need for business registration in each new country, a requirement when using a PEO.