What is an Employer of Record (EOR) and how does it work for Canadian companies?
Keywords: employer of record Canada, how EOR works, global hiring, EOR in Mexico, international talent acquisition
As Canadian businesses look to scale operations, tap into new markets, and access specialized talent, global hiring has become a competitive necessity. But expanding internationally comes with a maze of legal, tax, and compliance challenges. That’s where an Employer of Record (EOR) becomes a game-changer.
In this post, we’ll break down what an Employer of Record is, how it works, and why more Canadian companies are turning to EORs to hire top talent in Mexico.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company. The EOR handles all local employment responsibilities, think of payroll, taxes, benefits, compliance with labor laws, etc, while the client company (you) manages the employee's day-to-day work, performance, and integration into your team.
In short: you get the talent, the EOR handles the paperwork.
For Canadian companies, this means you can hire international employees without setting up a legal entity abroad. Whether you're hiring a software engineer in Guadalajara or a customer success manager in Monterrey, an EOR makes it possible to onboard quickly, stay compliant, and reduce overhead.
How does an EOR work for Canadian companies?
Let’s walk through a real-world example:
Scenario: You’re a Canadian tech startup looking to hire a bilingual marketing strategist based in Mexico. You’ve found the perfect candidate, but you don’t have a legal presence in Mexico.
Without an EOR:
You’d need to register a local entity in Mexico
Hire legal, HR, and payroll advisors in-country
Stay compliant with Mexico’s employment and tax laws
Invest significant time and capital upfront
With an EOR like Bridg Global:
You recruit the talent or choose from local candidates we help you find
Bridg Global becomes the legal employer in Mexico
We handle:
Employment contracts (in Spanish and English)
Payroll and statutory deductions
Benefits and vacation time according to Mexican law
Social security, taxes, and compliance
You remain in control of the employee’s tasks, KPIs, work schedule, and culture integration
The result? You can focus on growth while we handle the complexity of cross-border employment.
What are the benefits of using an EOR in Mexico?
Canadian companies are increasingly turning to Mexico for talent, and for good reason. Here’s how partnering with an EOR can give your business a strategic edge:
1. Faster Market Entry. Skip the red tape of entity registration. An EOR can help you legally onboard talent in days, not months.
2. Full Compliance Without the Headache. Mexico has robust worker protections, and complex employment law and regulations. EORs like Bridg Global ensure your company complies with federal labor law (LFT), tax codes, and social security obligations, without needing an in-house compliance team.
3. Cost-Efficiency. Hiring through an EOR often costs significantly less than setting up a subsidiary, especially for small to mid-sized teams. You pay a flat monthly rate, and we take care of the rest.
4. No Long-Term Commitment. Testing a new market? Hiring for a fixed-term project? EORs offer flexibility without long-term legal obligations.
5. Attract and Retain Talent. Top professionals in Mexico expect secure, compliant employment, including IMSS (social security), Infonavit (housing), and vacation rights. An EOR gives you access to top-tier talent by providing the benefits and security they expect.
Is an EOR right for your business?
If you answer “yes” to any of the following, an EOR could be the perfect fit:
You want to hire talent in Mexico but don’t want to open a legal entity
You’re testing a new market or expanding into Latin America
You’ve already identified a candidate abroad but need help employing them legally
You want to stay fully compliant with local laws but lack in-house expertise
You’re looking for a faster, safer alternative to contractors or freelancers
Why Canadian businesses are choosing Bridg Global
At Bridg Global, we do more than process payroll, we build bridges between borders, cultures, and people. Our human-centered approach sets us apart from tech-first EOR providers. We are, first and foremost, an HR company.
We specialize in helping Canadian companies navigate hiring in Mexico with:
Transparent pricing and ethical practices
Local HR experts who understand both cultures
Custom support for onboarding, offboarding, and performance alignment
A commitment to compliance, care, and connection
Final thoughts
Expanding your team across borders doesn’t have to be risky, costly, or complex. With an Employer of Record, Canadian businesses can hire internationally while maintaining control, reducing liability, and staying focused on growth.
Whether you're hiring your first team member in Mexico or scaling operations, Bridg Global can help you do it right.
Ready to hire in Mexico with confidence?
Let’s talk about how Bridg Global can become your Employer of Record partner.
Contact us today or book a free consultation.
