Library
How to stay compliant

Employer-of-Record (EOR) in Andorra: Do You Need One?

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Library
How to stay compliant

Employer-of-Record (EOR) in Andorra: Do You Need One?

So you want to hire someone in Andorra. Problem is, your company is located somewhere else.

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Andorra, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.

But there’s a catch: EOR solutions in Andorra are expensive—usually at least $500 per month per employee—and can take time to setup. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Andorran entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Andorra, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Andorra as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in150+ countries (like Andorra). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Andorra:

Everything you should know about using an EOR in Andorra

Are you considering expanding your business to Andorra and hiring employees there? If so, you may be wondering about the best way to manage your workforce. One option is to use an Employer of Record (EOR) service to handle payroll, benefits, and compliance. In this post, we'll explore the benefits and challenges of using an EOR in Andorra, as well as some legal and regulatory conditions you should be aware of.

What is an EOR?

An EOR is a third-party service provider that acts as the official employer of your staff in a foreign country. This means that the EOR takes care of all the administrative tasks associated with employment, such as payroll, taxes, benefits, and compliance with local labor laws. You, as the client, retain control over the day-to-day activities of your employees, while the EOR handles the legal and administrative aspects of employment.

Benefits of using an EOR in Andorra

One of the main benefits of using an EOR in Andorra is that it can simplify the process of hiring and managing employees in a foreign country. The EOR takes care of all the administrative tasks associated with employment, which can save you time and money. Additionally, the EOR is responsible for ensuring compliance with local labor laws, which can be complex and time-consuming to navigate on your own.

Another benefit of using an EOR in Andorra is that it can help you to establish a presence in the country without having to set up a legal entity. This can be particularly useful if you are testing the waters in a new market and don't want to commit to a full-scale expansion.

Legal and regulatory conditions in Andorra

When using an EOR in Andorra, there are some legal and regulatory conditions that you should be aware of. For example, Andorra has a minimum wage of €1,050 per month, which must be paid to all employees. Additionally, employers are required to contribute to social security, which is calculated as a percentage of the employee's salary.

It's also worth noting that Andorra has strict labor laws that protect employees' rights. For example, employees are entitled to a minimum of 30 days' paid vacation per year, as well as sick leave and maternity leave. Employers must also provide a safe working environment and comply with health and safety regulations.

Why hiring an independent contractor might be easier than using an EOR

While using an EOR can simplify the process of hiring and managing employees in Andorra, it may not be the best option for every business. If you only need to hire a few workers on a short-term basis, it maybe easier and more cost-effective to hire independent contractors instead. This can save you the administrative and legal costs associated with using an EOR, while still allowing you to access local talent.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched a Misclassification Guarantee: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

Book a demo to get started.