What is a Professional Employer Organization (PEO)/Employer of Record (EoR)?

Simply put, a PEO or EoR provides human resources, payroll and compliance support. A PEO/EoR functions as a support system which enables your company to seek rapid international expansion or employ worldwide talent.

A business may outsource their HR and payroll functions to a PEO/EoR/Employee Leasing company in order to save time, money and ensure maximum compliance for their workforce. The PEO/EoR guarantees compliance throughout each stage of the employment process – hiring, employee relations & offboarding/terminations. 

A man looking out at a world map. He is thinking about what a PEO and EOR are. What is a Professional Employer Organization (PEO)/Employer of Record (EoR)?

What’s the difference between a PEO/EoR?

PEO: A Professional Employer Organization (PEO) provides a co-employment relationship offering HR and Payroll supports, but not maintaining full liability of the employment relationship. 

EoR: An Employer of Record (EoR) maintains full liability of the employment relationship. By law, the EoR is the legal employer and takes on all risks associated with the employees. 

PEO’s/EoR’s provide further benefits to organizations such as on demand access to knowledgeable payroll, human resources and labour legislation professionals. They manage worker’s compensation and offer elevated benefit and pension plans to retain an engaged workforce. Additionally, PEO’s provide assurance that payroll is processed efficiently and accurately while taking care of the remittance and taxation process.  

When engaging a PEO/EoR, the company maintains full control of day-to-day operations and employee management. The PEO/EoR runs parallel to the business providing guidance and consultative HR and payroll supports. The company has greater time to focus on productivity and revenue generating tasks instead of keeping up with the ever-changing Canadian labour legislation. 

The OI Group has been a leading PEO/EoR in Canada for over 40 years. As an established organization, the OI Group has the knowledge and resources to ensure the compliance of your Canadian workforce.

What is a Professional Employer Organization (PEO)/Employer of Record (EoR)?



Also, visit our Canada HR Essentials website for all your Canadian HR needs. Providing comprehensive HR solutions since 1981.

Need support? Reach out to the team of professionals at The OI Group for help navigating Canadian employment relationships.