When you engage an independent contractor, someone has to classify them, contract them, and pay them compliantly. An Agent of Record can carry out all three on your behalf. Legal responsibility and risk allocation depend on the engagement structure, local law and the applicable service terms.
Key facts
- An Agent of Record engages and pays independent contractors on a company's behalf, including classification, contracting and payment.
- AOR is the independent-contractor counterpart to an employer of record (EOR), which covers employees.
- Together, AOR and EOR let one company engage any worker type through a single vendor.
Contents
- What is an Agent of Record?
- How an AOR works
- AOR vs EOR
- When to use an AOR
- Frequently asked questions
- Engaging contractors through an AOR
What is an agent of record?
An Agent of Record (AOR) is a third party that formally engages and pays independent contractors on a company's behalf, including classification, contracting and payment for that contractor relationship. Legal responsibility and risk allocation depend on the engagement structure, local law and the applicable service terms. The contractor does the work for the client; the AOR holds the compliant engagement.
How an AOR works
- Classification. The AOR determines and documents the contractor's status.
- Contracting. It puts the compliant contract in place.
- Payment. It pays the contractor, handling tax documentation and currency.
- Risk. Legal responsibility and risk allocation depend on the engagement structure, local law and the applicable service terms.
AOR vs EOR
An Employer of Record legally employs employees. An AOR engages Independent Contractors. The difference comes down to worker type: employees go through an EOR, contractors through an AOR.
Key takeaway: If you engage both employees and contractors across markets, you want AOR and EOR under one roof, so you never switch vendors when a worker's status changes.
When to use an AOR
Best practice: Use an AOR when you want to engage a genuine independent contractor through a compliant, documented structure. Worksome acts as AOR alongside its EOR service. Worksome can support compliant contractor engagement, including classification, contracting and payment, through the applicable Worksome service model. Legal responsibility and risk allocation depend on the engagement structure, local law and the applicable service terms.
Frequently asked questions about agents of record
What is the difference between an AOR and an EOR? An AOR engages independent contractors; an EOR employs employees. The choice follows the worker's classification.
Does an AOR classify the worker? Classification is a core part of what an AOR does. Worksome's platform supports worker classification as part of the engagement process. Coverage, availability and any contractual protections depend on the worker's location, engagement model and applicable Worksome terms.
Can one provider be both AOR and EOR? Yes. Worksome runs both, so you can engage contractors and employees through one vendor.
Engaging contractors through an AOR
An AOR gives a contractor engagement a compliant, documented structure, covering classification, contracting and payment. Worksome acts as AOR and EOR under one system. Coverage, availability and any contractual protections depend on the worker's location, engagement model and applicable Worksome terms.
This page is general information, not legal advice. Classification rules vary by country and change over time.
Related: Employer of Record (EOR), Worker classification, Independent contractor (IC), Contractor payments.