What’s an Employer of Record (EOR)?
An Employer of Record (EOR) is a stand-alone compliance and payroll service — it is not recruitment. The EOR acts as a legal entity that employs workers on behalf of another company. In practice, the Employer of Record becomes the official employer who handles all HR, legal, and payroll aspects, while the client company retains full control over the employee’s daily work.
In most cases, the EOR process begins only after the client has already identified the candidate they wish to hire.
A simple way to think of it: an EOR is like an “HR department for hire” that takes care of contracts, taxes, and local compliance so you can focus on your core business — like software development and growth.
Why is the EOR model a revolution in the IT industry?
1. Global access to talent, without borders
The IT industry is naturally global, and the best talent isn’t always in the same country as your company. The Employer of record model allows you to:
2. No more administrative roadblocks
Hiring abroad the traditional way means:
- Registering a company in a new country
- Navigating local labor laws
- Running local payroll
- Handling taxes and contributions
The EOR solves all this with one contract — giving you compliant employment without the headaches.
How does the EOR model benefit candidates?
| Aspect | Traditional Hiring | Ambacia EOR |
| Hiring Speed | 4–8 weeks | 1–2 weeks |
| Legal Security | Varies | Secured via EOR |
| Benefits | Local only | Global standard |
| Flexibility | Low | High |
| Career Opportunities | Local | Global |
Concrete benefits for developers:
- Faster onboarding — start working immediately
Local employment contract — fully compliant with Croatian or Serbian law
Secure and regular payments
Access to global perks like private healthcare or equity programs
Work for global companies from your hometown
How does the EOR model benefit employers?
Lower costs and risks:
- No need for local subsidiaries
- Reduced legal obligations
- No HR admin costs
Faster expansion:
- Test new markets without big upfront investments
- Scale teams flexibly
- Stay focused on your core business
| ROI Analysis | Traditional Expansion | Ambacia EOR |
| Initial Costs | €50,000–150,000 | €0–5,000 |
| Time to First Hire | 6–12 months | 1–2 weeks |
| Monthly Admin Costs | €2,000–5,000 | €299–499 |
| Legal Risk | High | Minimal |
How does Ambacia fit into this?
Our unique advantage
- EOR first: We lead with comprehensive EOR support in every field; if you require help sourcing developers or other tech profiles, our standalone IT recruitment unit can step in.
- Local expertise: We are a local EOR partner, covering Croatia and Serbia. Unlike global EORs that cover dozens of countries but rely on partners for local execution, we sit on the ground and manage the day-to-day employment administration.
Through our local legal entities, Ambacia represents several global EOR brands — providing them with compliant local hiring. - People-led, tech-enabled: We use IT tools to streamline workflows, but we’re not a fully automated self-service platform. You always have access to real people and local know-how.
- Transparent pricing: Our service starts at €299.00 per employee per month, with no hidden costs — a clear, predictable way to employ talent without the expense of setting up your own local entity.
Our EOR process in 4 steps
Note: This applies once you have your candidate ready.
1️⃣ Needs analysis (24h)
2️⃣ Legal onboarding & contract setup
3️⃣ Payroll & compliance management
4️⃣ Ongoing local support
Case studies: How it works
Case 1: US fintech company needed a senior dev in Croatia → found candidate → Ambacia handled onboarding, payroll, and compliance.
Case 2: German startup needed to employ multiple engineers in Serbia → they found the team → we handled the legal employment, saving them 70% admin costs.
The future of EOR in IT
Expect more AI matching, blockchain verification, and regulatory automation — but the basics stay the same:
EOR supercharges your IT department with global, compliant talent – delivering the legal infrastructure to deploy pre-vetted specialists anywhere within days
Why choose Ambacia?
Local expertise: Croatia and Serbia covered, with global EOR brands relying on us
Start today
Focus on your code — we’ll handle the legal side.
Contact: [email protected]
Web: ambacia.eu
HQ: Preradovićeva 34, Zagreb
1) What exactly is an Employer of Record (EOR) — and what is it not?
An EOR is basically your fully compliant local employer. It hires and pays your people in countries where you don’t have a legal entity.
What it’s not: It’s not a recruitment agency. You source and choose your devs — Ambacia steps in to handle contracts, payroll, taxes, benefits, and local compliance.
Bottom line: Think of it as your HR department on autopilot — but only for the admin and legal bits.
2) So, does Ambacia help me find developers too?
Nope. Unlike some EORs that mix recruitment and employment, we keep them separate.
With Ambacia, you find your talent first — we jump in after you pick who you want to hire.
Ambacia offers IT recruitment services, but this is beyond the scope of this blogpost; contact us to find out more.
3) When should I consider using an EOR for my team?
If you want to:
…then EOR is the smart move.
Perfect for startups testing new markets or scale-ups building distributed teams.
4) What makes a local EOR partner like Ambacia better than a global EOR?
Global EOR brands manage clients across dozens of countries, but they usually depend on local partners for actual hiring.
Ambacia is that local partner — we’re on the ground in Croatia and Serbia.
This means:
Real-time legal updates
Local HR experts who know the system inside out
Native support, no slow middlemen
5) How much does Ambacia’s EOR service actually cost?
Simple and transparent: from €299 per employee per month.
No hidden onboarding fees, no surprise admin costs. All costs are communicated upon first contact.
You pay one clear monthly fee that covers all local employment obligations.
6) Is Ambacia an automated SaaS platform?
No — and that’s intentional.
We’re people-led and tech-enabled.
We use smart tools to speed up onboarding, payroll, and compliance — but you always get human support when you need it.
No generic chatbots — just real experts
7) How fast can I onboard a developer through Ambacia’s EOR?
Way faster than setting up your own entity.
Once you’ve picked your hire:
Contract signed within 24–48 hours
Local paperwork done in days
First salary processed on time
On average, it’s 1–2 weeks from handshake to day one — no months-long setup.
8) Do I lose control over my employees if I use an EOR?
Nope!
You keep 100% control over day-to-day tasks, performance, and culture.
Ambacia just handles the legal employer responsibilities — contracts, payroll, benefits, compliance — so you don’t have to.
9) Can my employee switch from EOR to direct hire later?
Absolutely.
If you grow big enough to open your own entity, we’ll help you switch employees smoothly.
No penalties, no awkward paperwork gaps — just a clean handover that keeps everyone compliant and paid on time.
10) Why choose Ambacia over any other EOR for Croatia or Serbia?
We’re locally rooted — we know Croatian and Serbian labor laws better than any global aggregator.
Ready to expand your team?
Chat with our experts at [email protected] or book your free consult at ambacia.eu — let’s make global hiring simple, together.
