XCAILE.

For companies paying contractors abroad · Employer of record

How to move your contractors to compliant employment

You can convert international contractors to employees without opening a company in each country: an employer of record employs them, runs payroll and handles local obligations while your team keeps directing the work. Send your contractor list and we tell you in writing who should move, what it costs and when.

Reviewed by the XCAILE hiring and employment team, October 8, 2026

Keep your team. Move employment and payroll to one accountable partner.

Already have people working across countries? Send the countries, team size and current setup. XCAILE compares the employment, contractor and outsourcing options, then scopes the agreements, payroll and transition responsibilities.

Get the country model comparison, cost inputs and transition responsibilities in writing.

Free contractor risk check: we review how your current contractors are engaged and move them to a compliant setup if needed. Your written cost breakdown within 24 hours once we have the country, role and salary range.

A person replies within 1 business hour · No call needed

Your reply comes from Grace at XCAILE.

We never share your details.

Why do companies move contractors to employment?

Because a team that started as a few contractors often grows into people who work full time, on your schedule, inside your tools. When the work looks like employment, local rules in many countries can treat it as employment, and the company paying them carries the exposure: back contributions, benefits and penalties.

Moving them to a compliant setup protects the company, keeps the people you already trained, and makes your contracts ready for investors, audits and enterprise customers.

What does waiting cost?

Every month a contractor works like an employee adds to the period a local authority can look back on. Waiting also risks losing good people to employers that offer local benefits. The fix is simpler before you scale the team further.

How does the switch work?

  1. 01

    Send your team and countries

    How many people, in which countries, what they do and how they are engaged today. Two lines is enough to start.

  2. 02

    Get the model comparison in writing

    Which setup fits each country and role, the cost components and who handles each step of the move.

  3. 03

    We employ and pay them

    Same people, same work. We issue the local contracts, run payroll and benefits, and handle the local obligations.

Employee through EOR or contractor through AOR?

QuestionEmployer of record (EOR)Agent of record (AOR)
Best whenThe person works full time, on your schedule, as part of your teamThe person runs independent, defined projects for you
Legal relationshipLocal employment contract with the EORCompliant independent contract, reviewed and paid by the AOR
Benefits and contributionsPaid as local law requiresHandled by the contractor
Who directs the workYouThe contractor, against agreed deliverables

Not sure which fits each person? That is exactly what the written review answers. Read the full EOR vs AOR comparison.

Which setup fits an existing team, and who does what?

Most existing teams fit one of four setups. The right one depends on the country and on how each person actually works, so we confirm it per country in writing. Changing the provider does not by itself fix a contractor who already works like an employee; the setup has to match the real working relationship.

SetupFits whenContracts with the peopleDirects the workPays themLocal obligations
Employer of record (EOR)People work for you full time and follow your directionXCAILE, through a local employment contractYouXCAILE runs payroll, benefits and employer contributionsXCAILE, as the legal employer
Agent of record (AOR / COR)Genuinely independent contractors with defined deliverablesXCAILE, through a compliant contractor agreementThe contractor, against agreed deliverablesXCAILE pays the contractor; the contractor handles own taxesShared as the agreement sets out
Managed outsourcing or SOWYou want agreed work delivered, not just people employedXCAILE employs or engages the teamXCAILE manages delivery against the agreed scopeXCAILEXCAILE
Payroll for your own companyYou already have, or will open, your own entity in that countryYour companyYouXCAILE runs payroll for your entityYour company, with XCAILE support

What goes into the cost comparison?

Every component appears as its own line, so you can compare like for like. No rate is assumed before we have your countries, roles and pay.

  • Each person's pay, in its currency and pay period
  • Employer contributions and mandatory benefits required in that country
  • The XCAILE service fee, shown as its own line
  • Payment and currency exchange terms
  • Any one-off transition cost, such as ending current contracts

What do you get?

  • A written review of how each contractor is engaged today
  • The recommended setup per person: employment through EOR, or a compliant contract through AOR
  • Monthly employer cost per country, in writing
  • Local employment contracts, payroll and benefits run for you
  • One partner and one contract across every country
  • Reply in 1 business hour
  • 150+ countries
  • Month to month. No minimum term.
  • XCAILE is part of the Gracemark group.

What if we want our own company there later?

Start with us as the employer. Move your people to your own company later, with no penalty. Many companies start with an employer of record, then open their own entity once a country has enough people.

Check the rules for a specific country in our country hiring guides, or compare contractor vs employee.

Questions buyers ask

Can we move our existing contractors to employment without opening a local company?

Yes. An employer of record (EOR) becomes the legal employer in each country, runs payroll, benefits and local obligations, and your team keeps directing the work. You keep the same people.

What is an employer of record?

An employer of record is a company that legally employs people on your behalf in a country where you have no entity. It issues the local contract, pays salary and employer contributions, and handles the employment obligations, while you manage the daily work.

Should every contractor become an employee?

Not always. Some people are correctly engaged as independent contractors. We review how each person works and tell you in writing who should move to employment and who can stay a contractor through an agent of record (AOR).

Can we move contractors in several countries at once?

Yes. We work in 150+ countries, and hire in all 33 countries of latin america and the caribbean. One partner, one contract and one written plan covers every country on your list.

Do we lose the option to employ them ourselves later?

Start with us as the employer. Move your people to your own company later, with no penalty.

How long is the commitment?

Month to month. No minimum term.

Should we use EOR, AOR or workforce outsourcing for our existing team?

It depends on how each group works. EOR suits people who work for you full time and follow your direction. AOR suits genuinely independent contractors with defined deliverables. Managed outsourcing or a statement of work suits work where XCAILE takes responsibility for agreed outcomes. We compare the options for each country and role in writing; the right setup is confirmed per country, not assumed.

Can one partner take over employment and payroll for an existing technology team across countries?

Yes. XCAILE employs or engages the people you already have, runs payroll and handles the agreed local obligations, country by country, under one agreement in 150+ countries. Your team keeps directing the work.

What do you need to compare the country models and costs?

The countries, the number of people and their roles, how each person is engaged today, current pay with its currency and period, and your target timing. Two lines are enough to start; we ask for the rest after the first reply.

Already have the team? Plan the transition in writing.

Your team, the countries and how people are engaged today. We reply within 1 business hour with the first model review and what we need to price the move.

A person replies within 1 business hour · No call needed

Your reply comes from Grace at XCAILE.

We never share your details.