HGC

Employer of Record (EOR)

Hire talent in Saudi Arabia quickly and compliantly through Employer of Record services. No local entity required. Payroll, visas, residency, GOSI, and Saudization compliance handled end-to-end.

Rapid Talent Acquisition

Execute employment contracts, payroll management, and benefits.

Legal Compliance

Stay ahead of updates from the Ministry of Human Resources

What Is Employer of Record (EOR) in Saudi Arabia?

Employer of Record (EOR) is a structured and legally compliant employment model that enables local and international companies to hire, onboard, and manage employees in Saudi Arabia without the need to establish a local legal entity. Under this model, HGC acts as the official and legal employer of record, assuming all employment-related statutory and regulatory obligations, while the client company maintains full control over operational management, employee performance, and strategic business decisions.

This model is increasingly adopted by organizations seeking rapid market entry, controlled expansion, or project-based operations in Saudi Arabia. It allows businesses to respond quickly to market opportunities while avoiding the time, cost, and complexity associated with entity setup and long-term structural commitments.

As the Employer of Record, HGC manages the full spectrum of legal, administrative, and compliance-related employment functions in alignment with Saudi labor law, ministerial regulations, and national workforce policies. This includes drafting and issuing locally compliant employment contracts, administering payroll in Saudi Riyals, calculating and remitting statutory deductions, and managing employer obligations related to Saudization and Vision 2030 workforce initiatives.

HGC also oversees employee onboarding and offboarding, maintains secure and compliant employment records, and serves as the official interface with government authorities. By centralizing accountability, HGC ensures uninterrupted operations, regulatory accuracy, and consistent compliance across all employment activities.

HGC delivers EOR services as a fully integrated workforce management solution covering the entire employee lifecycle from onboarding to exit. Service components include:

  • Issuance and management of Saudi-compliant employment contracts aligned with labor law requirements
  • End-to-end monthly payroll administration in SAR, including base salary, allowances, overtime calculations, and statutory deductions
  • Registration, reporting, and ongoing management of social insurance and government contributions, including GOSI
  • Processing, renewal, and management of work permits, residency permits, and visas through approved government platforms
  • Administration of mandatory medical insurance in accordance with Saudi health insurance regulations
  • Lawful employee offboarding, final settlements, and calculation of end-of-service benefits in full compliance with Saudi labor law

All processes are designed with audit readiness, transparency, and regulatory accuracy as core principles, ensuring reliability and confidence for both employers and employees.

EOR services are particularly valuable for technology startups, consulting firms, professional services providers, and multinational organizations entering or expanding within the Saudi market. They are also well suited for companies testing market viability prior to full-scale investment, managing geographically distributed teams, or operating under time-bound or project-based mandates.

Organizations seeking to meet Saudization requirements efficiently, reduce internal administrative workload, and maintain predictable employment costs benefit significantly from the EOR model. It is especially relevant in a highly regulated and fast-evolving economy such as Saudi Arabia.

To ensure service effectiveness, transparency, and measurable impact, HGC tracks a set of key performance indicators across all EOR engagements. These include time-to-hire, payroll accuracy and reliability, compliance with labor and social insurance regulations, visa and residency processing timelines, and overall cost efficiency when compared to establishing and operating a local legal entity.

Clients receive structured and periodic performance reports that provide clear visibility into workforce operations, compliance status, and cost performance, supporting informed decision-making, workforce planning, and sustainable long-term growth.

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