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Law firms must adapt to survive in a rapidly changing legal landscape driven by technology and competition. The rising expectations of clients and evolving markets are pushing firms to explore or continue international expansion. However, this expansion also brings risks and added challenges.

An Employer of Record (EOR) is an invaluable tool for international legal firms to master global growth. It allows a business to employ legal, full-time workers in a different country, state, or province without worrying about local legal requirements.

This means that the firm can focus on providing the best possible service to its clients without worrying about the complexities of foreign employment laws.

Discover how to harness the advantages of an EOR to empower global legal firms toward international growth and success.

The Top 3 Challenges Facing Global Legal Firms

As law firms expand into international markets, they encounter challenges that demand careful consideration and strategic planning.

From new laws and regulations to overcoming cultural differences, the path to global expansion is not easy. Legal firms must overcome these hurdles to establish a strong global presence.

  1. Accessing New Markets
    Driven by client needs, law firms must seek global expansion opportunities. The ability to provide legal services in new international territories is now essential for successful law firms. However, each country or region has different laws and regulations that must be followed.
  2. Maintaining Valuable Clients
    Today, law firms need a solid global network to avoid losing key clients. For instance, a loyal client needs legal representation abroad, but the law firm can’t handle the case. This can lead to losing the valued client to a rival firm that can meet their needs.
  3. Remaining Competitive
    Internationally, the key to successful expansion for law firms isn't just delivering legal representation. It's about delivering it quickly, efficiently, and within budget. As companies grow, they expect their law firms to manage their legal requirements in these new markets. If not, they will find an international law firm that can.

5 Ways an EOR Elevates Client Support for Law Firms

An Employer of Record enables companies to legally hire employees internationally without setting up a local entity or violating employment laws. It provides an international HR team that knows the labor laws and payroll regulations of the markets where a company’s workforce resides.

Below are five groundbreaking benefits an Employer of Record provides international legal firms.

  1. Local Legal Services
    One big challenge for law firms is not being able to offer legal services in certain countries or regions. For example, China does not allow foreign law firms or lawyers to provide legal services within its borders. Due to its large role in global business, expanding companies need trusted representation in China.
    Partnering with an Employer of Record allows a legal firm to expand its business into China. It does this by outsourcing its employment liabilities to a local entity. The EOR will work with a Chinese legal team to enable companies to do business indirectly in China.
  2. Employment Compliance
    By assuming complete legal responsibility for the hiring and payroll of new employees, an EOR safeguards legal firms' clients against worker misclassification and potential penalties.
    The EOR will stay informed about regulatory changes through its legal, financial, and HR partners and local presence in multiple countries.
  3. Payroll & Tax
    An EOR handles essential tasks such as payroll management, income tax withholding, social security contributions, and other employment-related taxes on behalf of the legal firm.
    By doing so, the EOR ensures precise, prompt payment processing, and accurate tax filings, mitigating the risk of penalties and fines associated with non-compliance.
  4. HR Expertise
    Working with an Employer of Record grants a law firm access to a comprehensive range of offerings, including employment contracts, onboarding assistance, payroll management, benefits administration, and beyond.
    This comprehensive support effectively handles all HR obligations across various countries where employees are based. An EOR serves as an all-inclusive global employment partner for global legal firms.
  5. Employee Benefits
    The Employer of Record assists in effectively overseeing and administering employee benefits, including health insurance, retirement plans, and additional perks while ensuring compliance with local regulations and catering to the requirements of the legal firm's clients.

How to Choose the Right EOR?

When selecting an EOR partner, legal firms need to understand if the EOR is right for their specific needs, as not all have the same global presence. Here are some key factors to consider when choosing an Employer of Record.

  • Proven track record -Choosing a partner experienced in effectively onboarding international employees is crucial. It is essential to verify that the EOR has expertise in the desired hiring countries and a verified reputation for success.
  • Global footprint - Does it have the necessary knowledge of local labor laws, payroll, and benefits that are specific to the country where you plan to hire?
  • Pricing and plans -Certain EORs charge fixed fees per employee, while others apply a flat rate based on the worker's salary. It's important to evaluate which option aligns better with the company's budget and growth phase.

By carefully researching these factors, global legal firms can avoid common problems that arise when partnering with the wrong EOR.

Surpass Your Competitors with an Employer of Record

An EOR is an invaluable resource for international legal firms looking to expand their operations into new markets. By taking care of all the administrative tasks associated with hiring foreign workers, firms can focus on providing quality services to their clients while minimizing the risk and cost associated with employing staff abroad.

Investing in an Employer of Record can be an outstanding solution for global legal firms aiming to enhance their client services.