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Ensuring Legal Compliance in Global Employee Mobility:
Employer of Record Services

The case study demonstrates the effectiveness of Employer of Record (EOR) services in managing complex international employment situations. By providing a tailored and legally compliant solution, PRODENSA enabled the client to retain a key employee during a challenging relocation period. The comprehensive support offered by PRODENSA, including managing tax, payroll, and compliance issues, clearly displays the ability to navigate intricate global employment laws and deliver solutions that benefit both employers and employees.

Table of contents

Overview

The CLIENT, an international corporation in the Automotive Manufacturing industry, faced a complex challenge when a key employee from Mexico needed to relocate to Germany for a year due to personal reasons. The CLIENT sought a legally compliant solution that would allow the employee to continue staying at the company during this temporary relocation, while navigating the stringent European tax and employment regulations. To address this, PRODENSA provided a comprehensive Employer of Record (EOR) service.

Project Stages

Collecting Information

The CLIENT reached out to PRODENSA with the challenge of retaining their valuable employee while ensuring full compliance with European laws. PRODENSA gathered all necessary information regarding the employee’s situation, the legal requirements of the host country in Europe, and the CLIENT’s operational needs.

EOR Solution Verification & Proposal

After a thorough analysis, PRODENSA verified the feasibility of an EOR solution and proposed a tailored plan that would allow the employee to work legally in the European country. This plan included handling the employee’s tax obligations, social security, and medical insurance, ensuring complete compliance with local laws.

Solution Implementation

PRODENSA implemented the EOR solution, managing all aspects of the employee’s employment in Europe. Over the course of the year, PRODENSA provided continuous support, ensuring that the employee remained compliant with European regulations while maintaining their role within the company.

Challenges & Solutions

The project presented several challenges, including the need to comply with strict European employment laws while accommodating the unique circumstances of an international corporation with multi‑entity operations. PRODENSA addressed these challenges by collaborating with local partners to provide a complete and compliant EOR service. This included taking full ownership of the employee’s legal and administrative processes, thereby mitigating potential legal risks for the CLIENT. PRODENSA ensured that all tax and payroll processes were handled accurately and in a timely manner, while also providing full assistance to the employee.

Project Outcome

The implementation of the EOR service resulted in a successful and legally compliant solution that met both the CLIENT’s and the employee’s needs. The CLIENT was able to retain their valuable employee without interruption to their work, and the employee received the necessary support to continue their role while feeling valued by their employer. The project concluded with the employee returning to North America after the year‑long assignment, with both parties satisfied with the outcome.