Cross-Border Employment Guide
EOR vs. Own Entity vs. Contractor \u2014 Decision Matrix
Criteria
EOR Employer of Record
Entity Own Subsidiary
Contractor Freelancer
Setup Time
1-2 weeks
4-12 weeks
Immediate
Setup Cost
\u20ac0 (per-employee fee)
\u20ac5.000-25.000+
\u20ac0
Monthly Cost
\u20ac300-600/employee + salary
Accounting + admin overhead
Invoice amount only
Compliance Risk
Low (EOR handles)
Medium (your responsibility)
High (misclassification risk)
IP Ownership
Assigned to you via EOR
Direct ownership
Requires explicit assignment
Benefits & Payroll
EOR manages locally
You manage or outsource
Contractor's responsibility
Scalability
Easy to add/remove
Best for 5+ employees
Unlimited but risky at scale
Best When
1-4 employees in new market, testing
5+ employees, long-term presence
Project work, specialized expertise
Local Labor Law Comparison
AspectGermany (DE)Netherlands (NL)United States (US)United Kingdom (UK)
Min. Wage (2026)\u20ac12,82/hr\u20ac13,68/hr$7.25/hr (federal)\u00a312.21/hr
Standard Work Week40 hrs (max 48)36-40 hrs40 hrs (no max)48 hrs max (opt-out)
Paid Vacation20 days (statutory)20 days (statutory)0 (no federal mandate)28 days incl. bank holidays
Sick Leave6 weeks full pay, then Krankengeld2 years at 70% salaryNo federal mandateSSP \u00a3116.75/week
Notice Period4 weeks to 7 months (by tenure)1-4 months (by tenure)At-will (none required)1 week to 12 weeks
Severance0.5 month/year (typical)1/3 month/year (transition)Not required0.5-1.5 weeks/year
Probation PeriodUp to 6 months1-2 monthsN/A (at-will)Up to 6 months
Parental Leave14 weeks maternity + Elternzeit16 weeks maternity + 5 days partner12 weeks FMLA (unpaid)52 weeks (39 paid)
Works CouncilRequired at 5+ employeesRequired at 50+ employeesNot applicableNot required
Termination ComplexityVery high (K\u00fcndigungsschutzgesetz)High (UWV/court approval)Low (at-will)Medium (unfair dismissal)
Social Security Obligations by Country
ComponentGermany (DE)Netherlands (NL)United States (US)United Kingdom (UK)
Employer Total Rate~20-21%~18-20%~7.65% + state~13.8%
Pension9.3% (employer share)Varies by fund6.2% Social Security3% min auto-enrol
Health Insurance7.3% + supplement6.68% ZVWNot mandatory (ACA)NHS (funded by NI)
Unemployment1.3%Varies (AWf)~2-6% (state SUTA)Included in NI
Long-term Care1.7%Included in premiumsN/AN/A
Accident Insurance~1.3% (BG)IncludedWorkers' comp (state)Employer's liability
Remote Work Policies