Simplify Hiring: The Differences between PEO and EOR in Poland


An Employer of Record (EOR) and Professional Employer Organisation (PEO) provide payroll, compliance, and HR services for companies hiring staff in Poland. However, EOR and PEO have distinct differences that companies should understand when choosing the best solution for hiring in Poland. Key comparison areas include legal employer status, compliance obligations, service range, and costs. Assessing specific needs around these factors is critical to decide whether an EOR or PEO in Poland is the right fit.

An Employer of Record (EOR) becomes the legal employer and takes on all compliance with Poland’s employment laws and regulations. A Professional Employer Organization (PEO) provides payroll services but the client remains legally responsible for compliance.

  • An EOR is the official legal employer for a client’s team in Poland.
  • PEO does not become the legal employer of the client’s staff.

With an EOR, foreign companies can operate and hire talent in Poland without establishing their local subsidiary or entity.

By using an EOR instead of setting up a local entity themselves, companies can swiftly build a team in Poland and hire employees without the hassle of establishing a Polish subsidiary.

Compliance responsibilities

“A PEO in Poland provides HR services like payroll, benefits, and compliance but does not act as the legal employer.”

  • As a legal employer, the EOR performs all compliance duties under Polish labour regulations. The client has limited legal liability.
  • With a PEO, the client firm retains full compliance accountability while the PEO handles payroll, tax, and other administrative tasks.

Services offered

EORs provide a wide array of employer services:

  • Recruiting and hiring
  • Onboarding
  • Payroll
  • Taxes
  • Benefits
  • Terminations
  • Work permits

PEOs focus primarily on

  • Core payroll
  • Accounting
  • Tax filings
  • HR Administration


“The costs of an Employer of Record service in Poland may be higher than a PEO to account for the additional compliance obligations and risks taken on as a legal employer.”

  • EOR fees may be higher given the increased employer risks and duties assumed by the EOR.
  • PEO services have lower rates since the client firm remains the legal employer.

EORs take on more responsibilities and risks as legal employers, which can result in higher costs than a PEO model.

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Benefits of an EOR in Poland

“EORs enable companies to hire and manage employees in Poland without setting up a legal entity while taking on employer compliance obligations.”

  • By serving as the official employer in Poland, EORs allow foreign companies to operate and hire in Poland without establishing a local branch or subsidiary.
  • This simplifies legal compliance for client companies since the EOR assumes all employer duties under Polish regulations.

Managing compliance

As the legal employer, EORs stay updated on Poland’s employment laws and manage compliance risk across:

  • Hiring
  • Payroll
  • Taxes
  • Terminations
  • And more

This removes a considerable compliance burden for client companies wanting to hire in Poland.

Broader services like work permits

EORs provide a wide range of employer services beyond just payroll and benefits:

  • Hiring and onboarding
  • Work permits
  • Localisation
  • Managing employee exits

This breadth of employer services simplifies staffing and talent management for international companies.

Key Takeaways

  • EORs allow hiring in Poland without establishing a Polish entity.
  • They take on all the legal employer compliance duties.
  • EORs offer robust services, including work permits and localisation.

Benefits of a PEO in Poland

Payroll and HR services

PEOs provide essential services, including:

  • Payroll administration
  • HR system access
  • Employee benefits setup

This handles key workforce management needs for companies in Poland without taking on total employer compliance obligations.

Lower costs

“PEO services are typically more affordable since the client remains the legal employer.”

  • PEOs have lower risks and insurance costs by not being the legal employer.
  • This enables PEOs to offer more competitive rates compared to EORs.

PEOs offer a cost-effective solution focused on core payroll and HR functions rather than a full-service employer model.


With a PEO in Poland, clients maintain control as legal employers, including:

  • Hiring and firing policies
  • Workplace rules
  • Organizational culture

EOR arrangements involve partially outsourcing employer status and duties.

Limited compliance role

  • PEOs manage payroll taxes, employee benefits, and other defined administrative tasks.
  • The client company retains overall responsibility for legal compliance under Polish labour regulations.
  • This division of duties provides payroll assistance, only partially outsourcing employer obligations.

Key Takeaways

  • PEOs offer streamlined payroll and HR support in Poland.
  • They provide a budget-friendly solution compared to EORs.
  • Clients remain the legal employer responsible for overall compliance.


EOR and PEO facilitate hiring in Poland but have critical differences in services, legal employer status, compliance management, costs, and other factors. EORs enable foreign companies to operate in Poland without establishing a local entity while providing robust employer services like work permitsPEOs offer lower-cost streamlined payroll support, but the client firm retains legal employer duties. Evaluating specific services, budget, and compliance liability needs is essential when deciding between an EOR or PEO as the optimal solution.

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