Employer of Record in Kosovo: how it works

What is an Employer of Record?

An Employer of Record (EOR) is a third-party organisation that becomes the legal employer of your staff in a country where you don't have an entity. The EOR is responsible for the employment relationship under local law; you remain responsible for the work.

How the model works in Kosovo

• You select the candidate.
• The EOR (e.g. Elara) signs a Kosovo employment contract with the employee.
• The EOR runs payroll, files income tax and pension contributions and issues payslips.
• The EOR invoices your company monthly.
• You direct the employee's day-to-day work and priorities.

What the EOR handles

• Compliant employment contracts in Albanian and English.
• Monthly payroll in EUR.
• Income tax and pension contributions.
• Statutory leave, public holidays and benefits administration.
• Onboarding, offboarding and HR support.

What you remain responsible for

• Defining roles, responsibilities and KPIs.
• Managing day-to-day work and performance.
• Approving salary changes, promotions and terminations.

Compliance and risk

Using an EOR avoids the risk of contractor misclassification and employees are employed on a local contract with the protections of Kosovo labour law. See Kosovo employment law for an overview.

How long does setup take?

It depends on signing the agreement, paying the deposit, and the person’s notice period with their current employer. Once those are in place, we set up the contract, payroll and registrations quickly. Need to find someone? We send you screened CVs within 24 hours.

When to use an EOR in Kosovo

• Testing Kosovo as a hiring market.
• Hiring a single role or a small team quickly.
• Avoiding the cost and time of opening a local entity.