Employer of Record (EOR) for Israeli Companies Hiring Developers Abroad

An Employer of Record (EOR) lets an Israeli company hire a developer abroad without setting up a legal entity there: the EOR is the legal employer in the engineer's country and handles the employment contract, payroll and local-law compliance, while your team directs the daily work. Commit Offshore, the offshore hiring and EOR division of COMMIT, an Israeli technology group, provides EOR alongside staff augmentation and flat-fee recruitment. Commit Offshore was founded in 2014, is based in Petah Tikva and Tel Aviv, and acts as Employer of Record in 14 countries including Israel.

How EOR works with Commit Offshore

1. You decide. You pick the candidate, the compensation and the start date. We draft the offer terms within 24 hours.
2. We contract. A local labor lawyer drafts the employment agreement. IP assignment and your code of conduct are attached.
3. Onboarding. Laptop, payroll, benefits and equity are set up, down to local holidays.
4. You direct. Day-to-day work, performance and equity vesting stay with you. You receive one invoice a month, in USD or EUR.

The engineer starts once the local employment contract is signed and any notice period ends. There is no four-to-six-month entity setup.

What is included

• A local employment contract drafted by a local labor lawyer, starting from your code of conduct, equity scheme and PTO policy, with only what local law requires added on top. You see the differences before signature.
• Payroll, local taxes and benefits, with PTO, sick leave, equity and IP handled per jurisdiction.
• Equipment and onboarding.
• One monthly invoice in USD or EUR; we absorb FX, local taxes and benefits, and you see the all-in cost up front.
• Offboarding: you give 14 days' notice (or the local statutory minimum, whichever is longer) and we handle final pay, the equity exercise window, exit interviews and IP confirmation.

EOR, staff augmentation or a contractor

For a fuller comparison, including dedicated teams, read staff augmentation vs. dedicated team vs. EOR.

Countries

What EOR costs

Commit Offshore's offshore all-in rates already include employment costs, benefits, equipment, EOR and our fee. In our October 2026 estimates a senior engineer costs $5,200 to $8,750 a month all-in in seven offshore locations, against $14,500 for a comparable local hire in Tel Aviv. See the cost benchmark for every country and seniority level, and ask for an exact quote for your candidate.

When EOR is the wrong choice

• You have not found the person yet. Use Tech Recruitment and Placement or Staff Augmentation instead, so someone vets and shortlists candidates for you.
• You are building a large, permanent team in one country. At that volume your own entity may become cheaper.
• You want a vendor to deliver a fixed-scope project without you directing the work. That is project outsourcing, not EOR.

Frequently asked questions

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a company that legally employs a person on your behalf in their own country. The EOR signs the local employment contract, runs payroll, pays employer taxes and benefits and keeps the employment compliant with local law. You choose the person, direct their daily work and own what they produce, without opening a legal entity in that country.

How does EOR work for an Israeli company hiring a developer abroad?

You choose the developer, the compensation and the start date, and Commit Offshore drafts the offer terms within 24 hours. A local labor lawyer drafts the employment agreement, with IP assignment and your code of conduct attached. We then employ the developer locally, handle payroll, benefits and equipment, and send you one monthly invoice in USD or EUR while you direct the work.

Do I need a legal entity to hire a developer abroad?

No. With an Employer of Record you can hire a developer abroad without setting up a legal entity in their country. Commit Offshore is the legal employer there, so the developer can start once the local employment contract is signed and any notice period ends, instead of waiting months for an entity to be set up. A local entity makes sense later, if you build a large permanent team in one country.

What is the difference between EOR, staff augmentation and hiring a contractor?

With EOR you find the person and we employ them; you direct the work. With staff augmentation Commit Offshore also finds and vets the engineer, employs them and replaces them if needed, while you still direct the work. A contractor is not employed by anyone on your behalf, so contracts, payments, IP and local-law risk sit with you and the contractor.

In which countries does Commit Offshore act as Employer of Record?

Commit Offshore acts as Employer of Record in 14 countries including Israel. Outside Israel these are Ukraine, Poland, Romania, Portugal, Spain, Albania, Georgia, Ghana, Nigeria, the Philippines, the United Kingdom, the United States and Canada. If the person you want to hire is in another country, ask us before you make an offer.

Who owns the IP of the work an EOR-employed engineer produces?

You do. Every employment contract Commit Offshore signs as Employer of Record includes a worldwide IP assignment to your company, executed at signing. Your code of conduct is attached to the same contract. At offboarding we also handle IP confirmation together with final pay, the equity exercise window and the exit interview.

Can we bring our own candidate to an EOR engagement?

Yes. Many EOR engagements start with a candidate the client has already found, and no sourcing fee applies. If you also want help finding people, Commit Offshore can run the search through Tech Recruitment and Placement or Staff Augmentation, where the first vetted CV usually arrives within 48 hours of a confirmed brief.

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