Hiring international consultants in the Nordics? Whether you call it Employer of Record (EOR), umbrella company, or contractor management – the goal is the same: to place consultants in a legally compliant and efficient way.
But not all setups are created equal. The right solution depends on your role, your goals, and the specific situation on the ground. In this article, we walk you through the key factors to consider when choosing a model that works – in practice.
Start with the Basics: What Do You Actually Need?
The first step is understanding what you’re trying to solve. Are you an agency placing consultants for a client? A business engaging external professionals for a project? Or an individual consultant looking for a compliant way to work abroad?
Your setup should reflect your role – and protect you from unnecessary liabilities.
Three Common Scenarios
Let’s take a look at three typical use cases – and what they require:
- Agency placing a consultant across borders: You need a setup that handles employment, payroll, and compliance – without triggering employer liability for your agency or the end-client.
- Business hiring an international contractor: You need a compliant framework where everything is handled – from contracts and tax to social contributions – so you’re not held liable as the legal employer.
- Consultant working on-site in another country: You want the job – but also need a legal employment framework, local tax handling, and social security coverage.
What Should a Proper Setup Include?
No matter what the label – EOR, umbrella or otherwise – the solution should offer:
- Local employment contract
- Payroll, tax and social contributions handled correctly
- Compliance with labour law and collective agreements
- Clear roles and responsibilities for all parties
If it doesn’t deliver on these basics, it’s not compliant.
When to Use an EOR or Umbrella Company
EOR and umbrella models are best suited for:
- Short- or mid-term placements across borders
- Situations where the end-client does not want to employ directly
- Markets where local rules make freelance work difficult
- Quick onboarding without setting up a legal entity
The name may vary – but the service must cover local compliance and remove the employer burden from both the agency and the business.
When Another Model Might Be Better
Some scenarios call for a different approach:
- Permanent roles where direct employment is expected
- High-level positions with significant benefits or negotiation requirements
- Contractors with their own company who meet local independence criteria
In these cases, a direct contract or B2B agreement might be more relevant – but only if it meets the local legal requirements.
Still Unsure? Let the Local Rules Guide You
Ultimately, the choice is less about terminology – and more about compliance. In Denmark, Sweden, Norway and Finland, local laws define what counts as legal employment. If your current setup doesn’t meet those standards, you’re taking a risk – no matter what you call it.
At Northern Partners, we support agencies, businesses and consultants in choosing the setup that works best – from full EOR solutions to compliant B2B support.
Need advice on your situation? We’re here to help. Let’s make your Nordic placement work – the right way.
