What is my contractual Job Title in the Employer of Record (EOR) setup?

Why Is Your Contractual Job Title Different?

If you are employed through Horizons as an Employer of Record (EOR), you may notice that your contractual job title differs slightly from the title you use in your day-to-day role. This is a common practice designed to ensure compliance with local labor laws and to mitigate legal and financial risks for both you and the company.

While your contractual job title may be adjusted for compliance reasons, you are still fully recognized in your intended role and can continue to use your professional title in public and business settings, such as LinkedIn, email signatures, and client interactions.

Why Are Job Titles Adjusted?

1. Legal and Compliance Considerations

In many countries, specific job titles—particularly executive or C-suite positions—carry legal implications. These titles may grant authority to act on behalf of the employing entity (Horizons), which can create risks for both the employee and the company. Adjusting job titles ensures compliance with local employment laws and prevents unintended liabilities.

2. Avoiding Permanent Establishment (PE) & Co-Employment Risks

Using high-level executive titles under an EOR arrangement could increase the risk of authorities classifying the client company as having a local presence (Permanent Establishment). This could lead to additional tax and regulatory obligations for the client company. Adjusted job titles help reduce this risk.

3. Employee Protection

Some job titles come with legal and financial responsibilities that could inadvertently expose employees to liabilities. By modifying contractual job titles, Horizons ensures that employees are not placed in situations where they may be held accountable for company actions outside their control.

What This Means for You

• Your contractual job title is an administrative adjustment for compliance purposes.
• You can continue to use your professional title (e.g., "Chief Technology Officer," "Vice President of Sales") in public settings, including LinkedIn, business cards, and client communications.
• Your job responsibilities, seniority, and role within your organization remain unchanged.

Examples of Adjusted Titles:

• "Chief Technology Officer" (CTO) → "Senior Technology Manager"
• "Vice President of Sales" → "Sales Director"
• "Chief Operating Officer" (COO) → "Operations Manager"

Conclusion

Job title adjustments in an EOR setup are a standard practice aimed at ensuring legal compliance and reducing risk. These changes do not impact your actual role, responsibilities, or professional standing. If you have any questions about your job title, please reach out to our team for clarification and support.