How does an EOR differ from a staffing agency or payroll provider?
Last updated: May 22, 2026
These three services are often confused, but they serve distinct purposes:
- Employer of Record (EOR) — MalayHire becomes the legal employer. It owns the employment relationship, handles all statutory compliance, and takes on the legal liability. You control what the employee does; MalayHire handles everything else. No local entity required on your side.
- Staffing agency — Provides contract workers sourced by the agency for temporary roles. The agency employs the workers and places them with clients. You have limited control over who is placed, and the relationship is typically short-term. MalayHire also provides staffing service — we will employ employees permanently whilst you have the flexibility of hiring them on contract. Please contact us to learn more.
- Payroll provider — Processes payroll calculations and payments on behalf of a company that already has a registered local entity and is already the legal employer. A payroll provider does not take on employment liability or manage statutory registrations from scratch.
MalayHire is best described as an EOR and a staffing agency.