# Global hiring glossary

- URL: https://globalcontractor.io/glossary/
- Updated: 2026-10-06

- [Agent of record](https://globalcontractor.io/glossary/agent-of-record/): An agent of record is a provider that manages independent-contractor compliance and administration on behalf of a client, while the client usually keeps the direct contractual relationship with each contractor.
- [Contractor of record](https://globalcontractor.io/glossary/contractor-of-record/): A contractor of record is a company that engages independent contractors on behalf of a client, acting as the contracting party and handling contracts, classification checks, invoicing and payments.
- [Employer of record](https://globalcontractor.io/glossary/employer-of-record/): An employer of record is a company that legally employs a worker on behalf of another business in a country where that business has no entity, and handles payroll, tax withholding, social contributions and statutory benefits.
- [Global payroll](https://globalcontractor.io/glossary/global-payroll/): Global payroll is the process of calculating, filing and paying wages for employees of a company’s own legal entities across several countries, in line with each country’s tax and social security rules.
- [Owned entity](https://globalcontractor.io/glossary/owned-entity/): An owned entity is a legal entity that a provider itself owns in a country and uses to employ workers directly, as opposed to relying on a third-party local partner.
- [Permanent establishment](https://globalcontractor.io/glossary/permanent-establishment/): A permanent establishment is a fixed place of business or a dependent agent in a country that can make a foreign company liable for corporate income tax there, a risk that can arise when employees or contractors work abroad.
- [Professional employer organization](https://globalcontractor.io/glossary/professional-employer-organization/): A professional employer organization is a company that shares employer responsibilities with a client under a co-employment model, typically requiring the client to have its own local legal entity.
- [Worker misclassification](https://globalcontractor.io/glossary/worker-misclassification/): Worker misclassification happens when a person who should be treated as an employee under local law is engaged as an independent contractor, which can lead to back taxes, penalties and claims for employee benefits.