Switching employer of record providers can unlock better coverage, faster support, and cleaner controls. It can also create payroll gaps, visa issues, and data risk if handled loosely. A successful transition treats the move as a formal project with clear owners, hard dates, and evidence for every step. This guide gives HR, Finance, Legal, IT, and leadership a complete plan to switch providers without disrupting pay, benefits, or immigration status.
Key takeaways
- Decide with evidence. Track red flags in service, compliance, and cost, then build a written business case.
- Plan the cutover like a product launch. Publish a timeline, assign owners, and run a parallel payroll before go live.
- Avoid gaps. Use resign and rehire steps that keep employment continuous and benefits unbroken.
- Protect visas and permits. Confirm sponsor transfers and right to work before you change employer records.
- Move clean data only. Migrate verified employment, pay, tax, and benefits data with role based access and logs.
- Prove accuracy. Store journals, filings, payment proofs, and letters for every country and cycle.
- Measure outcomes. Track payslip accuracy, on time filings, ticket response times, and employee satisfaction after the switch.
Signs it is time to switch
A switch should solve real problems, not just vendor fatigue. Build a short case that shows impact on people, money, and risk.
Service and compliance red flags
- Late payroll or poor payslip accuracy
- Missed or late filings and penalties
- Slow or generic answers on country questions
- No document trail for filings and payments
- High agent churn with no named owner for your account
Total cost and support gaps
- Fee creep for simple changes or routine documents
- Weak coverage in new or planned countries
- Limited integrations to HRIS, time, or ERP
- Reporting that Finance or HR cannot use without manual work
Document these issues with dates and examples. Quantify time lost, penalties paid, or rework hours. This evidence anchors stakeholder support.
Build a migration plan
Treat the switch as a program with milestones and a single source of truth.
Timeline, cutover, and owners
Create a plan with four phases.
- Initiation
- Confirm decision, scope, and countries.
- Appoint a project owner and workstream leads for HR, Finance, Legal, IT.
- Set success metrics and reporting cadence.
- Preparation
- Collect contracts, payroll calendars, employee records, benefits schedules, and tax IDs.
- Map integrations and file formats.
- Draft communications and letter templates.
- Parallel run
- Run one full payroll with the new provider using the same inputs.
- Reconcile variances line by line.
- Fix configuration and data issues.
- Cutover
- Execute resign and rehire, or sponsor transfer, per country.
- Run first live cycle with added checkpoints.
- Hold daily standups in go live week.
Assign named owners for each task. Publish dates, dependencies, and status. Keep the plan in a shared workspace that everyone can see.
Parallel payroll safeguards
A parallel run is your safety net. Use the same input files and compare results for gross, taxes, contributions, net, journals, and bank files. Any variance must have a root cause and a fix. Do not cut over without a clean reconciliation signed by HR and Finance owners.
Contracts and notice periods
Good switching starts with contract literacy. Read the current agreement and the new one side by side.
Termination fees and timing
- Confirm notice period and the exact form of notice.
- Identify any early termination fees and how they are calculated.
- Align your cutover month to avoid mid period overlaps.
- Ask for a waiver of minor fees in exchange for a smooth exit plan.
Record the accepted timeline in writing with the old provider. Include who will deliver final documents and by when.
Data transfer and IP clauses
- Confirm your right to receive full copies of employment, payroll, and tax records.
- Define export formats and delivery dates.
- Ensure your IP and confidential information are protected during and after the transfer.
- Require the old provider to remove access for its staff after handover.
Resign and rehire without gaps
Your goal is lawfully continuous employment with no break in pay, benefits, or seniority where protected by law.
Offer letters and start dates
For each employee, prepare a new offer or transfer letter issued by the incoming provider. Align the new start date to the day after the old provider’s end date. Include job title, base pay, allowances, benefits, location, and confidentiality clauses that match local law.
Benefits and leave carryover
Map active benefits to their equivalents. Confirm how accrued leave, allowances, and seniority transfer. Where a legal carryover is required, document balances and have both providers sign an acknowledgment. Communicate any small differences in plan design with plain explanations before the switch.
Immigration and right to work checks
Visa status must be correct on the day of the switch. Treat it as a critical path.
Sponsor changes and permits
- List all employees on sponsored visas by country.
- Confirm whether the visa sponsor is the current provider or your entity.
- If the sponsor changes, submit transfer requests and receive written approval before you alter employment records.
- Align start dates with permit approvals, not assumptions.
Visitor versus work status
For short assignments, confirm if visitor status is lawful for the intended activities. When duties resemble local employment, use the correct work authorization. Keep copies of passes, permits, and approvals in each employee’s file.
Country compliance checklist
Create a one page checklist per country. Review it with HR, Finance, and the new provider.
Payroll calendars and filings
- Payday and cutoff dates
- Filing calendar by tax and social authority
- Funding deadlines and bank processing times
- Holiday adjustments and 13th or 14th month practices
Social security and taxes
- Employer and employee contribution rates and bases
- Income tax bands and reliefs
- Local levies and special funds
- Year end certificates and reconciliation requirements
Keep a shared calendar that combines all countries with reminders two weeks and two days before each event.
Evidence and audit readiness
Audits are easier when evidence is collected as you work. Build it into the plan.
Documents and retention rules
For each employee and each cycle, retain:
- Signed contracts and addenda
- Offer or transfer letters
- Payroll journals and payslips
- Filing receipts and return copies
- Payment proofs for taxes and contributions
- Leave balance reports and benefit confirmations
Use a vault with role based access. Tag files by country, period, and employee ID. Set retention aligned to local law and your governance policy.
Bank proofs and role access
Require bank confirmations for every statutory payment. Limit who can change bank details. Use dual approvals for high value transactions. Review access monthly with HR, Finance, and IT. Keep change logs available for quick checks.
Day by day plan for go live week
A detailed week plan keeps everyone aligned.
Five business days before payday
- Lock inputs. No new allowances without approval.
- Validate time and absence data.
- New provider generates draft results and exception list.
Four days before payday
- HR and Finance review exceptions and approve corrections.
- Confirm visa approvals for any affected employees.
- Test the bank file format with a non value file where possible.
Three days before payday
- New provider produces final calculations.
- Finance reviews journals and signs off.
- Generate statutory payment schedules.
Two days before payday
- Release bank files to treasury per funding rules.
- Verify funds posted and value dates are correct.
- Prepare payslip distribution and employee communications.
Payday
- Verify successful credits through bank reports.
- Confirm payslip access works.
- Open a hotline for employees with pay queries.
One day after payday
- Reconcile payroll journals with the ledger.
- Confirm filing submissions are queued for the correct dates.
- Log any issues and assign owners with due dates.
Risk register and controls
List likely risks, a prevention step, and a recovery step. Assign an owner and a due date.
Top risks and mitigations
- Data errors: Validate with sampling before migration. Run parallel payroll. Keep a rollback plan for one cycle.
- Visa transfer delays: Submit early. Do not change employer of record until approvals are granted. Plan contingencies for short extensions.
- Bank rejections: Test formats and approvals in advance. Keep a backup funding route.
- Benefit discontinuity: Confirm carrier enrollment windows. Use temporary cover where legal and practical.
- Employee confusion: Send clear timelines and contacts. Hold Q and A sessions.
- Provider capacity: Confirm named team and escalation path. Use agreed service levels.
Ownership and review cadence
Meet weekly during preparation and daily in go live week. After the first two cycles, move to a monthly review. Track metrics and close open risks with dated corrective actions.
Provider scorecard and selection
A scorecard helps you choose on facts, not promises.
Local coverage and SLAs
- Countries where you will hire in the next 24 months
- Payslip accuracy and on time filing rates
- Response and resolution time targets
- Named account team and escalation contacts
Data and reporting quality
- Structured exports for people, pay, and journals
- Standard evidence packs for filings and payments
- Report formats that Finance and HR can use without rework
- Data portability terms to avoid lock in
Security and access control
- Role based access and change logs
- Encryption in transit and at rest
- Dual approvals for sensitive actions
- Independent audits or certifications explained in plain language
Score providers on these factors. Tie the scorecard to the contract through service levels and review cadence.
Change management and comms
People make the switch succeed. Communicate early and often.
Employee messaging
- Why the switch is happening and what stays the same
- What will change in payslip access or benefits cards
- Exactly how resign and rehire works where applicable
- The contact channels and response times for questions
Keep messages short, factual, and consistent across regions. Translate where needed.
Manager enablement
Give managers a one page guide with key dates, common questions, and escalation paths. Ask them to confirm device access, address changes, and bank details two weeks before cutover. Equip them to reassure their teams and route issues correctly.
Budgeting and cost controls
Plan and track the full cost of switching, not just the new monthly fees.
Fees and hidden costs
- Implementation and configuration
- Parallel run support
- Data exports from the old provider
- Contract termination fees if any
- Carrier reenrollment and card issuance
- Additional reports or custom fields
Negotiate standard outputs into the base service. Avoid open ended hourly charges for routine tasks. Ask for a not to exceed amount on extras.
Working capital and FX
Map when cash leaves your accounts for payroll and statutory payments in each country. Align funding with bank cutoffs. If the provider funds on your behalf, confirm FX rates and spreads. Use spot or scheduled conversions that match your pay calendar.
KPIs after the switch
Measure results so you can prove value and catch issues early.
Payroll and filings metrics
- Payslip accuracy rate
- On time filings and payments
- Time to resolve payroll tickets
- Number of off cycle runs
Service and satisfaction metrics
- First response and resolution times for tickets
- Employee satisfaction with pay and benefits access
- Manager satisfaction with reporting and support
- Audit findings and time to close actions
Review these monthly for the first quarter, then quarterly. Publish a one page summary to executives.
Q and A on switching EOR providers
How long does a switch usually take
With clean data and a focused team, one to two cycles after initiation is common. Complex footprints or visa transfers can extend timelines. The controlling factor is the parallel run and clean reconciliation.
What is the resign and rehire risk
Handled correctly, it preserves continuity. The risk comes from poor timing or missing documents. Align start and end dates, confirm benefits mapping, and keep signed letters and acknowledgments.
Do we need to run a parallel payroll
Yes. It proves configuration and data quality. Without it, you will discover errors after people are paid, which creates rework and erodes trust.
How do we keep visas valid
Do not change the recorded employer until the sponsor transfer is approved. Work with counsel and the new provider to align dates and file early.
What if the old provider resists
Use your contract rights for data exports and notice. Escalate politely, document each step, and keep leadership informed. If needed, route through legal counsel to enforce timelines.
How do we prevent lock in with the new provider
Negotiate data portability, structured exports, and clear service levels up front. Maintain your own calendars, templates, and an internal copy of the evidence packs.
A complete document kit for the switch
Prepare a folder structure that mirrors your operating model.
- Current master contracts and addenda
- Country payroll calendars and filing schedules
- Employee contracts, offer or transfer letters
- Pay element maps and benefits schedules
- Tax IDs, social numbers, and employer registration data
- Parallel run outputs with variance logs and fixes
- Bank proofs for payroll, taxes, and social payments
- Year end certificates and reconciliations
- Access logs and role reviews
- Communications to employees and managers
Audit this kit at the end of go live week. Confirm that each country folder is complete and readable.
Conclusion and next steps
Switching EOR providers is a high consequence change that rewards structure and discipline. Decide with evidence, then run a formal plan. Use a parallel payroll to prove accuracy. Keep employment continuous through resign and rehire where required. Protect visas and right to work before altering records. Move only verified data with strong access controls. Store journals, filings, and payment proofs so audits are simple. Measure payslip accuracy, on time filings, and response times to confirm the switch delivered real improvement.
Africa Deployments Ltd supports organizations through this entire journey across African markets. The team sets timelines, manages parallel runs, prepares country checklists, and keeps evidence complete and accessible. With Africa Deployments Ltd as a partner, HR, Finance, Legal, and IT leaders can switch providers with confidence, protect employees, and achieve the service quality and compliance standards their boards expect.
