Understanding EOR Hiring Documents: Framework Agreement, Schedule, and Employment Contract

When hiring employees through Lano's Employer of Record (EOR) service, several legal documents are required to ensure a compliant, transparent, and successful hiring process: The Framework Agreement, the Platform Terms, the EOR Annex, the Data Processing Addendum (DPA), the Schedule, and the Employment Contract.

This article explains how these documents relate to each other, when they become effective, and what each one includes.

The Framework Agreement is the master contract between your business and Lano, outlining the general terms governing our relationship, including the rights and obligations of each party, and key provisions, such as indemnification and termination. FA must be signed before proceeding with any hiring. It is signed once per billing entity, not per service, and not per hire.

At this stage, no specific employee is named in the document. It simply establishes the legal foundation for future provision of services by Lano to you.

The DPA ensures compliance with applicable data protection laws and regulations (such as GDPR) by outlining the terms for how personal data is processed, stored, and securely managed.DPA is not separately signed. It is an attachment to the FA, thus by signing the FA, you agree and are legally bound by the terms of the DPA as well.

The EOR Annex provides specific terms related to the Employer of Record service, such as the management of employment relationships, breakdown of employment costs, intellectual property rights and local legal requirements. Further, it contains provisions that are applicable only in EOR service, such as specific indemnification terms. The EOR Annex is annexed to the FA, and it is signed along with the FA. This annex must be signed prior to proceeding with any hiring.

A Schedule details the specifics for each new hire made through the EOR service, such as employee name, salary, benefits, etc. A template Schedule is attached to the EOR Annex for reference.

After you've accepted the employment cost estimate and approved the candidate's contract details on the Platform:

• A Schedule is automatically generated on the Platform for each hire for your approval

• When approved, it is regarded to be an integral part of the FA, and thus legally binding

What does the Schedule include?

1. General employment details:

   • Job title & description

   • Employee location

   • Start and (if applicable) end date

   • Working hours

   • Salary, taxes, social contributions

   • Probation and termination notice periods

2. Benefits:

   • Any allowances or perks

3. Fees and Invoicing Terms:

   • Management fees

   • Payment deadlines

The Schedule must be approved before the employment contract is finalized.

The Employment Contract is the country-specific agreement signed between the EOR provider, as the legal employer, and the Worker, as the employee.

• It reflects the terms approved in the Schedule

• It is compliant with local labor law

• It is signed by the EOR provider and the employee (and reviewed and approved by you)

Once this contract is signed, the hire becomes effective and the employee is legally employed by the EOR Provider, and onboarding begins.

1. Sign Framework Agreement, sign and EOR Annex, (attached the DPA and template Schedule) (once per billing entity)

2. Approve Schedule (once per hire)

3. Approve the final draft of the Employment Contract (once per hire)

4. Employee signs Employment Contract

5. Hire is complete, and onboarding begins

Can I suggest changes to the FA or Schedule?

Yes. You can request edits by commenting directly in the document before signing. Lano will review all changes.

How do I sign the FA and EOR Annex?

These documents are signed through Lano's contract management tool: "Tomorro".

Do I need to sign the FA for every hire?

No. The FA is signed once per billing entity. After that, you only sign a new Schedule for each hire.

Will I need to sign any additional documents before hiring employees in different countries?

Yes. While the FA is signed once, you may still be required to sign specific schedules, depending on our Employer of Record partner coverage and your business needs.

How do I know and comply with local employment laws?

Employers must comply with the local laws of any country where they hire. Since these laws can vary widely, Lano provides a country guide or HR-at-a-glance document that outlines key regulations like minimum salaries, annual leave, holidays, and termination rules.

If you have specific questions or need detailed guidance, our team can connect you directly with a local expert.

Why does Lano require these documents?

They ensure legal clarity and compliance across jurisdictions, streamline the hiring process, and avoid repetitive contract negotiation.