What is an Employer?

An employer is an individual or organization that hires employees and contracts them to work in exchange for wages or salary. The employer is responsible for providing a safe and fair working environment, paying wages, and providing other benefits such as health insurance and retirement plans. Employers have legal obligations towards their employees, including complying with labor laws, ensuring equal employment opportunities, and providing a discrimination-free workplace.

What is an Employer? Definition and Key Responsibilities

Employers are the backbone of every workforce, shaping not only the structure of organizations but also the experience of employees worldwide. As global hiring accelerates and remote work becomes standard, understanding what it means to be an employer—and the responsibilities that come with it—has never been more important. According to a 2024 report by Gartner, 58% of companies now employ remote or hybrid teams, highlighting the need for clear employer roles and robust global workforce management software.

Defining an Employer: Authority and Accountability

What is an employer?

An employer is an individual or organization—public, private, nonprofit, or business—that hires people to perform specific tasks or services under a formal or informal agreement [1] [2]. The employer holds the authority to direct and control how work is completed, including setting expectations, providing resources, and establishing workplace culture[1] [2]. This control is a defining feature of the employer-employee relationship.

Key characteristics of an employer:

  • Hires and pays individuals for their work
  • Defines terms of employment, including salary and benefits
  • Directs work processes and methods
  • Establishes workplace policies and culture[1] [2]

For example, a tech startup hiring software engineers on a full-time basis, providing them with equipment, and setting project deadlines is acting as an employer.

Employer vs. Contractor: Understanding the Difference

CriteriaEmployer-Employee RelationshipIndependent Contractor RelationshipControl over workHighLowPayment structureSalary/hourly/commissionPer project or milestoneTools & equipmentProvided by employerProvided by contractorDurationOngoingTemporary or project-based

Legal Obligations: Compliance and Fairness

Employers have significant legal responsibilities that go beyond simply hiring and paying workers. These obligations are designed to protect employees and foster a fair, safe, and inclusive workplace [3].

Compliance with Labor Laws

Employers must comply with federal, state, and local labor laws. This includes:

  • Adhering to minimum wage and overtime regulations
  • Providing equal employment opportunities
  • Preventing discrimination and harassment
  • Respecting employee rights to privacy and fair treatment [3]

Payroll and Documentation

Accurate payroll management is a core employer responsibility. This involves:

  • Paying salaries on time and in full
  • Withholding and remitting taxes
  • Maintaining up-to-date employment contracts and compliance documentation [3]

Ontop’s global payroll solutions simplify these processes, ensuring businesses remain compliant across 150+ countries while offering instant USD payments and robust documentation management.

Health and Safety: Protecting Your Workforce

A safe workplace is a legal and ethical requirement. Under Occupational Safety and Health Administration (OSHA) standards, employers must:

  • Keep workspaces free from serious hazards
  • Warn employees about potential risks
  • Provide and maintain proper tools and equipment
  • Train employees on safety procedures
  • Record and report work-related incidents or illnesses[4] [1]

Building a Culture of Safety

Employers set the tone for workplace safety by:

  • Communicating clear health and safety policies
  • Encouraging reporting of hazards without fear of retaliation
  • Regularly reviewing and updating safety protocols[4]

Payroll, Benefits, and Global Workforce Management

Managing payroll and benefits is increasingly complex, especially for companies with international teams. Employers must:

  • Offer competitive compensation and benefits packages
  • Provide access to financial tools, such as the Ontop Visa card, for seamless global payments
  • Stay updated on local employment laws and tax regulations in each country of operation

The Role of Global Workforce Management Software

Modern employers rely on workforce management platforms to:

  • Automate payroll across multiple countries
  • Generate compliant contracts and documentation
  • Track time, attendance, and performance
  • Offer financial benefits and global money movement capabilities

Key features to look for:

  • Multi-country payroll support
  • Instant payments in multiple currencies
  • Integrated compliance checks
  • Employee self-service portals

Ontop’s platform stands out by combining these features with instant USD payments and a Visa card for workers, making it a top choice for businesses hiring globally.

Employer Responsibilities in a Remote-First World

Remote work introduces new challenges for employers, including:

  • Managing distributed teams across time zones
  • Ensuring compliance with diverse local laws
  • Providing digital tools for collaboration and productivity

Best Practices for Remote Employers

  1. Use global payroll solutions to handle payments and compliance.
  2. Communicate expectations and policies clearly.
  3. Foster a sense of belonging and inclusion, regardless of location.
  4. Offer flexible benefits that suit a global workforce.
  5. Monitor and support employee well-being, both physical and mental.

Example: A company using Ontop’s workforce management platform can hire, pay, and support employees in over 150 countries, all while maintaining compliance and offering financial benefits like the Ontop Visa card.

Ontop: Setting the Standard for Global Payroll Solutions

Ontop provides a comprehensive suite of tools for employers managing international teams. The platform handles:

  • Multi-country payroll and instant USD payments
  • International contracts and compliance documentation
  • Financial benefits for workers, including a Visa card and global money movement

Why Ontop?

  • Expertise in global hiring and compliance
  • Seamless onboarding and payroll for remote teams
  • Transparent processes and up-to-date legal guidance

Ontop’s solutions help businesses scale confidently, knowing their employer responsibilities are covered.

Conclusion: The Employer’s Role in a Global Workforce

Employers play a pivotal role in shaping the modern workforce. Their responsibilities span legal compliance, payroll, health and safety, and employee well-being. As remote work and international hiring become the norm, employers need reliable partners and robust tools to meet these demands.

Ontop’s global payroll solutions and workforce management platform empower employers to hire, pay, and support talent anywhere in the world—compliantly and efficiently. To learn more about how Ontop can help your business meet its employer responsibilities, explore our platform or connect with our team today[3].

Citations

[1] https://www.indeed.com/hire/c/info/what-is-the-definition-of-an-employer

[2] https://legal-resources.uslegalforms.com/e/employer

[3] https://www.getontop.com/blog/who-is-an-employer-understanding-their-role-and-responsibilities

[4] http://www.osha.gov/workers/employer-responsibilities

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