Agent of Record (AOR), all of Latin America
Engage and Pay LATAM Contractors With the Right Controls
Misclassification is the single most expensive mistake foreign companies make in Latin America. Labour courts across the region look at subordination, exclusivity, fixed hours and integration into the organisation, not at what the contract calls the relationship.
What is contractor management Latin America?
Contractor management in Latin America means engaging independent workers through compliant local contracts, verifying they are genuinely independent, and paying them in local currency with correct tax documentation. An Agent of Record (AOR) takes on the contracting and payment relationship, absorbing the administrative work and reducing the buyer's misclassification exposure.
The classification test that actually applies
- Subordination: are they directed like an employee, with set hours and a manager?
- Exclusivity: is your company effectively their only client?
- Integration: do they appear in your org chart, tools and team rituals?
- Continuity: has the engagement run for months with no defined deliverable end?
- Tools and place: do you supply the equipment and dictate where the work happens?
What Agent of Record covers
- Local-language contractor agreements with IP assignment that survives local law
- Classification review before the first payment, documented and dated
- Local-currency payment, invoicing and tax documentation
- Ongoing monitoring for relationships that drift toward employment
- Clean conversion to EOR employment when the drift is real
Who owns the intellectual property
In several LATAM jurisdictions, IP created by an independent contractor stays with the contractor unless assigned in writing under local law. A US-form contractor agreement is frequently not enough. Every agreement we issue includes a jurisdiction-specific assignment clause reviewed against local statute.
Contractor versus employee, by signal
| Signal | Points to contractor | Points to employee | Recommended structure |
|---|---|---|---|
| Direction of work | Delivers outcomes, sets own method | Managed day to day | AOR / EOR |
| Hours | Own schedule | Fixed schedule you set | EOR |
| Clients | Several | Only you | EOR |
| Duration | Defined project | Open-ended, 12+ months | EOR |
| Tools | Their own | You supply laptop and accounts | EOR |
Get the LATAM landed-cost benchmark
Employer burden, salary bands and total monthly cost across every market. One email, no call required.
Run a free contractor classification check
Tell us the situation and you get the recommended structure, the landed cost range and the realistic timeline, before anyone asks you to book a call.
- Entities we own across core LATAM markets
- Every lane under one agreement: recruit, employ, manage, deliver
- Backed by Gracemark, an operator across all of Latin America
Get my compliance and engagement quote
Tell us the worker type and country. You get the compliant engagement path (EOR, AOR or payroll) and a landed monthly cost.
No account, no obligation. You see the recommended model before we ask for an email.
Frequently asked questions
Country costs, timeline and the right hiring model, in one business day.