EOR Provider Switch Playbook for LatAm: Timeline, Risks & Cutover Checklist (2026)

Switching an Employer of Record provider mid-flight feels a lot like swapping engines on a moving plane. Every payroll cycle, benefits enrollment, and compliance filing keeps running while exits get negotiated and a new vendor gets onboarded. For companies with engineering teams across LatAm, the stakes compound because labor rules, statutory benefits, and termination exposure vary by country.

This playbook gives an operational framework to execute an EOR provider transition, or a move to entity payroll, without disrupting a LatAm engineering workforce. It includes timelines, checklists, templates, and country-specific pitfalls for Mexico, Brazil, Argentina, and Colombia. For legal specifics, confirm requirements with qualified local counsel.

Table of contents

• Who this playbook is for
• When switching EOR providers is worth it
• The two switch paths: EOR-to-EOR vs. EOR-to-entity payroll
• Pre-work: What to confirm before signing a new provider
• 30/60/90-day EOR switch timeline
• Data and document checklist (the “migration data room”)
• Payroll cutover controls (how to avoid missed or double pay)
• Benefits and PTO continuity plan
• Security and IP protection during the transition
• Country-specific pitfalls (Mexico, Brazil, Argentina, Colombia)
• Risk register: Top failure modes and mitigations
• Vendor evaluation checklist (RFP-style criteria)
• Templates
• Post-cutover: First 2 payroll cycles and stabilization
• When to bring in specialist help
• FAQ

Who this playbook is for

An EOR switch is a cross-functional program that needs clear owners across HR, legal, finance, IT/security, and engineering leadership.

When switching EOR providers is worth it

Switching is usually justified when the cost of staying exceeds the transition risk and internal project load.

Common triggers that justify a switch:

• Coverage gaps. The provider lacks owned entities where hiring is needed, forcing third-party subcontracting.
• Recurring payroll errors. Repeated mistakes in salary calculations, tax withholdings, or benefits deductions.
• Compliance risk. Inability to produce audit-ready documentation, registrations, or filing evidence.
• Support failures. Response times measured in days, especially on payroll and legal escalations.
• Cost opacity. Hidden fees, unclear pass-throughs, or no clean per-employee cost breakdown.
• Retention issues tied to provider quality. Late pay, benefits confusion, or poor local support.

A practical rule is to treat two or more recurring triggers as a switch threshold.

The two switch paths: EOR-to-EOR vs. EOR-to-entity payroll

The first decision is whether the goal is a new EOR, or a move to in-house employment via local entities.

EOR-to-EOR migration

This path fits teams with smaller headcount per country, multi-country footprints, or limited internal legal and payroll operations capacity. The new EOR becomes the legal employer, and internal teams focus on governance and cutover controls. A typical timeline is 60 to 90 days from contract signature to cutover.

EOR-to-entity payroll (in-house)

This path fits larger headcount concentrated in one or two countries and a long-term commitment to those markets. It requires entity setup, local payroll vendors, and internal HR and legal operations. A typical timeline is four to eight months, depending on country registration lead times.

Pre-work: What to confirm before signing a new provider

The fastest way to create delays is signing a new provider before exit terms and country mechanics are understood.

Notice periods with the current provider. Review the master service agreement for termination notice requirements, auto-renewal clauses, and data return obligations.

Employee consent and contract mechanism. In many LatAm jurisdictions, moving to a new employing entity requires employee consent and may involve novation or resignation and rehire. Confirm the required mechanism per country before setting a cutover date.

Benefits continuity. Inventory current benefits by country and confirm the new provider can match coverage effective dates, not just plan names.

Cutover window selection. Quarter-end or year-end cutovers typically reduce reconciliation complexity for tax filings and accrued statutory benefits.

30/60/90-day EOR switch timeline

This timeline assumes an EOR-to-EOR migration for 10 to 50 engineers across two to four countries.

Days 1-30: Discovery and contracting

• Execute the new EOR agreement and confirm implementation scope by country.
• Deliver termination notice to the current provider per contract terms.
• Create the migration data room and start collecting artifacts.
• Assign a project lead and finalize a RACI.
• Align on employee communications timing and escalation paths.

Days 31-60: Data room completion and parallel run setup

• Complete employee and company artifacts in the data room.
• Start employee onboarding paperwork with the new provider.
• Run at least one parallel payroll cycle and reconcile line items.
• Send employee communications and hold live Q&A.
• Plan access transitions for SSO, repos, and device management.

Days 61-90: Cutover and stabilization

• Run final payroll with the outgoing provider and confirm final filings.
• Run first live payroll with the new provider and audit every payslip.
• Confirm benefits enrollment and coverage start dates.
• Execute access offboarding from outgoing provider systems.
• Hold a retrospective within two weeks and document fixes.

Data and document checklist (the "migration data room")

A single, access-controlled data room reduces first-cycle payroll errors and benefits gaps.

Required artifacts per employee:

• Current employment contract (local language and English translation)
• Government-issued ID (country-specific)
• Tax identification number (country-specific)
• Compensation breakdown: base, variable, allowances, equity
• Payroll history: last 12 months of payslips and deductions
• Benefits enrollment records and plan details
• Accrued PTO balance and usage history
• Equity documentation: grants, vesting, exercises
• Emergency contact information
• Bank account details for salary deposit
• Signed IP assignment and confidentiality agreements
• Any performance documentation relevant to local compliance

Company-level artifacts:

• Current EOR agreement and amendments
• Country-specific policies and employment terms
• Payroll calendar and pay cycle dates
• Expense reimbursement policy and outstanding balances
• Any pending disputes, grievances, or audits

Payroll cutover controls (how to avoid missed or double pay)

Payroll cutover is the highest-risk part of the switch, so controls should be explicit and documented.

Step 1: Parallel calculation. Both providers calculate gross-to-net payroll for every employee, without disbursing funds during the test.

Step 2: Line-by-line reconciliation. Finance reconciles base pay, statutory deductions, employer contributions, benefits deductions, and net pay, and investigates variances.

Step 3: Sign-off gates. Require written sign-off from finance, HR, and legal before the first live payroll.

Benefits and PTO continuity plan

Benefits continuity is a trust issue, and it is harder to fix than a payroll variance.

Benefits delta mapping

Build a country-by-country comparison of statutory and supplemental benefits, and resolve gaps before cutover.

Enrollment timing

Coordinate enrollment so new coverage is active on or before the last day of old coverage, and confirm any waiting period rules in writing.

PTO grace period

If PTO transfer requires payout and reset, consider a short grace period so employees are not left with zero available PTO.

Security and IP protection during the transition

For engineering teams, the switch creates a window where access, devices, and IP assignment can become ambiguous.

Access offboarding from the old provider. Revoke access to outgoing provider portals on cutover, while keeping access to company systems uninterrupted.

Device recovery. Confirm whether devices are transferred, recovered, or replaced, and document chain of custody.

IP assignment continuity. Legal should compare old and new contracts to ensure IP assignment is contiguous with no effective-date gaps.

Audit trail. Maintain a timestamped log of access changes, device transfers, and contract execution dates.

Country-specific pitfalls to plan for (Mexico, Brazil, Argentina, Colombia)

These are common operational pitfalls that can block a clean cutover, and they vary by country.

Mexico

• IMSS and INFONAVIT registration. Registration timing can affect benefits and compliance readiness.
• Aguinaldo accrual. Confirm how prorated obligations are allocated across employing entities.
• Profit sharing (PTU). Understand whether the employing entity change affects employee expectations.

Brazil

• eSocial filings. Ensure outgoing events are closed and incoming events are registered correctly.
• FGTS deposits. Validate that the new provider calculates and deposits correctly from month one.
• Termination cost exposure. If structured as termination and rehire, model costs before committing.

Argentina

• AFIP registration. Build buffer for registration and payroll setup lead times.
• Currency and salary adjustments. Confirm the new provider can handle frequent comp changes.
• Collective bargaining agreements (CBAs). Validate role mapping to the correct CBA category.

Colombia

• Social security and parafiscal contributions. Confirm correct rates and risk classifications.
• Prima de servicios. Confirm how prorated obligations are allocated across entities.
• Termination liability. Model costs based on contract type and tenure.

Vendor evaluation checklist (RFP-style criteria)

Selection criteria should be weighted based on risk tolerance, country mix, and internal operations maturity.

Entity model and country coverage

• Does the provider use owned entities or third-party partners?
• Which countries are covered for current and planned hiring?

Payroll accuracy and SLAs

• What is the payroll error rate and correction process?
• What are response-time SLAs for payroll and legal escalations?

Compliance support

• Is there in-country legal and compliance coverage?
• How are regulatory changes tracked and implemented?

Benefits administration

• Which carriers and plan tiers are available by country?
• How are statutory benefits administered and audited?

Security posture

• What security certifications exist, and what is the access model?
• How are devices provisioned, managed, and recovered?

Reporting and visibility

• What reporting exists for headcount, cost, payroll detail, and benefits?
• Are payslips and employment documents accessible on demand?

Retention and employee experience

• What is the retention rate, and what programs support retention?
• Are there local offices, community programs, or coaching support?

Exit terms

• What notice period applies, and what is the data return process?
• What are obligations for final payroll, filings, and benefits wind-down?

Templates

These templates are designed to be copied and adapted for a migration plan.

Employee communications email template

Subject: Important update about your employment and what it means for you

Hi [First Name],

A change is coming to the employer of record that manages employment, payroll, and benefits for your role at [Company Name].

What is changing: Starting [Date], employment administration will move to [New EOR Provider Name] from [Old EOR Provider Name]. Day-to-day work, manager, compensation, and projects are not changing.

What this means for you:

• Pay schedule and compensation structure remain the same.
• Benefits will continue with equivalent coverage. [Describe any changes.]
• Accrued PTO of [X days] will carry over.
• A new employment contract will be sent for review and signature.

What you need to do:

1. Review and sign the new contract by [Date].
2. Confirm personal and bank details via [portal link].
3. Join the Q&A session on [Date/Time].

Questions can be sent to [HR contact] at [email], or posted in [Slack channel].

Thank you, [Signature]

Employee FAQ template

Q: Why is [Company Name] switching EOR providers? A: The change is being made to improve [support, compliance coverage, benefits, or payroll accuracy], without changing day-to-day work.

Q: Will my salary change? A: No, compensation and pay schedule remain the same.

Q: Will my benefits change? A: Benefits will remain equivalent, and any changes will be communicated in writing.

Q: What happens to my accrued PTO? A: PTO balances will transfer, and the updated balance will be visible by [date].

Q: Do I need to sign a new contract? A: Yes, a new contract will be provided for review and signature.

Q: Will there be any gap in employment? A: The transition should be structured to avoid gaps, but confirm country mechanics.

Q: Who do I contact with questions? A: Contact [HR contact] at [email] or use [Slack channel].

Cutover checklist

• All employee contracts signed with new provider
• Parallel payroll reconciliation complete, and variances resolved
• Finance sign-off obtained
• HR sign-off obtained
• Legal sign-off obtained
• Benefits enrollment confirmed for all employees
• PTO balances transferred and verified
• Outgoing provider final payroll processed
• Outgoing provider final filings confirmed complete
• IT access offboarding from outgoing provider systems complete
• Device recovery or transfer plan executed
• IP assignment clauses confirmed contiguous
• Employee communications sent, and Q&A completed
• New provider runs first live payroll
• First payslip audit complete

Post-cutover: First 2 payroll cycles and stabilization

The first two payroll cycles are where configuration errors and missing data typically surface.

Cycle 1 (first month after cutover):

• Audit 100% of payslips against contracts and the parallel run.
• Confirm statutory filings and deposits were submitted correctly.
• Verify benefits enrollment and coverage activation.

Cycle 2 (second month after cutover):

• Audit a sample of payslips, with extra focus on variable pay.
• Confirm outgoing provider delivered final documentation.
• Run a short employee pulse check focused on pay and benefits.

After two clean cycles, move to quarterly audits and a documented annual filing review.

When to bring in specialist help

Specialist help is most valuable when complexity is high and the cost of a mistake is asymmetric.

Multi-country cutovers. Three or more countries increases coordination complexity and timeline risk.

Terminations during transition. Engage local counsel when any employees are not being transitioned.

Active audits or disputes. Do not switch until legal counsel assesses liability and data needs.

Complex equity arrangements. Confirm tax treatment and reporting requirements before cutover.

FAQ

Q: How long does a typical EOR provider switch take? A: Plan for 60 to 90 days from contract signature to completed cutover.

Q: Will employees notice the change? A: They will sign new contracts and may see a new entity name on payslips.

Q: Is quarter-end or year-end the best time to switch? A: Those windows often reduce reconciliation complexity, but timing depends on country mechanics.

Q: What happens to tenure and seniority? A: Some structures reset tenure with the employing entity, so confirm country rules.

Q: What if the outgoing provider is uncooperative? A: Use contract data portability clauses, escalate in writing, and involve legal early.

Ready to plan your switch?

For teams that want a white-glove workforce partner, Howdy supports recruiting, employment, compliance, payroll, benefits, security, onboarding, retention, and long-term team development.

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