As the remote work model continues gaining popularity, more companies than ever are expanding their talent pools across borders, and are considering an employer of record (EOR) as a solution to their international hiring needs.
Partnering with an EOR will save your company the time, effort and expense related to establishing an entity in another country, enable you to hire and pay international employees quickly and compliantly and keep you in compliance with the labor, payroll, tax, banking and contract requirements of that country.
With an EOR, you can:
- Hire remote employees
- Pay remote employees
- Create compliant employment contracts
- Comply with local regulations, laws and taxes
- Manage benefits and leave
- Manage termination
- And more
An EOR handles the legal requirements, while you manage the employees and their performance.
When evaluating which EOR company is best for your business, choose one that provides dedicated in-country HR expertise to navigate the complexities involved in hiring and paying employees in new markets.
These experts have honed their skills from solving countless employment situations and challenges over time, and know employment law specific to the country, region and area in which you will operate. For example, did you know that Spain has 17 autonomous regions, and tax law varies depending on which region you are employ workers in? Knowing which assortment of laws apply to your situation can help you navigate short- and long-term regulatory hurdles, keep you in compliance and save you money.
Local expertise gives you a leg-up
Local laws: From hiring to employment contracts, payroll, termination and more, your local team can ensure you remain compliant with local labor regulations. If you don’t feel ready to draft a compliant employment contract in another country, help from HR experts in that country will be crucial to your success.
Language: Having access to experts who can read and speak the local language is incredibly advantageous when it comes to understanding and adhering to that country’s employment laws; it avoids misinterpretations of the law and enables you to respond quickly and confidently if issues arise.
Culture: Understanding the culture of the country where your business operates may seem like a “nice to have,” but understanding cultural norms can be crucial to a business’ success in international markets. For example, in Japan, it’s not uncommon for companies to invite employees to exercise together to build morale, reduce stress and create a feeling of unity among team members. In Muslim countries, prayer times take priority over meetings, events or other engagements. In both examples these cultural norms can impact the way a company operates in the country, and this applies to your employees as well as future customer prospects; understanding their needs and expectations can help you better meet them.
The cost of not knowing
When doing business in another country, the HR requirements can be complex and overwhelming. Don’t let what you don’t know about international labor laws cost your company time, money, employees or the ability to do business internationally.
Misclassifying workers is a big problem for many companies and organizations overseas. For example, hiring a worker as a contractor but giving them a “manager” or “director” title or expecting them to perform critical work for the company could result in significant penalties. Local market experts can critically examine your HR setup to ensure no misclassification issues take place.
If the Chinese government deems your NGO is violating the PRC NGO Law, which defines how NGOs should be registered in the country, the penalty can be suspension of activities and deportation of personnel. You want an HR expert on hand who can ensure your registrations are executed properly and error-free.
In the U.S., the work week for full-time employees is 40 hours, but in Australia and France, full-time employees work 38 and 35 hours per week, respectively. Exceeding labor law hours requires overtime pay and other adjustments; a local market expert can keep your organization in compliance and within regulation.
An EOR partner you can feel confident about
You have many options when it comes to choosing an EOR partner, but you should know that not all are created equal. If an EOR provider doesn’t have deep local expertise, it may not be able to meet the full spectrum of your employment needs.
Safeguard Global’s in-country experts keep you compliant with employment laws and regulations in more than 170+ countries around the world. When it comes to international hiring, our employer of record solution, along with our qualified teams of in-country experts, are here to support you throughout the entire business lifecycle.
Contact us today to speak with a global solutions advisor and learn how Safeguard Global can compliantly meet your international hiring needs.