Outstaffing an Employer of Record model becomes pertinent when you look at how costly and time consuming it is to set up a local company abroad.
Being an Employer of Record (EOR), we hire and pay an employee on behalf of companies in countries where their own local entity is lacking. Our outstaffing services imply the complex and country-specific employment and HR administration of a worker, while the client can focus on the substantive business activity and employee performance.
We provide secure and on-time payments, the suitable benefit package and of course ensure full compliance of employee placement.
An EOR however, does not recruit, but gets involved in the process once the company has selected a candidate.
Further, an EOR is the registered employer for the worker while not holding a management role towards the employee. The original employer is the one making the decisions on compensation, position duties, projects and terminations.
The EOR, in consultation with client companies carries out the following actions/functions:
Tax registration
The EOR is registered with the tax authorities as the employer of staff. This means they are required to withhold certain taxes from employee payments (namely income tax and payroll tax contributions). In addition, they are required to submit those amounts to authorities on a regular basis and comply with any reporting requirements.
Payroll processing
The EOR processes the payroll of all employees in line with the legal requirements applying in that jurisdiction. This includes managing necessary deductions, garnishments, expense re-imbursements and leave entitlements.
Payment method and cycle will follow legal obligations, local custom and the wishes of the client company.
Benefits and social contributions
The EOR registers with pension funds, health insurance and worker’s compensation providers, and other providers of benefits for employees.
Employment contracts
When providing outstaffing services, EOR carries out the registration of employees on the basis of an employment contract in accordance with labor legislation. These may be indefinite, casual, or fixed-term employment contracts.
Termination or re-hire
The EOR will terminate employees, on advice from client companies and when permitted under the law. Similarly, they can renew contracts on expiration.
Our outstaffing services cover a wide range of essentials that can be customized to your needs. Reach out to us and our experts will help you to find the right hiring solution for your needs.