Taiwan, a vibrant island with bustling cities, rich cultural heritage, and technological advancement. The nation boasts a population of around 23 million people, a well-educated workforce, and a healthy economy spurred on by industries including electronics, manufacturing, and services. Their market economy is heavily dominated by trade and export and it is ranked high in terms of civil liberties, healthcare, and human development. 

A Taiwan Employer of Record, also called a Professional Employer Organization (PEO), is a third-party company that takes on the legal responsibility of employing staff on behalf of a company. This includes payroll, tax compliance, fringe benefits, and other administrative tasks. The EOR model allows businesses to hire employees in Taiwan without the necessity of setting up a legal entity in the country.

We specifically created this guide to help you understand Taiwan Employer of Record and how best to use them for your business expansions. 

Benefits of Using Employer of Record Taiwan

Businesses looking to expand to Taiwan are on their way to exploring more opportunities to grow yet it comes with its various challenges. That is where an EOR can make all the difference. Here are some benefits of Employer of Record Taiwan:

Hire local talent

When you’re looking to tap into Taiwan’s local talent pool of qualified professionals, an EOR is your best friend. They have local knowledge to enable you to find and hire suitable talent quickly. You will not have to spend months in an attempt to understand the local job market and the practices of recruitment. You can immediately use the established networks and knowledge of your Taiwan PEO. This means you can onboard top talent who’s already familiar with the local culture and ways of doing business, thereby giving your company a competitive advantage.

Compliance

The labor laws in Taiwan can be confusing to understand as a new business, and it’s an uphill task to understand them if you are less than familiar with the legal environment. Hiring an employer of record Taiwan helps take the burden off your shoulders by ensuring full compliance with all local regulations, everything from employment contracts down to statutory benefits. You have complete assurance that you are not breaking laws that could otherwise attract heavy fines or bring you into legal disrepute as compliance is a serious matter in every country. 

Risk Mitigation

Expansion to a new country is always filled with some percentage of risk, but having a Taiwan PEO in place helps minimize most of these risks. The employer of record Taiwan assumes all legal liabilities for employment. This lessens your liability and saves your business from potential litigation or disputes that may arise. It’s like having a safety net that allows you to focus on growth without constantly looking over your shoulder for legal pitfalls.

Cost effective

An employer of record Taiwan can be cost effective as it eliminates the need to set up a local entity, which saves on initial costs and reduces legal complexities. Taiwan PEO also helps with managing payroll, compliance, and benefits, streamlining operations and mitigating employer liability. This allows companies to hire quickly, scale their workforce flexibly, and focus on core business activities while ensuring adherence to local labor laws.

Focus on core business

This is perhaps the most important benefit of using an EOR, you’re helped to focus on what you do best in your business. Hiring an employer of record Taiwan frees you from administrative tasks or observance of regulations, so you can drive your energies into strategic initiatives and developing your business. The EOR handles the nitty-gritty details, giving you the freedom to innovate and expand your market presence in Taiwan.

How does an employer of record in Taiwan work?

Expanding your business to Taiwan will be easy while using an EOR. This is how an Employer of Record Taiwan handles some things that relate to employment so you have a smooth transition and operation.

1. Hiring process

The employer of record Taiwan will handle all the hiring processes on your behalf. Because of their local knowledge, they source and recruit competent candidates fitting your requirements. Since they have an understanding of the job market of Taiwan, the EOR can find their way through various barriers to culture and language with ease; hence, making the process quicker and efficient. 

2. Employment contract

Once the ideal candidate is identified and selected, the contract of employment is drafted and maintained by the Taiwan PEO. These contracts are tailor-made for Taiwanese labor laws and include important topics such as job scope, remuneration, and termination conditions. In this way, you and the performing employee will be on the same page as to what exactly is expected of the employee and avoid misunderstandings and disputes that may occur.

3. Payroll and benefits

The EOR also assumes total responsibility for payroll, which, among other aspects, ensures that salaries are paid in a timely and accurate manner. They handle tax withholdings and social security contributions in compliance with local regulations. The employer of record Taiwan also manages employee benefits, covering health insurance and pensions to ensure all statutory and company-specific benefits are provided.

4. Compliance

From the labor law standpoint, it is compulsory for your company to follow Taiwanese labor-related laws. The employer of record Taiwan will ensure your company is liable for all the legal issues required in the domain of employment, tax, and laborers’ rights, reducing the risk of receiving any legal issues and/or fines. Making sure your company is compliant with all laws is the sole responsibility of your EOR.

5. HR administration

The employer of record Taiwan also manages day-to-day HR administration tasks. This includes maintaining employee records, handling leave requests, and addressing any HR-related queries or issues.

Things to Consider When Choosing Employer of Record Taiwan

Selecting the right employer of record is necessary for your successful expansion into Taiwan. Here are some key factors to consider:

Local expertise

You have to ensure the EOR has deep knowledge of the Taiwanese market. Their understanding of local culture, language, and business practices will be invaluable in hiring and managing employees in Taiwan. You can find reviews online and ask business associates in Taiwan for recommendations. 

Compliance track record

You can also check the EOR’s history of compliance with Taiwanese labor laws. A strong track record in legal compliance ensures your business avoids potential legal issues and penalties, providing peace of mind. One practical way to do this is to check their website and look at companies they’ve worked for to evaluate their track record.

Service offerings

Also, you should evaluate the range of services the EOR provides. Beyond payroll and benefits, look for additional support in areas like recruitment, employee training, and performance management. Hiring an employer of record Taiwan with a comprehensive service package can simplify your business operations.

Technology platform

It’s also best to consider the technology platform the EOR uses to manage HR processes. A user-friendly HR software like Omni can streamline payroll, benefits administration, and employee management making it easier for your workplace to be efficient.

References and testimonials

This is intertwined with some of the factors above, references and testimonials from other companies that have used the employer of record’s services will help you evaluate if they’re a good fit for you. Positive feedback from satisfied clients will give you confidence in the Taiwan PEO’s ability to meet your business needs.

Challenges and Risks for Taiwan Employer of Record

When using a Taiwan PEO, you should be aware of potential challenges and risks like: 

Complex Taiwan employment law

Taiwan’s employment laws are constantly evolving and businesses need to always adjust. For new businesses navigating labor laws around contracts, benefits, and terminations requires expertise. Because mistakes can lead to legal complications or financial penalties, this is what you need to work with a PEO Taiwan that has a deep understanding of local laws.

Employer of record Taiwan selection

Choosing the right Employer of Record Taiwan is a must for your company. A poor selection can result in inadequate service, compliance issues, or even reputational damage. You should thoroughly vet potential partners, and assess their track record we earlier recommended, and service offerings to ensure they align with your business needs.

Protecting employee data

Data protection is a big deal in today’s world, especially with the increasing focus on privacy regulations. A Taiwan PEO should implement strict data security measures to safeguard sensitive information about employees. It should be pursued with due compliance regarding local and international data protection laws to avoid breaches of trust.

Frequently Asked Questions for Employer of Record Taiwan

1. What is an EOR?

An employer of record is a third-party company that will take over all formal employment responsibilities on behalf of your company. This includes paying payroll, taxes, and other compliance and benefits to enable you to stay focused on core business activities without the need to set up a legal entity in Taiwan in this case.

2. How long does it take to hire an employee through an employer of record Taiwan?

Generally speaking, hiring via a Taiwan PEO takes less time than more traditional routes. It may take several days to a couple of weeks, given the complexity of the role and the availability of candidates.

3. What are the costs associated with using an employer of record Taiwan?

The cost may vary depending on the services required, the number of employees, and the complexity associated with compliance needs. Generally, the charges can be tagged as a percentage of one employee’s salary or as a flat monthly fee. Special pricing should be discussed directly with the service provider.

4. Can I terminate an employee through EOR Taiwan?

Yes, you can terminate an employee through a Taiwan employer of record. The EOR will make sure that termination is done according to the local labor laws and handle all necessary documents and procedures for the purposes of minimizing the legal risks involved.

5. Does an employer of record Taiwan provide benefits to employees? 

A Taiwan employer of record typically provides statutory benefits, including health insurance and pension contributions. Supplemental benefits can also be given, but they depend on your company’s policies and local market requirements.

6. Can an employer of record Taiwan help with visa and work permit applications?

Yes, many PEO Taiwan can help you through with visa and work permit applications. They will handle the process on your behalf, ensuring that all the immigration laws are followed, and aiding your employees with what they need legally to work in Taiwan.

Maximize Your Business Potential with Employer of Record Taiwan

An employer of record Taiwan can be a valuable asset for businesses looking to expand into the Taiwanese market. By partnering with a reliable and reputable EOR, you can streamline your HR processes, mitigate risks, access global top talents, reduce costs, and enhance your company’s reputation in Taiwan. 

Omni makes it easy to support employees across multiple countries, time zones, and currencies.

Our centralized document management solution makes gathering the necessary data required to apply for employment visas and other country-specific initiatives seamlessly and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for applications. And centralized documents and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.

Our dedicated local team of experts provides personalized support and ensures your business remains compliant with Taiwan’s labor laws. Book your demo with our team to learn more about how Omni can help maximize your business potential.

With natural resources, a thriving economy, a diverse social component, an up-to-date digital infrastructure, and a business-friendly environment, Australia is a popular spot for international business owners looking to grow their businesses. Indeed, it’s listed as one of the top 15 countries with the best GDP in 2024. 

Now, Australia’s foreign policy may regulate international hiring; however, it takes an expert to abide by these regulations skillfully. For that reason, you need an employer of record Australia.

EORs act as your trusted business partner and the official employer for the Australian workforce, handling payroll, taxes, and compliance. They save you months of paperwork and relieve you of the stress of compliance with Australian labor laws. On top of that, they’re different from Australia PEO.

Below, we’ll cover the main benefits, risks, and job responsibilities of an EOR and help you choose one.

Benefits of Using Employer of Record Australia

If you’re on the fence about hiring an employer of record Australia, learning about its benefits will show you whether it’s worth the investment.

Hire local talent 

With an employer of record, Australia’s talent pool becomes readily available. They connect you with an on-call network of potential hires, write and manage employment contracts, and handle the foreign worker recruitment process in Australia. As such, there’s no need for a local entity in Australia, which facilitates global expansion.

Compliance

An employer of record Australia is well-versed to navigate taxes and local labor laws and regulations.

The main regulation is the Fair Work Act, which governs employment relations in Australia. It also sets the minimum statutory standards and conditions (11 obligatory entitlements in all employment contracts). Additionally, separate state legislations may apply to public sector employees, such as South Australia, Queensland, and Tasmania.

Risk mitigation

An EOR minimizes the otherwise high risk of legal challenges accompanying global expansion and establishing an entity in another country. Their compliance with Australian law prevents penalties, fines, and legal disputes, protecting your business profits. If there are any, the EOR is the legal entity subject to them.

Not to mention, your Australian employees will enjoy low-risk levels working under a local legal entity. They’ll feel confident that the local EOR will withhold the right taxes, set up payroll easily, set compliant insurance policies, and issue employee fringe benefits as required by the law.

Cost effective

The minimum wages in Australia are relatively high as it is, so EOR cost savings are of the highest importance if you intend to expand to Australia. As mentioned earlier, they reduce the risk of legal problems, preventing costly penalties and fines.

Additionally, you won’t pay the fees of establishing a legal entity in Australia. This is cost-effective, especially if you aren’t hiring a large Australian team because you’ll only be charged by the EOR service per employee. Finally, EORs give you access to payroll software and resources for new Australian hires.

Focus on core businesses

Hiring an employer of record Australia, means outsourcing most administrative tasks. It makes payroll, training hiring, onboarding, and tax filing processes more efficient.

In other words, they do the administrative work so that you can do the work that only you can do: your core business operations. With an improved HR workflow, you’ll surely save on operational costs.

How does an employer of record in Australia work?

By understanding the responsibilities of an employer of record Australia, you’ll gain insights into how they’ll help you through business expansion and determine whether you want them in the picture or not.

1. Hiring process

The EOR recruits Australian employees fast, given their access to a wide pool of top Australian talents.

They post job ads on popular networking platforms, such as CareerOne, CareerJet, Adzuna, and Indeed Australia. Then, they shortlist applicants and find good fits for the needed roles. Also, the EOR ensures that the chosen applicants are legally eligible to work in Australia.

2. Employment contract

An employer of record Australia, drafts a legally sound and customized employment contract for your Australian hires. They should abide by the 11 obligatory entitlements stated in the Fair Work Act. They include the following key information:

• Employer and employee name and details
• Job titles and descriptions
• Employment type
• Compensation, such as rates, benefits, bonuses, and overtime
• Leave entitlements
• Work schedules
• Probation period
• Start date and work locations
• Termination and resignation policies
• Confidentiality agreements
• Dispute resolution policies
• Intellectual property rights
• Privacy policies
• Non-compete agreements (prohibiting your employees from competing with your business during or after their employment period for a specific period)

Read next: How to Define Your Employee’s Job Scope (With a Template!)

3. Payroll and benefits

Payroll and benefits management for the new Australian hires, while minding the local policies and regulations, falls under the responsibilities of the employer of record Australia. 

They process their payroll, which includes enrolling them into the system, withholding taxes, issuing payslips, and managing deductions and allowances. As for benefits, the Australia employer of record issues benefits while complying with the National Employment Standards (NES) in Australia, which govern the following:

• Maximum weekly hours
• Flexible working arrangement requests
• Offers and requests to switch from casual to permanent employment
• Different leave entitlements
• Public holidays
• Notice of termination
• Redundancy pay

4. Compliance

The main reason to hire an employer of record Australia is compliance, which is possible with their in-depth knowledge of Australian employment, such as the Fair Work Act and the National Employment Standards (NES).

An EOR Australia guides you through local taxes, payroll and benefits management, and termination procedures. Think minimum wages, resources, superannuation contributions, first-aid, and workplace health and safety regulations.

5. HR administration

EORs take on global HR functions for the outsourced Australian hires. You can count on an employer of record to provide you with local, continuous HR support with recruitment, onboarding, and performance management.

Things to Consider When Choosing Employer of Record Australia

For an employer of record to truly facilitate global expansion, you must rate them according to the following criteria and ensure they’ll live up to your expectations:

Local expertise

Australian EORs must have thorough knowledge and experience in the local employment laws and regulations. This way, they can follow them in their HR administration, payroll management, immigration procedures, benefits administration, and tax filing.

Also, with an employer of record Australia-specific labor customs shouldn’t go unnoticed so that you can navigate cultural nuances. For instance, they should know that bonuses are common in Australia and when it’s advisable to issue them. Not to mention, their established networks should connect you with Australian talents.

Compliance track record

Checking an EOR’s compliance track record is a no-brainer because it helps you hand over part of your business with an easy mind.

Ask yourself how responsive they are. Are they transparent about their processes? Do they have sufficient experience? Look at their social proof, and avoid EORs with past legal issues and compliance breaches.

Service offerings

Aside from the basics like compliance and payroll management, what services are you looking to outsource to the EOR? What are your business needs? Make a list, and evaluate different EOR packages accordingly.

For example, do they give you access to the HR integration you want? Are their data security measures sufficient? How much do they communicate with you? Better yet, do they have customizable or flexible packages?

Technology platform

As we’ve briefly mentioned, an Australia employer of record should give you access to remote management tools and payroll solutions that are compliant with local labor laws.

Such platforms should help onboard employees (like signing local employment contracts), process payroll, administer benefits, manage your outsourced Australian workforce, and give you control over labor costs. It might even alert you to local labor law changes, keeping your business 100% compliant and error-free.

References and testimonials

It’s always a good idea to check the online reviews, ratings, testimonials, references, and press coverage of the EOR service providers you’re eyeing.

Try third-party review sites, such as Capterra, Trustpilot, and G2. By conducting such research, you can learn about each service provider’s operations and see how satisfied their former and current clients are with their services.

Challenges and Risks for Australia Employer of Record

You’ve learned the perks of an employer of record Australia, so it’s only fair that you learn the risks. This way, you can form an unbiased opinion, make an informed decision, and consider how you’ll navigate these potential hurdles.

Complex Australia employment law

Labor laws in Australia are complex because they regulate employment while being mindful of the different employment types, sectors, age groups, ethnicities, genders, religions, races, and social and economic backgrounds.

Along with attempting to be fair and provide good conditions for employees, they attempt not to burden employers financially to the point that hinders their business growth and the country’s economy.

As a result, you see the complex employment laws in Australia, including tax laws, strict visa requirements, and workplace regulations. But to an employer of record, Australia laws should be kept under their radar at all times. The main provisions they should know about are the following:

• Fair Work Act 2009
• State and Federal Anti-Discriminatory Law
• Work Health And Safety Act 2011
• Disability Discrimination Act 1992

Employer of record Australia selection

When it comes to selecting an employer of record Australia has no shortage of them, but the difficulty lies in finding the right service for your needs. After all, you want an affordable, transparent, and responsive EOR with the services you require. So, determine your business needs and compare them to the EOR offerings.

Protecting employee data

Sharing data with third-party vendors creates risks of data breaches from manual uploads, so security measures are crucial. EORs should offer secure storage solutions, encryptions, around-the-clock maintenance, and industry-standard privacy regulation compliance to protect your company, intellectual property, and employee data and prevent security attacks.

Frequently Asked Questions for Employer of Record Australia

1. What is an EOR?

An employer of record is the legal employer of the workers you’re recruiting in a different country. They handle hiring, recruitment, salaries, management, and HR processes. This way, you can hone in on day-to-day business operations.

2. How long does it take to hire an employee through an employer of record Australia?

You can welcome your Australian workers into your company within days of hiring an EOR (compared to four to 12 weeks otherwise). That’s because an EOR has an entity in Australia and an already established network of potential hires.

3. What are the costs associated with using an employer of record Australia?

EOR costs are either a fixed monthly fee per employee or a percentage of payroll plus applicable taxes. Add to that administrative fees, onboarding charges, and extra charges for supplemental features. If it’s a percentage, it could range from 10% to 20%.

4. Can I terminate an employee through EOR Australia?

Yes, you can terminate employment agreements via an EOR. They ensure termination procedures are compliant, including final pay and entitlements, redundancy, unfair dismissal, severance pay, and notice of termination.

5. Does an employer of record Australia provide benefits to employees?

Yes, an EOR administers local and global benefits to the outsourced Australian workforce. Benefits include mandatory and optional ones, and the latter gives your business an edge over competing businesses for potential hires.

6. Can an employer of record Australia help with visa and work permit applications?

Yes, they can. As the legal employer, they facilitate obtaining work visas and permits for your Australian employees and check that they can legally work, given their understanding of local regulations, ensuring business compliance.

Maximize Your Business Potential with Employer of Record Australia

An employer of record Australia can be a valuable asset for businesses looking to expand into the Australian market. By partnering with a reliable and reputable EOR, you can streamline your HR processes, mitigate risks, access global top talents, reduce costs, and enhance your company’s reputation in Australia. 

Omni makes it easy to support employees across multiple countries, time zones, and currencies.

Our centralized document management solution makes gathering the necessary data required to apply for employment visas and other country-specific initiatives seamlessly and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for applications. And centralized documents and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.

Our dedicated local team of experts provides personalized support and ensures your business remains compliant with Australia’s labor laws. Book your product tour with our team to learn more about how Omni can help maximize your business potential.

China is one of the main drivers of global business and economy. As such, it’s no surprise many organizations are looking to conduct business there. But more so than elsewhere in the world, China has a complex system of labor laws, prone to change and heavily scrutinized by the government. That’s why so many companies turn to an employer of record China (EOR).

These local experts, based in China, should know the ins and outs of local laws and customs and help you with everything from hiring, to compliance and every HR task in between. In this article, we’re going to look at the benefits you can expect from hiring an employer of record in China, and the qualities to look for when selecting one.

Benefits of Using Employer of Record China

Expanding your business into China can be a game-changer, but navigating the complexities of Chinese labor laws, payroll, and compliance stands to be a daunting task. An employer of record China can be your trusted partner, simplifying your global expansion and allowing you to focus on your core business objectives.

Hire local talent

China has a massive and highly skilled workforce, offering expertise in various fields, from technology and manufacturing to finance and marketing. An EOR can help you tap into this talent pool and find the right candidates for your business needs.

Setting up a legal entity in China can be a time-consuming and expensive process. An EOR eliminates this need, allowing you to hire employees in China without establishing a local entity.

Compliance

Chinese labor laws are complex and subject to frequent changes. An EOR ensures your organization keeps compliant with all regulations, from minimum wage and social insurance contributions to contracts and termination procedures.

Non-compliance can result in hefty fines and legal repercussions. An EOR takes on the responsibility of staying up-to-date with local laws, minimizing your risk of penalties.

Risk Mitigation

A China employer of record assumes legal responsibility for your employees in China, including payroll, taxes, and compliance. This reduces your exposure to potential legal and financial risks associated with misclassification or non-compliance.

They also manage employee benefits and ensure compliance with mandatory social insurance and housing fund programs. This minimizes the administrative burden and potential liabilities for your company.

Cost effective

Establishing a legal entity in China involves significant setup costs and ongoing expenses. An employer of record China eliminates these costs, offering a more affordable solution for global expansion.

Managing payroll, benefits, and compliance for international employees can require additional HR resources. An EOR takes care of these tasks, allowing you to optimize your HR team and reduce overhead costs.

Focus on core business

An employer of record China handles all the administrative burdens of employing workers in China, freeing you up to focus on your core business activities.

With an EOR handling the complexities of hiring and compliance, you can quickly onboard new employees and enter the Chinese market with minimal delays.

An EOR offers a strategic and cost-effective solution for businesses seeking to expand their presence in China. By partnering with an EOR, you can tap into the country’s vast talent pool, ensure compliance with local laws, and focus on your core business objectives, ultimately driving growth and success in this dynamic market.

How does an employer of record in China work?

Now that we’ve got a clear idea of what an EOR actually is, it’s time to take a look at how they work, and what they can do for you and your organization:

1. Hiring process

You conduct your usual recruitment process – advertise the position, screen resumes, interview candidates, and select the best fit for your team. Once you’ve chosen your new hire, the EOR steps in to handle all the onboarding paperwork and legal requirements. This includes drafting compliant employment contracts, setting up payroll, and ensuring all necessary tax and social insurance registrations are in place.

While the employer of record China handles the administrative and legal aspects, you retain full control over your employee’s day-to-day work, assigning tasks, providing feedback, and managing their performance.

Read next: How to Define Your Employee’s Job Scope (With a Template!)

2. Employment contract

The EOR ensures that all employment contracts comply with Chinese labor laws and regulations. This includes aspects like mandatory probation periods, working hours, minimum wage, termination rules, and social insurance contributions.  

The EOR drafts contracts that protect both your company and your employee, minimizing the risk of legal disputes and ensuring a clear understanding of rights and responsibilities.

3. Payroll and benefits

The EOR takes care of all payroll processing, including calculating salaries, deducting taxes and social insurance contributions, and making timely payments to your employees in their local currency.

They can also assist in designing and administering competitive benefits packages that comply with Chinese regulations and attract top talent. This may include health insurance, housing funds, paid time off, and other perks.  

4. Compliance

The employer of record china stays up to date of the ever-changing labor laws and regulations in China, ensuring your company remains compliant and avoids potential penalties. They handle all tax calculations, deductions, and remittances to the relevant authorities, as well as manage your employees’ mandatory social insurance and housing fund contributions.

If you’re hiring foreign nationals, the EOR can assist with obtaining the necessary work permits and visas, navigating the complex immigration process on your behalf.

5. HR administration

An employer of record China manages the entire employee lifecycle, from onboarding new hires to handling terminations and exit procedures while ensuring compliance with local laws. They can implement systems to track employee attendance, leaves, and absences, ensuring accurate payroll calculations and adherence to company policies. 

The employer of record in China maintains secure and up-to-date records of all employee information, including personal details, employment contracts, and performance reviews. They can act as a point of contact for your employees in China, addressing their queries and concerns regarding payroll, benefits, and other HR matters.

In essence, a China employer of record acts as your local HR department, handling all the administrative, legal, and compliance aspects of employment. This allows you to focus on your core business activities, expand your global reach, and tap into the vast talent pool that China offers.

Things to consider when choosing employer of record china

Partnering with the right EOR is crucial for a smooth and successful expansion into China. With a multitude of providers available, it’s essential to make an informed decision that aligns with your business needs and goals. Here are five key factors to consider when choosing an EOR in China:

Local expertise

In-depth knowledge of Chinese laws: Ensure your EOR has a comprehensive understanding of Chinese labor laws, tax regulations, and compliance requirements. They should be well-versed in the nuances of local legislation, including social insurance, housing fund contributions, and individual income tax.

Cultural awareness: A strong employer of record China should also possess cultural awareness and sensitivity to navigate the intricacies of the Chinese business environment. This includes understanding communication styles, business etiquette, and local customs, which can be crucial for building positive relationships with your employees.

Compliance track record

Proven experience: Look for an EOR with a proven track record of compliance in China. Inquire about their experience working with foreign companies, their familiarity with your specific industry, and their ability to handle any unique compliance challenges.

Transparent processes: Choose an EOR that is transparent about their compliance procedures and can provide evidence of their adherence to local laws and regulations. Ask about their internal controls, audit processes, and how they stay updated on any changes in legislation.

Service offerings

Comprehensive solutions: Beyond basic payroll and tax services, a good EOR should offer a comprehensive suite of HR solutions tailored to the Chinese market. This may include onboarding, visa and work permit assistance, benefits administration, employee data management, and even local HR support for your employees.

Customization options: Your business needs are unique. Look for an EOR that can tailor their services to your specific requirements, whether you’re hiring a small team or rapidly expanding your operations in China.

Technology platform

User-friendly interface: An intuitive and easy-to-use platform can simplify payroll and HR management for both you and your employees. Ensure the EOR’s technology is accessible and efficient.

Integration capabilities: The EOR’s system should integrate seamlessly with your existing HR and payroll software to ensure smooth data flow and avoid manual errors. Inquire about their API integrations and data security protocols.

Data security: Choose an EOR that prioritizes data security and has robust measures in place to protect sensitive employee information in compliance with Chinese data privacy laws.

References and testimonials

Client feedback: Don’t hesitate to ask potential EOR providers for references or testimonials from their existing clients. This will give you valuable insights into their service quality, reliability, and customer satisfaction.

Online reviews: Read online reviews and ratings from other businesses that have used the EOR’s services. This can help you gauge their reputation and identify any potential red flags.

Challenges and Risks for China Employer of Record

While an EOR offers significant advantages for expanding into China, it’s essential to be aware of potential challenges and risks to make informed decisions and ensure a smooth experience.

Complex China employment law

Chinese labor laws are complex and subject to frequent updates. This includes regulations on contracts, working hours, mandatory benefits, termination procedures, and data privacy. Staying compliant requires constant vigilance and expertise.

Understanding Chinese workplace culture and expectations is crucial for effective employee management. Differences in communication styles, hierarchy, and work ethic can sometimes lead to misunderstandings if not properly addressed.

Employer of record China selection

Not all EORs are created equal. It’s crucial to choose a reputable provider with a strong track record, in-depth knowledge of Chinese labor laws, and a proven ability to handle your specific industry and business needs.

Conduct thorough research, read reviews, and request references before selecting an EOR. Ensure they have experience working with foreign companies, a transparent pricing structure, and a strong commitment to compliance.

Protecting employee data

China has stringent data privacy laws, including the Personal Information Protection Law (PIPL), which imposes strict requirements on the collection, use, and transfer of personal data. Your EOR must have robust data security measures in place and comply with all relevant regulations.

China’s data localization requirements mandate that certain types of personal data be stored within the country. Ensure your EOR has the infrastructure and processes in place to comply with these requirements.

Frequently Asked Questions for Employer of Record China

1. What is an EOR?

An EOR is a third-party company that acts as the legal employer of your workers in China, even though you manage their day-to-day tasks. They handle all the HR, payroll, tax, and compliance responsibilities, allowing you to hire talent in China without setting up your own legal entity.  

2. How long does it take to hire an employee through an employer of record China?

The hiring process through an EOR in China can typically be completed within 2-4 weeks. This timeframe can vary depending on factors such as the complexity of the role, the availability of the candidate, and the efficiency of the EOR provider.

3. What are the costs associated with using an employer of record China?

EORs in China usually charge a monthly fee per employee, which covers their services like payroll processing, tax and social insurance contributions, benefits administration, and compliance. The exact cost can vary based on factors like the employee’s salary, the complexity of the role, and the specific services you require. It’s essential to get a clear and transparent breakdown of fees from the EOR provider upfront.  

4. Can I terminate an employee through EOR China?

Yes, you can terminate an employee through an EOR in China. However, it’s important to follow the proper termination procedures outlined in Chinese labor law. The EOR can guide you through the process, ensuring compliance with legal requirements and minimizing potential risks.   

5. Does an employer of record China provide benefits to employees? 

Yes, a reputable EOR in China will help you design and administer a competitive benefits package that complies with local laws and meets your employees’ expectations. This can include mandatory social insurance and housing fund contributions, and additional fringe benefits like health insurance, supplemental pension plans, and paid time off.

6. Can an employer of record China help with visa and work permit applications?

Yes, an EOR can assist with the entire visa and work permit application process for your foreign employees in China. They will handle the necessary documentation, applications, and interactions with the relevant authorities, ensuring a smooth and compliant process.  

Maximize Your Business Potential with Employer of Record China

An employer of record China can be a valuable asset for businesses looking to expand into the Chinese market. By partnering with a reliable and reputable EOR, you can streamline your HR processes, mitigate risks, access global top talents, reduce costs, and enhance your company’s reputation in China. 

Omni makes it easy to support employees across multiple countries, time zones, and currencies.

Our centralized document management solution makes gathering the necessary data required to apply for employment visas and other country-specific initiatives seamlessly and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for applications. And centralized documents and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.

Our dedicated local team of experts provides personalized support and ensures your business remains compliant with China’s labor laws. Book your demo with our team to learn more about how Omni can help maximize your business potential.

Thailand offers a stable and attractive business environment suitable for global expansion. As evidenced by Statista, 99% of the Thai population was employed in 2023. Buttressing the country’s economic strength, McKinsey highlights a 2.3% GDP growth rate in the second quarter of 2024, up from 1.6% in the first quarter.

However, while Thailand’s labor market is rich with opportunities, hiring and managing local talents poses challenges. Strict compliance requirements, cultural nuances, and administrative burdens can complicate the entire process.

That’s where a Thailand Employer of Record (EOR) steps in. As a third-party organization, a Thailand employer of record legally hires workers, manages payroll, and ensures compliance with local employment regulations on behalf of your company.

If you’re looking to explore Thailand’s skilled workforce while minimizing risk and administrative challenges, this article will guide you on how an EOR Thailand can expand your business seamlessly.  Whether you aim to hire Thai employees, stay compliant, or streamline your operations, this guide will give you the tools for a successful workforce expansion in Thailand.

Benefits of Using Employer of Record Thailand

30% of APAC countries use EOR services to solve hiring problems, retain talent, and tackle other international expansion challenges. Beyond that, an EOR in Thailand benefits companies in these ways:

Hire local talent

Expanding your workforce in Thailand poses several challenges. Traditionally, it involves establishing a legal entity, registering the company, opening local bank accounts, creating a legal team, organizing compensation and benefits, and adhering to local laws. All these take several months and are usually expensive.

But with an employer of record Thailand, you can hire employees that align with your business needs and company culture without setting up a local entity. An EOR Thailand sources, hires, and supports foreign workers throughout the employee lifecycle. They also draft employment contracts and manage your overseas payroll while you retain total autonomy over your workforce in your base country.

Compliance

An EOR Thailand has in-depth knowledge of local laws regarding taxation, employee rights, severance, global payroll, benefits, and intellectual property. For instance, the Labour Protection Act B.E. 2541 mandates all employers to provide annual holidays of no fewer than six working days to Thai employees who have worked consistently for one year. Similarly, employers must give workers at least one hour of rest after every five working hours.

Navigating these complex legislations can be a hassle if you’re new to the Thailand employment landscape. It becomes worse if you have other global teams you’re trying to build compliantly, as you may encounter mix-ups and oversights.

Hence, a Thailand PEO relieves HR teams of the burden of getting familiar with these Thai labor laws, ensuring your company legally and efficiently manages its workers for global compliance. Ultimately, an employer of record Thailand saves organizations from financial losses, fines, and other legal penalties accompanying non-compliance.

Read next: The 2024 HR Compliance Checklist: APAC Edition

Risk Mitigation

Building a global team is fraught with legal and compliance risk factors. But you don’t have to worry about breaching any employment regulation when you hire an employer of record Thailand. With their knowledge of Thai law, they easily evade penalties, fines, and disputes among employees. 

For example, they understand complex areas like termination procedures, working hours, rest periods, and severance pay. This adherence reduces the legal and financial risks associated with breaking laws, ensuring your company gets a compliant workforce. 

Cost effective

Creating a local subsidiary or branch is costly, especially regarding office space, local staffing, business registration, and recurring administrative expenses. However, hiring employees through an EOR Thailand is cost-effective as it eliminates these time-consuming, expensive processes. 

Focus on core business

Hiring a Thailand employer of record empowers HR leaders to focus on core business needs while outsourcing time-consuming administrative tasks, such as onboarding new hires, paying salaries, or offboarding existing staff. 

This strategy frees up workloads and allows HR teams to manage their time efficiently while concentrating on strategic business activities that advance organizational growth.

How does an EOR Thailand work?

Here’s how a Thailand employer of record acts as the legal employer for your Thai workforce:

1. Hiring process

An Employer of Record Thailand helps your business find and hire the right talent during recruitment. They know the demands of the Thai local job market and the job portals, like JobsDB, to find the right talent. All you need to do is specify your preferred candidate requirements. Your EOR Thailand will scout candidates, schedule screening interviews, and eventually recruit the best Thai talents while ensuring the entire process complies with labor regulations.

2 Employment contract

After recruiting a new hire, a Thai employer of record drafts an employment contract that complies with Thai labor laws, protecting both the employee and the client company. The employment agreement includes crucial terms such as job scope, start date, salary, benefits, working hours, rest days, probation periods, and termination policies like notice periods and severance pay.

3. Payroll and benefits

Once the Thailand EOR legally employs a candidate, they set up payroll for the new employee and prepare payslips every month. First, they choose a payroll system compliant with government regulations and your company policy, then assign workers Tax Identification Numbers (TIN). They also calculate and process pay in Thai Baht and withhold tax, insurance contributions, and other mandatory deductions for compliance.

Read next: How to Run Payroll in Thailand

4. Compliance

A PEO Thailand stays informed of any regulatory updates, such as minimum wage adjustments, tax rates, or new labor protections. They ensure these changes are reflected in employment activities such as proper documentation and statutory filings.

This streamlined compliance helps you avoid administrative burdens and legal consequences, allowing you to focus on other crucial business operations and employee relationships. 

5. HR administration

An employer of record Thailand provides continuous support for employees and manages routine HR tasks, such as onboarding, payroll, taxation, benefits, employee relations, performance reviews, and disciplinary actions. They become the main point of contact between your Thai hires and your company for HR-related matters.

Things to Consider When Choosing Employer of Record Thailand

Consider the following features before choosing an EOR Thailand:

Local expertise

Before investing in a Thailand employer of record, evaluate their knowledge and experience with the Thai hiring environment. Ensure the Thailand EOR thoroughly understands the local employment regulations and compliance requirements, including the Labor Protection Act (LPA), tax implications, Social Security Fund contributions, work permits, and other crucial Thai-specific labor laws.

This expertise is necessary to navigate the Thai employment landscape and avoid legal penalties. Furthermore, the PEO Thailand must be familiar with local customs, culture, and business practices and have established networks that ease their operations.

Compliance track record

Non-compliance can cost your company financial losses and reputational damage. So, when choosing an EOR Thailand, review their track record for achieving compliance, especially regarding payroll processing, taxation, and benefits administration.

Check for reviews on third-party sites to ensure that your chosen Thailand employer of record is well-experienced and competent in handling delicate business matters for clients.

Service offerings

Confirm if the EOR Thailand services meet your company’s needs and growth trajectory. This is important as your business may need to scale up or down, depending on its needs.

Regardless, an ideal employer of record Thailand offers a comprehensive HR package that includes advisory services, hiring, work permit applications, payroll management, employee contracts, and termination.

Technology platform

Weigh the HR tools and global payroll solutions the PEO Thailand uses for onboarding, employee relations, payroll processing, and communication to ensure compliance with local regulations. A centralized, secure, and user-friendly technology platform is necessary for achieving compliance, efficiency, data accuracy, and clear communication between your company, the EOR, and your employees.

References and testimonials

Check for industry reviews, client testimonials, and case studies on third-party sites like G2 or Trustpilot that prove the PEO Thailand has a great work ethic and a track record of success. Also, request references from past and present clients who have used their services in Thailand. If the feedback is positive, the Thailand employer of record will likely deliver excellent services. 

Challenges and Risks for Thailand Employer of Record

Managing global teams for businesses presents several challenges for employers of record Thailand. Here’s an overview:

Complex Thailand employment law

Thai labor legislation is subject to frequent changes, including laws regarding taxation, employee protection, employment contracts, benefits, and termination. So, if your PEO Thailand doesn’t adapt to evolving regulations, it can cause increased costs, fines, operational delays, labor disputes, or other legal penalties. The solution is to hire a PEO Thailand with a strong legal team that keeps up with regulatory changes.

Employer of record Thailand selection

Since Thailand has many employers of record, choosing the right provider can be challenging, especially when all of them claim to be the best. A helpful tip is to thoroughly research and assess the reputation of different EOR Thailand companies before partnering with any. Some EORs may claim to have local expertise but have limited knowledge of specific industry practices or niche legal requirements in Thailand. 

Also, check for transparent, responsive, and flexible services that match your organizational objectives, budget, and business needs.

Protecting employee data

Hiring an employer of record Thailand means handing over your employment affairs to a third-party provider. As such, you may encounter risks regarding employee data protection and breaches. Hence, an employer of record Thailand must have robust data protection standards to protect your corporate information and intellectual property.

Thailand’s Personal Data Protection Act (PDPA), which took effect on 1 June 2022, regulates and protects how businesses handle personal data. It applies to all businesses operating in Thailand and foreign businesses offering services or products to Thai residents. 

Frequently Asked Questions for Employer of Record Thailand

1. What is an EOR?

An Employer of Record is an independent organization that manages all employment-related tasks for companies without establishing a local legal entity.

2. How long does it take to hire an employee through an employer of record Thailand?

Hiring a Thai employee through an EOR Thailand typically takes one to three weeks, depending on the role’s complexity, the candidate’s availability, and the required documentation processes.

3. What are the costs associated with using an employer of record Thailand?

The costs of using an EOR in Thailand typically include monthly service fees based on the number of employees managed, payroll expenses, setup costs, and bank charges. Although the EOR administers them, you’ll need to cover the cost of hiring Thai workers, including salaries, contributions, employee benefits, and termination fees.

4. Can I terminate an employee through EOR Thailand?

Yes, you can terminate an employee through a PEO in Thailand. However, the offboarding process must comply with Thai labor laws to meet all legal requirements regarding notice periods and severance payments.

5. Does an employer of record Thailand provide benefits to employees? 

Yes, a Thailand employer of record administers employee benefits as part of their service. This includes health insurance, retirement contributions, paid leave, and other statutory benefits the local law requires. However, not all EORs do this; some may focus solely on legal compliance and payroll. So, identify your company’s needs and ensure the EOR services align with them.

6. Can an employer of record Thailand help with visa and work permit applications?

Yes, a Thailand Employer of Record can help with visa and work permit applications for Thai employees. They’re well-versed in local regulations and are the legal employers responsible for handling all employment-related tasks, including obtaining work permits and visas.

Maximize Your Business Potential with Employer of Record Thailand

An employer of record Thailand can be a valuable asset for businesses looking to expand into the Thai market. By partnering with a reliable and reputable EOR, you can streamline your HR processes, mitigate risks, access global top talents, reduce costs, and enhance your company’s reputation in Thailand. 

Omni makes it easy to support employees across multiple countries, time zones, and currencies.

Our centralized document management solution makes gathering the necessary data required to apply for employment visas and other country-specific initiatives seamlessly and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for applications. And centralized documents and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.

Omni offers a comprehensive payroll solution tailored to Thailand’s specific requirements. With features like support for Thai baht and automated tax calculations, Omni can help HR teams simplify their payroll processing and ensure compliance with ease. Not only that, with secure document storage and straightforward data input, you can quickly access and submit essential information required for working in Thailand.

Our dedicated local team of experts provides personalized support and ensures your business remains compliant with Thailand’s labor laws. Book a demo with our team to learn more about how Omni can help maximize your business potential.