An Employer of Record (EOR) is having a local organization perform employment tasks legally on behalf of your company and the local organization is placed as an intermediary between your company and the employees to run the business without having the entity in a country or to reduce the burden on your HR team by having the intermediary company take that responsibility.
The EOR will handle the legal and regulatory requirements of employment, payroll and immigration as needed but won’t be involving in the day-to-day work activity so the company still can maintain all the controls of your employees and making all the decision on compensation, duties, termination and etc. The EOR is there to register employer for compliance purpose and cover the HR operational duties for your employees.
Why do you need Employer of Record?
If your company is thinking of operating a business overseas but need time to get licenses when you need to start running the operation urgently, if your company is testing the viability of a new market, or due to current legislative restrictions you are unable to set up an entity in a country, that is when you know you need a local organization to provide EOR services and hire the employees on your behalf. Another benefit to utilizing an EOR service provider, is that you are able to reduce the requirements to hire HR staff locally and the EOR service provider will handle all of the HR operational tasks.
Entering one country with the unfamiliar local employment rules and regulation can be challenging and risky for a company when starting up. By having aEOR services provider, you will not need to worry about the future complication that will arise regarding employment as the EOR is already familiar with the local law and will be handling this on behalf of you from the beginning.
Handling payroll can be different and complex from one country to another as they have different tax, social security laws and other relevant laws which may affect the calculations, income tax and compliance matters. As payroll handling is part of an EOR services, and as an EOR service provider will take care of all the critical details to ensure the accurate payroll and compliance for each employee, you will avoid getting into a difficult situation regarding payroll in the future.
An EOR can perform and handle work permit/visa as required when you are thinking of having foreign employees as well. To legally work and stay in the country as a foreigner you will need to have a work permit or visa according to the host country’s immigration policies. It can be complex as there are different types of visa, re-entry, work permit and renewal processes etc. No one is going to know the rules and regulations regarding immigration better than the local services provider.
The easiest and quickest way for a company to run and only focus on their core business without worrying about the various compliance matters related to employment and start as quickly as possible is having an Employer of Record service provider support you. Especially when you don’t have or don’t want to have an entity in the host country. There are also advantages for global EOR services providers in having a local partner in country, this allows them to have knowledge of the local rules and regulations and assist the client company, complying with the local law without the extended footprint.
Are you looking for an EOR service provider in Myanmar or an in-country partner so that your organization can increase your efficiency and stay focused on your business? Then, Myanmar Payroll and Outsourcing is the best fit for your organization and will assist your organization with the needs. Please feel free to contact through the website – https://www.myanmar-payroll-and-outsourcing.com.mm/services/ or email to [email protected]