Creating an entity versus using a direct EOR (Part III)
As we have already told you, there are many advantages that our proposal has over another when it comes to hire an employer. Today, we give you 2 more reasons to choose us.
Last but not least, we give you 2 more reason to choose us.
TERMINATION & EMPLOYMENT LAWS
Local Entity
It is important to understand local employment law when terminating an employee or you risk legal action. Every country has its own regulations for termination, notice period and severance payment, so it’s vital to follow the regulations and stay compliant.
EOR
An EOR keeps you informed of the process and ensures a lawful termination
LANGUAGE & CULTURAL KNOWLEDGE
Local Entity
When you create a new entity, you may be unaware of all the local language and cultural factors, which can lead to misunderstandings and cause tensions.
Often, you’ll need to hire cultural advisors and translators to ensure a smooth process, which is difficult when all local documentation needs to be compliant with local
regulations and available in local dialects too.
EOR
With an EOR, you receive help from a Country Expert who explains cultural clashes and language differences in English. This way you avoid any cultural or language issues.
An EOR hires the employees in the new country under its local business entity and takes on all of the legal risk. As the legal employer the
EOR is responsible for:
• Visa, immigration and work permits
• Country compliant payroll and taxes
• Advice on cultural and language awareness
• Adhering to local labour laws
• Advice on required notice periods and termination rules
For many organizations and companies, the prospect of expansión can be overwhelming. Creating a new local entity in an unfamiliar country is frequently a long, stressful and costly process without any guarantee of success. Therefore, many businesses choose to delay before they finally step forward globally, but these delays hand your competitors first-mover advantage. More and more businesses are taking advantage of Employer of Record services to take these initial global steps first.
Want to give this step? Contact us