Frequently asked questions about EOR (Part I)
More and more companies are hiring us, but at the same time there are more and more doubts. We invite you to read the first questions. We will answer more in the next days, so: stay tuned!
1. Are you an international PEO?
Professional Employment Organizations (PEOs) provide their services in most cases by co- employing the workers with their clients. Co-employment does not exist in an identical format outside of the US. Our EOR service is designed exclusively for companies with the need to hire employees outside of the US. So, while the service is modeled after PEOs in the US and does provide many of the same benefits of a PEO, we are not an international PEO.
2. How can we engage a worker in a country where my business has no presence or establishment?
We can employ foreign workers in many countries on our client’s behalf. This means that in countries where your company does not have a business entity, you can still legally employ local workers. Our clients do not have to form a local entity. That is one of the core benefits of our EOR service delivery mode.
3. Will we need to set up bank accounts in the country we wish to engage a worker in?
No, foreign banking facilities and local funds are not required. We manage the foreign payments in the local currency, and then invoice the client in GBP, Euros or USD. However, in most countries, the worker being paid will need to have an in-country bank account to receive funds in the local currency.
4. How do we know what benefits we must provide for the worker?
The laws on benefit provisions are completely unique to each country. By becoming the employer of record, become responsible for ensuring all statutory benefits are provided to the worker. In addition, we can offer clients insights into what is customary in each country and in many cases, will provide referrals to benefit experts who design supplemental packages, if desired. Our clients find that this is a great way to help workers feel unaffected by the alternative arrangement, which results in higher worker retention.
5. How can I pay my foreign worker compliantly?
All you need to do is to agree what to pay the worker, have them sign the approved in-country worker contract, adhere to the agreed upon payroll schedule and leave the rest to us.
Do you still have doubts?
With our services our clients no longer need to own a local entity to employ talent compliantly. We offer the most cost-effective way of growing internationally while maintaining legal compliance within the countries your experts work in. Contact us
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