Employer of Record
BruntWork’s employer of record service enables global companies to hire employees in the Philippines, Colombia & other countries via a locally registered entity with all taxes and government mandated benefits taken care of on your behalf. Discover how Employer of Record Services can help your business manage payroll, HR, and compliance with ease. Streamline your operations and stay focused on growth.
Employer of Record: The Ultimate Guide to Streamline Global Hiring
As businesses continue to expand their operations into global markets, hiring international employees has become a crucial part of the growth strategy. However, navigating the complex legal and administrative requirements for international employment can be a significant challenge. Enter Employer of Record (EOR), a solution that simplifies and streamlines the process of hiring international employees. In this guide, we will explain what an Employer of Record is, its benefits, and how it can help businesses navigate the complexities of global employment.
What is an Employer of Record?
An Employer of Record (EOR) is a third-party company that serves as the official employer of an international workforce. Essentially, an EOR takes on the responsibility of handling all employment-related tasks for a company’s international employees, including compliance, payroll, benefits, taxes, and HR administration. The EOR acts as the employer of record for tax and legal purposes, while the company retains full operational control over its employees.
Benefits of Using an Employer of Record
1. Compliance with Local Laws and Regulations: One of the primary benefits of using an EOR is that it ensures compliance with local laws and regulations. This is critical for businesses that want to avoid the risks of fines, penalties, or legal action for non-compliance.
2. Reduced Administrative Burden: Hiring international employees can be a time-consuming and complicated process. An EOR takes on the administrative burden of HR, payroll, and tax compliance, freeing up time and resources for the company.
3. Access to Local Expertise: An EOR has local expertise in the country where the employees are based. This is beneficial for companies that may not have a local presence or the necessary knowledge of local laws and regulations.
4. Reduced Costs: An EOR can help businesses reduce costs by streamlining employment-related tasks, eliminating the need for additional staff, and reducing the risk of non-compliance.
5. Flexibility: An EOR provides flexibility for businesses to hire employees on a short-term or long-term basis, as per their needs.
How an Employer of Record Works
The process of working with an EOR is relatively simple. Once a company selects an EOR, the company signs an agreement with the EOR, and the EOR handles the rest. The EOR takes on the responsibilities of hiring, onboarding, payroll, benefits, taxes, and compliance. The EOR acts as the employer of record, while the company retains operational control over its employees.
The EOR typically charges a fee for its services, which is either a percentage of the employee’s salary or a flat fee per employee. The fee covers the administrative and legal expenses of hiring and employing an international workforce.
Common Misconceptions About Employer of Record
1. The EOR is the Employer of the Employee: This is a common misconception. The EOR is the employer of record, but the company retains full operational control over its employees.
2. The EOR is a Recruitment Agency: An EOR is not a recruitment agency. Its primary function is to handle the administrative and legal requirements of employing an international workforce.
3. EOR Services are Only for Large Corporations: EOR services are not limited to large corporations. Small and medium-sized businesses can also benefit from the flexibility, reduced administrative burden, and cost savings of using an EOR.
Frequently Asked Questions about Bruntwork's Employer of Record Service
From entrepreneurs to globally listed companies, we’re helping scale & deliver quality labour solutions on time and well below the equivalent cost of hiring locally.
Yes, an Employer of Record ensures compliance with local labor laws and regulations.
Employer of Record services can benefit all types of businesses that are looking to hire international employees.
An EOR has local expertise and knowledge of the legal and regulatory framework of the country where the employees are based. This enables the EOR to ensure compliance with all local laws and regulations.
Yes, businesses can use multiple EORs to handle their international employees in different countries. This allows for greater flexibility and the ability to work with EORs that have specific expertise in certain countries.
The costs of using an EOR vary depending on the services required and the location of the employees. Typically, EORs charge a fee either as a percentage of the employee’s salary or a flat fee per employee.
Yes, an EOR can handle employee benefits and insurance as part of its services. This includes health insurance, retirement benefits, and other employee benefits that are offered by the employer.
Yes, an EOR can handle the immigration and work visa requirements for international employees. This includes obtaining work permits, visas, and other necessary documentation.
The time it takes to set up an EOR service for international employees can vary depending on the location of the employees and the complexity of the services required. Typically, it takes a few weeks to set up the service.
If a company wants to terminate an employee who is under an EOR service, the EOR handles the termination process, including severance pay and compliance with local laws and regulations.
An EOR has strict data privacy and security measures in place to ensure the confidentiality of employee data. This includes compliance with local data privacy regulations and the use of secure servers and networks.
Yes, an EOR can provide HR support for international employees. This includes handling employee issues, disputes, and performance management.
Yes, an EOR can provide payroll and tax services for international employees. This includes calculating and processing payroll, ensuring compliance with local tax laws, and handling tax filings.
The BruntWork Advantage
No lock in contracts.
$ No set up fees
(recruiting is free).
Free to change your staff
if you need to.
Only pay an hourly rate which includes computer, internet and all fees.
(we can handle global businesses).
Agents can work from a minimum
of 20 hours per week.
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Outsourcing With Heart
We’re experts at building cost-effective and scalable operational teams for businesses wanting to grow fast and effectively. Since 2010 we’ve recruited and trained hundreds of staff to work in The Philippines on behalf of our clients.
Specialist teams deployed in record time
We've deployed specialist teams across most operational functions including Telesales for both inbound and outbound campaigns. Multi-Channel Customer Support, Data and Analytics, Digital Marketing, Digital Content Production, and Web & App Design.
Controversial Benefits of Outsourcing
Outsourcing to the Philippines is one of the most popular destinations for this cost saving activity due to its low cost of labor and English-speaking workforce. However, there are also a number of controversial benefits to outsourcing to the Philippines.
Notwithstanding the debate about whether outsourcing is the way to turn for businesses looking to maximize profits, many are turning to outsourcing as a solution to rising labor costs and the great resignation.
Outsourcing Results In Lower Costs
The clear-cut benefit of outsourcing is cost savings. Business owners can accomplish tasks at a lower cost and often with higher quality. Workers from countries like the Philippines can do the work required at a fraction of the cost. This is due to the wage disparity between Western and Asian countries. The services are of high quality, ensuring business owners that lower costs do not translate to inferior quality.
BruntWork Has Flipped The Outsourcing Model On It's Head
Remote Only, with Agents from $4 – $8/Hr
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