EMPLOYER OF RECORD - EOR
An Employer of Record is a company or organization that that helps you employ people legally in other countries and is legally responsible paying employees, including dealing with employee taxes, benefits, insurance, visa application, and sponsorship applications and a great many other transactions and operations concerning human resources.
Businesses rely on EOR to help them hire employees in multiple countries. With an EOR, a company can expand operations into another country without having to set up a local entity, which can be expensive and take months or longer to accomplish. Working with an EOR allows businesses big and small to employ and pay workers in other countries quickly and affordably.
Companies often hire EOR to decrease all the complications and hurdles related to human resources operations, market access, market understanding and market participation, and managing payroll for international employees.
Why use an EOR?
Hiring, or what many call “partnering”, with an employer of record comes with several benefits.
Hiring an EOR gives the client’s company the opportunity to manage their time more efficiently and effectively.
Businesses rely on employers of record to help them hire employees in multiple countries. With an EOR, a company can expand operations into another country without having to set up a local entity, which can be expensive and take months or longer to accomplish. Working with an EOR allows businesses big and small to employ and pay workers in other countries quickly and affordably.
EOR can have immediate effects in terms of cost structures, human resources operations, employee benefits, payroll, and overall compensation, not to mention compliance issues regarding domestic and international regulations.
This restructuring of the company’s cost dynamics allows for an improved cash flow and increased saving, as well as an increase in marginal expenses.
Employer of record services allow companies without local legal entities to employ workers legally in other countries. These services mostly fall under the functions of human resources and legal teams, including payroll, benefits, taxes, stock options, and compliance.
Other employer of record services may include advisory services for companies looking to expand their teams into new markets. For example, an EOR may offer advice on how to integrate remote workers or how to create a global compensation plan.
Employer of record services typically do not involve “co-employment,” an arrangement in which two companies employ the same person simultaneously. In the country where the employee works, the EOR is the only employer on paper. In practice, however, the EOR does not have any involvement in the day-to-day life of the employee beyond HR functions like payroll and benefits administration.
EOR vs PEO
Even though they seem similar and many companies tend to confuse them, Professional Employer Organizations (PEOs) and Employers of Record (EORs) provide very different services.
There are several factors that differentiate these two outsourcing models. Here we focus on the main differences:
• Regulatory compliance management
• Business registration.
Is EOR legal?
Yes, it is legal to hire employees in other countries through an EOR. Some EORs are more compliant than others, though.
Only EORs that own their own entities can guarantee the maximum level of compliance everywhere they operate. Before you begin working with an EOR, make sure your EOR owns a local entity and has sufficient knowledge to handle localized payroll, benefits, taxes, and compliance, as well as stock options, if you offer stock to your employees.
Availability of suitable human resources have made India one of the hotspots of KPO/IT industry, Finance/Banking, Shared Service Centers, back office etc.
India is home to a vast pool of human resources consisting of educated, English speaking, tech-savvy personnel.
Every year, more than 30 million graduates are enrolled in higher education in India. These figures very well give the idea of human resources availability in India
Onboard Talents in India with VINPRO
Hire remote employees
Hire the best full-time talent wherever they are in India, without setting up a new entity.
Skilled resources at very competitive salary in India.s
No Transfer pricing.
Full India coverage, no compliance risk
Access to local tax and employment expertise
Reduce admin and skip costly legal and payroll set-up
Retain Employee Ownership
We help you build the perfect Indian team without giving up employee ownership! Employee IP, day to day communication, and management are owned and managed by you.
Vinpro doesn’t manage, direct, or even have access to any work your hires are doing. They work exclusively for you, acting like any team member, following your tools and processes. Zpro only does the finding, hiring, local laws compliance, social security, office and ensures they have the conditions to perform.