The United Arab Emirates is the most popular region to start a business in the world. Due to its strategic location, broad resources, strong financial position, business laws, cosmopolitan culture, and overall appeal, the UAE has become the epicenter for businesses around the globe for the employer of record service.
Nevertheless, even when the UAE is constantly providing investors with the perfect conditions to start their businesses, it can be a difficult process. Therefore, to make sure that they can go through any challenge, entrepreneurs usually hire EOR services. With the support of an EOR, business owners can make sure that their businesses are able to expand.
Even when there are different ways to expand a business internationally, doing it with an EOR is the easiest one. Especially in the United Arab Emirates. An Employer of Record, or EOR, is a company that takes care of some responsibilities of a certain business. They are professionals that can face any business challenge or issue.
As a result, hiring an Employer of Record can provide companies with vast knowledge about employment contracts, work permits, payroll laws, renting workspaces, tax laws, and more. Furthermore, these professionals help organizations find the right talent for their vacancies. With the support of an EOR, managers can forget about some of their duties and focus on business expansion.
Expanding your company is a difficult process. It generally involves tons of paperwork, legal compliance, and other complicated operations. With the assistance of an EOR, organizations can sidestep the bureaucratic obstacles of expanding. Additionally, they count on a partner that allows them to have instant knowledge about the place they choose to expand to.
Services of an Employer of Record
Hiring EOR services to expand any type of business is a smart idea. An EOR can take care of the following responsibilities:
Internationally hire employees
When managers do not want to hire independent contractors or form a subsidiary, an EOR allows them to hire full-time personnel anywhere in the world. EORs typically have legal entities in other countries; therefore, it can let them hire employees without putting companies at risk financially or in terms of compliance.
Managers can continue to monitor the employees’ day-to-day work; but the EOR assumes complete legal responsibility for their contracts, payments, employee benefits, time off, taxes, and other legal matters.
Provide contracts compliantly
When business owners hire people from different countries, they must create employment contracts that adhere to each country’s tax and labor laws. Understanding and ensuring compliance in another country requires a significant amount of time and administrative effort; doing so in multiple countries around the world is even more difficult.
As a result, EORs take care of this process. When managers hire an employee in another country, the Employer of Record creates a contract that ensures that all local requirements are met. Including taxes, social security, workers’ compensation, minimum wage, termination requirements, and employee benefits.
Do background checks
Replacing an inadequate employee takes about 27 weeks. Furthermore, it can cost up to 3.5 times the employee’s annual compensation. EORs also do background checks on international hires to ensure that they have no criminal records or other red flags that could jeopardize businesses.
Register and file employment taxes
Tax regulations differ by country, and businesses can easily make little errors that result in major financial and compliance concerns. Therefore, tax documentation can be generated and filed by an EOR. Subsequently, saving time, ensuring correctness and compliance, and keeping records nice and organized.
Process and distribute payroll
Due to the many payment methods, bank charges, and currency conversions for global staff, international payroll processing is complicated. Employee payments are managed by an EOR in accordance with the company’s payroll schedule. In addition, an Employer of Record can handle payroll taxes, deductions, and returns. They also provide pay stubs for employees and let them choose from a number of different payroll outsourcing service options.
Take care of benefits and perks for remote workers
Employee benefits for foreign employees vary depending on their location. Employee benefits such as health insurance, social security, unemployment insurance, sick leave, wellness programs, pension plans, work-from-home stipends, and more are administered by EORs in collaboration with benefits suppliers all over the world.
Onboard new employees
Employee onboarding is another service provided by EORs as part of their HR services for business expansion. They assist employees in getting up and running by drafting contracts and obtaining signatures, gathering all essential documentation and tax forms, and enrolling the new hire on the payroll.
Terminate and re-hire employees
A worker’s employment contract can be terminated or switched from one type of contract to another by an Employer of Record. Each country has its own set of employment termination guidelines and conditions; which an EOR can help through. Managers determine when to fire an employee and the EOR takes care of the paperwork and legalities.
Expanding with an Employer of Record
Working with an EOR can help small firms with restricted finances since it gives them access to more cheap tech skills. An EOR can handle HR administration and small business payroll, which small business owners frequently lack the resources to handle.
Working with an EOR can also allow small businesses to provide greater employee benefits; which may be impossible to do with limited budgets and workforces. As a result, having an Employer of Record by their side can help investors to expand their small companies quicker. Relying on the support of an Employer of Record is a smart idea.
EORs allow businesses to quickly and affordably hire local talent in host nations. Therefore, with an EOR, companies will have a better understanding of the new market. Allowing them to give excellent customer service in local languages and cover more time zones this way.
A global team can also help businesses achieve high diversity and create an inclusive company culture. By doing this, EORs are able to make sure that the company is keeping their compliance with the local laws and other guidelines. Ultimately, allowing the company to grow and develop in any area.
Benefits of using an EOR
Legal issues increase when a company expands into new markets; particularly when it comes to foreign employees. Using an EOR to handle these problems offers a number of advantages versus establishing a local organization in a foreign country. Using an Employer of Record can help businesses to:
Save time and money
For international hiring, compliance, and payroll, an EOR is the most cost-effective and time-saving choice. Managers can spend more time cultivating a great employee experience and catering to other business demands when they do not have to spend their time handling all the tasks that can easily be outsourced to an EOR.
Likewise, an EOR can also save organizations a lot of money on back-office activities. Including legal training for the HR and recruiting team, legal counsel outsourcing, and acquiring legal permits to hire people from other countries.
Hiring a wide variety of candidates
Using an EOR to manage your payroll, benefits, and contracts helps organizations to fully use the power of a global workforce. They can benefit from new insights, unrivaled diversity, and thriving business culture. Additionally, they also have access to additional markets, languages, and time zones, as well as the opportunity to provide local support.
Minimize compliance risks
Investors can rely on EOR instead of learning a new set of rules each time they hire someone from a different country. Thus, they basically do not have to worry about local regulatory tax rules, employee benefits, or work licenses when they outsource; the employer of record will take care of it for them. If a legal issue arises, companies are protected; as the employee’s legal employer, the EOR assumes full responsibility for non-compliance fines.
Protect employee information
Because EORs process employee data, each client must sign a Data Processing Agreement (DPA). Employers are required by DPAs to handle employee data in a secure and confidential way at all times. To avert data leaks, most Employers of Record comply with the General Data Protection Regulation (GDPR), encode and back up data, and secure network connectivity.
Enhance employee experience
Employers of record can assist companies in preparing new hires for the job; in addition to following employment rules and administering local payroll. An EOR, as the legal employer, aids in the onboarding of all new workers.
Adapt to the new trends
The world is quickly turning toward remote and hybrid work models, as well as the formation of remote teams. Hiring from various regions has almost tripled, with Latin America seeing a 286% increase in hiring in this year. In the Middle East, Europe, and Africa, international hiring increased by roughly 250 percent.
In terms of flexible work alternatives, employers and employees are on the same page. After the pandemic, 73% of employees want the option of remote work, and nine out of ten CEOs say the hybrid work model will be a part of their future strategy. Hiring an international team through an EOR allows companies to keep up with the modern era of work while lowering the costs, stress, and time required to do so.
Add Comment