In a perfect world, you could hire international remote workers without worrying about compliance and payroll across borders. In reality, the complexities of international law make it difficult for businesses to hire workers abroad. To hire globally, businesses need to work with an employment partner, such as an employer of record (EOR) or professional employer organization (PEO).
1. Difference between an EOR and a PEO
At a glance, here are the differences between an EOR and a PEO as below:
Hiring under a PEO and EOR arrangement are quite similar, except for two things: The EOR method will put a portion of your business and workers on its payroll, while the PEO will take on the entire workforce. your workforce and provide all HRM services and functions for your business. You can keep the labor contract if you choose PEO, but when working with EOR, EOR will keep the labor contract and the two parties cooperate according to the service provision agreement.
2. Outsource PEO/EOR for business expansion and growth
Are you interested in building an effective business expansion strategy? Business growth strategies can be effective when you use PEO/EOR services. So how can PEO/EOR help your company Expand Business and Market?
2.1 Professional human resource management
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PEO/EOR helps create effective human resource management procedures and processes. Provide professional monitoring services with policies and guidelines to comply with legal regulations.
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Effective human resource management:
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Gain access to salary records, employee benefits, HR data, vacation and sick leave reports without the need for internal staff.
2.2 Working culture
Partnering with a PEO/EOR will help improve company culture, work ethics, and attract the right talent to the business. Improving employee productivity will also have a positive impact on market expansion.
2.3 Reduce Human Resource Management costs
The PEO/EOR will work together with your employees to create better purchasing power. They will regulate and handle benefits, salaries and human resource administration issues, thereby minimizing management costs, allowing you to have more space and means to expand your business.
3. What do PEO/EOR or Workforce Placement services include?
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Discuss terms of employment
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Prepare labor contracts with contract employees
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Handle issues related to pension funds
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Manage employee/employer contributions
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Provide workers' compensation insurance
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Calculate wages for employees
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Maintain employee payroll records
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Maintain and calculate annual leave
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Calculate employee sick leave according to law
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Maintain sick leave and unpaid leave records
4. Leading Employee Of Record Providers (EOR) in Vietnam
Faro Vietnam hopes that this guide can help you learn what distinguishes an EOR from a PEO, why it matters, and how to figure out what kind of partner your business needs to hire remote talent around the world.
With more than 16 years of experience in providing human resource services and owning a deep understanding of Vietnamese market and legislation, Faro Vietnam has been known as one of the leading Employee Of Record Providers (EOR) in Vietnam. We take over the legal liabilities and responsibilities as the contractual employer of the staff. Our service is optimal for Clients who have limitations in regular head-count or direct hiring.
>>>Faro Vietnam - the leading employer of record service provider
When outsourcing human resource management services to Vietnam, protecting trade secrets and personal information of employees is a matter of survival. Information security is an important issue, so our HR Management Outsourcing services are all audited and certified to meet ISO 27001 information security standards. Faro Vietnam ensures the highest level of information security for its customers.
We are here to answer any question you may have about our EOR service and experience. Reach out to us and we will respond to you as soon as we can.
CONTACT FARO VIETNAM today for EOR service
Faro Vietnam
Email: service.vn@farorecruitment.com
HANOI HEAD OFFICE
HO CHI MINH CITY OFFICE
Grow your business with our trusted Human Resource Solutions.