EOR is a service provided by a company that assumes the role of the employer for a specific set of employees.

It is suitable for companies that need talent in China but do not plan to set up an operating entity in China. Common scenarios include hiring IT and high-tech professionals.

Payroll Processing and Funding: 

• Handles the payment of wages to employees, including tax deductions and other statutory contributions.
• Tax Compliance: Ensures that all tax obligations are met, including filing tax returns and making necessary tax deposits.
• Employment Contracts: Manages the legal agreements between the worker and the company, including terms of employment and benefits.
• Work Permits and Visas: Assists in obtaining necessary work authorizations for employees working in different jurisdictions.
• Compliance with Labor Laws: Ensures adherence to local labor laws and regulations, including worker protections and employment standards.
• Termination and Severance: Advises on and manages the legal aspects of employee termination, including notice periods and severance pay.
• Government Interface: Acts as the point of contact between the employee and government authorities for employment-related matters.

Cases it Applies to:

• International Expansion: Companies expanding into new markets without a legal entity in the new country.
• Freelance and Contract Work: Engaging with freelancers or contractors who are not employees of the company directly.
• Temporary Staffing: Businesses that require temporary or seasonal workers.
• Remote Work: Companies with employees working remotely across different jurisdictions.
• Compliance and Risk Management: Situations where companies want to ensure they are compliant with local laws and reduce the risk of legal issues.
• The EOR model is beneficial for businesses looking to streamline their hiring processes, reduce administrative burdens, and ensure compliance with local employment laws and regulations.

Our advices concerning picking EOR service providers:  

1. Evaluate your workforce needs to determine if the EOR model is the most suitable solution for your business.
2. Conduct due diligence on EOR providers to find the best fit for your business by comparing their expertise, resources, service offerings, pricing, and client references.
3. Carefully review the contractual terms with the EOR provider to understand the scope of responsibilities, allocation of risks and liabilities, and any potential limitations or exclusions.