An Employer of Record (EOR) is an organization outside of a company, that recruits and pays wages to employees on behalf of the other company. They also indulge in handling all formal employment tasks mandated by law. Companies can legally and efficiently engage with overseas workers in a new country or state by using an Employer of Records, without having to set up a local organisation or risk breaching local employment rules.
This is especially important in the context of China, as it is a tricky market which requires more due diligence and compliance requirements, often in the mandarin language which can be hard to navigate through for foreign entities intending to set up shop in China.
An Employer of Record, simply put, is a local entity that serves as a middleman in an existing employee-employer relationship. The EOR is responsible for ensuring that immigration, employment, and payroll legal and regulatory obligations are met, but is not involved in day-to-day operations. There are many Global Employer services in China who is the worker's registered employer, but has no supervisory or managerial responsibilities in relation to the employee's position. The substantive work relationship is maintained by the original employer, who makes all choices on compensation, position responsibilities, projects, and termination.
Top Employer Of Record Firms In China also arranges for the employee's work permits and visas if needed, and avoids delays or refusals as far as possible. They also provides a legal organisation through which a local, compliant payroll can be run within the country. They meet all labour regulations in the host country, including those governing local contracts and worker safeguards. The Employer of Record also acts as the host country's liaison between the employee and government authorities, and advises the clienton needed notice periods, termination procedures, and severance pay.
We are one of the best Employer Of Record Firms In China, offering services to a plethora of clients across various entities from all around the world, and have near perfect client retention statistics. On top of helping you expand your business to China, we also can help you save significant amount of costs involved in the process.
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