Hiring Employees - EOR Asia

Hire Employees in Asia

Hire, pay and manage your emplyees without establishing a local company

Build Your Team in Asia

You don’t always need a local company to operate in Asia. With EOR Asia‘s help, you can hire staff and build a team for various roles—like sales, marketing, support, R&D, and quality control—without setting up Asian branches. We offer Employer of Record services, letting you manage your business functions in Asia without the hassle of a local entity.

The problem with hiring contractors in Asia

Understanding Employee Types in Asia

In Asia, it’s not always easy to decide if a worker is an independent contractor or an employee. The law says a worker is an employee if:

They follow the employer’s rules.
They do what the employer tells them.
They get paid for work that is part of the company’s job.

Asia treats part-time and full-time workers the same. That means every worker must get the benefits they’re supposed to get.

If you don’t figure out the right worker type or don’t give workers their benefits, you might not be allowed to do business in Asia.

How to hiring remote workers in Asia

Using an Employer of Record

To legally hire employees and manage the necessary social insurance contributions in Asia, an employer must either establish a legal entity there or partner with an Employer of Record (EOR) service like EOR Asia.

EOR Asia is a certified EOR service provider in Mainland Asia, capable of representing other businesses—both domestic and international—to hire employees. By doing so, EOR Asia takes on the full range of employment-related responsibilities and legal obligations in Asia on behalf of these companies.

Frequently Asked Questions

What is the main difference between an EOR and a PEO?

An EOR helps businesses hire employees in Asia without needing a local entity, while a PEO provides HR services like payroll and benefits management for businesses that already have a legal entity in Asia.

How long does it typically take to hire an employee in Japan?

The hiring process in Japan can vary widely depending on the company and the position. It might take anywhere from a few weeks to several months. Traditionally, Japan has a unique recruitment cycle, with a high season for hiring new graduates in the spring. For foreign companies or specialized roles, the process might be quicker or slower depending on the candidate pool and the company’s needs.

Can a foreign company hire employees in South Africa without a local entity?

It is possible for a foreign company to hire employees in South Africa without a local entity, but it can be quite complex due to immigration and labor laws. Companies often use a local Employer of Record (EOR) or a Professional Employer Organization (PEO) to manage local employment compliance, payroll, and benefits.

How does an EOR help with the payment of social security and taxes for employees in Indonesia?

An Employer of Record (EOR) in Indonesia helps foreign companies by taking on the legal employer responsibilities for their local workforce. This includes registering employees with the local authorities, managing payroll, ensuring timely and correct payment of social security contributions, and handling all tax-related matters, including income tax withholding and reporting.

What happens if an employee in China is injured at work?

If an employee in China is injured at work, the employer must follow a series of legal requirements and procedures as outlined by the Chinese labor laws, specifically the “Work Injury Insurance Regulations.” Here’s a more detailed look at the process:

1. Immediate Reporting:
The employer is required to report the accident to the relevant labor authorities and the employee’s union representative, if any, within 48 hours.

2. Medical Treatment:
The employer must ensure that the injured employee receives immediate medical attention. The costs of medical treatment for work injuries are typically covered by the employer until the employee is stabilized.

3. Application for Work Injury Recognition:
The employer, in coordination with the employee, should apply to the local labor authorities for work injury recognition. This process involves an assessment of the incident and the injuries to determine if they are indeed work-related.

4. Work Injury Insurance:
If the injury is recognized as a work injury, the costs are then covered by the Work Injury Insurance Fund, which includes payment of medical expenses, disability compensation, and possibly a one-time compensation payment depending on the severity of the injury.

5. Disability Assessment:
If the injury results in a disability, a formal assessment is conducted to determine the level of disability. This assessment affects the amount of compensation the employee is entitled to receive.

6. Compensation and Benefits:
Depending on the outcome of the disability assessment, the employee may be entitled to various forms of compensation, including but not limited to, disability compensation, loss of income compensation, and vocational rehabilitation support.

7. Return to Work or Termination:
If the employee is unable to return to their previous role due to the injury, the employer is obligated to provide suitable alternative work if possible. If the employment contract is terminated, the employee is entitled to additional compensation.

8. Ongoing Legal Compliance:
The employer must continue to comply with all legal requirements regarding the employee’s compensation, benefits, and any other entitlements as per the labor laws.

9. Potential Penalties:
If the employer is found to have violated occupational safety and health regulations, they may face fines, legal sanctions, and a negative impact on their reputation.

It’s important to note that the specifics of each case can vary, and the process may be subject to change with updates in Chinese labor law. Employers are advised to consult with local legal experts to ensure full compliance with the latest regulations.

Is it necessary to have a local director or legal representative for hiring employees in Philippines?

In the Philippines, it is not strictly necessary to have a local director or legal representative to hire employees, but it can be beneficial and is often required for certain business activities. Foreign companies typically engage a local Employer of Record (EOR) or a Professional Employer Organization (PEO) to manage the employment of staff in the Philippines. The EOR acts as the legal employer, taking on responsibilities such as compliance with local labor laws, payroll, tax, and benefits administration.

Having a local director or representative can also be advantageous for building business relationships, navigating local regulations, and managing operations more effectively. However, the specific requirements may depend on the type of business, the scale of operations, and the nature of the work being performed in the Philippines.

It’s important to consult with legal and HR experts who are familiar with Philippine labor laws and business regulations to determine the most appropriate structure for your company’s hiring practices and operations.

What is the annual paid leave entitlement for employees in Vietnam?

The annual paid leave entitlement in Vietnam is generally 12 working days for full-time employees. This is in accordance with the Vietnamese Labor Code. However, this can vary based on the specific terms of employment, collective bargaining agreements, or changes to the law.

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