Benefits of Outsourcing Your Recruitment Needs with Cekindo
Recruitment Needs in Vietnam
Employer of Record (EOR) is a legal employer of the individuals who work for you, and as a result, far less oversight and effort is required from you. When a worker wants to work for your company and you use the EOR service, that worker will sign the contract with the EOR and not with your firm. There is no minimum number of employees that you can hire through an EOR.
On top of payroll processing, benefits administration, and employee contracts, EORs are responsible for all legal compliance paperwork. This allows you to hire globally without worrying about local labor rules, tax filing, or the word “compliance” ever again. As legal employers, EORs assume complete legal responsibility for your business’s service suppliers. You will not be responsible for any compliance violations that occur.
In addition, EORs provide comprehensive insurance, including general liability, workers’ compensation, and other types of insurance required by the nation of residency of each employee. EORs also assume complete obligation for the client company’s employment structure.
Usually, corporates and organizations that wish to expand globally would choose the EOR service since they would be more accessible to qualified candidates through the channel of the EOR, whether regionally or internationally. Moreover, they would not have to pay too much attention to managing the employees or worry about the legal aspects.
Our HR Outsourcing and Recruitment Solutions
The labor Law in Vietnam is complex and asks for certain efforts from companies to be complied with, especially if there is employment of foreign workers.
However, foreign enterprises that have not registered in Vietnam yet can’t hire local or foreign employees in Vietnam directly. In order to do so, they will either have to establish a local subsidiary or use intermediaries, which leads to the companies having to spend extra time and costs on registrations, operations, management or even closing.
Therefore, a lot of companies in Vietnam have chosen HR outsourcing services to minimize the risk and optimize their growth and efficiency. There are two options of HR outsourcing in Vietnam, namely Employer of Record (EOR) and Professional Employer Organization (PEO)
Employer of Record (EOR): What is it and why should companies choose it?
Employer of Record (EOR) is a legal employer of the individuals who work for you, and as a result, far less oversight and effort is required from you. When a worker wants to work for your company and you use the EOR service, that worker will sign the contract with the EOR and not with your firm. There is no minimum number of employees that you can hire through an EOR.
On top of payroll processing, benefits administration, and employee contracts, EORs are responsible for all legal compliance paperwork. This allows you to hire globally without worrying about local labor rules, tax filing, or the word “compliance” ever again. As legal employers, EORs assume complete legal responsibility for your business’s service suppliers. You will not be responsible for any compliance violations that occur.
In addition, EORs provide comprehensive insurance, including general liability, workers’ compensation, and other types of insurance required by the nation of residency of each employee. EORs also assume complete obligation for the client company’s employment structure.
Usually, corporates and organizations that wish to expand globally would choose the EOR service since they would be more accessible to qualified candidates through the channel of the EOR, whether regionally or internationally. Moreover, they would not have to pay too much attention to managing the employees or worry about the legal aspects.
Professional Employer Organization (PEO): What is it and why should companies choose it?
When you choose the Professional Employer Organization (PEO) service, your company and the PEO are the co-employers of your employees, which means the people recruited are still the employees of your company. You are still legally accountable for your workers, and the PEO’s function is to assist you with your day-to-day HR tasks.
The PEO shares responsibilities and liabilities with your organization. Because the PEO is another employer of the people who work for your company beside you, you must have your business registration where your employees reside.
In general, a PEO service can be more suitable for your needs if you intend to maintain a local presence and want to keep full legal accountability for your workforce. They are a wonderful choice for companies that wish to get the pressure of handling their human resources obligations so that they may focus on other elements of the business.
At Cekindo, we provide you with the most honest and reliable consultancy on which service you should go with that can optimize the chance of success for your future expansion goals. Thanks to years of experience and seasoned expertise, we can be your partner along the way, no matter which service you select, and make sure your choice of solution will not only meet your current circumstances but also your aspirations for growth in the years to come.
