Links International’s Employer of Record Services & PEO

A professional employer organisation (PEO) or employer of record (EOR) is an organisation that hires employees on behalf of the employer and seconds them back to the employer. In the case of foreign hiring, including contractors and freelancers, they help bypass certain barriers of entry, including the need to set up a business entity and provide additional benefits such as employee payroll management. PEO allows businesses to have someone on the ground in as little as 48 hours.

PEO works as an outsourced HR unit supported by an external HR services provider. Many aspects of HR are absorbed by the service provider under a PEO / EOR model. This can vary depending on the service agreement but can include aspects such as employee administration, payroll processing, work permits, worker compensation insurance, benefits management, recruitment and onboarding, and more.

PEO / EOR services are a highly inexpensive solution for businesses looking to expand into new markets. Starting at US$300/Month, businesses are able to have someone on the ground without the need to set up a business entity that normally requires greater in-country capital and is often costly to set up and maintain.

As a professional HR service, PEO/EOR agencies can help you protect your business against fines and penalties by having compliance experts manage your HR function. This is especially beneficial for the management of new markets and foreign locations where you have limited knowledge of local payroll tax laws and reporting requirements, unemployment insurance, workers’ compensation, hiring and HR compliance.

Whether you’re hiring for an existing or a new market, employing a PEO / EOR offers numerous advantages for international expansion. The key benefits of outsourcing employment services to an EOR include:

• Speed to market – Acquire talent anywhere in Africa, Americas, APAC, Middle East & Europe in less than 48 hours with on-the-ground HR support
• Flexibility & Cost – Expand into new markets without incurring the cost, commitment and timeline associated with setting up a new legal entity
• Wider Talent Pool – Access a broad talent pool by hiring in-demand skillsets from anywhere in Africa, Americas, APAC, Middle East & Europe
• M&A Activity – Simplifying corporate structure by closing legal entities and moving ‘orphaned employees’ under a PEO/EOR provider to save ongoing costs
• Mobility & Retention – Retain staff by allowing them to relocate anywhere in Africa, Americas, APAC, Middle East & Europe and work remotely

PEO / EOR services streamline overseas employment and payment processes through the following steps:

• Step 1: Selecting the target market for expansion
• Step 2: Identifying and shortlisting candidates according to business needs
• Step 3: Sign the service agreement with Links
• Step 4: Get ready for onboarding!

In most cases, payroll falls under the scope of PEO.

Once payroll is set up, staff management, including freelancers and contractors (even for multi-country) is fairly straightforward. Quality PEO services ensure your employees are paid accurately and on time, giving companies the peace of mind that their business is fully compliant with local regulations with dedicated help desk support.

Key aspects to note when deciding on a PEO partner:

• Service coverage (location & scope)
• Information security and data privacy
• Level of local knowledge and  support

At Links, we offer flexible payroll services covering 30+ locations across the Asia Pacific & Middle East. Using a 100% in-country service delivery model, companies can safely rely on us to deliver their PEO.

Multi-country payroll refers to the process of managing and administering payroll for employees in various countries when a company has established a local entity. In other words, the organisation hires their own employees legally, themselves, whilst they outsource the administrative processing to a third-party professional firm.

In multi-country PEO / EOR, the employees are legally hired under the third-party professional PEO / EOR firm, on top of managing and administering the payroll processes for employees.

It is good to note that not all PEO / EOR services provider offer payroll outsourcing services, and vice versa.

Links provides EOR services 100% from our own Links entities / team.

A multi-country PEO / EOR acts as the legal employer of the employee while maintaining constant and fluid communication between the company and the employee. A PEO / EOR service will handle the complicated bits of the process and:

• Prepare employment contract and discuss terms of employment,
• Handle payroll, HR, and labour law compliance,
• Process and disburse salary,
• Provide statutory and tax processing and lodgement,
• Offer group company insurance where applicable,
• Issue letters, statutory documents, payslips,
• Provide in-country support to payroll, HR, and labour law queries,
• Provide a self-service portal to facilitate pre-approved vacation and paid time off (if required)

On the other hand, the company utilising the PEO / EOR service will only have to handle:

• Workplace safety and compliance
• Workplace arrangements and reporting line
• Day-to-day performance monitoring
• Vacation and paid time off confirmation (if applicable)

Choosing our employer of record services means that you will be getting an open channel of communication. If there are any performance issues (which may or may not lead to termination), client should communicate this intention to Links prior to any communication with the employee(s). Rest assured that we would advise the client on compliance and market practice and support all the administration needed in the termination process.

A suitable PEO / EOR service provider offers a range of features that cater to your needs during expansion. These may include:

• High data security standards and protocols are in place to safeguard your data, regardless of the hiring location, with the ability to customise the platform and processes to align with your specific requirements.
• The platform should allow employees to manage their benefits and extract payslips regardless of the hiring location.
• Flexibility to offer Group Insurances on behalf of the end client.
• Commercials and Fees.

Links has our own in-country teams across the region, directly supporting our clients in each location. Our in-country teams are seasoned with over 25 years of experience in local markets and are well-equipped with knowledge in respect of local labour laws and regulations, market practices, cultural considerations and customs that might be preferred by the industry to businesses. From historical changes to such laws to future implementations by the government and the shift of the hiring or employment landscape, our teams work very closely with our clients to ensure hassle-free and compliant hiring across the region and take care of any administrative requirements as part of the service.