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The Reason Business using EOR (Employer of Record) Services

An Employer of Record (EOR) is a third-party organization that handles the administrative and legal responsibilities of employing staff on behalf of a company. In Malaysia, there are several EOR companies that provide services to businesses that want to hire employees in the country without setting up a legal entity.

Businesses may choose to use an Employer of Record (EOR) for several reasons, including:

  1. Compliance: An EOR can help ensure compliance with local labor laws and regulations, which can vary widely from country to country. By using an EOR, businesses can avoid potential legal issues and fines for non-compliance.

  2. Administrative Support: An EOR can handle administrative tasks such as payroll processing, tax withholding, benefits administration, and insurance coverage. This can free up businesses to focus on their core operations.

  3. Talent Acquisition: An EOR can help businesses expand their global workforce quickly and efficiently. They can provide access to a network of qualified candidates, as well as handle the hiring and onboarding process.

  4. Risk Mitigation: By using an EOR, businesses can transfer some of the risks associated with employment to the EOR. For example, if an employee is injured on the job, the EOR may be responsible for handling workers' compensation claims.

  5. Cost Savings: For businesses looking to expand into new markets, using an EOR can be a more cost-effective option than setting up a legal entity in a foreign country. EORs can also negotiate better rates for benefits and insurance coverage due to their economies of scale.

By using an EOR in Malaysia, companies can save time and money on administrative tasks and focus on their core business functions. Additionally, an EOR can help ensure compliance with local labor laws and regulations, which can be complex and vary by region.

GP Outsourcing Asia can help businesses who wants to set up their office in KL, If you are planning to set up office in KL, we can help you with it. We can provide you with EOR services in Malaysia. Do not hesitate to contact us and follow us for more information!


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