An Employer of Record (EOR) is a third-party organization that manages all aspects of an employee's employment on behalf of a company. Essentially, the EOR serves as the employer for administrative purposes, handling everything from payroll and taxes to benefits and compliance.
There are several reasons why a company might choose to use an EOR. For one, it can help reduce the administrative burden of managing employees, allowing companies to focus on their core business activities. Additionally, an EOR can help ensure compliance with various employment regulations, including labor laws and tax requirements.
Another benefit of using an EOR is that it can help companies expand their operations into new markets more quickly and easily. For example, if a company wants to hire employees in a foreign country, they may not be familiar with the local employment laws and regulations. By partnering with an EOR that has experience in that country, the company can ensure compliance and avoid costly mistakes.
Overall, an Employer of Record can be a valuable resource for companies looking to streamline their HR and payroll processes, ensure compliance, and expand their operations. If you're considering using an EOR, be sure to do your research and choose a reputable provider with a proven track record of success.
We hope this brief introduction to Employer of Record has been helpful. If you have any questions or you are planning to set up a office in KL, please feel free to contact us, and we'll be happy to assist you.