Employer FAQs

What is GEO

A GEO ( Global Employment Organization ) is a company that employs human resources on behalf of its clients, acting as the “ Employer of Record ( EOR ), and manages their payroll, social insurance, and tax compliance. This term is often used interchangeably with PEO, but as the term PEO has certain unique meanings in the US market, some people prefer the term GEO for this solution.

What is EOR

EOR (Employer of Record ) refers to the employment of human resources on behalf of a client. Under this model, the EOR undertakes the role of employer and carries out the payroll, social insurance, and tax compliance services required. Typically day to day management of the staff remains with the client company. This term is often used interchangeably with PEO ( Professional Employment Organization) and GEO ( Global Employment Organization ).

What is the difference between PEO, EOR, GEO?

These terms essentially refer to the same service where employment of human resources is outsourced to a third party professional service provider. GEO stands for ‘Global Employment Organisation’ and EOR for ‘Employment of Record’. PEO can have certain other connotations unique to the US market.

Why should I use an outsourced employment solution instead of setting up a local entity?

Setting up a legal entity in the country in which you want to expand can be complicated and subject to many tax obligations and legal liabilities including: requiring local shareholders or directors, maintaining corporate tax compliance and reporting requirements, etc.

Who will manage our employees?

Whilst the PEO is the legal employer and will manage local employment requirements such as payroll and tax, the client company can maintain day to day oversight and direction of the staff. Note that in some cases there is PE risk associated with certain directives to or activities by the employees. Speak to our consultants to ensure this is closely managed and mitigated.

Why cant we hire remote staff as “independent contractors” ?

This used to be common but is now generally avoided, due to the risks and liabilities that can result for the company retaining them. If the individual is working exclusively or full time for the company, local authorities may judge this to denote employment, regardless of their status under the contract. This can result in the “contractor” being permitted to claim certain rights, benefits, and protections as an employee ( protection from, or compensation for severance, rights to additional pay, social insurance coverage, etc) which can reverse any advantages perceived by hiring them as contractors originally. Additionally, authorities may consider a PE ( permanent establishment ) to have been created, which can lead to a time-consuming audit, taxes, and penalties being applied to the employing company. In certain jurisdictions, non-competition clauses, NDAs, and IP protection related terms can also be difficult to enforce with independent contractors.

Will it weaken our branding?

The PEO solution can be implemented invisibly so your clients do not need to know your staff is under a third-party solution. Your staff may carry your company’s business cards. Our clients have noted no detrimental effect on branding, but rather, benefit from being able to establish a fully functional local team quickly and without suffering from the teething problems and resource restrictions which a new subsidiary often faces.

Can the employees still use our business cards and e mail if they are under a PEO?

This can be done, but please discuss with Eos professionals about how to avoid unduly increasing PE risk when doing so.

Can we still lease an office if we don’t have a local entity?

There are serviced office providers in many countries who are willing to let foreign companies lease office space. In cases where a landlord is not willing to enter a lease with your home country entity, Eos is happy to do so on your behalf in most jurisdictions.

Will it limit our activities if we don’t have our own entity?

Eos bespoke services can enable you to undertake most business activities seamlessly without a local entity. We can support your end-client invoicing, leases, and other bespoke requirements in many jurisdictions so that lacking a local subsidiary will not impact your preferred operations. For certain activities where you require special business licenses ( such as banking ), loans, permits, etc, or where you need to acquire assets such as property, a local subsidiary may be required.

Whose employees are the resources if they are hired under a PEO model?

From a legal and bureaucratic perspective ( such as when the employee is enrolled in social insurance or applies for a mortgage ), they are the employee of the PEO service provider (Eos). However, in most day to day activities, they can act under your direction and perform their tasks just like any staff hired under your own legal entity. If they use your business cards, email addresses, etc, clients do not need to know they are not employed under your own entity.

Where will the staff work?

Staff hired under the EOR can work from home or at your designated work location ( shared workspace, serviced or private office, your client’s location, etc ). Eos can facilitate leasing under our entity in many locations if needed. In certain countries, we can also facilitate shared working space.

Can Eos dispatch your staff to your third party client locations?

Whilst the staff hired by Eos can work at your preferred location, certain countries have strict stipulations governing the dispatch of employes to third party client locations. This can require relevant dispatch licenses to be held by Eos, or affect the job roles or number of staff permitted to be handled in this way. Please consult with our experts for more details.

How long does it take to onboard our staff?

Eos can quickly provide our standard engagement letter to meet your preferred scope of services, and our employment contract templates, compliant under local labor law, can be customized to meet your preferred terms and conditions. Once you have provided us with your staff details, we can issue the documents and move forward within days. In the case of expatriate staff, visa processing times can vary based on the authorities involved, but our experienced immigration team endeavors to ensure a smooth and seamless process.

Can Eos hire staff as an independent contractors?

This used to be common but is now generally avoided, due to the risks and liabilities that can result for the company retaining them. If the individual is working exclusively or full time for the company, local authorities may judge this to denote employment, regardless of their status under the contract. This can result in the “contractor” being permitted to claim certain rights, benefits, and protections as an employee ( protection from, or compensation for severance, rights to additional pay, social insurance coverage, etc) which can reverse any advantages perceived by hiring them as contractors originally. Additionally, authorities may consider a PE ( permanent establishment ) to have been created, which can lead to a time-consuming audit, taxes, and penalties being applied to the employing company. In certain jurisdictions, non-competition clauses, NDAs, and IP protection related terms can also be difficult to enforce with independent contractors.

What is PE Risk?

Many companies, including some PEO service providers, neglect this important issue. When hiring independent contractors, or engaging staff through a PEO company, there is a risk that authorities can judge that the scope of activities has effectively created a permanent establishment even if no entity was formally incorporated. This can result in an audit, and potentially tax and penalties being levied. For this reason, hiring remote staff as independent contractors is generally inadvisable. Under a PEO model, documentation and management of the solution must be carefully implemented to mitigate this risk.

What's the process to move forward?

The process is simple – Confirm with our team regarding engagement scope, timeline, and staff details ( number of employees, their roles, salaries, and work location). Eos issue our engagement letter and once signed, provide you with employment contracts with your staff specific details. Onboarding can then proceed immediately.

Are employment contracts fixed-term, or open?

This will differ on the role of the individual and rules of the country you wish them to work in. Our local professionals will provide you with all of the guidance you require. Note that the legal risks and liabilities can vary greatly based on contract type according to the jurisdiction so close consideration must be given.

How do we know what enrollments and taxes are required?

Eos has it covered! Prior to onboarding, we shall provide you with a simulation of the gross-to-net pay calculations, and any related employer costs. Ongoing we ensure all taxes and contributions are paid, statutory benefits are provided to employees, and compliance is maintained. We can also provide you insights into what optional benefits are customary in each country.

Is there a minimum or maximum number of employees Eos can hire for us?

Eos supports clients whose support needs vary from single staff members to teams of several hundred. There is no minimum stipulation, and many of our clients begin with a single employee as they first explore the market. Be aware that certain countries require the application of a quota for employment of foreign staff, which must be taken into account if large numbers of ex-pats are required to be dispatched quickly.

How can we hire an employee in a country where we don’t have a subsidiary?

Eos will hire your staff under our local entity, becoming the “Employer of Record”. They will be legally and compliantly employed and compensated with all the benefits and protections of an established entity. You will just provide us with salaries and employer costs in advance each month, and we take care of the rest.

How do we compliantly terminate an employee?

Termination is a sensitive issue that must be carried out carefully with a full understanding of local labor law, which in many countries in Asia has strong protections for employees. Eos will work closely with your HR team, giving you the benefit of our local expertise to achieve the desired outcome smoothly and compliantly.

How do we ensure our employees are paid compliantly?

We manage the whole process for you. Eos has decades of experience managing compliance of payroll, tax, and social insurance. We shall provide you with a detailed payroll schedule, outlining each stage of the process. Each month we issue a payroll calculation for your confirmation of monthly salary, bonuses, and expenses amounts, with a payment deadline for receipt of funds. Once you have reviewed and approved, you remit the funds to Eos and we proceed to make all payments required. Payslips are issued, and any government receipts available can be provided on request.

Is payment hourly, weekly, or monthly?

This can follow your preferred calculation method in most countries, but some jurisdictions have stipulations in this regard. Eos payroll professionals are happy to provide guidance specific to your target country.

Will the employees still feel they are part of our company if they are under a PEO?

Our bilingual staff can guide the new employees so they understand they are under our care, but your direction. They can use your email addresses, and business cards, and with daily interaction with your global team they do not need to feel in any way disenfranchised. We are happy to speak with them to put their minds at ease if they have any concerns about the structure.

How long does it take to on-board an employee?

For local nationals, employment can generally be implemented within days. Foreign nationals may face immigration or other process related delays, about which the Eos team can offer you pragmatic advice based on extensive experience in the country of employment.

Do employees have to be hired for a fixed time? Is there a minimum or maximum period?

Clients often do not have clear visibility of the period of support they may need – it can depend on the evolution of their business, the suitability of staff, and many other factors, so Eos take a flexible approach. We can provide support for any period, and are always available to discuss your plans as they develop. Note that in some countries, fixed-term or open contracts have specific implications which you will need to consider – for example, intrinsic risks or liabilities for the company in case of termination, or preference due to perceptions of prestige or stability by your new hires. The Eos team can guide you through this based on your country of operations.

Can you support Expats?

Yes, Eos can provide LOIs (letters of invitation), work visas, and dependent visas for your foreign staff and their dependents. Note that certain countries have limits or quota restrictions that apply to foreign hires or forbid their participation in certain jobs or industries. Our immigration team is happy to provide advice specific to your target country. It’s important that your foreign staff and their families have a seamless transition so that they can feel comfortable in their new environment and be focused and effective in their role. Our staff is happy to speak with them to resolve any concerns and provide pragmatic guidance to make their secondment a happy one.

Which countries can you support?

160+ countries, check out our countries page

How do we manage the outsourced employee’s daily work?

It’s simple – You can manage most daily business activities in the same way as your normal employees. Note that to mitigate PE risk and termination issues, advice to the employees on certain key issues should be directed through Eos however.

How is Intellectual Property (IP) protected if its produced by an employee hired under a PEO?

This is a common concern. Our locally compliant employment contract templates can be customized to incorporate your preferred protective clauses with regards to IP, NDAs, etc to optimize your protection in such cases. Eos waives any rights to such IP under the standard terms of our engagement letter.

What issues are there for termination of PEO staff?

Staff hired under Eos have the same legal protections and rights as any other employee, and termination must be handled carefully and compliantly based on an understanding of local labor law. Termination related liabilities and processes will be determined by the type of contract they are under ( part-time, fixed-term, open, etc ) and will differ by jurisdiction. Our team of local experts will provide guidance to ensure you proceed with a full understanding of the best practices.

How are expenses handled?

The process is simple. Expenses can be remitted directly by you to the employee, or through Eos along with the monthly payroll once you have given approval. Our Payroll timeline, provided to you when we begin our engagement, includes cut off dates for receipt of confirmation on any expenses to be paid out, and these funds would be remitted to us by you along with the usual salary funds each month in advance of payment to the individual. Our tax team can provide advice on which items can be treated as reimbursable business expenses, and which are considered taxable benefits, which can vary by jurisdiction.