Employer of Record Chinaby Steve Manon Content Promoter
These days, everyone knows that economy of china is one of the fastest-growing economies in the world. With its astonishing growth in the last 30 years, China is now the second-largest economy right below the United States of America. Do you know that some people like to call China the "workshop of the world"? China possesses the world's largest population, and as a result, china ace is manufacturing employment. If you wish to spend lesser money on employees, you should count on the Chinese labor force. They are not only efficient, but they are also dedicated, and they charge way less than the average workforce from other countries.
The best thing about the Chinese workforce is that you will get to see a lot of women folk working alongside the male workers. These days many a foreign company is thinking of hiring from the Chinese workforce. They are also interested in working in the ever-growing Chinese market. But, all these seem pretty far-fetched for foreign companies if you don't have any local entity to operate your business in China. Here, the Employer of record China comes into play, and it facilitates the business works for foreign companies.
Roles of Chinese Employer of record
· Payroll services
The Employer of record China generally assists the company with on-time salary distribution among employees. The EOR team supervises the payroll process, expense management, etc. on behalf of the company. In simple words, the EOR remains in charge of the entire account management for your company in a foreign land.
- Labour-laws of China and social security
The Chinese labor law is quite different from the rest of the countries of the world. Here, the employment contract can be divided into three special types- Project-based, Fixed term, and indefinite. In a project-based employment type, you can hire a talented Chinese workforce for a maximum of one year. In the fixed-term contract, the Chinese employees can work with the global companies for up to six months based on the duration of that specific project. For the Indefinite employment contract type, the workers work for at least a year and receive full salary. Other than this labor law, foreign companies are liable to pay specific social insurance amounts to run their business in various cities of China. The employer of record generally takes care of these employment contracts, social security rules, etc., and assists your company accordingly.
- Working hours and holidays
Well, the typical local Chinese company follows the standard working hours from 8 am to 6 pm. They provide a lunch break of one to two hours. But, when a foreign company runs its business in the republic of china, it should never cross the working time limit of 44 hours a week in any case. The employer of record china generally takes care of this working hour. In no case, they allow the workforce to work more than 8 hours a day.
- Leave management
There are different types of leaves prevalent in China. The paid leave depends on your employment duration in a particular company. If an employee is working with a particular company for one year or less, he or she may not get any paid leave. Whereas, for more than 20 years of service in the same company, he or she can avail around 15 days of paid leave annually. In case of ailment and medical treatment, the employees are entitled to paid sick leaves also. In China, it is possible to take sick leave for up to 24 months. Any foreign company should provide around 98 days of maternity leaves to female employees working in China. A foreign company can't keep track of payments and leaves of all its employees in the homeland and foreign land. That is why they partner with the employer of record so that they get some assistance with the leave management.
- Termination of employment
The employer of record is the body that drafts the termination paper of the employees. It takes care of the notice period and helps the terminated employee with its provident fund or other due payments from the company. The EOR china follows the termination rules and policy of the Chinese government word for word. This way, the foreign company of yours doesn't face any legal complications of any kind.
- Tax and insurance
The Chinese workforce demand from your company pension benefits, maternity benefits, health insurance, and so on. In some cases, housing compensation is also demanded by laborers. So, you should collaborate with EOR in China so that they can handle all these insurance and tax-related tasks. This third-party organization tries to provide income tax assistance to the employees as well.
- Superfast market entry
It isn't hard to guess that the China Employer of Record will help your company to enter the Chinese market within a few weeks. The EOR team can recruit suitable candidates within two to three days if required. This way, with experts on board you can start running your business in a foreign country in a hassle-free manner.
So, contact China Employer of Record at your earliest if you want to expand your business in China this year. We are 100% sure that the EOR team will help you focus on your core business and strategy planning as it saves your company's vital hours.
Created on Mar 2nd 2021 14:02. Viewed 224 times.