Asia is growing at a faster pace economically than the rest of the world and with this lot of foreign companies have shown interest in setting up a branch in some of the leading countries like China, Hong Kong, Macao, Taiwan, etc.
To set up a smooth and quick base or branch in these countries which have very strict labour law it becomes quite difficult for a foreign entity or a new business to get necessary permits and licenses on time on its own. To get away with any legal obligation related to employment and labour law the best way that these companies opt is to contract a local HR agency or PEO to hire employees on their behalf.
The labour law in China, Hong Kong, Taiwan, and Macao or more or less the same with few twitches here and there but the broader employee rights and benefits are the same, compliance and rules & regulation to be followed are almost the same.
Ways to Hire Local Employees
Direct Hiring – Only companies that have legal entities can hire staff directly but for a company not having a legal presence it is illegal to hire staff directly. Hiring directly is a big challenge in itself as there are a lot of legal requirements that are to be fulfilled to get a license and permit. All the compliances related to employee salary like total workdays, salary disbursement on time, Income tax deduction, contribution towards social security, insurance, etc. are to be followed monthly.
Hiring through a PEO – Outsourcing the HR operation to a PEO is one of the best options while hiring employees in terms of saving time, money, and resources. There are a lot of benefits when a PEO is hired for all employees and payment related requirements.
- A PEO manages all HR & payroll-related services and also takes care of all the compliance and legal requirements that are to be followed as per local labour laws.
- Payroll is managed keeping in mind all the necessary employment laws and employee-employer contributions towards social security, insurance, and other benefits.
- The PEO with their expertise and in-depth awareness of legal obligation saves a lot of time, money, and any penalty which may befall due to incompliance of any particular labour law.
- Management or Owner can put more focus on developing and expanding the business.
- PEO’s use the latest technology and software to manage and track all employee data which helps to keep the information related to employees safe and secure.
- An outsource HR agency is very beneficial to take assistance from in case of any legal dispute with an employee or authority.
With the vast demographical coverage of a PEO like Galaxy Group, your company gets the best person for the job and with the right employee, it also becomes easy to manage offsite tasks as employee travel is reduced which saves both time and money.
How can the Galaxy Group help you in hiring?
Galaxy Group has over twenty years of experience in providing payroll services and lodgement services across Asia, as well as employment services across the globe.