How employer of record service Vietnam works

One of the common challenges businesses face when entering a new market is the problem of recruiting and managing employees and ensuring compliance in that country. To solve this problem, many businesses have turned to companies that provide employer of record service Vietnam. This article will explore how Enterprise Resource Planning (EOR) services work and how foreign businesses can simplify and streamline their recruitment process through this service.

1. How does an Enterprise Resource Planning (EOR) service work?

According to current regulations in many countries, in order to officially hire workers, employers must have a legal presence in the host country, such as a subsidiary or a representative office. However, establishing a legal presence is costly in time, effort and resources. Grasping that need, the global employer of record service (EOR) service was born.

Human Resource Management Services, also known as EOR (Employer of Record), is a form in which the service provider will act on behalf of the business as the legal employer of the employee. Human Resource Management Services will help businesses avoid risks or challenges when completely building a new human resource apparatus so that they can focus on developing core business activities.

Human Resource Management Service (EOR) companies are people with rich professional knowledge and understanding of local labor regulations and policies. These units can help businesses comply with the laws, and support businesses in performing many tasks related to recruitment and labor management, including:

  • Recruitment
  • Labor contracts
  • Prepare procedures for employees to start work (including support for applying for work visas, work permits and residence cards)
  • Salary calculation
  • Health insurance payment; social insurance
  • Ensure personal income tax obligations
  • Labor relations management

What Is employer of record service Vietnam?

2. What types of contracts should businesses pay attention to when using Human Resource Management (EOR) services?

When using employer of record in Vietnam services, there are 2 important types of contracts that businesses need to know.

2.1 Service contract with the service provider

Your business will sign a Service Contract with the Human Resource Management (EOR) service provider. This contract specifically defines the scope and terms of the human resource management service, such as service fees, duration and termination. The service contract also clarifies the business’s relationship with the employee and with the human resource management service provider.

Because the terms of the service contract are sometimes quite complicated, businesses should ask their EOR service provider to clarify any concerns before signing.

2.2 Legal Relationship with Employees

Your business will not need to directly sign an Employment Contract with the Employee. The Employment Contract, as prescribed by law, will be signed between the Human Resources Management service provider and the employee.

This contract will clearly state the terms and conditions of the employee’s employment, such as salary, bonuses/allowances, and responsibilities. By signing this employment contract, the employer of record Southeast Asia service provider will also be the party legally responsible for the employee.

How to choose employer of record service Asia: 10 questions to consider

3. What types of contracts should businesses pay attention to when using the international employer of record service?

Legally, the employee who has signed a labor contract with the human resource management service provider will be an official employee of this unit. The employer of record service Asia will be in charge of all payroll & salary payment activities, insurance payment, and other activities related to the employee’s labor relations.

In addition, this employee is a member of the business participating in operational activities. The business will have full control over the daily tasks, scope of work, projects, meetings, KPIs, etc. of that employee just like other employees recruited by the business itself.

4. Why should you use S4B Vietnam’s Enterprise Resource Planning (EOR) service?

S4B Vietnam’s Enterprise Resource Planning (EOR) service allows foreign businesses to recruit workers in Vietnam in a short and flexible time, from small to large scale, cost-effectively and with minimal risk. We make the process transparent to businesses, allowing businesses to make adjustments when necessary.

Businesses can fully manage the employees we provide in terms of work like other normal employees they recruit themselves, while S4B Vietnam is in charge of work related to labor relations and other procedures and documents.

S4B Vietnam applies an advanced management platform, ensuring that employees are paid fully and on time, increasing their satisfaction and loyalty to the business. Our systematic payroll process helps eliminate errors, ensuring accurate and timely payment to your employees in each payment cycle. The biggest advantage of this process is transparency, accuracy, simplicity and clarity.

In addition to international employer of record services, S4B Vietnam also provides a range of flexible services and solutions to suit the needs of businesses such as executive recruitment, temporary and outsourced staffing, payroll services, recruitment process outsourcing (RPO), human resource consulting and training, and other services.

To learn more about employer of record for hiring in Vietnam services and to learn more about S4B Vietnam’s comprehensive human resource solutions, please visit our Services page or enter your contact information in the form below, we will respond to you as soon as possible!

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S4B Vietnam

  • Address: Unit 701B – 701C, Tower A, Handi Resco 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam.
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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