What’s an Employer of Record Service (EOR), Can benefit your company’s Set up in Thailand?
Thailand is an attractive location for foreign investment for many reasons. Low cost of living, relatively low labour costs for skilled staff, competitive rates offered on office space, and excellent infrastructure and access to other international markets are just a few of the factors drawing foreign firms to this Southeast Asian nation. Especially now with the reopening of international borders many companies are now looking to enter new international markets. However, establishing an office and in country presence can present obstacles that may make some companies reluctant to take the plunge.
RLC Outsourcing offers a novel, yet highly effective solution to entering Thailand — our Employer of Record (EOR), also known as Professional Employer Organisation (PEO), services.
What is an Employer of Record (EOR)?
Basically, an Employer of Record (EOR), or Professional Employer Organisation (PEO), provider, like RLC Outsourcing, assumes the burden of setting up and managing an entity in Thailand on your behalf. After a fully comprehensive briefing, the EOR hires the staff that matches your requirements in Thailand or any other market you are considering, ensuring compliance with local labour and employment laws.
You get the staff you need, allowing your business to move from a single employee representative investigating the market potential to a becoming a completely functioning manufacturer or service provider
Why does an Employer of Record (EOR) Service matter?
EOR or PEO services are extremely flexible and easily executed solutions that can often be quickly scaled up or down as needed proactively to ensure your market success.
Easy access to test a new market
Need someone to spend time in Thailand evaluating business potential? You may not want to deal with the bureaucracy of obtaining and renewing business visas for an executive from your home office. Or you want local support for a more in-depth evaluation, but you are still a novice to Thailand’s business infrastructure.
An EOR can quickly provide access for your rep as well as organise the support you need to provide the coverage and analysis to make an informed determination as to whether doing business in Thailand is right for your organization.
Faster entry into a new market
Decided that Thailand is where you want to establish a presence, but not completely ready to invest in a full operation? Or do you have a core team you want on the ground as quickly as possible, and need a location and support staff? Thailand, as with other Asian countries, have restrictions to foreign businesses operating in the country that may cause some hesitancy.
With a properly planned EOR solution, you could be up and running within days or weeks, not months. An experienced EOR service provider will have the infrastructure available that is compliant so that all you need to do is either provide the specifications for your hires or send that core team to Thailand if you have already sourced your team.
Cost-effective staffing solution
Every company wants to save money, especially when it comes to opening a representative office or fully entering a new market. The capital expenditure required to set up a legal entity in Thailand can be a substantial one, and that is before you find office space and start hiring staff.
The EOR/PEO provider you select should also be able to point you to a well-established recruitment company, that has comprehensive knowledge of the best-qualified candidates in your industry. Along with taking on your HR responsibilities, your EOR/PEO should act as your partner in fulfilling and managing your staffing needs to your exact requirements. By going with a company like RLC Outsourcing you could even have them manage the whole employee life cycle on your behalf.
A quicker learning curve with local laws
Do you know the difference between the different entities that foreigners can establish in Thailand? Are you aware of the different licenses and certificates needed depending on which sector you are operating in? Do you have the budget to hire up to four Thai staff for each foreign employee you would like to bring on? You may be willing to face these obstacles to get your operations in Thailand going, but do you really need to? Or do you want to start operations in Thailand quickly and would rather not have to deal with such questions?
An accomplished EOR firm has a thorough understanding of local labour and employment regulations ensuring that, whether you require one local hire or a complete cohort of foreign experts, you will not have to worry about falling afoul of government authorities, risking your business standing in Thailand.
Who is Employer of Record (EOR) Solution suitable for?
An EOR solution for Thailand is recommended for the following 3 situations;
- Your company has decided to enter the Thailand market to expand its market presence and distribution, as a means to be closer to your clients or to start a manufacturing or assembly operation. To get things off the ground quickly your company can engage RLC to hire the responsible person under an EOR solution
- An employee wishes to move to Thailand for lifestyle, family or personal reasons while his/her employer wishes to retain this employee. RLC can facilitate this process through the EOR service and allow the employee to fulfil his/her wishes to relocate to Thailand while the company is able to retain the employee and allow them to work remote.
- You are freelance IT consultant/contractor or run your own business online and you decide you want to relocate to Thailand for lifestyle reasons. You can engage RLC directly to help you facilitate your Work Visa and Work Permit and opt for RLC’s EOR service.
How Employer of Record (EOR) solutions work?
5 easy steps to setting up an EOR Solution for Thailand
- Set up an initial call to discuss the exact scope of requirements for your company, this ensures that the best solution can be discovered and aligned with all parties involved
- A Service Contract is executed that sets out all conditions and ensures each party knows their obligations.
- An Employment Contract is prepared for the employee of record and reviewed with the employee before signing off.
- RLC applies for a Work Permit and Work Visa on behalf of the employee
- The flight arrangements are made and the employee arrives in Thailand under RLC’s EOR service and commences work right away.
Most importantly, you need an EOR expert so that you can focus on your core business as you establish your presence in Thailand. The RLC Outsourcing is that expert. Our team has decades of experience in staffing and talent optimisation in Thailand and Southeast Asia so that we are ideally placed to craft the Employer of Record (EOR) or Professional Employer Organisation (PEO) solution that is right for your business needs.
We are equipped and able to handle only local staffing, extensive foreign hires, or a mix of both local and foreign employees across such sectors as manufacturing and information technology. If you would like to discuss your options, contact RLC Outsourcing today to schedule a consultation with our EOR experts.
Markus’s corporate HR experience allows him to quickly focus on the pain points of business leaders and HR leaders alike.