The goal of every business is to expand its operation to a global scale. However, this direction comes with its set of challenges, especially in human resources. Fortunately, this challenge comes with the most viable and cost-effective expansion solution, the Employer of Record (EOR) services.
To put it simply, an EOR acts as a surrogate employer. For example, a US-based company would like to expand its services in Guyana but it does not yet have any physical operations in the country. This company can opt to get a third-party entity based in Guyana that offers EOR services. In this arrangement, all employees hired by the US-based company are technically working for the third-party entity on paper.
The scope of legal capacity of an EOR company varies from one country to another and the scope of services may include the following:
- Hiring and termination – The EOR company has the legal capacity to hire, renew, and terminate employees as advised by the client. This means that it can enter into binding and legal contracts among employees on behalf of its client.
- Processing of payroll – It shall provide compensation to the employees and process the necessary deductions, expenses, leave credits, among others.
- Providing the mandated benefits and ensuring remittance of social contribution – The EOR service provider must ensure that the mandated benefits are provided and the necessary social contributions are remitted.
- Facilitating tax returns – Since the EOR acts as the legal employer on paper, it should facilitate the necessary tax returns of the company and the employees and comply with all the necessary documentary and reportorial requirements.
It should be noted that all of these functions must be carried out in accordance with the prevailing laws in the country where the EOR is operating. However, one thing should be clear about EOR services. Its scope does not include performance management.
With EOR services, a company saves money when expanding to new locations as it will no longer need to establish its subsidiaries. Moreso, the company can also hasten the recruitment of new hires and ensure compliance with local regulations.
If you are planning to expand your business in Guyana, you need to have a reliable partner that can provide EOR services and Excel’s Recruitment Division is just the right team for you.
Excel Guyana’s Recruiting Division’s dynamic team is the foundation for a fast-growing integrated company focused on offering comprehensive solutions to our clients and partners. Excel is committed to being a vital driver in the development of Guyana and welcomes interest from foreign partners that have skills and products that are essential to Guyana’s growth. It offers services to clients and partners in their recruitment needs including complying with local recruitment policies like the Local Content Registration. In addition, it also offers services to help job seekers in creating promising career paths and find sustainable employment in construction management, procurement and logistics, human resource, accounting, among others.
Excel’s leadership has more than 30 years of experience in building businesses in Guyana and the CARICOM region. With more than 10 years of local presence in Guyana, it has established networks in Argentina, Brazil, Canada, China, Colombia, the United States of America, Mexico, and Venezuela.