Do you run an establishment in Malaysia and seek to expand or streamline your HR operations? If so, you can employ a Malaysia PEO & employer of record (EoR) services in an inexpensive way other than having an in-house team.
What Is a PEO (Professional Employer Organisation)?
There are many ways a PEO can help your business thrive in Malaysia. A PEO company can be your partner in managing HR responsibilities, including benefits, compliance, payroll, and tax filing. Although you can still manage your day-to-day operations, the PEO can act as a co-employer.
This is a great option for small and medium-sized businesses because it can reduce the administrative workload. Aside from providing access to better employee benefits, this can also ensure compliance with laws related to employment.
What Is EoR (Employer of Record)?
On behalf of a company, an EoR will employ workers legally. This is done by handling all employment contracts, compliance, and payroll. This will benefit companies hiring in foreign countries without setting up a legal entity.
This option is able to reduce legal and tax risks. So, when you are looking to expand your business by hiring more personnel, this will help you get the results you need. The services offered by the EoR will enable fast global expansion while simplifying international hiring.
Malaysia PEO & Employer of Record (EoR) Services
If you are operating your business in Malaysia, the use of PEO and EoR services will be highly beneficial, particularly for start-ups and small and medium enterprises. This method provides valuable assistance to companies that are expanding their operations across international borders or within domestic territories.
PEO services serve as an essential tool for businesses because Malaysia enforces strict labour regulations that require proper compliance. Your business will maintain legal compliance with all required Employment Act 1955, EPF, SOCSO, and EIS contribution regulations.
You can avoid the need to buy HR infrastructure because PEO services allow you to outsource employment management, thereby eliminating costs related to HR personnel, software, and legal advice. PEOs provide the service of negotiating affordable benefits with insurance companies and retirement plan providers so you can effectively recruit top employees.
How Malaysia PEO & EoR Services Work
Basically, your company can partner with a PEO through a co-employment arrangement. Only the HR functions are outsourced to the PEO, while you can keep control of the daily operations and business decisions.
On the other hand, an EoR will be the legal employer of your staff. This means that you can trust them to manage this area while you handle more important responsibilities of your company. The EoR will ensure that your business will remain compliant with Malaysian labour laws, reducing risks in connection with wrongful termination tax issues or visa complications.
Are you looking to expand your business in Malaysia but not ready to set up a legal entity yet? Reach out to us and find out how our professional and complete PEO/EoR employment services will help you expand your market here.