Employer of Record services: ensuring compliance with global standards

Key takeaways

• Ensures legal compliance: Employer of Record (EoR) services ensure adherence to local labour laws, tax regulations, and employment standards. This reduces the risk of fines and legal issues.
• Manages payroll and tax compliance: EoRs handle payroll processing, tax filings, and benefits administration in accordance with regional requirements, ensuring accuracy and timeliness.
• Reduces compliance risks: Expert EoR teams stay updated on evolving regulations, preventing accidental non-compliance and protecting businesses from reputational damage.

In today’s dynamic global marketplace, figuring out how to set your business apart from the crowd can be a challenge. More and more organisations are recognising that, to stand out, they need to enhance their strategies and extend their reach. How? By expanding internationally, often using Employer of Record (EoR) services.

The EoR functions as the legal employer of your staff abroad. It hires your workers through its legal local entity. The EoR then handles hiring, onboarding, HR, payroll, and local taxes, on your company's behalf.

Global expansion is no longer just for the big dogs. By using global hiring services like Employer of Record, global expansion becomes a viable option for organisations of all sizes. Doing so stimulates growth, improves competitive edge, and builds businesses' reputations as leaders in their fields.

And once you start your global expansion, your business will grow to new heights. Research by American Express shows that 51% of UK SMEs with an international presence plan to enter new global markets in the next year.

Bringing your business to new markets comes with a multitude of benefits. These include a wider talent pool to hire from and a bigger customer / client base. Other benefits are increased revenue streams and strengthened reputation.

Operating in multiple regions also minimises reliance on a single market. This means your business is less likely to impacted by economic instability or downturn in a particular country. To find out more about the benefits of global hiring, visit our article 'Recruiting globally: benefits, risks, and strategies'.

How Employer of Record helps companies go global

One of the main reasons it’s so easy for companies to expand globally today is that it is no longer necessary to have an established in-country entity in order to hire. You can now hire overseas talent without spending a lot of time or money to set up operations in that country.

The reason for this is Employer of Record (EoR). EoR services compliantly hire staff on a company’s behalf, via wholly owned in-country entities or trusted partners. EoRs handle hiring, onboarding, HR, and payroll on an employer’s behalf. This leaves the employer free to focus on the day-to-day management of workers and running of the company.

The importance of compliance

For any organisation embarking on a global expansion project, compliance is the key to success. Ensuring that your business is 100% compliant everywhere it operates is crucial to protect your organisation and employees. Engaging a global hiring service like Employer of Record is an increasingly popular method of ensuring compliance.

So, what does ensuring compliance by using an Employer of Record mean for your organisation? Choosing an EoR to support your global expansion means:

Protecting your workers

Committing to 100% compliance in all your regions of operation is key to keeping your workers and your business safe. You need to make sure that your workers are employed in line with all local regulations. This will protect their rights and livelihoods. Where applicable, this is also necessary to ensure their immigration status remains stable.

Protecting your business

Compliance is also important for safeguarding your business operations. Adhering to all local laws and regulations means that your business is best placed to succeed. It protects your organisation from compliance risks and helps to avoid serious penalties.

Avoiding fines, legal proceedings, and more

A company can face substantial fines and harm to its reputation if it does not follow local employment laws or tax rules.

Laws vary hugely between countries. Accidental non-compliance is easy, even likely, if the utmost care is not taken to mitigate this risk.

Navigating global compliance can be a headache for even the largest, resource-rich corporations. So, seeking support to ensure solid, across the board compliance is a must for SMEs, NGOs, and educational institutions operating in multiple regions.

EoR – ensuring compliance with global standards

Handling compliance in multiple countries is a mammoth task. Without expert advice and guidance, the risk of accidental non-compliance is substantial. Is your business ready to take the lead and expand overseas? If so, engaging an Employer of Record is the best way to guarantee compliance and mitigate risk.

How do EoR services ensure compliance standards?

Leveraging local expertise

EoRs have teams of experts who know everything there is to know about a country’s labour laws. These teams also keep up-to-date with evolving regulations, ensuring all updates to local laws are taken into account.

Mauve Group’s trailblazing Employer of Record solution offers global hiring services in over 150 countries worldwide. This means that companies of any size can hire almost anywhere in the world through Mauve. Our experienced Legal and Compliance team will save you time, money, and resources by ensuring alignment with all local laws.

Reducing risk

The risk of non-compliance looms for all companies embarking on global expansion. But it doesn’t  have to be that way. Engaging a global hiring service provider, such an Employer of Record, means you drastically reduce the risk of compliance failure and the associated consequences.

EoRs are experts in managing the complexities of legal requirements across multiple jurisdictions. So, by leaving the compliance side of things in the capable hands of an Employer of Record, business leaders are free to focus on leading their teams, driving innovation, and managing the day-to-day running of their organisation.

Ensuring payroll and tax compliance

One of the key areas in which companies fall down on compliance is payroll and tax. These complex spaces can be a minefield for busy teams attempting to facilitate smooth global expansion.

Employer of Record services shoulder the burden of payroll processing and tax filings, in line with all local regulations. Your business continues to run smoothly, with reduced risk and timely remittance of your staff’s salaries.

Guaranteeing consistency

Employers of Record help your business to maintain standards across borders. This means that your workers benefit from consistency and equality, no matter where in the world they are.

EoRs do this by ensuring compliant hiring, onboarding, HR, and payroll processes. Maintaining your global standards is crucial to compliance. It’s also important with regard to employee satisfaction and your organisational reputation.

Why choose Mauve Group?

The rise of global employment and remote work has, naturally, boosted the numbers of Employer of Record services available. However, with almost three decades of experience, Mauve Group is not new to the global hiring game. In fact, we’re industry trailblazers.

Mauve began in a small office in Italy in the 1990s. Since then, we’ve been championing flexible working arrangements and simplifying global expansion for everyone, from SMEs and NGOs to educational institutions and global corporations. Our team of experts leverage decades of experience to support global growth, streamline global hiring practices, and ensure compliance with global standards.

For more information on the benefits of going global and how Mauve can help, check out our guide.

To find out how our team can help you to expand globally, contact our team today.