China has many general national labor laws, which are periodically adjusted, as well as long lists of provincial laws and supplementary regulations. PTL Group’s vast expertise includes employment services in China.
Read more about HR management and recruitment in China.
An Employer of Record in China – Build Your Local China Team
Hiring employees for a local operation overseas is a prerequisite for any form of doing business in China. But how can international companies legally and effectively engage with local Chinese employees? That’s exactly why many of them choose to work with an Employer of Record in China (EOR).
What is a China EOR?
An employer of record in China is a third-party organization that employs and pays your local employees on your behalf. Put differently, the EOR acts as the official employer in China for tax purposes, and is responsible for the employment arrangements and additional legal & administrative HR requirements. An employer of record services includes: employee hiring and recruitment in China, payroll services in China, social benefits payments, tax filings, employees compensation & benefits, terminating processes in China, etc. Since the EOR is the employer in China de facto, they are personally liable and responsible for the employees.
The benefits of using an Employer of Record in China
In order to explain how international companies doing business in China can benefit from a China EOR, we conducted an interview with PTL Group’s HR manager, Ms. Jasper Zhang. Here are some highlights she has shared.
Quick China market entry
As an employment solution in China, China EOR is a great kick-off for your new China operation. With the official employer already operating from China, both the recruitment and HR management processes can be carried out immediately, eliminating the need for a physical presence of a relocated foreign manager.
A China EOR becomes highly valuable, especially in times when China’s legal framework is expanding and enforcement is getting stricter. For example, in 2021, the Chinese government enacted the Personal Information Protection Law, which restricts and scrutinizes data handling processes involved in recruitment and employment in China. In such a realm, full compliance becomes more complicated and challenging to achieve. A professional and experienced Employer of Record in China will ensure that the local operation is 100% compliant and abides by all national and local regulations.
PTL Group’s EOR services: Never lose sight of the bigger picture
Employment of Record services is merely one component of the inclusive HR services in China PTL Group offers its international clients. Check out two extra added values that are unique to PTL Group’s EOR services.
Full employee life-cycle management
An Employer of Record in China differs from placement agencies or payroll management providers. China EOR supports international companies in China in a much more comprehensive manner. Practically speaking, the involvement of PTL Group as a China EOR starts as early as the recruitment and labor contract drafting stage. It goes through the ongoing employment management procedures and all the way to maintaining direct contact with the employees to ensure their welfare and liaison with the HQ. With PTL Group as an Employer of Record in China, your local employees will never remain unsupervised or unattended to.
Inter-department support & increase efficiency
International companies often don’t realize how valuable this aspect of a China EOR is. An Employer of Record in China doesn’t act alone. They join forces with other departments in the company to streamline their operation. For instance, the China EOR assists the finance department in processing the employees’ social benefits calculations. In addition, they help the administration department manage employees’ sick leave or annual leave days. That is to say, the EOR’s duty is not only to handle employment, but also to share their expertise to support other departments’ needs. This characteristic enhances the business operation as a whole, enabling smooth, legal, and effective ongoing business management.
An Employer of Record in China is just one exemplification of PTL Group’s multi-disciplinary approach for managing business operations in China. Its double role and the other added-values it creates for the company make it a favorite employment model for international companies in China.
Last updated: January 2023
At PTL Group, we specialize in HR services in China. Get in touch today and let us support your China operations.