In recent years, the Employer of Record (EOR) model has gained significant traction in China, particularly in dynamic cities like Chengdu. This innovative employment solution enables businesses to expand their operations without establishing a legal entity, while ensuring compliance with local labor laws. For employees working under the EOR arrangement, understanding risk protection measures is essential to safeguard their rights and well-being. Click here to see ChaadHR China Employer of Record EOR hiring guide.
Understanding the EOR Model
The EOR model allows companies to outsource employment responsibilities to a third-party provider, known as the "nominal employer." While employees perform their roles for the client company, the EOR assumes responsibility for payroll, taxes, benefits, and compliance with labor regulations. This structure simplifies onboarding processes for businesses and provides employees with access to legally compliant employment contracts.
In Chengdu, as in other parts of China, the EOR model is particularly appealing to foreign enterprises entering the market. However, employees must be aware of their rights and protections within this framework to ensure a secure and stable work experience.
Key Risk Protection Measures for Employees
1. Employment Contracts and Legal Compliance
Under the EOR arrangement, employees should receive a formal employment contract from the EOR provider. This contract must comply with local labor laws, including stipulations on working hours, wages, social insurance contributions, and termination policies. Employees should carefully review their contracts and verify that all terms align with Chengdu’s labor regulations.
2. Social Insurance and Benefits
Employees in Chengdu are entitled to social insurance coverage, including pension, medical insurance, unemployment insurance, work injury insurance, and maternity insurance. The EOR provider is responsible for ensuring these contributions are made accurately and on time. Employees should monitor their pay slips to confirm that deductions and contributions are in line with legal requirements.
3. Workplace Safety and Health Standards
While the EOR provider handles administrative responsibilities, the client company is re-sponsible for maintaining a safe and healthy work environment. Employees should famil-iarize themselves with workplace safety protocols and report any concerns promptly to both the client company and the EOR provider.
4. Dispute Resolution Mechanisms
In the event of employment disputes, employees can seek assistance from the EOR provider, which acts as their legal employer. It is crucial to understand the dispute resolution process outlined in the employment contract and to know how to access local labor arbitration services if necessary.
Employee Awareness: A Cornerstone of Risk Protection
For employees working under the EOR model in Chengdu, awareness is key to mitigating risks and ensuring a positive work experience. By understanding their rights, obligations, and available protections, employees can navigate potential challenges with confidence.
In conclusion, while the EOR model offers convenience and flexibility for businesses ex-panding into Chengdu, it also provides employees with structured employment protections. Staying informed about labor laws and maintaining open communication with both the client company and the EOR provider will empower employees to thrive in their roles while safeguarding their interests.
How Chinese Employer of Record (EOR) Works
As a local Employer of Record (EOR), we take on the legal responsibility of employing your new workforce in China. While you manage the day-to-day activities of your employees, we legally hire them through our agency. ChaadHR operates in over a hundred countries and utilizes local networks of experts to gain in-depth knowledge of local laws and regulations, as well as recruitment customs and trends. By partnering with us as an EOR, you gain access to this expert knowledge, which can be invaluable when expanding your business into China.
Our employment contract with your employees complies with Chinese labor laws and includes benefits such as insurance and pensions. We can hire, onboard, and manage your new employees in China in a matter of days, ensuring a fast and efficient process.
Hereis how we can assist you:
- We ensure that your new hires are compliant with Chinese laws and regulations.
- We take care of the employment contract, HR (Human Resources) matters, taxes, and payroll.
- We arrange the required visas or work permits for your employees.
- Our team keeps your employees informed about holiday arrangements, benefits, and any changes in labor laws.
- We keep you updated on changes in local laws and ensure that we comply with them.
-Your employees' declarations are forwarded to us on a monthly basis. Once we receive your payment, we deduct taxes and other contributions, and ensure that your employees receive their salaries promptly.
- You retain control over the daily activities and responsibilities of your employees.
🌎💼Compliantly Hire and Pay Talent in 160+ Countries With ChaadHR
With our comprehensive Global Employer of Record (EoR) solution and integrated Global Payroll solution, we empower businesses to confidently and compliantly hire and pay their workforce in over 160 countries. By partnering with ChaadHR, companies can eliminate the burdensome task of entity establishment and navigating complex labor laws, while ensuring their payroll operations are fully compliant with local regulations.
ChaadHR helps businesses expand globally. We provide support for testing new markets, hiring employees, and setting up subsidiaries. Our platform offers compliant onboarding of international contractors, remote employee hiring, and consolidated payroll management through a single dashboard. Book a demo to learn more.