As businesses expand globally, the Employer of Record (EOR) model has gained traction as an efficient solution for managing international employees. In China, particularly in cities like Hangzhou, understanding the nuances of employee risk protection under the EOR framework is essential for both employers and employees. This article outlines key aspects of employee risk management in Hangzhou under the EOR model. Click here to see ChaadHR China Employer of Record EOR hiring guide.
Understanding EOR and Its Role in Risk Management
The Employer of Record (EOR) is a third-party organization that takes on the legal respon-sibilities of employing workers on behalf of a company. This includes payroll, tax compliance, and adherence to local labor laws. For foreign companies operating in Hangzhou, the EOR model simplifies the process of hiring locally without establishing a legal entity. However, ensuring employee risk protection remains a critical responsibility.
Under the EOR arrangement, employees are technically employed by the EOR but work for the client company. This setup requires clear communication and robust policies to safe-guard employee rights and mitigate risks. The EOR must ensure compliance with China's labor laws, which include provisions for workplace safety, employee benefits, and dispute resolution.
Key Risk Protection Measures for Employees in Hangzhou
1. Compliance with Local Labor Laws
Hangzhou, as part of China, adheres to national labor regulations, including the Labor Contract Law. The EOR must ensure that employment contracts are compliant with these laws. This includes providing statutory benefits, such as social insurance and housing fund contributions, to protect employees against financial risks.
2. Workplace Safety Standards
Employers in Hangzhou are required to maintain safe working conditions under China's Work Safety Law. The EOR is responsible for ensuring that client companies provide a safe environment for their employees. This includes regular safety training and implementing measures to prevent workplace accidents.
3. Health and Social Insurance Coverage
Employees in Hangzhou are entitled to social insurance benefits, including medical in-surance, unemployment insurance, and pension contributions. The EOR ensures these contributions are accurately calculated and timely submitted, offering employees financial security in case of illness, unemployment, or retirement.
4. Dispute Resolution Mechanisms
In case of employment disputes, the EOR serves as the legal employer and is responsible for resolving conflicts in accordance with Chinese labor laws. This includes providing fair severance packages and addressing grievances promptly to protect employee rights.
Benefits of EOR for Employees in Hangzhou
The EOR model provides employees with several advantages. By working with an experi-enced EOR provider, employees benefit from transparent employment practices, consistent payroll management, and full access to statutory benefits. Additionally, the EOR acts as a bridge between the employee and the client company, ensuring that both parties' interests are protected.
Conclusion
For employees in Hangzhou, the EOR model offers a structured approach to employment with comprehensive risk protection measures. By adhering to local labor laws and priori-tizing employee welfare, the EOR not only supports business operations but also fosters trust and stability in the workplace. Understanding these guidelines is crucial for ensuring a secure and compliant work environment under the EOR framework in China.
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.