The Employer of Record (EOR) model has gained significant traction in China as a flexible employment solution for businesses. By leveraging this model, companies can hire em-ployees in China without establishing a legal entity, simplifying operations and reducing administrative burdens. However, it is crucial for employees in cities like Ningbo to under-stand the risk protection measures available under this arrangement. This article provides an overview of the EOR model and offers key insights into employee risk safeguards. Click here to see ChaadHR China Employer of Record EOR hiring guide.
Understanding the EOR Model
The EOR model allows a third-party organization to act as the nominal employer on behalf of a client company. While the client company oversees daily work and performance, the EOR manages employment contracts, payroll, tax compliance, and statutory benefits. This arrangement is particularly beneficial for businesses entering new markets, as it ensures compliance with local labor laws while minimizing operational complexity.
For employees, the EOR acts as the legal employer, ensuring that all contractual obligations and statutory rights are upheld. In Ningbo, a city known for its vibrant economic activity and international trade, the EOR model is widely used by multinational companies seeking to tap into local talent pools.
Key Risk Protection Measures for Employees
Employees under the EOR model in Ningbo are entitled to various protections that align with local labor laws and regulations. Below are some of the critical areas of risk protection:
1. Labor Contract Compliance
EORs are responsible for providing employees with legally compliant labor contracts. These contracts must clearly outline job responsibilities, compensation, working hours, and ter-mination conditions. Employees should carefully review their contracts to ensure all terms align with Chinese labor law.
2. Social Insurance and Benefits
In China, employers are required to contribute to social insurance programs covering pen-sions, medical care, unemployment, work injury, and maternity leave. The EOR manages these contributions on behalf of the client company, ensuring employees in Ningbo receive full statutory benefits.
3. Workplace Safety
Although the client company oversees daily operations, the EOR remains legally account-able for ensuring workplace safety standards are met. Employees should report any safety concerns to both the client company and the EOR to ensure prompt resolution.
4. Dispute Resolution
In the event of employment disputes, the EOR serves as the legal employer responsible for resolving issues. Employees in Ningbo can rely on the EOR to address grievances related to contract terms, termination, or unpaid wages in accordance with Chinese labor laws.
Employee Awareness: A Key to Risk Mitigation
While the EOR model provides robust protections for employees, it is essential for individ-uals to remain informed about their rights and responsibilities. Reviewing employment contracts thoroughly, maintaining open communication with both the client company and EOR, and staying updated on local labor regulations are critical steps to safeguarding one’s interests.
Conclusion
The EOR model offers a streamlined solution for businesses operating in Ningbo while ensuring employees receive comprehensive risk protection. By understanding the key safeguards in place, employees can navigate this employment arrangement with confidence. Both employers and employees must work collaboratively within this framework to foster a secure and compliant work environment.
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.