Understanding the EOR Employment Model
The Employer of Record (EOR) model is an increasingly popular solution for businesses looking to expand their operations globally. In this arrangement, the EOR acts as the legal employer for the workforce, handling compliance, payroll, taxes, and other administrative responsibilities. This allows companies to focus on their core operations while ensuring full compliance with local labor laws. Click here to see ChaadHR China Employer of Record EOR hiring guide.
In China, the EOR model has gained traction due to the country's complex regulatory en-vironment. For employees in cities like Xiamen, the EOR framework provides a structured and compliant approach to employment. However, understanding how employee risk protection works under this model is essential for both employers and employees.
Employee Risk Protection in Xiamen
Xiamen, as a key economic hub in China, has specific labor regulations that must be ad-hered to in order to safeguard employee rights. Under the EOR model, ensuring risk pro-tection for employees involves several critical aspects:
1. Compliance with Local Labor Laws
The EOR provider assumes responsibility for ensuring that employment contracts comply with Xiamen's labor laws. This includes adherence to minimum wage requirements, working hours, overtime policies, and statutory benefits. Employees can rest assured that their rights are protected under local regulations.
2. Social Insurance and Benefits
In China, employees are entitled to social insurance benefits, including pension, medical insurance, unemployment insurance, work injury insurance, and maternity insurance. The EOR ensures timely contributions to these programs on behalf of both the employer and employee. In Xiamen, where living costs can vary, these benefits provide crucial financial security.
3. Workplace Safety Standards
Under the EOR model, employees in Xiamen are protected by workplace safety regulations. The EOR provider ensures that employers comply with occupational safety requirements and provide a safe working environment. This reduces potential risks of workplace injuries or disputes.
4. Dispute Resolution and Legal Support
In case of employment-related disputes, the EOR acts as a mediator between the employee and the client company. As the legal employer, the EOR is equipped to handle grievances in accordance with Xiamen's labor laws, ensuring fair treatment for all parties involved.
Why Risk Protection Matters
For employees in Xiamen, risk protection is not just about legal compliance—it is about fostering trust and stability in the workplace. The EOR model provides a transparent framework where employees can focus on their roles without worrying about administrative or legal uncertainties. Employers also benefit by reducing potential liabilities and main-taining a positive reputation in the local market.
Conclusion
The EOR model offers a practical and compliant solution for businesses operating in Xiamen while prioritizing employee risk protection. By ensuring adherence to local labor laws, safeguarding social insurance contributions, and providing support during disputes, the EOR framework creates a secure and equitable work environment. For employees in Xiamen, this approach translates into peace of mind and confidence in their professional journey.
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.