Introduction
Employer of Record (EOR) is a popular employment model in China, particularly in cities like Shenzhen where businesses are thriving and the workforce is diverse. As an employer, it is crucial to understand the employee risk protection measures in place when utilizing the EOR model to ensure compliance with local regulations and to provide a safe and secure working environment for your employees. Click here to see ChaadHR China Employer of Record EOR hiring guide
Employee Risk Protection Measures
Social Insurance
In China, employers are required to contribute to social insurance for their employees, which includes pension, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance. When engaging in EOR arrangements, it is essential to ensure that these social insurance contributions are being made on behalf of the employees. This not only protects the employees in case of unforeseen circumstances but also demonstrates the employer's commitment to their well-being.
Work-Related Injury Insurance
Work-related injury insurance is particularly important in industrial hubs like Shenzhen, where employees may be exposed to occupational hazards. Under the EOR model, the EOR provider is responsible for ensuring that employees are covered by work-related injury insurance. This ensures that employees receive adequate compensation in the event of work-related injuries, and it also protects the employer from potential legal liabilities.
Employment Contracts
Clear and comprehensive employment contracts are essential for outlining the rights and responsibilities of both the employer and the employee. When engaging in EOR arrangements, it is important to review and understand the employment contracts provided by the EOR provider to ensure that they align with local labor laws and adequately protect the interests of the employees.
Compliance with Labor Laws
Shenzhen, like the rest of China, has strict labor laws governing various aspects of employment, including working hours, overtime pay, annual leave, and termination procedures. Employers utilizing the EOR model must ensure that their employment practices comply with these laws to avoid legal repercussions and to safeguard the well-being of their employees.
Conclusion
In conclusion, understanding employee risk protection measures is crucial when utilizing the EOR model in Shenzhen. By ensuring compliance with social insurance contributions, providing work-related injury insurance, establishing clear employment contracts, and adhering to labor laws, employers can create a secure and supportive work environment for their employees while mitigating potential risks. It is imperative for employers to work closely with their EOR provider to address any concerns related to employee risk protection and to foster a positive and sustainable working relationship.
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.
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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.