EMPLOYER OF RECORD (EOR) IN MALAYSIA
Employer of Record (EOR), also referred to as a Professional Employer Organization (PEO), is a third-party company that manages recruitment, payroll, HR, and compliance functions for businesses, particularly those with employees in multiple locations.
When you hire an EOR, the EOR technically becomes the legal employer of the company’s employees. This arrangement is primarily on paper; the original company still manages and controls the employees’ day-to-day tasks, while the EOR handles administrative tasks such as:
- Processing payroll and handling tax filings.
- Providing benefits, including health insurance and retirement plans.
- Ensuring legal compliance with labor laws across different jurisdictions.
- Managing risk and handling workers' compensation and unemployment insurance claims.
- Helping with hiring, onboarding, and offboarding processes.
This arrangement is particularly useful for companies that want to expand their operations into Malaysia, as it allows them to bypass the complexities and legalities of setting up operations in different countries. By hiring an EOR, a company can focus on its core business operations and leave the administrative and compliance tasks to the experts.
HOW EMPLOYER OF RECORD (EOR) WORKS
An Employer of Record (EOR) is the legal employer of your new workforce. Our agency in Malaysia will legally hire your selected employees while you are responsible for day-to-day activities.
Our contract with your employee is 100% compliant with Malaysian labor laws and includes benefits such as insurance, social security, and provident fund. We can hire, onboard, and manage your new employees in Malaysia within days.
- We hire your new talent compliant with Malaysian laws and regulations
- We are responsible for the employment contract, HR (Human Resources), taxes, and payroll
- We provide and arrange the required visa or work permits
- Our team keeps your employee in the loop on holiday arrangements, benefits, or changes in labor laws
- We keep you posted on local law changes and adapt to these changes compliantly
- Your employees’ deductions are sent to us monthly. We will invoice you in time and once the payment is completed, we will deduct taxes and other contributions and guarantee your employees receive their salary on time
- You remain in control of the daily activities and responsibilities of your employee
BENEFITS OF MALAYSIA EMPLOYER OF RECORD
Employer of Record (EOR), also referred to as a Professional Employer Organization (PEO), is a third-party company that manages recruitment, payroll, HR, and compliance functions for businesses, particularly those with employees in multiple locations.
Market Access
Partnering with an Employer of Record (EOR) is the most effective way to quickly enter an unfamiliar market. By utilizing EOR services, an international organization can leverage the expertise of a local Malaysian employee to work for their company. In addition to providing swift access to the Malaysian market, the EOR also alleviates concerns related to payroll and human resources.
In-Country Laws
The significance of regulations and compliance in a foreign country cannot be overlooked. If you are running a business in Malaysia, it is essential to understand the payroll and taxation rules thoroughly. With Malaysia Employer of Record (EOR) services, a company can hire both FOREIGN and LOCAL employees while navigating the complexities of local regulations. An EOR or Professional Employer Organization (PEO) manages various aspects, including income tax, social security contributions, expense management, withholding charges, and business taxes, ensuring full compliance with the law.
Diverse Solutions
Whether you already have a company in Malaysia or are planning to establish one, an Employer of Record (EOR) can be highly beneficial. MALAYANTEK can hire staff on your behalf without requiring you to set up a subsidiary in Malaysia. If your business is already operational, using an EOR to manage payroll tasks can be an excellent solution for handling tax and accounting responsibilities in the country.
SERVICE LEVEL GUARANTEE
Our top priority is to ensure timely and accurate monthly salary payments and contributions to the statutory bodies in Malaysia. If any errors are identified that we are responsible for, we will correct them within a reasonable timeframe. Should we fail to do so, we will bear any penalty charges imposed by the Client.