Four benefits of using an Employer of Record
Setting up business operations in another country is daunting, costly, and impractical due to timelines, project size, and funding limitations. So, how can you hire employees while complying with current legislation without having an established entity in place?
Here comes into play the employer of record (EOR); its use has many benefits for hiring employees in Colombia; these are the four most important:
An EOR is an entity already established in Colombia, allowing the hiring of personnel safely and legally without settling an entity of its own in Colombia. Working with an EOR minimizes the overhead costs incurred by new companies, reducing operating expenses related to the initial establishment, management of the developing entity, and closure fees or penalties, if applicable.
Hiring through an EOR means you can rest assured that your workforce in Colombia is employed in compliance with all local regulations. Colombia has strict employment laws that tend to favor the employee; therefore, employers must ensure they are in full compliance and cooperation. EOR's experts guarantee 100% compliance with labor laws, including payroll taxes, social security, incorporation, leave rights, and termination periods. Experts will constantly monitor and comply with local legislation to ensure that the employee remains in employment compliance and will work closely with your HR and accounting team to inform you of any new developments.
Using an EOR means that your employees have an in-country contact who they can turn to for any issues related to payroll, HR, etc., and you have the assurance that they will have the proper support.
Working with an EOR allows you to hire your employees in Colombia faster than setting up your business entity. The onboarding process for any candidate takes approximately four weeks, from initial contact to payroll registration and contract preparation. With an EOR, no more than two weeks.