Given that we live in a global community and that speed has overcome distance, it is difficult to avoid hearing big claims that the globe is getting smaller. Such comments are accurate; thus, it is difficult. These adages are truer than ever in the world of business and trade. The benefits of a global economy are well known and include, among others, encouraging cross-cultural dialogue and tolerance, increasing financial flow, and opening up new markets.
Companies seeking to expand into international markets often rely on Employer of Record service providers to facilitate easy market entry by hiring employees or independent contractors, depending on their needs.
2.0 Employer of Record Services
Employer of Record (EoR) services are worthwhile for businesses looking to diversify and enter new markets by utilizing the global talent pool. Consider EoR service providers as your multinational HR staff that are familiar with the intricate payroll rules, labor laws, and the nuances of various locations where you intend to hire or have existing staff.
EoR providers, such as Cadana, enable businesses to legally engage with employees across international borders without having to set up local entities or risk violating local country laws. They have the capacity and expertise to carry out employer duties on your behalf.
3.0 Navigating complex employment Laws with Cadana
Did you know that in some nations, emailing employees outside of regular business hours is illegal? This is just one example of the intriguing international labor regulations that could catch an employer off guard. As economies change, so do the laws governing employment. As more and more companies expand internationally, it has become even more critical to navigate carefully across the high seas of employment laws.
- Appropriate employee classification
To prevent discrimination in the application of benefit plan eligibility requirements and the payment of remuneration in compliance with federal and state legislation, proper employee classification is required to ensure that all legal obligations are maintained.
Determining whether a worker is exempt or non-exempt from compensation is arguably the most important aspect of employee classification. The biggest issue with misclassification is that some employers don’t know how to classify someone in their manual. An employee’s specific job duties can dictate their classification.
When you're not familiar with classification codes and other crucial identifiers, it can be challenging to ensure that your personnel are appropriately categorized. Learning all the necessary classifications can take a lot of time, pulling you away from important business duties. Even with all the preparations you can think about, there's a chance you could still make a costly error.
Whether misclassification results from an honest mistake or a deliberate attempt to avoid paying fines and other charges, it's a crime that could harm a company in the long run.
- Understand the complexities of compliance.
The laws regarding the relationship between employers and their employees are complex and constantly evolving. This creates challenges for businesses, as the requirement for compliance is compounded by rules and regulations that often change without adequate notice.
Several businesses around the world have been found to be in violation of federal, state, and local laws. Often, these violations are not the result of nefarious intentions on behalf of employers. They are the result of ignorance; employers simply aren’t well-versed in the country’s employment laws and run afoul unintentionally. Knowing the laws in each country or state where your company operates is nearly impossible. However, having an EoR Partner whose core focus is to ensure you are in sync with the presence of local country regulations and having on-ground experts makes it easy to overcome.
Utilize a compliance-tested multi-currency payroll solution.
While handling employment laws has never been a walk in the park, it gets easier with technology. By blending technology with HR processes, tech platforms like Cadana's multi-currency payroll platform, delivers real-time and accurate statutory computations across several countries, saving you time and providing transparency.
4.0 About Cadana
Cadana is a world-class Employer of Record and payroll provider of choice for hundreds of businesses that cater to the nuances of compliant employees and contractor payroll across Africa and globally. We stand out when it comes to our support functions, simplicity, flexibility, and extended reach.
Get in touch to find out how Cadana helps keep businesses out of misclassification risks and enable them to concentrate on expanding their enterprises.