An EOR or employer of record is defined as an entity that performs the job of legally hiring and paying employees on behalf of the company that hires EOR services. EOR helps the companies in the GCC in employing talented employees, independent contractors, and other full-time members from all parts of the world. EOR services are available in a range of options such as BPO, PEO, etc, and all available options aim to facilitate the human resources management of the companies. These services manage tasks such as payroll, unemployment requirements, termination liabilities, HR responsibilities, employee compensation, employee benefits, pensions, taxations, etc.
UAE employer of record is, nowadays, a major concern of businesses in the UAE that are seeking global talent. Before getting into the process of hiring employer of record companies, the businesses need to understand EOR and what type of services it provides. In general, employer of record in Oman and other GCC countries allows a business to hire two types of talents from around the globe;
- Employees
- Independent contractors
Employer of Record for Independent Contractors
A contractor or independent contractor is a professional person that performs particular services for his/her clients. The reason why these contractors are called independent contractors is that they work independently as self-employed and run their own small businesses. They only work with different clients on specific projects without any supervision of them. Independent contractors can be found without an EOR company and can be hired for different projects. However, hiring independent contractors through an EOR entity can save the extra effort for your HR department because it is as same as hiring employees. It involves the same recruitment, payroll, and termination processes as utilized in the other type of employment. Hiring independent contractors through the employer of record in Qatar or other GCC countries can facilitate your human resources management by;
- Finding the independent contractors that can efficiently perform the services that your business requires. EOR entities also have talented independent contractors with them at hand.
- Eliminating the procedures of written contracts and agreements between you and the contractor. Your agreement will be with the EOR, the rest is their responsibility.
- Getting your project done with great accuracy and quality.
- Paying the independent contractor themselves along with taking care of other benefits.
- Taking complete responsibility for tax regulation in accordance with the policies of the country to which the contractor belongs.
Read More : What is EOR (Employer of Record ) in Business?
Benefits of Hiring an Employer of Record
Before hiring an employer of record service in Dubai or any other emirate, it is vitally important for companies to know how beneficial it is for both small and large scale companies to hire employees and independent contractors through EOR. Consider the following strong advantages of hiring an EOR service;
- EOR helps your business in expanding and growing in different countries and eventually in the global market.
- EOR aids your expanding business to build the workforce that it needs. For a business that is expanding globally, you need a global workforce that an EOR can provide you.
- Whatever country you target to expand your business in, EOR will help you stay in compliance with the labor laws and tax regulation laws of that country so that you can run your business smoothly.
- Sometimes your business strategy does not require employees but independent contractors that are hard to find in foreign countries. EOR will find the most suitable independent contractors in accordance with your requirements.
- When hiring independent contractors through EOR, the probability of risk gets minimized because it is the responsibility of the EOR to get your project done with complete satisfaction.
- Startups and small businesses lack the experience in hiring the best talent and the process can consume much more resources than expected. EOR is a solution for such startups and small businesses.
- EOR gives your business an opportunity to hire different types of employees i.e, contractors, temporary, permanent, etc.
- EOR minimizes the need for an efficient in-house HR outsourcing that most companies are not able to build.
Is there any difference between an independent contractor & employee?
Employees and independent contractors are two different types of workers that perform different functions for your business. Employees are those members that are supervised by the company, whereas independent contractors work independently under no one’s supervision. Employees are registered to your company as temporary or permanent, whereas independent contractors work with your company for a fixed time period only. The company can control the work of employees but can not control the work of independent contractors because their job is to provide results only. Employees follow the work schedule of the company while independent contractors follow their own schedules.
What are some characteristics of an independent contractor?
Following are some characteristics of independent contractors;
- They are self-employed.
- The country in which they live defines their dependence.
- They work with different clients for a limited time period.
- They control their work schedule and no one supervises them.
- Their job is to provide the desired results to clients.
- The contract between a company and an independent contractor is not an employment contract.
Choose the Best Services
If you are interested in an employer of record Dubai or UAE, our EOR entity is your one-stop solution. We are experts in finding the most talented employees and independent contractors from all around the globe. Our services are quick as we provide qualified contractors and employees at hand. Getting your project done with great quality is our primary aim. Feel free to seek guidance on EOR from our experts.
Read more :A Guide On Global EOR (Employer of Record)
