Employer of Record Glossary Terms
Explore key HR, payroll, benefits, employment compliance, and global hiring terms related to using an Employer of Record to hire employees in Southeast Asia.
Employer of Record for Southeast Asia teams
An Employer of Record, or EOR, in Southeast Asia helps businesses hire employees in countries such as Indonesia, the Philippines, Malaysia, Vietnam, and Thailand without setting up a local entity. It supports compliant employment by managing local contracts, payroll, statutory benefits, tax deductions, social security contributions, and HR compliance.
Key Employer of Record Terms
Helpful Resources for Hiring in Southeast Asia
Frequently Asked Questions
What is an Employer of Record in Southeast Asia?
An Employer of Record, or EOR, is a local legal employer that hires an employee on behalf of another company. In Southeast Asia, an EOR can help companies employ workers in countries such as Indonesia, the Philippines, Malaysia, Vietnam, and Thailand without setting up their own local entity.
Do companies need a local entity to hire employees in Southeast Asia?
No, not always. If a company does not have a local entity in the country where it wants to hire, an Employer of Record can employ the worker locally. The EOR handles local employment administration while the company manages the employee’s day-to-day work.
What does an Employer of Record handle, and what does the company still control?
An Employer of Record usually handles local employment contracts, payroll, payslips, tax withholding, statutory contributions, benefits administration, leave records, and compliant offboarding. The company still controls the employee’s role, daily tasks, performance, team communication, and business goals.
Is an Employer of Record the same as hiring a contractor?
No. An Employer of Record is used to employ a worker as an employee, while a contractor arrangement is a commercial service relationship. If the worker is managed like an employee, works regular hours, and is integrated into the team, an employee structure may be more appropriate.
Can Weshine help companies hire through an Employer of Record in Southeast Asia?
Yes. Weshine helps companies hire, employ, manage payroll, and support HR compliance for remote teams across Southeast Asia, including Indonesia, the Philippines, Malaysia, Vietnam, and Thailand. This can be useful for companies that want to hire employees in the region without setting up a local entity first.