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HR Glossary

Employer of Record

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

Jaminan Hari Tua (JHT)

Direct Employee

Company Incorporation

Data Processing Agreement (DPA)

Monthly Tax Deduction (MTD)

Employee Lifecycle

Badan Penyelenggara Jaminan Sosial Kesehatan (BPJS Kesehatan)

Potongan Cukai Bulanan (PCB)

Off-Cycle Payroll

Remote Work

Permanent Establishment (PE)

Night Shift Differential

Timesheet

Jaminan Pensiun (JP)

Global Payroll

Offboarding

Year-End Payroll

Contract Staffing

Labor Cost

Employer of Record (EOR)

Tax Identification Number (TIN)

Local Employment Compliance

Asynchronous Work

Unemployment Insurance

Workplace Culture

Employee Stock Option Plan (ESOP)

Benefits Administration

Absenteeism

Centralized Payroll

Secondment

Employee Benefits

Tax Residency

Employer Branding

Employee Retention

Notice Period

Professional Employer Organization (PEO)

Global Mobility

Minimum Wage

Accrued Leave

Outsourcing

Accrued Payroll

Holiday Pay

Visa Sponsorship

Human Resources Policy (HR Policy)

PhilHealth

Nomor Pokok Wajib Pajak (NPWP)

Paid Leave

Perjanjian Kerja Waktu Tidak Tertentu (PKWTT)

Remote Onboarding

Attrition

Paternity Leave

Department of Labor and Employment (DOLE)

Job Requisition

Jaminan Kecelakaan Kerja (JKK)

Overtime

Leave Accrual

Global Talent Acquisition

Human Resources Outsourcing (HR Outsourcing)

Human Resources Information System (HRIS)

Confidentiality Agreement

Full-Time Equivalent (FTE)

13th Month Pay

Letter of Termination

Job Offer

Agent of Record (AOR)

Behavioral Interview

Fixed-Term Contract

Hybrid Work

Disciplinary Action

Take-Home Pay

Annual Leave

Global Payroll

Gross Salary

Social Security Organisation (SOCSO)

Pag-IBIG Fund

Anti-Discrimination Laws

Employee Handbook

Jaminan Kematian (JKM)

Cost of Hire

Offshore Hiring

Talent Pool

Contractor of Record (COR)

Pertubuhan Keselamatan Sosial (PERKESO)

Probation Period

Exit Interview

Severance Pay

Recruitment Process Outsourcing (RPO)

Payroll Deductions

Freelancer

Total Rewards

Maternity Leave

Payroll Outsourcing

Employment Contract

Working Hours

Unpaid Leave

Immigration Compliance

Employment Pass

Termination of Employment

Business Process Outsourcing (BPO)

Employee Assistance Program (EAP)

Global Compliance

Work Permit

Employee Mobility

Offer Letter

Worker Classification

Applicant Tracking System (ATS)

Badan Penyelenggara Jaminan Sosial Ketenagakerjaan (BPJS Ketenagakerjaan)

Time Off in Lieu (TOIL)

Leave Encashment

Talent Acquisition

Employees Provident Fund (EPF)

Payroll

Bonus

Final Pay

Data Privacy Act

EA Form (Malaysia Annual Employment Income Statement)

Retrenchment

Fair Employment Practices

Medical Leave

Tunjangan Hari Raya (THR)

Cross-Border Employment

Downsizing

Health Insurance

Social Security System (SSS)

Non-Compete Agreement

Retirement Pay

Zero-Hour Contract

Payroll Compliance

Pay Period

Co-Employment

Human Resource Development Corporation Levy (HRD Corp Levy)

Workforce Planning

Compliance Risk

Compensation Package

Employee Misclassification

Biweekly Pay

Back Pay

Kumpulan Wang Simpanan Pekerja (KWSP)

Employment Status

Human Resources Compliance (HR Compliance)

Independent Contractor

Employment Insurance System (EIS)

Contractor

Southeast Asia Hiring (SEA Hiring)

13th Month Salary

Statutory Benefits

Jaminan Kehilangan Pekerjaan (JKP)

Perjanjian Kerja Waktu Tertentu (PKWT)

Electronic Signature

Resignation

Withholding Tax

Foreign Worker Levy

Cross-Border Payroll

Fixed-Term Employment

Expatriate

Total Compensation

Inclusive Hiring

Full-Time Employee

Garden Leave

Flexible Work

Branch Office

Pay Slip

Onboarding

Service Level Agreement (SLA)

Contractor Management

Unfair Dismissal

Absence Management

Personal Income Tax (PIT)

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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.

Need help hiring or employing talent in Southeast Asia?

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.