GES company a third-party company that legally and administratively employ your staff and carry out the legal and regulatory requirements of immigration, employment and payroll, but does not participate in day to day work activity.
In essence, the GES Company, a professional employment organization, is the registered employer for the worker, but does not have any supervisory or management role vis a vis the employee’s position. The original employer maintains the substantive work relationship, making all decisions on compensation, position duties, projects and termination.
In details, the GES company
The GLOBAL EMPLOYMENT SOLUTION (GES) include 2 mains services EoR (Employer of Record) and PIS (Professional immigration service) that makes foreign employment simple for any size company. It is equally effective for both local residents and expats since it is in full compliance with the host country laws. There is no reason to risk violating labor, tax and employment regulations when there is an EOR solution available in almost any country.
The reasons for using a GLOBAL EMPLOYMENT SOLUTION are primarily to overcome the regulatory and cost hurdles when employing workers in a remote location. Every country has their own employment regulation, laws and immigration requirements for non-resident. Meeting those rules can be a major obstacle to business expansion across international borders.
If a company has a commitment to a country, the best and costless solution is a GES that makes foreign employment simple for any size company. It is equally effective for both local residents and expats since it is in full compliance with the host country laws.
Here are a few situations where you can use a GES, but there many more ……
There is no minimum, it can be used with a single employee.
Generally, the minimum is 3 months.
GES is becoming more and more popular as companies begin to acclimate to the new outsourcing culture.
The future of the GES service is assured, as more and more countries are changing local regulations on immigration and employment to prevent abuses and loss of tax revenue. Companies must have a way to overcome this challenge of doing business abroad, the GES is becoming a core strategy for employing both local citizens and expats.
| Steps | YOU | US |
|---|---|---|
| Select the employee and agree basic terms for their assignment (role, duration, salary) | X | |
| You don’t have an entity in the foreign country | X | |
| You will use Globaless GES services | X | X |
| Determine which visa or work permit your employee needs | X | |
| Draft an employment contract that’s compliant with local regulations and supports your desired terms and conditions | X | |
| Gather necessary documents, apply for and obtain a work permit for your employee | X | |
| Have your employee registered for payroll in the host country | X | |
| Ensure compliance with all host country regulations including employment, tax and payroll | X | |
| Run monthly payroll administration, prepare payslips and deliver them to your employee | X | |
| Manage the employee on a daily business | X | |
| Answers any questions related to employment, payroll and tax, that you or your employee may have | X | |
| Stay up to date on changes in host country legislation | X | |
| Visa / WP renewal if necessary | X | X |
| Keep or stop the contract with the employee | X | |
| Help you terminate the employment easily if the need arises | X |
Yes. GLOBALESS can sponsor WP in more than 150 countries.
In order to obtain a work permit from immigration, GLOBALESS must directly employ and payroll the employee inside the host country.
We try to eliminate the need to obtain short term business visas since all employees will be issued valid work permits. This avoids any complications with immigration authorities around the overuse of business visas for multiple stays in the country.
In some countries we can dramatically reduce visa processing times and expense by using a business visa for the employee to enter the country and then lodge their work permit application. Sometimes it is even possible for the employee to start work in the host country from the moment their work permit application is lodged. If these options are available, we will inform our client during our initial assessment.
Globaless manages and calculates the payroll in advance of each payment. It’s what we call the “TCE” Total Cost of Employment, which includes the gross salary, bonus payment or allowances to the employee, employer contributions like tax or social security, expense reimbursements and our monthly management fee.
Each month we edit and send one invoice you, one month in advance of the payroll date. This invoice includes the Total Cost of Employment per employee (TCE)
We, at Globaless we do handle the employer and employee taxes according to the host country requirements. When we run our monthly payroll process these amounts are paid to the local authorities as required. Employee individual income tax and social security are deducted (withheld) from the gross salary in the monthly payroll process and then paid to the local authorities as required. These deductions are reported on the employee payslips except in countries where the employee is liable for their own tax submissions, but we do assist the employees with calculating their taxes and submitting their returns in these locations.
Globaless, as the Employer of Record pay the employee their net salary through the local payroll.
Yes, we provide host country payslips as per the statutory requirements of the host country.
We, as the employer of record, handles payment of income taxes and employer taxes to the host country tax authorities as part of the payroll process except in countries where the employee is liable for their own tax submissions, but we do assist the employees with calculating their taxes and submitting their returns in these locations.
Yes, we can invoice our clients and accept payment in 3 currencies (USD, EUR, GBP. In most instances we have to payroll the employee in the local currency of the country. Our standard approach is to calculate the salary and employer inputs in the host currency and then convert it into the desired currency +/2% for foreign exchange variance. This is to take into account any fluctuation between the day we raise the invoice and the day we receive funds from our customer.
In almost every country we have to pay the employee a salary fixed in local currency. And that salary should be specified in local currency in the employment contract but we have solutions to pay salary in any currencies
Yes, we can normally process payments outside our normal payroll cycle, with a few exceptions specific to certain countries.
We assess whether each expense is taxable or non-taxable according to the tax regulations of the host country. Non-taxable expenses are processed as a normal reimbursement and are not subject to tax or social security.
However, “taxable” expenses need to be “grossed up” by adding the income tax, employee social security and employers’ social costs. We then have to process this through the payroll and paid with the employee’s salary:
We recommend expenses be paid through our GES solution but it is not obligatory in every country. Just to be clear if expenses are reimbursed by the client directly to the employee, we will not be responsible for ensuring it is done compliantly.
We act as local employer of record in the host country.
Although staff are legally employed through our GES solution, day to day management of employee work hours, methods and projects is still handled by the client.
The client maintains primary responsibility for the employee’s activity and conduct in the host country, however as the Employer of Record, we are directly responsible to the authorities for the employment. Especially as concerns immigration, tax or labor issues related to the employment. We’ll work with you to make sure that you and the employee understand any unique statutory requirements of the host country such as working hours restrictions, annual leave entitlements and so on.
In almost all instances a local employment contract is required to comply with host country labor and employment laws. We will work with you to draft an employment agreement that meets the host country regulations and also incorporates, where possible, any additional terms you may wish to include. If necessary, we can supplement this local employment contract with other supporting contracts such as a home employment contract, a letter of assignment or an Employer of Record agreement to cover any additional terms. This is particularly relevant where you wish to incorporate terms into the employment which aren’t recognized under the local employment contract.
The local employment contract will be between the employee and our local entity. We issue the employment contract to you and the employee in advance so you can review it.
We will inform you whenever there are changes that will affect your employees in the host country. We’ll let you know what is going to change, when the change is scheduled to happen, how it will impact the existing engagement (if at all) and what options are available to mitigate any impact.
The employee will be covered by a national insurance if it’s mandatory as well as any other employment related insurances required by the laws of the host country like workers compensation or medical insurance.
Yes, we can assist clients in providing their employees with a full range of private medical insurance including health cover, accident and injury, medical repatriation and family cover.
Leave requests are controlled by you. But we need you to report any leave consumed (annual leave, sick leave and unpaid leave) each month when you supply the salary inputs. This allows us to track against the overall accruals.
Services: GES & PIS
Country: China
Client:
Needs:
Get closer to its Asian partners and suppliers buy opening a purchasing office in China and mobilize one of their purchasing managers in China.
Client’s Challenges:
Situation’s difficulties:
Globaless Suggested Solutions:
Globaless Work Process:
Customer Satisfaction:
Services: GES & PIS
Country: Mali
Client:
Needs:
5 engineers have to send to Mali for the construction of a power plant.
Client’s Challenges:
Situation’s difficulties:
Globaless Suggested Solutions:
Globaless Work Process:
Customer Satisfaction:
Services: GES
Country: Mexico
Client:
Needs:
In order to develop the activities in Latin America and open a subsidiary if the market is performing, our client wants to hire 2 Mexican Sales manager.
Client’s Challenges:
Situation’s difficulties:
Globaless Suggested Solutions:
Globaless Work Process:
Customer Satisfaction: