GES FAQ’s | GES Set Up Process FAQ’s | GES Daily Management FAQ’s | Globaless - Professional Employment Organization

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  • FAQ'S

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  • GES FAQ'S

  • GES SOLUTION SET UP FAQ'S

  • GES DAILY MANAGEMENT FAQ'S

  • What is a GES company?

    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

    • Manages all visas and work permits for the employee, avoiding delays or refusals.
    • Register the work contract under a local payroll, providing a local compliant solution.
    • Meets all host country labor laws pertaining to local contracts and worker protections.
  • What is a GES?

    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 “EMPLOYER OF RECORD” (EOR), is a third party contracted to take responsibility for all formal employment tasks. An Employer of Record can be useful for companies that choose not to directly employ a worker on assignment in foreign country.
    • The “PROFESSIONAL IMMIGRATION SERVICES” (PIS) is completed services panel for professional and expatriates’ employees that will go work abroad. Services include Visa Application, Work and Residence Application, Dependence application, expats services ( relocation, ….)
  • Why used a GES?

    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.

  • What are the Benefits of using a GES

    • Prohibitive foreign country: in many cases, GES has the greatest benefit when doing business in foreign countries, where the cost, complexity and compliance risk of local employment may be prohibitive.
    • No need of local company: Setting up a local company can be time consuming and expensive, requiring skilled legal and accounting support to ensure compliance.
      While some large companies can justify the time and expense of setting up a foreign subsidiary, for most of the other one, GES is the best solution with its local entity already set up and ready to be use.
    • Immigration Compliant situation in host country
      Immigration policies and rules are constantly shifting, and there is increased scrutiny by foreign governments of work permits, visas and types of business activity. This makes compliance the number one challenge and immigration violations can have lasting consequences for a company and its employees.
      With a GES service, the staff on assignment are legally permitted to work in the host country, eliminating the risk of being uncompliant in the country. The GES company handles all work permit and visa requirements, avoiding any complications from immigration authorities.
    • Compliant Local Payroll in the Host Country
      Most countries will require to set up a local company to be able to run payroll according to local standards. The practice of ‘remote payroll’ (remitting by the home country payroll) is rarely permitted, especially for long term assignments.
      The main issue of running a host country payroll is the calculation and withholding of statutory deductions from pay, including pensions, health insurance and taxes. The GES company takes care of all of these critical details, to ensure the payroll is accurate and compliant for each employee on assignment.
      The GES is the perfect solution to ensure a compliant solution for your expatriates with no issues with local authorities and is the most cost-effective solution to quickly deploy employees abroad.
  • In which circumstances used a GES?

    Here are a few situations where you can use a GES, but there many more ……

    • Hire and employ someone in a country where you don’t have a legal entity.
    • Convert a remote employee in a country where you don’t have a legal entity.
    • Convert an existing contractor in a country where you don’t have a legal entity.
    • Send an employee to explore a new market in a country where you don’t have a legal entity.
    • Send employees on assignment in a country where you don’t have a legal entity.
  • Is there a minimum number of employees to use a GES?

    There is no minimum, it can be used with a single employee.

  • Is there a minimum or maximum period for using a GES?

    Generally, the minimum is 3 months.

  • Will GES a solution for the future?

    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.

  • SITUATION WHEN A GES CAN BE USED

    • Hire and employ someone in a country where you don’t have a legal entity
    • Convert a remote employee in a country where you don’t have a legal entity
    • Convert an existing contractor in a country where you don’t have a legal entity
    • Send an employee to explore a new market in a country where you don’t have a legal entity
    • Send employees on assignment in a country where you don’t have a legal entity
  • SOLUTION SET UP PROCESS

    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

Immigration Process & Management

  • CAN YOU SPONSOR WORK PERMITS?

    Yes. GLOBALESS can sponsor WP in more than 150 countries.

  • Can you arrange the work permit but we continue to employ the person directly?

    In order to obtain a work permit from immigration, GLOBALESS must directly employ and payroll the employee inside the host country.

  • Do you help with business visas?

    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.

Payroll Management

  • WHO MANAGES THE PAYROLL?

    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.

  • HOW DO WE INVOICE?

    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)

  • WHO HANDLED AND HOW ARE TAXES AND SOCIAL SECURITY CONTRIBUTIONS ARE PAID?

    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.

  • WHO PAYS THE EMPLOYEE?

    Globaless, as the Employer of Record pay the employee their net salary through the local payroll.

  • DO YOU PROVIDE PAYSLIPS?

    Yes, we provide host country payslips as per the statutory requirements of the host country.

  • WHO PAYS THE TAXES?

    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.

  • What are the standard payroll and invoices dates?

    • Inputs are asked to the client on the last day of the month.
    • Inputs need to be confirmed by the 2nd day of the month
    • Invoices are raised by the 3rd of the month
    • Invoices should be paid by the 15th of the month
    • Salaries are paid by the last day of the month but this varies by country.
  • DO YOU SUPPORT DIFFERENT CURRENCIES WHEN PROCESSING PAYROLL AND INVOICING?

    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.

  • CAN WE SET THE LOCAL SALARY IN A FOREIGN CURRENCY?

    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

  • CAN YOU RUN OUT OF CYCLE PAYMENTS?

    Yes, we can normally process payments outside our normal payroll cycle, with a few exceptions specific to certain countries.

  • HOW DO YOU HANDLE TAXABLE EXPENSE REIMBURSEMENTS AS SALARY?

    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 will invoice the client for the “grossed up” total
    • We deduct tax and social security
    • We then pay the remainder (which equals the expense amount) to the employee.
  • CAN WE STILL REIMBURSE EMPLOYEE EXPENSES DIRECTLY WHEN USING YOUR GES SOLUTION?

    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.

Employee Daily Management

  • WHO IS THE EMPLOYER?

    We act as local employer of record in the host country.

  • WHO MANAGES THE EMPLOYEES?

    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.

  • WHO IS RESPONSIBLE FOR THE EMPLOYEES?

    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.

  • ARE THEY EMPLOYED ON LOCAL EMPLOYMENT CONTRACTS?

    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.

  • WHO WILL BE ISSUING THE EMPLOYMENT CONTRACT TO THE EMPLOYEE?

    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.

  • HOW WILL I BE NOTIFIED OF ANY CHANGES TO IN COUNTRY REQUIREMENTS?

    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.

  • ARE EMPLOYEES COVERED BY AN INSURANCE?

    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.

  • CAN YOU PROVIDE LOCAL 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.

  • HOW DO WE MANAGE LEAVE REQUESTS AND TRACKING LEAVE CONSUMPTION?

    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.

  • CASE STUDY 1
  • CASE STUDY 2
  • CASE STUDY 3

Services: GES & PIS
Country: China
Client:

  • Company specialized in the design and production of electronic products
  • Headquarter in Europe.

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:

  • A representative office in China does not allow the hiring of an expatriate. Only Chinese employees.
  • No internal HR to take over the management of a Chinese contract and payroll.
  • HR managers are headquartered in Europe with no International Mobility experience.

Situation’s difficulties:

  • We must be able offer a Chinese employment contract, allowing the employee to be eligible for the application for the visa and work permit, and to be contracted under local contract under a structure able to host expatriates.
  • We must be able to offer medical coverage equivalent that the one in Europe.
  • We must reassure the expatriate and reduce the stress regarding the administrative burden of immigration procedures for obtaining a visa, work permit and residence in China.

Globaless Suggested Solutions:

  • Globaless trough a Chinese Local Payroll will manage payroll and mandatory pay / tax declarations according to the Chinese system.
  • Professional immigration service included “act as local sponsor in the immigration process for the expatriate and manage immigration procedures to obtain work visas, work permits and adequate residency.
  • Expat Services with a Private medical insurance, non-employment insurance and retirement funds.

Globaless Work Process:

  • Gathering information for case study and analysis of possible options.
  • Buildup of the immigration file by our team in Europe and China.
  • Direct actions with local authorities for the procedure of approval of the letter of invitation of the work visa (Z-Visa).
  • Guidance by our team for the work visa application at the Chinese Embassy in Europe.
  • Application of the work permit and residence by our local team once in the territory.
  • Registration of the employee with different administrations.
  • Assistance to open a bank account in China.
  • Payroll set up & management by our local team on a monthly base.

Customer Satisfaction:

  • The Client satisfied with the level of outsourcing of the administrative procedures that are carried out both in the departure and arrival countries, and the responsiveness and availability of our European and Chinese team. The level of monitoring and market expertise was appreciated.
  • Employment solution in accordance with local laws allowing the expatriate to work in full compliancy.
  • Because this successful solution, new requests and business were realised for the client in other countries aside from China.

Services: GES & PIS
Country: Mali
Client:

  • Company specialized in Energy and Environment consulting and technical assistant.
  • Headquarter in Europe and USA.

Needs:
5 engineers have to send to Mali for the construction of a power plant.


Client’s Challenges:

  • Although the client has no intention to open a permanent establishment in Mali, the employee mobilization must take place ASAP.

Situation’s difficulties:

  • The 5 engineers have different nationalities so the immigration process could be different for each.
  • Some engineers do not speak French and the official language in Mali is French.
  • The engineers some have been recruited specifically for this contract.

Globaless Suggested Solutions:

  • Through a Local Payroll in Mali, Globaless will manage payroll and mandatory pay / tax declarations according to the system in Mali.
  • Globaless will act as local sponsor in the immigration process for the expatriate and will manage the immigration procedures to obtain work visas, work permits and adequate residency.
  • Expat Services with an International Private medical insurance.

Globaless Work Process:

  • Buildup of the immigration file by our team in Europe and Mali.
  • Direct actions with local authorities to obtain work and residence permits.
  • Guidance by our team for the work visa application in the different embassies of Mali in Europe
  • Registration of the employee with different administrations.
  • Payroll set up management by our local team on a monthly base.

Customer Satisfaction:

  • Client was satisfied with the responsiveness and speed of execution of our team for setting up the local environment for this project.
  • 5 engineers were able to start working in a fully compliant situation for the duration of the project, especially in this risky country, by outsourcing the globality of the administrative procedures to Globaless.
  • No extra cost or lots of time for our customer.

Services: GES
Country: Mexico
Client:

  • Leasing company in high technologies.
  • Offices in Asia, Europe and USA.

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:

  • Our client does not have a local operational establishment to contract employee in Mexico
  • HR managers are not located in South America and have no experience with Mexico.
  • Our client was looking for a “turnkey” solution to help them set up and manage contracts to be able to hire at least 2 new managers.
  • Since the candidates already have an existing contract from other companies, a concrete and reassuring package proposal was needed to be able to attract the candidates to join the client’s team.

Situation’s difficulties:

  • Our client needs to quickly set up attractive packages to propose to high skilled candidates in respect with the Mexican employment laws.
  • Establish a local work contract according to Mexican law, and be able to provide benefits in kind, such as private social coverage relevant for the Mexican market.
  • Registered the candidates under a Mexican local payroll.

Globaless Suggested Solutions:

  • Through a Mexican Local Payroll, Globaless will manage payroll, mandatory salary/tax declarations, and compulsory insurances according to the regulations and system in Mexico.
  • Globaless will also include Added Valued Services such as Customized social hedge in the proposed contract.

Globaless Work Process:

  • Gathering of information and analyzing the conditions to create the employment contract to be proposed to the candidates.
  • Establishment of the Mexican employment contract.
  • Presentation of package proposal to the candidates.
  • Registration of the employee with different administrations.
  • Setting up Payroll management by our local team on a monthly basis.

Customer Satisfaction:

  • Our client is satisfied with the quality of the packages proposed.
  • A turnkey solution in Mexico was quickly setup at a lower cost compared to a company set up.
  • 2 candidates were able to start working in accordance with the local laws of Mexico.
  • Because of the successful solution, our client was able to expand in other countries as well aside from Mexico.