PEO and EOR in Dubai are third-party entities that work with your company to manage your human resources needs. Both models provide robust HR functions to assist you in growing your team and improving the employee experience. In the meantime, you concentrate on more core aspects of your business.
In this article, you will learn everything you need to know related to PEO vs EOR in Dubai. EORs offer more legal protection and opportunities for growth. On the other hand, PEOs are more akin to an outsourced HR department that works under your company’s name. Let’s observe:
1. Professional Employer Organization (PEO) responsibilities in the UAE
2. Employer of Record (EOR) responsibilities in Dubai
3. Main differences between an EOR and a PEO in Dubai
4. How can Connect Group help you?
Professional Employer Organization (PEO) responsibilities in the UAE
A PEO can serve as a springboard for global expansion. Using a PEO in Dubai eliminates the need to establish a legal entity, including all tax registrations and complicated paperwork. It also allows you to begin doing business within days.
Connect Group knows everything about payroll, taxes, labor laws, and other local regulations in the UAE. By utilizing our resources, you can begin your global expansion without difficulty and at a low cost. As you expand your operations and enforce your workforce, we can provide specific support for:
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- Payroll
- Taxation
- Human resources
- Compliance issues
What are the roles that a Professional Employer Organization (PEO) has to fulfill in Dubai?
Because we understand that one size does not fit all, our PEO services provide a consultative approach and a tailor-made solution. A PEO collaborates with Employer of Record (EOR) firms.
This organization can serve as the employer for your new employees. When you hire us as a PEO, we work together to reach an agreement and create a contract between you and Connect Group. In addition, we reach an agreement with your new employee in Dubai and sign an employment contract with him or her.
Your new workforce’s daily workflow and tasks will be completely under your control. Although we serve as your employee’s legal employer, he or she works for your company as a member of your team. Here is how our method can help you:
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- You want to re-deploy an existing employee or hire new employees in Dubai.
- Connect Group, through our Dubai entity, takes over as the candidate’s EOR once they are chosen. We guarantee compliance with employment contracts, payroll, human resources, taxation, and any required visas or work permits. Additionally, we offer visa services.
- Within a few days, your company will have an international presence in a new market, in a prominent position. This will be without the risks, hassle, or expense of establishing your own subsidiary.
- You will be in daily contact with the employee, while we will handle all work-related registration formalities. Our consultants educate your employees on their vacation, benefit, and entitlement policies.
Employer of Record (EOR) responsibilities in Dubai
Establishing a successful enterprise in a different country necessitates expert intervention. This is because it is nearly impossible to be familiar with the country’s various compliance policies. EOR services can make it easier to do business on a global scale. Their extensive research on the country’s laws and HR policies ensures faster business expansion.
An effective EOR service manages the entire employee life cycle. They handle complex HR issues, allowing you to focus on your core responsibilities. Connect Group EOR solution makes it easy to expand your business. We can also include the following facilities on the payroll:
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- Employee and worker social security.
- You will not have to make tax returns.
- Employee legal contributions and social security are not available to foreigners.
- Corporate tax is not levied.
- Local employees are eligible for a 12.5 percent reduction in their pension contribution.
Connect Group’s team of knowledgeable professionals will handle the time-consuming task of managing global payroll, compliance, and taxation on your behalf. Speak with us about forming a global team of efficient workers.
On the other hand, if you want to set up a company in Dubai Mainland, we can also help you.
Employer of Record UAE benefits
Allow us to assist you in dealing with all of the complexities of your expansion process. We are here to help you at every step, whether it is hiring employees, distributing payroll, or managing expenses. Join forces with us to launch your global business with confidence.
Market entry
Using the professional expertise of an Employer of Record is the most efficient way to enter a new market quickly. An international organization can use EOR in Dubai services to hire UAE employees to work for its company. Aside from providing quick access to the UAE market, the EOR also allows the client to alleviate payroll and HR concerns.
In accordance with local laws
It is difficult to overlook the significance of regulations and compliance in a foreign country. If you run a business in the UAE, you must be aware of the payroll and taxation rules. A company can use UAE Employer of Record services to hire foreign individuals or local employees while dealing with the complexities of the country’s rules.
An EOR company handles it all, whether it is income tax, social security contributions, expanse management, withholding charges, or business tax.
A variety of solutions
Whether you already have a business in another country or are planning to start one, an employer of record can be of great assistance. The EOR Company can hire staff on your behalf without the need for you to open a branch in the UAE. Furthermore, we offer effective staff outsourcing services.
If your company is already in operation, using EOR to manage payroll tasks can be a great idea. This is because they can present an effective solution to the country’s tax and accounting responsibilities.
Additionally, with us, you can learn about staffing firms and EOR responsibilities.
Main differences between an EOR and a PEO in Dubai
EORs handle hiring and employment on your behalf
Consider a PEO to be an outsourced HR department with employment restrictions (like hiring and contracts). Employee onboarding, employee reviews, contract termination, and most other day-to-day HR services are handled by them. A good PEO will also provide you with valuable advice on how to improve your hiring process.
However, in the end, you are the primary manager of employment at your company.
On the other hand, EORs can provide significantly more relief in terms of hiring and employment. They are legal employees of people who work for you, requiring much less oversight and effort from you. It does not matter if you are a small business without an HR department or a company looking to expand globally.
EORs provide superior employee benefits and insurance
With a PEO in Dubai, you may be responsible for providing some types of insurance to your employees. PEOs typically pay both state and federal unemployment taxes. In addition, depending on your location and the quality of the PEO in Dubai, they may offer health insurance.
However, PEOs rarely cover worker’s compensation. Thus, if material damage or bodily harm is common in your industry, you will have to obtain your own insurance coverage.
On the other hand, EORs offer superior risk management and employee benefits while saving you time dealing with insurance providers and paperwork. EORs provide comprehensive insurance, including general liability, workers’ compensation, and other types of insurance mandated by each employee’s home country.
EORs also assume full liability for the client company’s employment arrangement.
To hire a PEO, you must have business registrations
PEOs are co-employers of people who work for you, not employers, which means you must register your business wherever your employees live. If you only plan to hire locally, this is not a big deal.
However, if you intend to hire outside of your state or country, there will be paperwork to do. Namely, you must first obtain a business registration or establish a local entity in the location where you intend to hire.
Because EORs employ the people who work for you, partnering with an EOR allows you to hire workers wherever the EOR has a local entity. With Connect Group as your Employer of Record, you will not need to open a branch office in a new state or country to hire a local.
Global hiring is a huge benefit for businesses looking to enter new markets or hire the best (rather than just the closest) talent. Additionally, we offer outstanding company formation services. Hance we can assist you in setting up your business in Dubai free zones, such as RAKEZ and JAZFA.
EORs are in charge of international compliance and legal obligations
You do not just need the proper business registration to hire non-local employees with a PEO in Dubai. Plus, you will also need to handle all legal compliance. Compliance is extremely complicated: you must become acquainted with labor laws and regulatory compliance documents on your own.
And if you make a mistake or fail to complete a form, you will face legal consequences.
On top of payroll processing, benefits administration, and employment contracts, EORs handle all legal compliance documents. This means you can recruit people from all over the world. And you can do it without having to worry about local labor laws, tax filing, or the word “compliance.”
Furthermore, because EORs are legal employers, they assume full legal responsibility for your company’s service providers. You will not be held liable for any compliance violations that occur.
PEOs typically require a minimum of 5-10 employees
To ensure that co-employment is profitable for them, most PEOs have minimum employment quotas. The bare minimum of employees is usually between five and ten. This is not an issue for larger companies. However, this is a significant issue for small businesses that may have used a PEO as their first few employees’ HR solutions.
EORs, on the other hand, do not require a minimum number of employees. EORs are typically larger parent organizations that operate on a global scale regardless of their client companies. Hence, it is simple for them to serve small businesses (or enterprises with high-volume, international staffing needs.)
EORs also have more flexible offerings: you can work with them for a full employer solution or just for specific HR services.
How can Connect Group help you?
Much of the PEO vs EOR decision is influenced by your workforce strategy. Are you planning to hire a contingent workforce shortly? Then an EOR in Dubai is the best option. Do you want to outsource every HR function possible, from onboarding to benefits administration? Employ a PEO in Dubai.
Hence, we can offer both. Needless to say, but extremely important: we ensure your company complies with all regulations and laws, areas in which failure to comply can result in severe penalties. Your chosen candidate is hired through one of our Dubai agencies and is under your direct supervision daily.
Would you like to contact Connect Group to obtain more information about PEO and EOR services in Dubai? If you have any questions, you can email us at [email protected]. Following, you will talk to one of our representatives who will answer your questions.
