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  1. Overview: Aruba
  2. Global PEO and payroll
  3. Contractor vs. employee: which is better?
  4. Expand without a company set up
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Global Employer of Record in Aruba

What Is a Global Employer of Record?

A Global Employer of Record (Global EOR) is a third-party organisation that shoulders the legal and administrative responsibilities of hiring, employing, and managing staff on behalf of a client company. Unlike a standard Employer of Record, a Global EOR can operate across multiple countries, offering a unified solution for managing international employees.

This international talent engagement model is especially advantageous for companies expanding into new markets. Typically, such expansion would require establishing a local legal entity, a time-consuming process laden with bureaucratic hurdles. Global EOR circumvents this necessity. It allows companies to deploy staff in multiple jurisdictions without navigating the complexities of local employment laws, tax structures, and compliance norms. This streamlined approach eliminates the daunting upfront investment and operational costs of establishing a foreign subsidiary or business unit.

The flexibility of a Global EOR model makes it ideal for market testing and agile operations. Companies can quickly enter and exit markets, scaling their workforce up or down based on real-time needs and market conditions. Not only does this minimise risk, but it also preserves the company’s existing tax structure and corporate governance framework. The result is a more efficient, compliant, and strategic approach to international business expansion.

Global Employment Solutions

Express Global Employment provides comprehensive services for building a global team, handling all aspects from hiring to compliance. Here’s what a Global Employer of Record can do:

  • Global Mobility Support: Simplifies onboarding and immigration, enabling quick onboarding and engagement of international talent.
  • Effortless Onboarding: Streamlines global employee onboarding to enhance productivity and speed up results.
  • Global Payroll & Benefits Management: Manages international payroll and benefits, ensuring compliance and competitive compensation.
  • Borderless Expansion Without Local Entities: Facilitates workforce expansion in 190 countries, removing the need for local business entities.
  • Hire Internationally, Operate Everywhere: Offers support for scaling operations and seizing international opportunities swiftly.
  • Risk-Free Market Navigation: Provides expert guidance for secure expansion, managing permanent establishment, employee misclassification risks and compliance challenges in new markets.

Global Knowledge. Local Expertise and Support

  • Faster time-to-hire with streamlined paperwork and communication
  • One solution to onboard and manage all team members
  • Streamlined global payroll, consistent benefits
  • Single source of truth for contracts and documents
  • Dedicated customer service
  • 24/7 local support
  • Simplified hiring for Full-time employees and contractors
  • Expertise with hiring and firing local and foreign workforce.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

Global Employer of Record (EOR) services are an increasingly popular solution for businesses looking to expand their operations internationally without establishing a legal entity in the new location. Here are some facts about Global Employer of Record services:

Speed of International Expansion and Cost-Effectiveness

Setting up a legal entity in a new country can be costly and time-consuming. Global EORs offer a more cost-effective solution by eliminating the need for a physical presence or local incorporation, reducing overhead costs. By using a Global EOR, companies can quickly hire employees in new countries without the delays associated with setting up a local entity. This speed is a significant advantage for rapidly capitalising on new market opportunities.

Flexible and Strategic Market Scaling with Global EOR

Global Employer of Record services blend customisation and agility, making them ideal for dynamic market entry and exit strategies. These services are designed to adapt to a company’s specific needs, allowing for scalable solutions aligned with their growth and expansion plans. Businesses can swiftly respond to changing market conditions, scaling their workforce up for market testing and expansion or down for efficient market exit. The result is a streamlined, compliant, and strategic approach to global workforce management, enabling companies to navigate international markets more easily and effectively.

Global EOR: Simplifying Compliance for International Operations

Global Employer of Record services not only navigate the ever-changing labour, tax, and immigration laws across different jurisdictions but also significantly simplify compliance for their client companies. By managing these complex legal requirements, Global EORs relieve businesses from the burden of keeping track of diverse and evolving legal standards in each country they operate. This ensures that companies remain compliant with local laws without dedicating extensive internal resources to legal research and adaptation, allowing them to focus more on core business activities and strategic growth in international markets.

Tailoring Cross-Border Employment Contracts with Global EOR

Global Employers of Record specialises in drafting compliant employment contracts for cross-border hiring scenarios. They ensure these contracts adhere to the specific legal standards of each jurisdiction and are available in the local language, a critical factor in many areas. This expertise in contract drafting is vital for businesses undertaking temporary projects or market testing, as it helps navigate the complexities of international employment while avoiding potential legal pitfalls. Partnering with a Global EOR allows companies to confidently engage in global projects, knowing their contractual obligations are managed effectively.

Streamlined Payroll Management with Global EOR

Global EOR services efficiently handle payroll management, including both employer and employee taxes, and ensure accurate tax reporting in target countries. This approach guarantees compliance with local labour and tax codes, significantly reducing the administrative burden and risk of non-compliance for businesses expanding internationally.

Comprehensive Benefits Administration

Global EORs adeptly manage benefits administration across different countries. They ensure that compensation packages are competitive and fully compliant with mandatory benefits requirements in the target countries. Additionally, they consider and implement optional benefits that align with standard business practices in each location, enhancing employee satisfaction and adherence to local norms.

Proactive Risk Management with Global EOR

A Global Employer of Record proactively manages employer responsibilities and liabilities, offering a layer of protection to client companies. This role encompasses efficiently handling any employment-related matters, ensuring compliance and reducing the risk of complications such as employee misclassification or the inadvertent establishment of a permanent presence. By taking on these responsibilities, the Global EOR facilitates a smoother, more secure international business operation for its clients.

Enhancing Remote Work with Global EOR

Global Employer of Record services simplify the hiring and management of remote employees globally, adapting to the rise of remote work. They handle the intricacies of international employment and tax laws, enabling companies to build a diverse, distributed workforce seamlessly. This support is crucial for businesses seeking to tap into a wider talent pool and leverage the benefits of a flexible, global team.

Global EOR Services: Facilitating Workforce Mobility

Global EOR services also offer comprehensive immigration support, including work permit sponsorship and assistance with securing business visas for international employees. This is particularly valuable for employers without a legal presence or established HR infrastructure in target countries, ensuring smooth and compliant international workforce mobility.

Global EOR Efficiency: Reducing Vendor Complexity

Utilising a single Global Employer of Record partner empowers businesses to manage employees across multiple countries efficiently. This unified approach simplifies complex international HR processes, providing consistency in employment practices and compliance standards across different jurisdictions. It eliminates the need for multiple local HR teams or legal advisors, ensuring a cohesive and streamlined strategy for global employment.

A Global Employer of Record can effectively consolidate multiple services, replacing the need for various vendors across jurisdictions:

  1. Payroll and Tax Compliance: Manages payroll processing, tax withholding, and reporting, aligning with local regulations.
  2. Benefits Management: Constructs and administers comprehensive and competitive employee benefits packages, adhering to local laws.
  3. HR Expertise: Offers a full range of HR services, including streamlined and compliant employee onboarding, talent management., and offboarding.
  4. Background Verification: Conducts employee background checks, ensuring compliance with regional standards.
  5. Intellectual Property Assistance: Aids in protecting intellectual property rights across different jurisdictions.
  6. Tax Consultation: Provides expert advice on local tax laws and compliance.
  7. Translation Services: Offers language support to bridge communication gaps in multinational operations.
  8. Legal Advisory: Delivers legal expertise, including contract review and regulatory compliance.
  9. Immigration Guidance: Assists with work permit sponsorship and visas for international employees, simplifying the immigration process.

Spotlight on Aruba

  • Location – in the southern Caribbean Sea, located about 1,600 kilometres (990 mi) west of the main part of the Lesser Antilles and 29 kilometres (18 mi)[5] north of the coast of Venezuela
  • Capital – Oranjestad.
  • Population – Aruba has a population of about 104,822 and an area of 178.91 sq. km.
  • Currency – Aruban florin (AWG)
  • Holidays – Aruba has ten major public holidays: New Year’s Day, Betico Croes’ Birthday, National Anthem and Flag Day, Good Friday, Easter Monday, King’s Day, Labor Day, Ascension Day, Christmas Day, Boxing Day

Acumen International offers a global PEO and payroll solution to take care of all the details of payroll while ensuring full compliance with in-country labour and taxation laws. To get more information about Acumen’s Global PEO and payroll service in Aruba click here.

More and more global companies are seeing the value of hiring international employees in Aruba to have a presence in this market. With local legislative peculiarities, the challenge is to engage the global workforce risk-free and cost-effectively.

With this in mind, Acumen International has designed a global employment, aka International Employer of Record (EOR) payroll solution, to help global companies like yours expand their international reach or engage the brightest global talent with their projects. If you are seeking to reinforce your internal team with the expertise of a global talent based in Aruba, if you have already selected a candidate and want him to work for you remotely from Aruba in a legally compliant way, our global employment solution is the way for you to go.

Like every other country, Aruba has its own employment nuances, which must be fully observed to ensure 100% compliance. Trust us to handle the global employment and HR side of your workforce management in Aruba so you are sure that none of these nuances are missed and that your employees are employed and paid properly and compliantly.

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