Employer of Record (EOR) Vietnam

How Does an EOR Ensure Compliance? What Are the Compliance Issues to Take Note Of?

AYP Group’s EOR Vietnam solution ensures compliance by:

1. Employment Contracts

   We draft and manage employment contracts that adhere to Vietnamese labor laws, covering compensation, termination, and employee rights.

2. Tax and Social Security Contributions

   AYP Group handles all payroll-related taxes and contributions, ensuring compliance with Vietnam’s tax laws and social security requirements.

3. Employee Benefits

   We ensure that your employees receive all legally mandated benefits, such as leave entitlements and social security contributions, in accordance with Vietnamese regulations.

4. Documentation and Reporting

   AYP Group maintains thorough documentation and provides regular reports to ensure transparency and adherence to local regulations.

Key compliance issues include:

• Ensuring employment contracts are compliant with Vietnamese labor laws.
• Adhering to local tax and social security regulations.
• Staying updated with changes in labor laws and regulations.

What Are the Costs Associated with Using an EOR?

The costs of utilizing an EOR in Vietnam generally involve:

1. Monthly Service Fees

   AYP Group charges a monthly fee based on the number of employees managed, covering employment, compliance, and administrative functions.

2. Payroll Expenses

   Includes employee salaries, bonuses, statutory deductions, and contributions such as to the Vietnam Social Security Fund.

3. Setup Costs

   Initial fees related to the onboarding of new employees, including contract preparation and compliance checks.

4. Forex Mark-up and Bank Charges

   Managing international payroll involves forex mark-ups to address exchange rate fluctuations, ensuring accurate salary payments. Combined with applicable bank charges, these costs are integral to smooth payroll operations.

How Does the Process of Using an EOR Work? What is the Timeline to Onboard an Employee?

AYP Group’s EOR Vietnam service streamlines the process:

1. Initial Consultation

   We start with a consultation to understand your hiring needs and business objectives in Vietnam.

2. Customized Proposal

   AYP Group provides a tailored proposal detailing the scope of services, costs, and timelines.

3. Agreement and Onboarding

   After finalizing the agreement, we initiate the onboarding process, including contract preparation, payroll setup, and compliance checks.

4. Employee Onboarding

   AYP Group manages all aspects of onboarding, from executing employment contracts to enrolling employees in benefits programs.

The typical timeline to onboard an employee in Vietnam through our EOR service is 1 to 3 weeks, depending on specific requirements and complexity.

How Does an EOR Manage Employee Benefits and Payroll?

AYP Group’s EOR Vietnam service meticulously handles employee benefits and payroll:

1. Payroll Management
   

   We ensure timely and accurate payroll processing, including salary disbursement, tax deductions, and contributions to the Vietnam Social Security Fund.

2. Employee Benefits Administration

   AYP Group manages statutory benefits such as health insurance, leave entitlements, and retirement contributions, ensuring compliance with Vietnamese laws.

3. Benefits Optimization

   We continuously review and enhance benefits packages to ensure they are competitive and compliant with local regulations.

What is the Process of EOR in Vietnam for Foreign Employees?

AYP Group’s Employer of Record (EOR) in Vietnam service simplifies the hiring and management of foreign employees:

1. Needs Assessment

   We begin by assessing your business needs to determine the most suitable work permit in Vietnam, such as the Work Permit or Investor Visa.

2. Work Permit Application

   AYP Group manages the entire application process for the work permit in Vietnam, ensuring full compliance with Vietnamese immigration regulations and timely approval.

3. Employment and Onboarding

   We draft compliant employment contracts according to Vietnamese labor laws and handle the onboarding process, including payroll setup and benefits administration.

4. Ongoing Compliance

   AYP Group ensures continuous adherence to local labor laws, manages any HR-related issues, and handles the renewal of work permits in Vietnam as needed.

5. Offboarding

   When an employee’s term ends, we manage the exit process, including work permit cancellations and final payroll processing, ensuring all legal obligations are met.

This process allows your company to efficiently hire and manage foreign talent in Vietnam without establishing a local entity, leveraging AYP Group’s EOR Vietnam services for seamless and compliant operations.

How to Get Started with EOR?

Getting started with AYP Group’s EOR Vietnam solution is straightforward:

1. Contact Us
   

   Reach out to our team for an initial consultation to discuss how our EOR services in Vietnam can support your business expansion.

2. Assessment and Proposal

   We will evaluate your needs and provide a customized proposal, including detailed pricing and service offerings.

3. Agreement and Implementation

   Upon agreement, we will initiate the onboarding process, taking over all employment-related functions to ensure a smooth transition.

4. Ongoing Support

   AYP Group continues to provide ongoing HR, compliance, and payroll management support, ensuring your business operates seamlessly in Vietnam.

Use Case: How Employer of Record (EOR) helps company to expand without an entity in Vietnam

A UK-based technology firm aimed to expand its operations into Vietnam to leverage the burgeoning tech industry. Rather than setting up a local entity, which would have involved significant time and financial investment, they chose AYP Group’s EOR Vietnam solution.

Challenges:

• Immediate need to enter the Vietnamese market to capitalize on new opportunities.
• Navigating the complexities of local employment regulations.
• Establishing a local HR infrastructure would have been resource-intensive.

Solution:

AYP Group provided a comprehensive EOR solution, including:

• Rapid Onboarding

  Efficient setup of employment contracts and payroll management.

• Compliance Management

  Handling all local tax and labor law compliance.

• Employee Benefits

  Management of statutory benefits such as social security and health insurance.

Outcome:

The company successfully hired and onboarded employees in Vietnam within weeks, allowing them to commence operations promptly. They avoided the expenses and complications of establishing a local entity while maintaining full compliance with all regulatory requirements. AYP Group’s EOR solution facilitated a smooth market entry, providing the agility needed to expand in a new region.

With AYP Group’s Employer of Record solution in Vietnam, businesses can expand operations without the need for a local entity, ensuring compliance, cost-efficiency, and a seamless transition into new markets. Contact us today to learn how our EOR Vietnam services can support your business growth.