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Compliance
Published:
October 7, 2026
Last updated:
For HR leaders hiring across several APAC markets, compliance exposure multiplies with every new country. Each market has its own payroll tax rules, social security schemes, filing calendars and contract requirements. The AYP Zero-Penalty Guarantee places the financial consequence of getting that work wrong with the provider doing the work.
If a compliance penalty arises from work AYP performs as your Employer of Record (EOR), AYP pays it. You are not invoiced for it, and it does not appear as a pass-through cost on your next payroll run.
The guarantee covers penalties that result from the employment compliance work AYP performs on your behalf. As the legal employer, AYP is responsible for the core statutory obligations in each market:
The rules behind each of these differ by market. Contribution rates, filing deadlines and penalty structures in Vietnam are not the same as in Thailand or Taiwan. The guarantee applies market by market, against the rules of the country where each employee is engaged.
The guarantee is tied to AYP's work. Penalties that originate outside that work sit outside the guarantee. In practice, that typically includes:
The precise terms are set out in each client's service agreement. A clear boundary is what makes a guarantee meaningful: both sides know in advance who carries which risk.
A penalty guarantee is only as credible as the operating model behind it. Three elements of how AYP works make the commitment sustainable.
1. Direct entity ownership
AYP owns local legal entities in Malaysia, the Philippines, Vietnam, Indonesia, Thailand, Hong Kong and Taiwan. In these markets, AYP is the legal employer, and filings, contributions and statutory reporting are executed by AYP itself rather than passed to a third party. In other markets, AYP works through vetted local partners and discloses that arrangement upfront.
2. Compliance built into every contract
Every employment contract AYP issues includes the clauses and protections required for compliant hiring in that specific market. Requirements around probation, notice periods, leave entitlements and termination differ widely across APAC, so contracts are built per country, not adapted from a regional template.
3. Local teams in each market
AYP's in-market teams handle payroll, filings and regulatory updates in the countries they cover. They work under the same rules they administer, which means changes to contribution rates, filing formats or deadlines are picked up early and applied directly.
The guarantee changes who carries compliance risk, and that shows up in day-to-day operations:
The result is a single, clear line of responsibility for employment compliance in every market where AYP employs your people.
Expanding across APAC means managing a different set of compliance rules in every market. The AYP Zero-Penalty Guarantee means the provider running that compliance also carries the cost if it goes wrong, backed by owned entities, market-specific contracts and local teams.
Planning to hire in one or more APAC markets? Speak with AYP to see how the guarantee applies to the countries on your roadmap.
It is AYP's commitment to pay any compliance penalty arising from the employment work it performs as your Employer of Record, so the cost is never billed to you.
Yes. The guarantee applies across every market AYP operates in, assessed against each country's own employment, tax and social security rules.
Penalties caused by information supplied late or inaccurately generally sit outside the guarantee. The exact terms are set out in your service agreement.
A general promise describes intent. The guarantee assigns financial responsibility: if AYP's work causes a penalty, AYP pays it.
