This Webinar session aims to explain how businesses can achieve high-speed market entry into Malaysia through a Professional Employer Organisation (PEO) or Employer Of Record (EOR).
Free On-Demand Webinar | Malaysia | 25th June 2020, Morning and Afternoon Session
Entering Malaysia's Market Quickly and Compliantly with PEO/EOR
In this episode, you will understand how a PEO or EOR can help your business to expand into Malaysia in a more cost-effective and compliant way.How Does a POE/EOR Work in Malaysia?
It involves a co-employment relationship between the PEO/EOR and your company. In this regard, the PEO/EOR will service your company in areas like HR consulting, payroll processing, employee benefits administration and labour law compliance management. On the other hand, your company retains control over its core business and maintains management rights.AYP Group's Scope of PEO/EOR Services
The following are key HR functions we can manage on behalf of your business:- Drafting and maintenance of employment contracts
- Providing insurance coverage for your employees and their dependents
- On-boarding
- Processing of payroll, salary and statutory contributions
- Aligning your business in compliance to Malaysia's labour laws
- Supporting your business in day to day HR operations
Benefits of Using a PEO/EOR in Malaysia
The key benefits of using a PEO EOR include the following:- Increases cost savings in HR administration and processing
- Allows for greater focus on your core business
- Increases productivity
- Reduces compliance risks
- Minimizes bureaucratic hassles
Understanding Malaysia's Contract Types, Labour Laws and Employee Benefits
For detailed explanations and elaborations on the mentioned terms, you may refer to the Webinar recording that has been uploaded on YouTube: https://youtu.be/0-1AdkGlzcg1. Contract Types
In Malaysia, there are two types of contracts:- Permanent employment contracts
- Fixed-term contracts
2. Labour Laws
Employment law in Malaysia is generally governed by the Employment Act (EA) 1955. Non-EA employees, however, are governed by their contract of employment.3. Employee Benefits
Employee benefits include salary payment, leave entitlement, termination payment and statutory contributions. Firstly, regular and overtime pay rates must follow the guidelines for work days, rest days and public holidays. Next, depending on their duration of service, employees are entitled to a stipulated set of annual and medical leave days. Likewise, employees' termination payment is pro-rated and varies according to their employment tenure. Furthermore, employers must process the termination payment within 7 days from termination. Finally, mandatory statutory contributions for both employer and employees include the following:- Employees Provident Fund (EPF)
- Social Security Organization (SOCSO)
- Employment Insurance System (EIS)